How Does EDI Work? - EC/EDI, Ltd.

How EDI Works

An individual company has an application such as an order request/inventory system that needs to communicate with a vendor application such as order fulfillment/ inventory system. Standards in communication first must be determined. Different industries adhere to different standards such as ANSI, VICS (retail), TDCC (transportation), or AIGI (Automotive) as examples.

Once the standards are set, maps are created within the translator to convert application data into EDI data or vise-versa, depending on whether it is an inbound or outbound document. Translators are software/application modules that interpret data according to the pre-determined standard. The cost of a translator varies, depending on a number of factors, including the volume of EDI data being processed, and the level or complexity of EDI and integration that is required. Translators that require mainframe or other larger servers are more expensive than PC translators. The maps that are created can sometimes be very generic, but most of the time they are specific to a customers / vendors preferred standards or needs. There are also different maps for each type of transaction that needs to be processed (purchase order, invoice, ship notice, etc.).

Translators then transmit data to the individual company’s network, which then relays that standard-formatted data to a Value Added Network (VAN) or shared network. VANs are typically hosted off site of both parties, and the costs for using a VAN are based on the size of the transactions going through the system, by character. Usually, each trading partner will pay for costs on their “side” of the VAN. There may also be small, fixed fees for having a mailbox on their network or for doing an interconnection with other VANS.

"Their staff is thorough, competent and reponsive to our needs. Because we have outsourced our EDI to EC/EDI, I have one less concern about day-to-day operational issues."

Christopher Emminger
Senior Systems Manager
Brush Wellman Corp.

"We just recently switched to EC/EDI from another EDI provider. Their VAN service is great and the staff is extraordinarily knowledgeable and can answer any questions we have. They go the extra mile to take care of us."

Beverly Green
Information Manager
Emess Corp.