RVCF Supply Chain Guidelines: EDI Standards
While it is useful to discuss best business practices, or at least common business practices for the retail industry, the reality is that different retailers have different, and in some instances, opposing, requirements for EDI transactions and processes. There are many examples of this with the ASN. For instance, some retailers will only accept one ship notice per shipment and some will allow multiple ASN’s per shipment. This leads suppliers to ask why, if retailers say they are using “EDI standards”, there are so many variations which cause inefficiencies and one-off processing for them.
EDI standards in North America are maintained by the American National Standards Institute (ANSI). They manage hundreds of EDI transactions for multiple industries including car repair, healthcare, election campaigns, insurance, transportation, and retail. Some EDI documents are used across industries, such as the PO and invoice, so there are many ways they can be mapped and exchanged. In the 1990’s the Uniform Code Council (UCC), the precursor to GS1-US, wrote implementation guides on the use of ANSI EDI standards for retail and grocery. The guidelines were the result of quarterly physical meetings for several years, with hundreds of retail and supplier representatives. Since then, variations to these guidelines have been introduced by retailers due to the need for new functionality and business practices. Because there are so many options for conveying information via EDI, the result is that retailers vary their ASN requirements (without knowing about other retailers’ processes) while still technically following ANSI standards.
Both GS1 and ANSI state that participation in their “standards” are voluntary as reflected, in North America, by anti-trust and ability-to-compete laws. The language used in GS1 guidelines include “shall”, “should” and “may”. “Shall” means, if a company says they are following GS1 standards, then that action is required; “should” means it is highly recommended and “may” means that action may or may not be followed. GS1 and ANSI work is comprised of recommendations and individual companies are free to make independent and competitive decisions on their business processes.
RVCF recognizes that there are many advantages to normalizing and harmonizing the way in which business data is exchanged. Benefits are shared by both retailers and suppliers when EDI transactions and processes are simplified and consistent. RVCF forums provide an opportunity to exchange ideas about common and best business practices.
To learn more about EDI and become a CEDIAP® (Certified EDI Academy Professional), please visit our course schedule page.