NAME: RIMSHA AIJAZ SIDDIQUI

FACULTY: SIR TAHIR

COURSE: PROCUREMENT AND SUPPLY CHAIN

TOPIC: ELECTRONIC DATA

INTERCHANGE
 EC STRATEGY

Move From
Paper Intensive
Non - Integrated

Automated
Integrated

Create Data Once - Use It Many Times!

 The World of
Electronic Commerce

EC
EC

JIT Tech EDI VMI

Data
InterNet
Barcoding
CE E-mail
EI EBB
FAX
ELECTRONIC DATA INTERCHANGE

TRANSACTION
DATA

COMPANY A COMPANY B

EDI is the computer-to-computer exchange of routine business

documents (data) in a standard format between companies.
VALUE ADDED NETWORK (VAN)

Buyer Post Office

Seller
TRADING PARTNER

EDI
PAPER DOCUMENT INTERCHANGE

PO Data Entry

Computer Computer

Post Office

Purchaser Invoice
ELECTRONIC DATA INTERCHANGE

PO Data Entry

Computer Computer

VAN

Purchaser Invoice
HOW INFORMATION FLOW WITH EDI?
Buyer sends purchase order to seller computer.
Seller sends purchase order confirmation to buyer.
Seller sends booking request to transport company.
Transport company sends booking confirmation to
seller.
Seller sends advance ship notice to buyer.
Transport company sends status to seller.
Buyer sends receipt advice to seller.
Seller sends invoice to buyer.
Buyer sends payment to seller EDI as a fast
inexpressive and safe method.
EDI COMPONENTS

Standards Hardware

EDI

Software Communications
TYPES OF BUSINESS
TRANSACTIONS VIA EDI

Shipping Note
Other 14%
15% Credit/Debit
3%

Invoices
24% Purchase
Orders
44%
 HOW EDI WORKS !

The APL Group

quote
664 danbury Ct
ST* 843 12345
Wilson, ct NTE**Ship
Complete
RFQ # 1234
N1 *SE* The Apl
06/07/95
Grp Inc...
1 WIDGET #5678
2 dz gizmos N3 *664
DANBURY

Converts Internal Data Converts ANSI X12

Format to ANSI X12 Standard format to
(outbound) Internal Format
(inbound)
EDI SOFTWARE

1. Document Support

Database
4. Translation
Communicati
ons 2. Mapping

X12

3. Standards Support
 DATA INTEGRATION ISSUES

Database

Part List Partners Part List

New Data
Cross-referencing

Database

Integrated Applications
EDI Software

Bridge Between
Applications
Networking Users
Government Health care Retail Grocery Transportation
Policy

Advertising EDI Insuranc

e

USERS
Construction Manufacturing

Banks Chemical Electronics Petroleum Automotive

 EDI BENEFITS

Increased Business Reduced Inventory

Opportunities

More Accurate Records and Decision-making Information

Lower Data Entry Costs
 EDI BENEFITS

Decreased Mailing Costs Greater Customer

Satisfaction

Reduction In Order Time Better Cash Management

 STRATEGIC IMPORTANCE OF EDI

TIME
SEVICES

MARKET

COST BENEFIT

TRANSPORTATION SPEED

NO POSSIBILITY OF HUMAN ERROR

REDUCES THE RISK OF LOST DATA

 HOW DO YOU USE EDI?

Step 1: Prepare the documents to be sent.

Step 2: Translate the documents into EDI format.

Step 3: Connect and Transmit your EDI documents to

your business partner.
PAPER VS EDI
 ENVELOPES

Address Information Information Receipt

Information Routing

Date and Time Audit and Version

Stamp Control
ENVELOPE ELEMENTS

Identification
Information
TRADING PARTNER
ENVELOPING ISSUES

Envelope Identiffers

Addressing codes

Types of control numbers

Control number sequence

Version of standards
ENVELOPE STRUCTURE
ISA

Interchange
Interchange

IEA
 ENVELOPE STRUCTURE
ISA

GS
ISA*05*0000000000*01*PASSWORD01*01
*SENDERID
ENTIFIC*01*ReceiveidentifI*950919*1503*
U*00304*
123456789*1*T*|^
GS...
ST...
.
. GE
SE...
GE...
IEA*1*123456789^

IEA
 Summary
Communications Protocol
ISA

GS
ISA*05*0000000000*01*PASSWORD01*01* ST
SENDERID
ENTIFIC*01*ReceiveidentifI*950919*1503*U*
00304*
123456789*1*T*|^
GS... SE
ST...
. GE
.
SE...
GE...
IEA*1*123456789^
IEA
 SUMMARY
Eventually more and more business transactions
will migrate to the world wide web due to the
ease of access to this medium. Deciding which
transactions are best suited for EDI over the
internet will be function of;

ACCESSIBILITY
DATA SECURITY/PRIVACY
MEANS OF COMMUNICATION