EDI healthcare

Frequently Asked Questions about the usage of the GS1 EDI in healthcare

We sum up the series of the posts about GS1 in Healthcare, and give a portion of the Frequently Asked Questions about GS1 EDI implementation.

What is Order to Cash?

The supply chain in trading of products can be divided into three basic steps:

  1. Ordering products.
  2. Delivery of ordered products.
  3. Payment for products delivered.

That is why it is called Order to Cash. These steps require exchange of business information between
the buyer and seller:

  1. Buyer needs to send an order.
  2. Seller needs to inform the Buyer which and when the products are sent and when they will arrive.
  3. Seller needs to send an invoice to receive payment for the products delivered.

This information can be exchanged in traditional ways or it can also be automated, which allows to eliminate errors and speed up the process. Such automation can be achieved by the use of EDI.

What are the basic messages I need to implement in Order to Cash?

EDI standards define many different messages adapted to various business scenarios. There are three core messages for Order to Cash process:

  • Order
  • Despatch Advice
  • Invoice

Implementing these three messages can significantly improve supply chain efficiency and accuracy, shorten the time of waiting for delivery and payment. They can be later complemented by messages such as the Order Response, Receiving Advice, Remittance Advice or Invoice Response.

What GS1 standards other than EDI messages which need to be used in Order to Cash?

Within the EDI messages, the following GS1 Identification Keys are used:

  • GTIN – Global Trade Item Number identifying products; all information about the products in Order to Cash transactions will be referenced by their respective GTIN.
  • GLN – Global Location Number identifying physical and functional locations, as well as business partners; all information about the partners involved in Order to Cash transactions and their locations will be referenced by their respective GTIN.
  • SSCC – Serial Shipping Container Code identified logistic (shipping) units assigned for their life time; the Despatch Advice contains the content details of each individual logistic unit. If there is a need to provide additional information on the transport item, it can be placed together with SSCC on the GS1 Logistic Label. This additional information can be addressed to logistic providers or to complement the Despatch Advice content necessary at the goods despatch or receipt.

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

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