Deringer EDI FAQs (Part 1)

Deringer EDI FAQs For Partners In Transportation Process

Deringer EDI solution for logistics offers full systems integration for customs brokerage and warehousing and distribution services. As it was mentioned earlier in the blog, EDI can totally replace manual interruption in documents processing and therefore increase business efficiency. Below we give the first portion of Deringer EDI FAQs in which partners can find answers for some basic questions regarding electronic data interchange. The given Deringer EDI FAQs cover basic definitions and conditions of electronic data interchange.

Deringer EDI FAQs

1. What is EDI?
   A: EDI (Electronic Data Interchange) is the computer-to-computer exchange of business data (e.g., Purchase Order, Invoice) between companies using networks. It replaces the faxing and mailing of paper documents. EDI documents use specific computer record formats (e.g., segments and elements) that are based on widely accepted standards. However, each company may use the flexibility allowed by the standards in a unique way that fits their business needs.
2. What are the advantages of EDI?
   A: Using EDI as a method of data exchange between companies represents a faster, more secure and reliable method of information exchange compared to exchanging paper documents via fax. The computer-to-computer exchange of business data through EDI is much less expensive than the manual handling of paper documents. Businesses are finding that they can reduce costs by automating B2B (business-to-business) processes with EDI. Money is saved through improving the speed and accuracy of electronic documents they exchange with their customers.
3. How do we implement EDI?
   A: EDI can be implemented by two parties agreeing on the data and layout that will be exchanged.  Steps include set up to send and receive the agreed upon layout, testing and then parallel processing.
4. How much does EDI cost?
   A: Cost depends if you are setting up an in-house EDI department or outsourcing EDI to a third-party service provider. In general, outsourcing is a better alternative if there is a lack of IT resources, EDI software, and infrastructure. However, setting up an in-house EDI department could be more cost-effective for large corporations.
5. As a new trading partner, we understand that your company prefers the use of EDI to exchange shipment information. Where do we begin?
   A: Deringer prefers to accept transactions via EDI because of cost and time savings, which can be passed on to clients with lower transaction costs. Once you are ready to begin your partnership with Deringer, you  should submit the New Partner Package form for Brokerage or the New Partner Package form for Warehousing and Distribution and Deringer will manage all requests based on business requirements. After Deringer setups your trading profiles and establish a communication connection, they will contact your company.
6. We are not EDI ready yet. What should we do? 

   A: If EDI is not a viable option for your company right now, other available options including creating Customs brokerage documents using eShipPartner® AIMS or eShipPartner®/Docware.  Customers using Deringer for distribution services, can enter orders through our Warehouse Management online order entry system.
7. What communication protocols does Deringer support? 

   A: Deringer supports most common communication protocols AS2 (Application Statement 2), HTTPS (Hyper Text Transfer Protocol over SSL), VAN (Value Added Network), FTP (File Transfer Protocol), FTPS (File Transfer Protocol Secure), SFTP (SSH File Transfer Protocol), and SMTP (Email).
8. What is a VAN?
   A: VAN stands for Value Added Network. A VAN is responsible for the secure and reliable communication of EDI documents over the networks. VAN will interconnect with your business partner’s VAN to exchange business data. Data can be tracked, resent, or deleted. Deringer uses a variety of communication methods such as VAN, FTP, AS2, and HTTP to exchange transaction data.
9. What VAN do you recommend for us to exchange EDI documents with Deringer? 


   A: Deringer connects to Inovis VAN to exchange EDI documents with other VANs or EDI providers. Deringer is able to exchange EDI documents directly through VANs such as Inovis, Sterling Commerce, and GXS. If you are currently using a different VAN, or your service provider uses a different VAN, you will need to request that your VAN or provider sets up an interconnection to one of these providers.