How can you use EDI over the internet?

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Electronic Data Interchange (EDI) is a way of exchanging business documents, such as orders, invoices, and shipping notices, between trading partners in a standardized format. EDI can improve efficiency, accuracy, and speed of transactions, as well as reduce costs and errors. However, traditional EDI systems rely on dedicated networks and protocols that can be expensive and complex to maintain. In this article, you will learn how you can use EDI over the internet, which offers more flexibility, security, and scalability.

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jaya Krishna tummala ,MS, CSM

Award Winning Senior Functional Quality Assurance|BSA|SAP QA|Safe 6.0 Agilist|Sigma Xi Full Member|IEEE Senior…

1 Benefits of EDI over the internet

Utilizing the internet as a medium for EDI can offer several advantages over traditional EDI methods, such as lowering costs by avoiding value-added networks (VANs) or leased lines, and enabling greater reach to connect with more trading partners. Additionally, it allows for higher security with encryption, authentication, and digital signatures to protect data integrity and confidentiality. Moreover, it provides easier integration by leveraging existing web technologies and protocols like XML, HTTPS, and SOAP to integrate EDI data with internal systems. Finally, it enables faster processing to exchange documents in real time or near real time to reduce delays and errors in business processes.

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jaya Krishna tummala ,MS, CSM

Award Winning Senior Functional Quality Assurance|BSA|SAP QA|Safe 6.0 Agilist|Sigma Xi Full Member|IEEE Senior Member|Fellow IETE|Author
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Integrating internet-based EDI with existing systems, applications, and business processes may require substantial effort and expertise to overcome integration challenges, data format conversions, and interoperability issues. Organizations must invest in integration tools, middleware solutions, and API frameworks to streamline integration and ensure seamless data exchange between internet-based EDI systems and internal IT environments.

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2 Types of EDI over the internet

Different types of EDI over the internet can be implemented, depending on needs and preferences. Web EDI is the simplest and most accessible form, allowing a web browser and secure website to send and receive EDI documents. It is suitable for small and medium-sized businesses with low transaction volumes or basic integration requirements. AS2 EDI is more advanced and secure, using the AS2 protocol based on HTTPS to transmit EDI documents as attachments to encrypted and signed messages. It requires AS2 software and certificates, as well as agreement on communication parameters. This type of EDI is ideal for large businesses with strict security and reliability standards, such as those in retail or healthcare. FTP EDI is more flexible and scalable, using FTP protocol based on TCP/IP to transfer EDI documents as files between servers. It can use encryption, compression, and authentication for security. This form of EDI requires FTP software and access to FTP servers, plus agreement on file formats and naming conventions. It is suitable for businesses handling large volumes of transactions or complex file types, such as those in manufacturing or logistics.

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3 How to choose the best EDI over the internet option

When selecting an EDI over the internet solution, there is no one-size-fits-all answer. You must consider various factors such as your budget, trading partners, business requirements, and technical resources. To find the best option for you, evaluate your current and future needs, compare the features and benefits of different options, and consult with trading partners and EDI providers. Your budget will determine how much you are willing to spend on EDI software, hardware, and services. You should also consider the number and type of trading partners you have, their EDI capabilities and preferences, your business objectives and expectations from EDI, legal and regulatory requirements for your industry, and how easy or difficult it is to integrate your EDI data with existing systems and applications.

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4 How to implement EDI over the internet

Once you have chosen the best EDI over the internet option for you, you need to take some steps to implement it successfully. Primarily, you should select an EDI provider that can provide the services and support you require, such as web hosting, software installation, data conversion, mapping, testing, training, and maintenance. Additionally, you should negotiate and sign an EDI agreement with your trading partners that defines the terms and conditions of the EDI relationship. After that, configure your EDI system according to the specifications of your EDI provider and your EDI agreement. This includes installing the software, obtaining certificates, creating user accounts, and defining communication settings. Furthermore, it is essential to test your EDI system with your EDI provider and trading partners to ensure that data transmission, conversion, validation, and integration are functioning properly. Finally, monitor and improve your EDI system regularly to identify any issues or inefficiencies and optimize your EDI performance.

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5 Best practices for EDI over the internet

To make the most of EDI over the internet, you should maintain good communication with your EDI provider and trading partners, adhere to industry and international standards, use encryption and authentication to secure data, backup data regularly, and update your software periodically. This will ensure compatibility and interoperability with trading partners, protect data from unauthorized access or modification, facilitate data recovery and restoration, and take advantage of the latest features.

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jaya Krishna tummala ,MS, CSM

Award Winning Senior Functional Quality Assurance|BSA|SAP QA|Safe 6.0 Agilist|Sigma Xi Full Member|IEEE Senior Member|Fellow IETE|Author
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Maintaining good communication with EDI providers and trading partners requires dedicated resources and time. In dynamic business environments, changes in personnel, operational priorities, or technical capabilities can sometimes lead to communication breakdowns or delays in resolving issues related to EDI implementations.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use EDI over the internet?

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1 Benefits of EDI over the internet

2 Types of EDI over the internet

3 How to choose the best EDI over the internet option

4 How to implement EDI over the internet

5 Best practices for EDI over the internet

6 Here’s what else to consider

Electronic Data Interchange (EDI)

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