Implementing EDI Transactions

Implementing Initial EDI Transaction Sets: Comprehensive Guide

The decision on which EDI transaction set(s) should be implemented first must take into consideration the benefits a company expects to gain from an EDI Program. The potential cost savings, supplier and customer capabilities, and costs of EDI integration into existing business systems will influence the transaction set implementation priorities.

The suggested steps to implement the initial transaction are:

1. Identify core EDI business contacts.
2. Identify core EDI technical contacts.
3. Determine first transaction set to be implemented. It is highly recommended that input is solicited from each functional group represented on the project team to secure the required commitment and support.
4. Fill out the basic Trading Partner Profile Work Sheet for the first transaction set to be implemented. This profile contains key information required by both trading partners and is to be exchanged with potential trading partners.
5. Create transaction set mapping based on business requirements. The project team should ensure that those impacted by the implementation of EDI be included in this process.
6. Develop required internal application interfaces. Commercially available packaged business systems solutions may already be EDI capable. However, because internally developed application systems vary significantly from company to company, specific interface guidelines cannot be given. Interface or bridge programs must be developed at both ends of an information exchange in order to provide and extract data to/from an application.
7. Develop training materials and schedule training for users.
8. Synchronize internal databases to accommodate electronic trading partner requirements. For example, item information and prices between trading partners.
9. Inform Value Added Network (VAN) of new trading relationship. There are certain test procedures to follow to ensure accurate and complete transmissions, and to validate pickup and delivery procedures and timing.
10. Send/Receive first test document. A complete system test with a company’s initial trading partner verifies the completeness and accuracy of the exchange of data. It determines compliance and accuracy of the data exchange.
11. Send/Receive a 997 Functional Acknowledgment. EDI guidelines require that a Functional Acknowledgment be sent following the receipt of every EDI transaction set. The 997 should be generated automatically. The Functional Acknowledgment should be reviewed by the receiver for syntax errors.
12. Identify problem areas and correct maps and/or system interfaces as necessary.
13. Establish mutually agreed upon times to send and receive EDI documents.
14. Initial Implementation and Start-up. Once all testing procedures and internal personnel orientation have been completed, actual startup can take place. Initial implementation always involves parallel processing. This means that paper documents, facsimiles or other manual methods of information exchange are used as a backup to the EDI transmissions, which function as the actual business transactions.

While the length of time required to achieve production status may vary from user to user, it is important to establish a specific target date to “go live” with new trading partners. Lack of such a timetable can result in a lengthy period of parallel processing which delays the realization of benefits and hurts the credibility of a company’s I/C EDI program.

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