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How can you use the newest EDI standards?

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Electronic Data Interchange (EDI) is a way of exchanging business documents electronically between different parties. It can help you streamline your processes, reduce errors, and save costs. But EDI is not a static technology. It evolves with new standards and formats that offer more benefits and features. How can you use the newest EDI standards to improve your business? Here are some tips and examples.

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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 Understand the EDI standards

EDI standards are sets of rules and guidelines that define the structure, syntax, and content of EDI documents. They ensure that different systems can communicate and interpret the data correctly. There are many EDI standards, such as ANSI X12, EDIFACT, TRADACOMS, and XML-EDI. Each standard has different versions, sub-sets, and industry-specific variations. You need to understand the EDI standards that your trading partners use and the ones that are relevant for your business. You can find information about the EDI standards on their official websites, or use online tools and resources to learn more.

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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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Stay informed about updates, revisions, and new versions of EDI standards to adapt to evolving industry requirements, technology advancements, and trading partner preferences. Monitor industry forums, working groups, or standards organizations (e.g., ASC X12, UN/CEFACT) for announcements, updates, and discussions related to EDI standards evolution.

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2 Choose the right EDI format

EDI format is the way you encode and transmit your EDI documents. It can affect the speed, security, and compatibility of your EDI transactions. There are different EDI formats, such as EDI-INT (AS2), FTP, SFTP, HTTP, and Web Services. Each format has its advantages and disadvantages, depending on your needs and preferences. You need to choose the right EDI format that suits your business goals, technical capabilities, and budget. You can consult with your EDI provider or your trading partners to find the best option.

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3 Implement the latest EDI versions

EDI versions are the updates and revisions of the EDI standards. They introduce new features, functions, and improvements to the EDI documents. They can help you comply with the latest regulations, meet the changing demands of your customers and suppliers, and enhance your efficiency and accuracy. You need to implement the latest EDI versions that are compatible with your trading partners and your industry. You can check the release notes and documentation of the EDI standards to see what changes and benefits they offer. You can also use software or services that support the latest EDI versions and automate the updates.

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4 Use the optional EDI segments

EDI segments are the building blocks of EDI documents. They contain the data elements and qualifiers that convey the information and details of the transactions. Some EDI segments are mandatory, meaning they must be included in the EDI document. Others are optional, meaning they can be added or omitted depending on the situation. You can use the optional EDI segments to customize your EDI documents and provide more information and value to your trading partners. For example, you can use the NTE segment to add notes or comments, or the REF segment to add reference numbers or codes.

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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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Mandatory EDI segments are essential for compliance with standard EDI formats and ensuring interoperability between trading partners. However, the interpretation and implementation of optional segments can vary, leading to potential discrepancies in how information is communicated and processed. This variability can undermine the reliability and consistency of EDI transactions, affecting business operations and partner relationships.

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5 Validate and test your EDI documents

EDI validation is the process of checking and verifying that your EDI documents comply with the EDI standards and formats. It can help you avoid errors, rejections, and delays in your EDI transactions. You need to validate your EDI documents before you send them to your trading partners or receive them from them. You can use software or tools that can perform EDI validation and report any issues or discrepancies. You can also test your EDI documents with your trading partners to ensure that they can process and acknowledge them correctly.

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6 Monitor and optimize your EDI performance

EDI monitoring is the process of tracking and measuring the status and quality of your EDI transactions. It can help you identify and resolve any problems, improve your customer service, and optimize your EDI performance. You need to monitor your EDI transactions regularly and proactively. You can use software or services that can provide you with real-time visibility and alerts on your EDI transactions. You can also use analytics and reports to evaluate your EDI performance and find ways to enhance it.

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7 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 the newest EDI standards?

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1 Understand the EDI standards

2 Choose the right EDI format

3 Implement the latest EDI versions

4 Use the optional EDI segments

5 Validate and test your EDI documents

6 Monitor and optimize your EDI performance

7 Here’s what else to consider

Electronic Data Interchange (EDI)

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