What is Electronic Data Interchange Technology

The important problem faced in any IT industry is related to its data. There are many threats to the important data that a company has it its main priority is to save that data. Many big organization used backup agents like Net Backup and Commvault to take backup of their data on a weekly basis. There are many other threats to data like data is vulnerable to hackers, disasters or other natural calamity. To avoid this things most of the companies in the world prefer to have more than one data center and then data is replicated and transmitted via different procedures. Microsoft provides many data transfer functionalities in their server pack but they are mostly limited to a specific company environment and if you have to transfer data across the organization then they are mostly restricted via some policies. When I started reading about various data transfer technologies i came to know about Electronic Data Interchange (EDI) which is a must know technologies for all the new comers. The Electronic Data Interchange is a the computer-to-computer exchange of documents in a typical electronic format between two business associates sitting at two different locations. Electronic Data Interchange has gained lot of success since its inception and it is one of the latest communication and file transfer method that enables hassle free data transfer without being concerned of its security. I have read a lot of blogs about EDI but the way this beautiful technology was explained was quite dubious therefore I decided to come-up with my own article on Electronic Data Interchange. The EDI discourages the paper-based exchange of company file from one place to another and adds the electronic touch in it which is scientific.  By using EDI companies can gain significant advantages which includes increased processing speed, reduced cost, reduced errors and improved relationships with business associates.
By using EDI the trades supporters decreases their cost in inventory levels, better use of warehouse space, fewer out of stock events and lower freight costs through fewer crisis expedites. Paper purchase orders can take up to 10 days from time the order is prepared by the client to when it is shipped by the provider. One drawback is the fact that businesses need to ensure they have the resources set up to make an EDI application work. The importance of hiring and purchasing these resources or outsourcing them may be offset by the increased efficacy that EDI supplies.

Electronic Data Interchange Technology enables companies to transfer hassle free data with security
Electronic Data Interchange Technology enables companies to transfer hassle free data with security

How Communication Takes Place Via Electronic Data Interchange

The important thing to know about EDI is how it works. It is easy to implement any technology in your work space but the real challenge is knowing its architecture and its maintenance so that the specific machine is up time and processing requests. Just like any other technology or protocol in the world EDI also has some set of parameters which every individual should know if they want to master in this.

Communications have been in existence since the early days of computers. A file can be transmitted from one computer to another either over a Standard Phone line or over a “Rent Line” that is always in use and dedicated to computer communications. Many commercial products exist that may transfer files this way. Communications failed to solve the entire Issue though. Once a file is received it needs to be comprehended by the receiving computer. Things of Info must be in the Precise Set that the computer is anticipating them. The entire file can be un-interpretable from the computer if only an individual character is out of place. In the early days of communications, trading associates had to spend a great deal of time precisely where each item of advice will be saved in the files that have been transmitted. These arrangements were active for just one trading partner. Begin trading with the demands and also a different associate would transform somewhat a bigger merchandise code. The code is used as a Distinct System of Pricing but the entire discussion and deal procedure had to choose set all over again. It kept the programmers active but did little for the business gains.

The complete Data Transfer Process used in Electronic Data Interchange
The complete Data Transfer Process used in Electronic Data Interchange

Standard Bodies in EDI

The amount of distinct standards bodies that were created to define both systems of communications and the layout of standard trading Records so that straightforward and price becomes successful in electronic trading. The Primary File Standards with which we will be worried are EDIFACT, Tradacoms and ANSI X12, but before going into detail in regards to the standards themselves this is a short background to the creation of the UK Files standards bodies. The first development of standards generally for special sectors of business was taken out in the late 1970’s underneath the auspices of the EAN. EAN is the International Article Numbering organization coping with EDI standards.

Flows of advice While Transferring Data through EDI

The utilization of service sections not only enables routing of EDI information between trading partners but in addition makes it possible for the information that is in routine “flows” to be Executed. Enabling the trapping of lost information and routine actions interchanges. The contents of the interchange control section may identify interchanges from every trading partner. A sequence number in the section enables the receiver to check this interchange is not lesser as opposed to last one. This helps in checking the duplication and additionally lets for lost thus missing and sequences interchanges to be recognized. In real life these instances might be less simple. Routing by means of a VAN can cause some interchanges to be received from sequence. This scenario could not be dissimilar to the post your premises. The post is shed in a sequenced stack in the mail box and the letters are subsequently opened in any sequence. There isn’t any promise that the sequence of files “processed opened” is not incorrect.

Electronic Data Interchange is often termed as paperless data exchange
Electronic Data Interchange is often termed as paperless data exchange

Advantage of Using EDI as mode of File Transfer

While I was gathering information about EDI I discovered many websites/companies which provide Data Entry Services in India use this methodology to transfer their data from one place to another. Since most of this companies have a USA based client there fore they need a robust technology to transfer their files. The Transfer should also ensure that the data is protected and not shared or Hacked by anyone. There are many more methods like Google Drive, One Drive and file share via FTP but the EDI beats all. Even the e-Commerce Product Upload services could be drastically improved if the process is shifted towards EDI.