EDI connection

Implementing EDI: Communication Methods (Industrial/Commercial EDI Program)

Several communication standards are used throughout the Industrial/Commercial sector. This allows for multiple communication standards to satisfy all customer/supplier needs. The communication of the message syntax is generally accomplished in one of three ways:

  1. Value Added Network (VAN).
  2. Direct trading partner interface.
  3. Internet.

Value Added Network (VAN)

The Value Added Network (VAN) acts as a clearinghouse for information passing between many suppliers and customers. The network’s data management function can be thought of as a large mailbox, where each user has an assigned slot. The network accepts messages from all participants and stores them in the appropriate slots, where only the assigned users may access them. This simplifies EDI for the
trading partners, who only need to interface with their mailbox slot on the network, instead of with each individual trading partner. The network also takes over some of the control functions which must be performed by direct transmission participants.

Direct Communication

This method of communication eliminates the ongoing expense of a VAN. However, direct communication with trading partners requires an in-house communication system capable of providing the services a VAN would otherwise provide. These services include: electronic mailbox capability, security to limit system access, the ability to handle a variety of protocols and data transmission rates and the acceptable timing of the transfer of information between trading partners.

Internet

In recent years the Internet has become an option for transmitting EDI data between customers and suppliers. The upside is that the Internet is relatively inexpensive. However, the other business concerns such as secure transmission, transmission audit trails and confirmed delivery must be addressed and resolved for the Internet to be considered a viable communication alternative.

To learn more about EDI and become a CEDIAP® (Certified EDI Academy Professional), please visit our course schedule page.

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