Professional Documents
Culture Documents
data, which is redundant.
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During 19601970 automation started.
Data processing is within the organization
During 19801990 : companies opened
branches abroad and international level
of speed of info. is needed. To achieve
this FAX, TELEX is used.
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Data is supposed to be standardized to
exchange information. This is the basic
need for EDI.
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EDI has its roots in 1960's
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Acquired prominence in 1990's
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EDI started implementing in transport
sector
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The EDI standards that are governing are
– ANSI – X12, EDIFACT (Has alphanumeric
identifiers)
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EDI automation is through network –
exchange of information
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VALUE ADDED NETWORK – Every one has a
network
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Ex : request for quotation, purchase order
through EDI among the industries
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Transaction time is reduced from months
to days, days to hours.
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EDI documents is a flat text file
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Codes in EDI document is only for
computer system and networks based on
standards.
EDI STANDARDS
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ANSI X12
– Has 3 digited transaction code
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EDIFACT
– EDI for Administration,commerce and
Transport
– Has Alphanumeric identifiers
Enveloping & Parsing
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Enveloping : The process of combining
multiple documents for transmission as a
unit in EDI is called enveloping
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Parsing : Extracting all the components
of each separate document for EDI so
that the data can be processed
Types of Envelopes
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Message Envelopes : A specific
document describes the types of
envelope document and the no. of
segments included in that document.
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Functional Group Envelopes : All message
envelopes of a specific transaction set
type are enclosed in this envelope.
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Interchange Envelopes : Enclose all
functional group envelopes being sent to
the same destination.
ANSI X12 Transaction Sets
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Some of the transaction sets are :
– 214 – Motor carrier shipment status
– 850 – Purchase order
– 855 – Purchase order acknowledgement
– 832 – Price /Sales catalog
– 840 – Request for quotation
– 837 – Health Care Claim
– 850 – Purchase Order
– 997 – Functional Acknowledgement
Example of ANSI data segment
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P01 ** 10 * DZ 6.05 * BP * 22211 ~
– P01 : Data segment id.
– 10 : quantity
– DZ : Code for Dozen
– 6.05 : Unit price
– BP : Quantifier (ball point pen)
– 22211 : Quantifier element
– ~ : Segment terminator
Advantages of EDI
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Error free data exchange
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Quick turn – around
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Lower Operating Costs
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Ability to do just in time
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Quick response
Cost Saving Examples
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Food processing company reduced
Purchase Order administration costs from
$70 to $0.93
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Trucking company can process 200 EDI
transactions per hour
Leading Industries
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Automotive – Big “3”
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Retail – Sears, JC Penny, Walmart, Home
Depot
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Transportation – RailRoads, Trucking,
Ocean Carriers, Fedex, Port of Seattle,
Union Pacific
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Chemical and Pharmaceutical Bayer