Receive and send information securely

EDI tools give organizations an easy way to encode and decode sensitive information so it can be transmitted securely — simply set the protocol you want to use and upload the documents. The recipient will receive them and have them decoded through their own EDI software, ensuring only those with access to the software are able to access them.

Increase the speed of data exchange

By using either point-to-point or third-party networks, EDI software opens up channels that can securely send encoded documents to a business partner within minutes, rather than relying on a physical transmission or an unsecured email. This frees up both sender and receiver to get more done throughout the day.

Standardize document transfer

EDI software can help your business send important documents to partner organizations in a standardized format, reducing the potential for leaks and ensuring everything gets where it needs to as quickly as possible. Some of the commonly used EDI standards include:

• ANSI ASC X12
• EDIFACT
• ODETTE
• SWIFT
• EANCOM
• RosettaNet
• VDA
• VICS
• Tradacoms

FAQs

What is EDI?

Electronic data interchange (EDI) is a method of sending and receiving confidential and sensitive documents between organizations. Using this protocol means you don’t have to worry about unsecured emails or potential document leaks. With EDI, simply upload your documents to the software and choose their destination. The software will encode the files and transfer them to the recipient with no further action required on your part.

How does EDI work?

To use EDI, both the sending and receiving party need to have EDI software installed and an agreed-upon encoding standard. The software uses the selected standard to automatically encrypt the documents the sender uploads, then transfer them through a secured pathway to the recipient’s EDI software. The recipient can then decode the documents and use them as needed from there.

What types of information can be exchanged through EDI?

Here are some of the commonly shared files that EDI software can help keep secure when sending:

• Purchase orders
• Purchase order acknowledgments
• Invoices
• Inventory inquiries
• Shipping notices
• Warehouse shipping orders
• Product activity reports

Which industries use EDI software?

Companies in a variety of industries use EDI to more securely and efficiently share sensitive documents and information with business partners. Here is just a sampling of some of the industries that leverage this technological solution:

• Financial services
• Software
• Manufacturing
• Distribution
• Retail
• Automotives
• Pharmaceuticals
• Electronics

How do I implement EDI?

There are two main methods of implementing EDI — through point-to-point or outsourced integration. Let’s explore a little more about each.

Point-to-Point

Point-to-point implementation, or in-house deployment, means an organization installs and houses the software on a computer or server that the company owns. This comes with a higher up-front cost and requires dedicated staff to maintain, but it comes with increased peace of mind thanks to the handling of all EDI software operations within the company rather than outsourcing, and often means shorter document transfer times.

Outsourced

Outsourced implementation means an organization partners with other organizations to handle the EDI software and transfer paths. Implementing this often requires subscribing with a cloud-based service provider, which means you’ll pay a monthly fee rather than a large up-front purchase price. This can reduce costs overall, making it beneficial for smaller businesses, and doesn’t require in-house IT staff to maintain.

What is EDI compliance?

Taking part in EDI compliance includes factors such as developing your EDI infrastructure, aligning it with the needs of your business partners and deciding what document transfer standards will be. This is a necessary and ongoing process to ensure that your EDI software continues to work as intended and communicate properly with other parties.

How do I select an EDI system?

When it’s time to choose or upgrade to the right EDI software for your business, you’ll want to consider several important factors. What are your business needs? What implementation method is best for your organization? What document transfer standards are your partners using?

SelectHub has several resources to help you navigate the EDI software market and make the process as simple as possible. Our EDI software buyer’s guide can give you a brief refresher on some common EDI features and a few software recommendations, and our comparison report can help you see how software vendors stack up next to each other.

If you’re looking for a more personalized touch, we can help with that too! Email us at [email protected] or via phone at 855-850-3850.