Was ist EDI? Alles über den elektronischen Datenaustausch! (2024)

What is the meaning of EDI – Definition and origin

EDI as abbreviation stands for “Electronic Data Interchange” and refers to the electronic exchange of business documents and information between companies, usually in standardized formats.

Electronic data exchange is the most important prerequisite in order for corporate delivery can exchange messages such as orders, invoices, payment advices as other business documents paperless and efficiently between your computer systems.Manual processes are thus significantly reduced.

Actually, EDI is a pretty old hat – it has existed since the 1960s, with the aim of paper-based to automate business processes to the greatest extent. To do this, first Standards were in the 1970s EDIFACT and X12 introduced. In the 1980s and 1990s, the use of EDI expanded, especially in the automotive industry and in the retail sector.

With the advent of the Internet in the 2000s, new EDI technologies, based on protocols developed. Even today, EDI continues to play a crucial role in the global supply chain and e-Commerce.

Why EDI?

Clearly, the electronic exchange of data, companies can bring many practical advantages, such as, for example:

• Automation: Most of the business processes with EDI to automate and human Intervention is hardly necessary. Automated processes also new perspectives and business models, such as a 24/7 Online Shop.
• More Efficiency: The natural consequence of automated processes shows that the need for manual data entry and paper-based processes is significantly reduced, which in turn leads to faster transactions and lower error rates.
• Less Cost: Through the automation of business processes, a company can save on the cost of paper, printing, mailing and manual data entry.
• Error reduction: Since the data are transmitted electronically and in advance the appropriate Standards are set, fewer errors occur, which may be caused by manual data entry or Interpretation of paper documents.
• Speed: EDI allows a rapid exchange of information between business partners, which leads to a shortening of the reaction times and the chain efficiency was improved.

You will need for an EDI connection: the Software and EDI Standards

Basically, you first need a suitable Software that is able to process EDI messages and interpret. In addition, you should of course support the common EDI Standards.

EDI Software often comes in the Form of a platform solution: Many well-known Software manufacturers offer such platforms in your product, such as SAP or IBM.

Thus, the electronic messages succeeds in exchange of course, you need a suitable data format – the most well-known Standards, we introduce to you here:

• EDIFACT (Electronic Data Interchange for Administration, Commerce and Transport): This international Standard is commonly used in Europe and other Parts of the world. EDIFACT offers a wide range of message types for various industries and business processes.
• XML (Extensible Markup Language): Although XML is not really a specific EDI standard, it is often used as the basis for user-defined EDI implementations. XML allows the flexible structuring of data and is used in many industries.
• Open TRANS: Open TRANS is an open and international Standard for electronic data exchange in the areas of purchasing, procurement and supply chain management.
• TO (Business Interoperability Specifications) – Peppol: Link to Feature The UP to form a series of Standards in the framework of the Peppol eDelivery network were developed to electronic business documents, such as invoices and purchase orders, for sure between the different trade partners in Europe, not only in B2B, but also in the B2G.
• HL7 (Health Level Seven): HL7 is a Format for data exchange in the healthcare sector and is used in medical institutions and health organizations around the world.

Choosing the right EDI Standards depends on various factors, including the industry, the geographic Region, as well as the requirements of the trading partner.

EDI and communication protocols

In order for a secure exchange of business data between systems, in addition to the correct Standards and appropriate transmission paths required. The following communication protocols have proven their worth:

EDI example: The flow of a typical EDI transaction

As you can imagine the process of electronic transmission of data, specifically? We have compiled the six most important steps for you:

1. EDI Standards and protocols: Business partners, such as supplier and customer, EDI for your use news exchange, want to, it is important to agree in advance, especially on the corresponding data formats and communication protocols to be used. Only in this way can it be ensured that their respective systems to process the data correctly.
2. Type of message: It also determines which type of message (e.g., orders, invoices, delivery notes, etc.) via EDI will be sent, and what information must be included. The identification of the requirements often brings a significant time burden.
3. Data transformation: In a suitable EDI System, the business data, if applicable, can be transformed into the respective Format.
4. Infrastructure and VANs: For a successful and safe transmission of messages you will also need a reliable network and communication infrastructure: Different protocols are suitable for the electronic exchange of data, e.g., via the Internet. But also Value-Added Networks (VANs) or direct Connections from endpoint-to-endpoint are possible. More to the transmission paths here.
5. Automated reception on the partner side: Upon receipt of the EDI messages, the System of the receiver interprets the received data and integrate them automatically into its internal business processes. This step of order processing, invoicing, management, and more comprise.
6. Confirmation of the recipient: The receiver sends the i. d. R. feedback to the sender to confirm receipt and processing of the message or error.

The great advantage of EDI is that business data can largely be automated, since the Information is virtually replaced without any manual interference between the systems. The result is an increase in efficiency and the reduction of human errors.

Data interfaces, EDI and APIs

On the subject of EDI interfaces must not be missing: it can be kind of like a By rich imagine the data from point A to point B appears. The modern version of data interfaces, APIs (Application Programming Interfaces) are.

With the help of different software applications can communicate with each other. They serve as a connection between applications, systems, or platforms and allow them to share information and work together, without the underlying implementation Details need to be disclosed.

APIs often use standardized protocols and formats for the exchange of information. Examples of Representational State Transfer (REST), SOAP (Simple Object Access Protocol) and GraphQL are.

APIs provide flexibility and ease of implementation. In many cases, they are, therefore, a much more practical and cheaper Alternative to traditional EDI. In General, they are designed in such a way that they can be easily extended with new functions, or data sources add. Existing applications are not affected. Also the access to data and functions can be controlled.

Cloud or On-Premises? the different types of EDI

There are Essentially three approaches to make use of EDI. What kind is best for your business depends on certain factors, such as how it looks like in terms of infrastructure, or whether there is a stable Internet connection. We distinguish between cloud-based EDI, On-Premises and Web-EDI.

Cloud vs. On-Premises – a comparison

The location of the EDI infrastructure:

• Cloud-based EDI: EDI infrastructure is hosted in the Cloud. The entire EDI Software and Hardware is managed by a third-party, and the users access it over the Internet to the EDI services. This reduces the need for local Hardware and maintenance.
• On-Premises EDI: EDI infrastructure is locally hosted in the data centers of the company and managed. The EDI Software and Hardware are physically in the company, and the responsibility for maintenance and updates is with the company.

Scalability and flexibility:

• Cloud-based EDI: Cloud solutions are often scalable, and flexible. Companies can customize the resources on demand and pay only for what you actually use. So you can react quickly and easily to changing business requirements.
• On-Premises EDI: Usually require a greater investment in Hardware and Software. The Scale of the infrastructure can be complicated and usually requires additional investment.

Maintenance and updates:

• Cloud-based EDI: Maintenance and updating of the EDI infrastructure is carried out by the Cloud provider. This, the company is relieved of this responsibility, and enables it to concentrate on its core business functions.
• On-Premises EDI: Companies are responsible for the maintenance and updating of their own EDI infrastructure. This requires qualified IT personnel and may cause additional costs and workload.

Cost structure:

• Cloud-based EDI: Cloud solutions often have a pay-as-you-go cost structurein the company for the resources actually used numbers. This reduces the initial investment.
• On-Premises EDI: On-Premises solutions usually require a higher initial investment in Hardware and Software, as well as ongoing operating costs for maintenance and Support.

The choice between Cloud-based EDI, and On-Premises EDI depends on the specific business requirements, the internal IT expertise and the financial resources of a company. Both approaches have their advantages and disadvantages, and the decision should be made carefully in order to meet the needs and goals of the company.

Web-EDI

Web-EDI, also known as Internet-EDI or Web-based EDI referred to, is a Form of Electronic Data Interchange (EDI), which reveals as the Name suggests, over the Internet. As is the case with the cloud-based version, the Web-EDI, is a straightforward type of electronic data communication.

Expensive initial investment, and the Set-up of complex EDI systems can avoid it. Companies can access instead via web-based platforms or portals to EDI functions. Most of the Web-EDI platforms are user-friendly and do not require extensive training.

Web EDI is, therefore, particularly attractive for companies, the EDI functionality, but the complexity and cost of traditional EDI want to avoid implementations. It offers a cost-effective and accessible way to realize the exchange of electronic data with business partners and to improve efficiency in the supply chain.

Complexity and the effort

The company is moving quickly to EDI it would be nice! Practice shows, however, that the Integration of EDI into existing business systems and delivery is chain processes are often quite complicated, and with a high level of financial Balastung goes hand in hand.

One of the most common errors is the lack of communication and cooperation between the EDI-parties. It starts on an internal level, if it is entrusted to the IT Department with the EDI project and the technical departments will have an impact on their processes EDI ja – ignored.

Furthermore, the implementation of EDI is limited on the internal processes of a company, without sufficient regard to the cooperation with business partners and suppliers.

In this case, certain factors should be clarified how about: Have these partners already own EDI systems? What are the communication and messaging standards can support you?

These parameters are neglected during the planning or overlooked, may lead later to a rude awakening, as the implemented EDI System may achieve the desired Benefits and the Integration of processes does not work. A lot of money has already been for EDI projects in the Sand, because the homework is not done.

The Solution: Good preparation is everything – and this is Research, especially the careful and Define the requirements meant, and both sides of the own company, as well as in partner page. In part, some of the trade set up is a partner of EDI: The Belief that EDI switch, can therefore be time-consuming and may require negotiations and agreements.

It is important that the EDI System fits only to the internal procedures of your company, but also perfect for all other players will be matched to the supply chain are involved, regardless of their geographic location, corporate structure or area of expertise.

But also internally in the company, good communication and cooperation is essential in order to master an EDI project successfully. EDI may not be entirely a matter for the IT Department, instead, it is recommended not necessarily out of any Department employees on Board, in order to analyze pre-requirements and processes. But more on that later.

The successful introduction of EDI requires thorough planning, resource allocation and cooperation with external business partners and internal, between IT and business departments.

Poor quality of the data

Another Problem in connection with EDI defective or superfluous data. You can affect the efficiency of the EDI system and lead to a strong complex data jungle.

Similarly, it may be that EDI-relevant data are stored in different companies ' own systems, without extensive networking has taken place. This data silos make an EDI project unnecessarily complicated and cumbersome.

The Solution: EDI makes sense only if cleaned-up data are available, therefore, you Take all the supply chain relevant data under the magnifying glass, before you start with EDI!

A Revision or correction of the data is sometimes necessary.

On the other, you should take a look at where in the company for the EDI implementation of important data are located and whether they have already been sufficiently integrated so that they are suitable for the electronic exchange of data. Ideally located EDI-relevant data is collected in a The ERP System – but that is not always the case.

As already mentioned, data is often isolated in multiple data silos. In this case, you should, first of all, a System - and Data integration care that makes a subsequent EDI-implementation much easier.

Generally speaking, an EDI project is also a good opportunity for the processes along the supply chain to review, because: A meaningless process that is automated, there is still a pointless process. Involve them in the analysis of their data and processes, not necessarily all the concerned departments in order to obtain a realistic Overview.

Clean and orderly data are the best basis for order in their business processes. Then EDI and automation is worthwhile and bring your company the desired efficiency.

Safety and Compliance

The cross-company networking along the supply chain often leads to the exchange of sensitive data, which stresses the need for the topics Privacy policy and to take data security into account.Compliance and safety measures, therefore, play a crucial role in the introduction of EDI.

In addition, the threat posed by external threats such as cyber-attacks and similar risks, there is always.

These aspects are neglected, this can result in costly consequences.

The Solution: With the selection of the EDI system, companies should ensure that the chosen System has comprehensive security mechanisms and, where appropriate, can be extended. In this case, it is important to pay attention to the following points:

• Secure messaging Standards and transmission protocols
• Digital Signatures
• Message encryption
• Shipment and receipt

In addition to the technical security mechanisms should be implemented in the EDI System, it is advisable to create an agreement that regulates the handling of shared data by business partners carefully.

This agreement should define the observance of measures to safeguard the data protection and data confidentiality, particularly for sensitive data, such as customer data.

The future of EDI

Electronic Data Interchange (EDI) is evolving, and there are some Trends and future developments can be observed:

In addition to cloud-based EDI API integrations are being asked more and more, and continue to be on course for Success. Due to their flexibility, scalability and uncomplicated handling make the implementation of EDI, it is much easier.

A very exciting new development is the integration of is also Artificial intelligence and Machine Learning. The combination of these new technologies with EDI, will greatly help to improve data quality and integrity, to make forecasts and to support automated decision-making processes.

As a result, the topic of Big Data is mentioned: Who has the data well in the handle, you can use this ideal for the analysis of large amounts of data to gain from the information contained valuable insights and make informed business decisions.

The future of EDI means a new Level of efficiency, Integration and technological Innovation. Companies that keep this in view of these developments in their business strategies, will be a long-term competitive and the benefits of the new technologies and possibilities.