EDI Implementation Checklist

Implementing EDI: Step By Step Checklist

The items listed below may be used as an implementation check list written from the perspective of a large company implementing EDI. Companies may consider modifying these steps to fit their business environment.

Companies implementing EDI will have the ability to automate processes currently done manually. If these processes are inefficient, they will still be inefficient with EDI. Companies desiring to get the maximum benefit from EDI must reexamine these processes:

1. Obtain Commitment From Key Management. A corporate sponsor should be
   appointed to lend internal support to the program. As the program evolves, so
   should the sponsor’s knowledge and exposure to Electronic Commerce (EC).
2. Establish a Project Team. This team should consist of representatives from different functional areas of the business process. Each person should be involved in the initial research. The different functional groups will be able to offer perspectives from their areas of expertise.
3. Conduct EDI research and develop high level Education Program. This research and education is critical to the development of the organization’s EDI plan. Once the research is completed, it’s time to develop an EDI education program for key personnel.
4. Develop a project plan. This project plan should be developed based on the application of the results from research findings. The plan should:
   • Develop overall strategic direction for the EC/EDI program
   • List tasks and proposed time-line
   • Estimate resources for each task
   • Identify potential savings for each proposed document
5. Prioritize transactions based on both internal requirements and external demands. Survey suppliers/customers to determine their capabilities/needs and then compare these results to the organization’s capabilities and expectations.
6. Develop translation strategy. I/C EDI requires the use of software to translate the sender’s internal data into the I/C EDI format. Additionally, this software performs editing and control functions. Translation software options are summarized below:
   • Commercial translation packages
   • Core business turnkey application software that includes EDI translation
   • Value added networks/service providers
   • Understand the role of translation software.
     • Outgoing data
       1) Converts proprietary data to I/C EDI Implementation Guideline format
       2) Generates required control segments and transmission envelopes
       3) Verifies that data meets ASC X12 specifications based on the version of
       the standard being used
       4) Performs code and qualifier conversions from internal designations to
       those defined for use
     • Incoming data
       1) Reformats I/C EDI data into internally accessible formats
       2) Validates transmission functional group and transaction set controls
       3) Performs compliance checks on data received based on the version of the
       standard transmitted
       4) Generates the functional acknowledgment (997) for transmission back to
       the sender
7. Research, purchase and install any necessary hardware/software. Commercial software packages are available, to perform the above functions, that can operate on a variety of computer platforms.
8. Research and evaluate communication methods. This can be accomplished through a Value Added Network (VAN), direct connection with the trading partner, or Internet.
9. Generate a target list of suppliers and customers. Survey this list using the Partner Initial Survey contained in this document to determine ability and willingness to participate. Based on these results identify a pilot partner to begin initial testing.
10. Review internal systems and business procedures. A complete process flow analysis of current business systems should be performed. Processes for creating business information should be documented and the flow of information should be identified. Internal policies and procedures affecting the use of business information should be included in the analysis. This might include the distribution of business documents, filing and matching requirements, retention rules, legal and security requirements, etc.

Using this information, the project team can determine how I/C EDI should be integrated into existing systems, and whether any current policies or procedures must be changed. The results of this review will also permit the development of a preliminary estimate of the effort required to achieve I/C EDI integration.