Electronic Data Interchange
EDI is simply the exchange of business documents using computer technology. EDI standards (ASC X12) provide common formats for business documents such as Invoices, purchase orders and remittance slips (some common trading documents are listed in the menu on the left).
EDI is an extremely efficient form of conducting business because of it's many benefits: Reduced cycle time, costs and minimization of paper use and storage. Increase in productivity, sales, and cash flow reduction. Improvement in accuracy, inventory management and customer service.
EDI has become a condition of doing business with MANY companies in the retail, automotive, grocery, electronics, real estate and banking industries.
Call us for a consultation over the phone. We can schedule a FREE demo of EDI for Sage 100 ERP and see if this product is right for your company.
Questions and Answers
What is EDI?
What is ASC X12?
- Electronic Data Interchange (EDI) is the exchange of electronic business documents.
What is a VAN?
- The Accredited Standards Committee (ASC) X12 was founded in 1979 by ANSI (American National Standards Institute) in order to develop standards for electronic exchange of business documents between different industries.
Although we refer to ASC X12, there are other standards out there - for example, HIPAA (Health Insurance Portability and Accountability Act) which is designed for the healthcare industry.
Is there an alternative to using a VAN?
- A VAN ensures reliable delivery of information in a secure environment. It provides a "mailbox" service where documents from senders are stored and then delivered to the recipients system upon request.
Who can use EDI?
- A VAN (Value Added Network) is the most commenly used method of EDI document trading. Keep in mind that a VAN is a third party, and there are ways to link directly to your trading partners. For example, VPN (Virtual Private Network), FTP (File Transfer Protocol) and EDIINT (EDI over the Internet) can be used as direct connections to your trading partners. We can help you determine what method of communication is best for your business.
Which industries are using EDI?
- Absolutely any company that exchanges services or goods can use EDI.
What is a UCC-128 Label?
- Currently the automotive, freight, banking, retail, grocery and electronics industries are using EDI. The U.S government also uses EDI standards to conduct business.
- Many companies require that their shipments be labeled with UCC - 128 labels. The label connects the physical contents of the shipment to the electronic information. These labels must follow a specific format (set by you and your trading partners) and must contain accurate information.