Electronic Data Interchange - EDI by gauravjindal

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									AJAI SACHCHAR   ANAMIKA SHARMA
                                             TEAM 5




RAM KUMAR
                                              SUMMIYA SAIFY



                            RAVI CHAITANYA



KRISHNA SUHAS
             DEFINITION OF EDI
• EDI can be defined as…

   – Structured transmission of data between organization by
     electronic means
   – It is easier to describe the commonly used EDI practices.
     The collection of these common practices amounts to
     what is known today as EDI.
   – EDI can be thus described as an information sharing
     system utilizing an intermediate message store-and-
     forward entity and premeditated message syntax and
     interaction processes which are modeled by trading
     partners around standard templates.
• EDI is an agreement controlling the electronic
  transmission of business processes in which
  formalized/structured data are exchanged
  between business partners.
• Eg. PHOENIX CONTACT
                  ADVANTAGES
• Order data is only recorded once
• Administrative costs for collecting, distributing and
  archiving paper-based documents are reduced to a
  minimum
• Information exchange between companies is
  accelerated (in particular with international relations)
• Internal processes are accelerated as a result of direct
  data transfer without entering data manually
• 24-hour availability and no problems with time zones
• No more errors due to manual data input
• Greater security for planning and materials handling
• Improved material tracking
• Locational disadvantages are compensated
                History of EDI
• The earliest implementation of a system compliant
  with EDI is the British Automated Clearing Service
  (1970).
• Other early examples include LACES (1971-1981), a
  freight clearing system used at Heathrow and
  WMO, the World Meteorological Office system used
  to share weather information.
• Preliminary initiatives of trading groups increased
  and standardization in Europe soon became
  needed.
• North America had similar problems with industry
  groups making up their own standards rapidly.
     The Structure of EDI Systems
• The basic EDI structure is given below.
   – Each partner has their own internal software systems.
   – Special EDI adapters have to be implemented which will
     be able to interface with the internal system as well as
     communicate with the value added network.
   – The particulars of the message syntax and interaction
     process are negotiated between partners in advance.
     Sometimes a dominant partner will impose its standards
     on smaller partners.

  Partner A                                            Partner B
   Internal
   System
              EDI Software
                             VAN
                              VAN       EDI Software    Internal
                                                        System
           Security and Privacy in EDI

                         Digital Signatures / Encryption

                                 EDI Checks



Internal      EDI                  Protocol                 EDI      Internal
System                 Comms       Checks
                                                 Comms               System
             Adapter                                       Adapter


                          EDI Acknowledgement
                          (physical)

                           EDI Acknowledgement
                           (logical)
             Value Added Networks
•The go-between in EDI
communications
•Responsible for routing,
storing and delivering EDI
messages Provide delivery
reports
•Intelligent VANs are able to
read the EDI message itself.
•Operated by various entities
   Telecom companies
   Industry group consortiums
   A large company interacting
   with its suppliers/vendors
           EDI Outsourcing

•Complex operations
•Integration service provider
•Internet based service provider like cloud
computing
•Services like document translation
services, complete EDI systems that
include warehouse management and
financial software, scan-packing and label
printing interfaces.
                   EDIFACT
• EDI for administration, commerce and
  transportation.
• Introduced by the UN center for the facilitation
  of administration, commerce and transportation
  (UN/CEFACT) in the mid 1980s.
• Older European EDI standards such as
  TRADACOM, GENCOD, SEDAS and ODETTE have
  all migrated to EDIFACT.
• It has become an international standard as ANSI
  has stopped all work on X12 since 1997 and X12
  systems are migrating to EDIFACT
                    EDIFACT: Structure
• EDIFACT Interchanges consist of messages
  which are in turn composed of data
  segments. The segments themselves consist
  of data elements. Interchange
  I’change Header     Message        Message       Message      I’change Header


            Message      Data         Data       Data        Message
            Header      Segment      Segment    Segment      Header

                            Data       Data      Data
                           Element    Element   Element
       An EDIFACT message
UNB+IATB:1+6XPPC+LHPPC+940101:0950+1'
UNH+1+PAORES:93:1:IA'
MSG+1:45' IFT+3+XYZCOMPANY AVAILABILITY'
ERC+A7V:1:AMD' IFT+3+NO MORE FLIGHTS' ODI'
TVL+240493:1000::1220+FRA+JFK+DL+400+C'
PDI++C:3+Y::3+F::1' APD+74C:0:::6++++++6X'
TVL+240493:1740::2030+JFK+MIA+DL+081+C'
PDI++C:4' APD+EM2:0:1630::6+++++++DA'
UNT+13+1' UNZ+1+1'
                    Uses of EDI
• Financial and monetary.
  – Systems like SWIFT and EFT all use EDI.
• Governmental.
  – Payroll operations.
  – Official information sharing (e.g. For motor vehicle
    information, visas etc.).
• Transportation.
  – IATA system is built on EDI. All airplane booking and
    ticketing operations done over EDIFACT
               Benefits of EDI
• Remove document re-keying

• Eliminate paper

• Reduce lead times and stockholding

• Increase the Quality of trading relationship

• Competitive advantage
               Drawbacks of EDI
• EDI adapter software is too expensive for most
  organizations.
• The software has to be practically rewritten for different
  combinations of VANs, internal hardware and trading
  scenarios.
• The software is also subject to change when there is a
  revision in EDIFACT
• VAN subscription costs and dedicated line costs are
  prohibitive for most SMEs
• The EDI system is highly static and every business process
  has to be meticulously negotiated between partners.
• Since there is no common registry or discovery
  mechanism, partners have to retain information on
  institution codes, product codes, up-to-date catalogs etc.
  associated with everybody they do business with.
       Barriers to implementation
•   High setup costs
•   Incompatibility of hardware /software
•   Lack of standard formats
•   Lack of customer sophistication
•   Lack of awareness of EDI benefits
•   Customer education/training
•   Customer resistance
•   Corporate culture
THANK YOU

								
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