EDI COMMUNICATION PROTOCOLS

EDI protocols are the software that allows two computers to communicate. For computers to exchange data electronically, they must use the same protocol. Protocols function in a variety of ways and are used for internal communications within a company as well as B2B communications.

Levels of data security and encryption, necessary hardware and software, and level of availability to receive transmissions are all dictated by EDI protocols. Many companies use different protocols, meaning that trading partners often need to be able to support more than one protocol.?

Example: You can think of protocols as languages. For two or more computers to communicate successfully, they must be using the same protocol.

Below are the four most common EDI protocols:

FTP : File Transfer Protocol (FTP) functions on a client/server system meaning that one trading partner functions as the FTP client and the other as the FTP server. The client connects to the server through a username and password authentication.

Although FTP is no longer secure enough on its own for B2B transmissions, many companies still use FTP for in-house transmissions. However, coupling FTP with VPN (Virtual Private Network) is a standard solution for businesses that want to continue using FTP for EDI B2B transmissions. VPN enables the server to verify that the sent transmission is truly from the client.

SFTP AND FTPS: Secure File Transfer Protocol (SFTP) and File Transfer Protocol Secure (FTPS) function in a similar fashion as FTP. However, both SFTP and FTPS have security layers that encrypt EDI data during transmission and then decrypt the EDI data upon arrival.

AS2: Applicability Standard 2 (AS2) was developed in 2002 solving some of the limitations found in FTP protocols. The IETF(Developed by the Internet Engineering Task Force) created the widely used AS2 protocol as well.

AS2 uses encryption keys verifying the senders of EDI transmissions providing non-repudiation and high-level security for the transmissions. Also, AS2 utilizes Message Disposition Notification, which notifies both sides of successful, decrypted transmissions.