Tradacom - Sample Invoice

STX=ANAA:1+501xxxxxxxxxx:name+501xxxxxxxxxx:NAME SERVICES (U.K.)LTD.+040316:184411+00001++INVTES'
MHD=1+INVFIL:9'
TYP=0700+INVOICES'
SDT=501xxxxxxxxxx:053752CF01STDD+Tenprl Fnsrjnl Sbbqfreivpr+221 UvyyunyyRoad:Yvfohea:Co. Antrim:N.Ireland:OG27 5WQ+412557175'
CDT=501xxxxxxxxx+NAMESERVICES (U.K.) LTD.+Cnexynaqf Pbheg:OvezvatunzTerng Cnex:Ehorel:Birmingham:OG45 9CM'
FIL=1+1+040316'
FDT=040302+040302'
MTR=7'
MHD=2+INVOIC:9'
CLO=0000000100007: ++PNEEVPX GOLF CLUB:ABEGU ROAD:PNEEVPX SRETHF::OG388YC'
IRF=01000589M+040302+040302'
ODD=1+::040302+:040302'
ILD=1+1+:8408++:31266+0+2:2500:KG+54300+135800+Z+0+++SILVERSIDE 1-5 KG'
STL=1+Z+0+0+1358+++++1358++0+0++1358'
TLR=1+1358+++++1358++1358+0++1358'
MTR=8'
MHD=3+VATTLR:9'
VRS=1+Z+0+1358+1358+0+1358+1358'
MTR=3'
MHD=4+INVTLR:9'
TOT=1358+1358+0+1358+1358+1'
MTR=3'
MHD=5+RSGRSG:2'
RSG=00001+501xxxxxxxxxx'
MTR=3'
END=5'

Tradacom manual download

Tradacom is the most popular e-invoicing message standard in the UK, particularly within the retail industry.  Originally developed by the UK Article Numbering Association (ANA), the standard has been obsolescent since 1995, but is still widely used.


One can download manual of tradacom at http://www.anmw.co.uk/anmw/documents/Tradacomms_Manual.pdf

Tradacom Reference

Application Reference	Message Type
ACKHDR	Acknowledgement
AVLHDR	Availability Report
BTOHDR	Book Trade Orders
PVUHDR	Book Trade Price/Availability Update
CAKHDR	Claims Acknowledgement
CLAHDR	Claims Message
CORHDR	Complex Order
CREHDR	Credit Note
CREADV	Credit Advice
CUSHDR	Customer Information
DEBADV	Debit Advice
DLCHDR	Delivery Confirmation
DELHDR	Delivery Notice
DYEHDR	Dye Instruction
GENHDR	General Communication
HSOHDR	Home Shopping Orders
INVFIL	Invoice
ISSUES	Issues
LPRHDR	Location Planning Report
PICHDR	Picking Instruction
ORDHDR	Purchase Order
PAYORD	Payment Order
PRIHDR	Price Information
PROHDR	Product Information
PPRHDR	Product Planning Report
RDAHDR	Retailer Database
RDBHDR	Retail B, 1-4 Retailer Database
RIFHDR	Retail Issues File
SADHDR	Stock Adjustment
SNPSTS	Stock Snapshot
SRMHDR	Statement & Remittance Details
SORDET	Supply and Returns Details
SORDAY	Supply and Returns Summary
SRSHDR	Supply and Returns Summary
RIFHDR	Retail Issues File
UCNHDR	Uplift Confirmation
UPLHDR	Uplift Instruction
UTLHDR	Utility Bill

837 Transaction Overview

Overview
This document is a synopsis of the 837 Transaction for Providers. It not intended to be a programming guide for creating the transaction set (please refer to the Companion Guides; see below, for programming information).
The 837 Health Care Transaction, established by the Health and Human Services agency (HHS), defines the computerized format and data contents of the standard health care claim transaction for use in the Electronic Data Interchange (EDI) environment. The 837 transaction is used to submit information for claim billing. Health care service providers may also use it for the exchange of information and coordination of benefits with multiple payers. Claims may be submitted to payers either directly or through a clearinghouse. Health care service providers include but are not limited to physicians, dentists, pharmacists, hospitals and other medical facilities or suppliers. Payers are third party entities that pay claims or administer insurance benefits or both. These include but are not limited to insurance agencies, health maintenance organizations (HMOs), preferred provider organizations (PPO) and government health care agencies (Medicare, Medicaid, Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), etc.). They may also include entities such as a third party administrator (TPA) or third party organization (TPO) that may be contracted by one of those groups.
A. Transaction Types
There are three types of 837 transactions:
• Professional - Used by an individual professional or practitioner to bill for medical services
• Dental - Used by dentists to bill for dental services
• Institutional - Used by most non-person entities to bill for medical and medically related services
All share the same hierarchical data structure but have internal differences that accommodate the different billing needs of the three types. For instance, rate code information may only be submitted on an 837 Institutional claim.
B. Transaction Structure Overview
The 837 transaction is designed to transmit one or more claims for each Provider submitting claims. The hierarchy of the loops and segments allows for more efficient transfer of data, as information common to all levels of the claim is not repeated.
Information common to all levels of submitted claim
}
• Provider’s Billing Information
• Subscriber Information
Information specific to a patient, may be repeated for multiple services or patients
• Patient Information
}
• Claim level
• Claim Service Line Level
The 837 transaction also supports the Coordination of Benefits (COB) claim process. Additional repeated segments may be used at the claim and service line levels to transfer each payer’s adjudication information to subsequent payers.
This transaction is also recommended for submission of data for pre-paid managed care, referred to as capitated encounters. The capitated encounter data may be both informational (pre-paid - no payment expected) and a request for payment depending on the service(s) rendered.

Health Care Flow

HEALTH CARE FLOW

Please follow the details:


Health Care flow means Generally we follow like this as given below

1 Provider
2 Insurance
3 Clearing Mediate
4 Subscriber


Dependents


1) Provider : Provider means nothing but Hospitals/Clinical Laborites

2)Subscriber/Dependents: Subscriber/Dependents means nothing but patients or
Dependant patients

3)Insurance: Insurance means nothing but Insurance Policy

4)Clearing Mediate: Clearing Mediate means nothing but consultant between Provider
And Insurance


Description: As per as USA Government Act , who ever wants to get treatment from Hospitals/Clinical laborites (Provider) before that Subscriber/Dependents must and should get Insurance policy(It is a Mandatory) then only Hospital/Clinical Laborites can start treatment , without any Insurance Policy , provider won’t give any treatment.














First step

Before going to treatment, subscriber have to get insurance policy from insurance , what ever subscriber getting insurance or going to get insurance we call as a Benefit enrollment means 834 transaction, so first we will sending 834 transaction to insurance, what ever it, it will start from subscriber


1) 834: Benefit Enrollment Transaction
So first we will start from 834 transaction in health care , after applying subscriber for insurance policy, Insurance give some USN number , what ever Insurance replying to subscriber we don’t say any transaction.(only what ever subscriber doing that is only we call transaction here)

Second Step

After getting subscriber insurance policy, subscriber does go to provider (Hospital/laborites) here also what ever subscriber doing we don’t call any transaction




Third Step

After getting (subscriber) insurance policy and treatment from provider, provider send one transaction to Insurance i.e. 270 : Eligibility status request means here provider sending details to insurance weather subscriber having insurance policy or not?

270: Eligibility Status Request


some times provider using clearing Mediate, because some times provider could be busy, like what ever right now going in IT field, the corporate companies directly not recruiting any kind jobs their consulting from consultants, so like this provider also some times use this clearing mediate


Fourth Step

Provider already sent request for subscriber details weather the subscriber having Insurance policy or not ? what ever Insurance getting the request data after that Insurance sends response i.e. 271 : Eligibility status Response to provider weather subscriber/patient having insurance policy or not?

271: Eligibility Status Response


some times provider using clearing Mediate, because some times provider could be busy, like what ever right now going in IT field, the corporate companies directly not recruiting any kind jobs their consulting from consultants, so like this provider also some times use this clearing mediate

Fifth Step

After receiving Response from Insurance company, provider now sends Health care claim status for regarding bills and financial issues, means provider sends roughly figure what ever expenses done for subscriber ; that is here we call 837: Health Care Claim Status


837:Health Care Claim Status



Sixth Step

After sending rough intimation to Insurance 837:Health Care Claim Status , here provider sends again 276:Health Care Claim Status Enquiry for regarding status enquiry


276 Health Care Claim Status Enquiry







for every transaction we are sends acknowledgement i.e. 997:Functional Acknowledgement card

Seventh Step

After receiving 276:Health Care Claim Status, Insurance sends 277:Health Care Claim Status Response for regarding status response


277 Health Care Claim Status Response




for every transaction we are sends acknowledgement i.e. 997:Functional Acknowledgement card

Eighth Step

After sending and receiving 276:Health Care Claim Status, 277:Health Care Claim Status Response again provider sends 820 Payment Order for regarding Payment orders


820 Payment Order




for every transaction we are sends acknowledgement i.e. 997:Functional Acknowledgement card

Ninth Step

After receiving Payment order transaction Insurance pays that payment that is 835 Payment & Remittance Advice


835 Payment & Remittance Advice




for every transaction we are sends acknowledgement i.e. 997:Functional Acknowledgement card

so what ever it health care generally follows above processor,

1) 834
2) 270
3) 271
4) 837
5) 276
6) 277
7) 830
8) 820

All EDI Transactions

100 Insurance Plan Description

101 Name and Address Lists

102 Associated Data

103 Abandoned Property Filings

104 Air Shipment Information

105 Business Entity Filings

106 Motor Carrier Rate Proposal

107 Request for Motor Carrier Rate Proposal

108 Response to a Motor Carrier Rate Proposal

109 Vessel Content Details

110 Air Freight Details and Invoice

111 Individual Insurance Policy and Client Information

112 Property Damage Report

113 Election Campaign and Lobbyist Reporting

114 Air Shipment Status Message

120 Vehicle Shipping Order

121 Vehicle Service

124 Vehicle Damage

125 Multilevel Railcar Load Details

126 Vehicle Application Advice

127 Vehicle Baying Order

128 Dealer Information

129 Vehicle Carrier Rate Update

130 Student Educational Record (Transcript)

131 Student Educational Record (Transcript) Acknowledgment

132 Human Resource Information

133 Educational Institution Record

135 Student Aid Origination Record

138 Educational Testing and Prospect Request and Report

139 Student Loan Guarantee Result

140 Product Registration

141 Product Service Claim Response

142 Product Service Claim

143 Product Service Notification

144 Student Loan Transfer and Status Verification

146 Request for Student Educational Record (Transcript)

147 Response to Request for Student Educational Record (Transcript)

148 Report of Injury, Illness or Incident

149 Notice of Tax Adjustment or Assessment

150 Tax Rate Notification

151 Electronic Filing of Tax Return Data Acknowledgment

152 Statistical Government Information

153 Unemployment Insurance Tax Claim or Charge Information

154 Secured Interest Filing

155 Business Credit Report

157 Notice of Power of Attorney

158 Tax Jurisdiction Sourcing

159 Motion Picture Booking Confirmation

160 Transportation Automatic Equipment Identification

161 Train Sheet

163 Transportation Appointment Schedule Information

170 Revenue Receipts Statement

175 Court and Law Enforcement Notice

176 Court Submission

179 Environmental Compliance Reporting

180 Return Merchandise Authorization and Notification

185 Royalty Regulatory Report

186 Insurance Underwriting Requirements Reporting

187 Premium Audit Request and Return

188 Educational Course Inventory

189 Application for Admission to Educational Institutions

190 Student Enrollment Verification

191 Student Loan Pre-Claims and Claims

194 Grant or Assistance Application

195 Federal Communications Commission (FCC) License Application

196 Contractor Cost Data Reporting

197 Real Estate Title Evidence

198 Loan Verification Information

199 Real Estate Settlement Information

200 Mortgage Credit Report

201 Residential Loan Application

202 Secondary Mortgage Market Loan Delivery

203 Secondary Mortgage Market Investor Report

204 Motor Carrier Load Tender

205 Mortgage Note

206 Real Estate Inspection

210 Motor Carrier Freight Details and Invoice

211 Motor Carrier Bill of Lading

212 Motor Carrier Delivery Trailer Manifest

213 Motor Carrier Shipment Status Inquiry

214 Transportation Carrier Shipment Status Message

215 Motor Carrier Pickup Manifest

216 Motor Carrier Shipment Pickup Notification

217 Motor Carrier Loading and Route Guide

218 Motor Carrier Tariff Information

219 Logistics Service Request

220 Logistics Service Response

222 Cartage Work Assignment

223 Consolidators Freight Bill and Invoice

224 Motor Carrier Summary Freight Bill Manifest

225 Response to a Cartage Work Assignment

227 Trailer Usage Report

240 Motor Carrier Package Status

242 Data Status Tracking

244 Product Source Information

245 Real Estate Tax Service Response

248 Account Assignment/Inquiry and Service/Status

249 Animal Toxicological Data

250 Purchase Order Shipment Management Document

251 Pricing Support

252 Insurance Producer Administration

255 Underwriting Information Services

256 Periodic Compensation

259 Residential Mortgage Insurance Explanation of Benefits

260 Application for Mortgage Insurance Benefits

261 Real Estate Information Request

262 Real Estate Information Report

263 Residential Mortgage Insurance Application Response

264 Mortgage Loan Default Status

265 Real Estate Title Insurance Services Order

266 Mortgage or Property Record Change Notification

267 Individual Life, Annuity and Disability Application

268 Annuity Activity

269 Health Care Benefit Coordination Verification

270 Eligibility, Coverage or Benefit Inquiry

271 Eligibility, Coverage or Benefit Information

272 Property and Casualty Loss Notification

273 Insurance/Annuity Application Status

274 Healthcare Provider Information

275 Patient Information

276 Health Care Claim Status Request

277 Health Care Information Status Notification

278 Health Care Services Review Information

280 Voter Registration Information

283 Tax or Fee Exemption Certification

284 Commercial Vehicle Safety Reports

285 Commercial Vehicle Safety and Credentials Information Exchange

286 Commercial Vehicle Credentials

288 Wage Determination

290 Cooperative Advertising Agreements

300 Reservation (Booking Request) (Ocean)

301 Confirmation (Ocean)

303 Booking Cancellation (Ocean)

304 Shipping Instructions

309 Customs Manifest

310 Freight Receipt and Invoice (Ocean)

311 Canada Customs Information

312 Arrival Notice (Ocean)

313 Shipment Status Inquiry (Ocean)

315 Status Details (Ocean)

317 Delivery/Pickup Order

319 Terminal Information

322 Terminal Operations and Intermodal Ramp Activity

323 Vessel Schedule and Itinerary (Ocean)

324 Vessel Stow Plan (Ocean)

325 Consolidation of Goods In Container

326 Consignment Summary List

350 Customs Status Information

352 U.S. Customs Carrier General Order Status

353 Customs Events Advisory Details

354 U.S. Customs Automated Manifest Archive Status

355 U.S. Customs Acceptance/Rejection

356 U.S. Customs Permit to Transfer Request

357 U.S. Customs In-Bond Information

358 Customs Consist Information

361 Carrier Interchange Agreement (Ocean)

362 Cargo Insurance Advice of Shipment

404 Rail Carrier Shipment Information

410 Rail Carrier Freight Details and Invoice

412 Trailer or Container Repair Billing

414 Rail Carhire Settlements

417 Rail Carrier Waybill Interchange

418 Rail Advance Interchange Consist

419 Advance Car Disposition

420 Car Handling Information

421 Estimated Time of Arrival and Car Scheduling

422 Equipment Order

423 Rail Industrial Switch List

424 Rail Carrier Services Settlement

425 Rail Waybill Request

426 Rail Revenue Waybill

429 Railroad Retirement Activity

431 Railroad Station Master File

432 Rail Deprescription

433 Railroad Reciprocal Switch File

434 Railroad Mark Register Update Activity

435 Standard Transportation Commodity Code Master

436 Locomotive Information

437 Railroad Junctions and Interchanges Activity

440 Shipment Weights

451 Railroad Event Report

452 Railroad Problem Log Inquiry or Advice

453 Railroad Service Commitment Advice

455 Railroad Parameter Trace Registration

456 Railroad Equipment Inquiry or Advice

460 Railroad Price Distribution Request or Response

463 Rail Rate Reply

466 Rate Request

468 Rate Docket Journal Log

470 Railroad Clearance

475 Rail Route File Maintenance

485 Ratemaking Action

486 Rate Docket Expiration

490 Rate Group Definition

492 Miscellaneous Rates

494 Rail Scale Rates

500 Medical Event Reporting

501 Vendor Performance Review

503 Pricing History

504 Clauses and Provisions

511 Requisition

517 Material Obligation Validation

521 Income or Asset Offset

527 Material Due-In and Receipt

536 Logistics Reassignment

540 Notice of Employment Status

561 Contract Abstract

567 Contract Completion Status

568 Contract Payment Management Report

601 U.S. Customs Export Shipment Information

602 Transportation Services Tender

620 Excavation Communication

622 Intermodal Ramp Activity

625 Well Information

650 Maintenance Service Order

715 Intermodal Group Loading Plan

753 Request for Routing Instructions

754 Routing Instructions

805 Contract Pricing Proposal

806 Project Schedule Reporting

810 Invoice

811 Consolidated Service Invoice/Statement

812 Credit/Debit Adjustment

813 Electronic Filing of Tax Return Data

814 General Request, Response or Confirmation

815 Cryptographic Service Message

816 Organizational Relationships

818 Commission Sales Report

819 Joint Interest Billing and Operating Expense Statement

820 Payment Order/Remittance Advice

821 Financial Information Reporting

822 Account Analysis

823 Lockbox

824 Application Advice

826 Tax Information Exchange

827 Financial Return Notice

828 Debit Authorization

829 Payment Cancellation Request

830 Planning Schedule with Release Capability

831 Application Control Totals

832 Price/Sales Catalog

833 Mortgage Credit Report Order

834 Benefit Enrollment and Maintenance

835 Health Care Claim Payment/Advice

836 Procurement Notices

837 Health Care Claim

838 Trading Partner Profile

839 Project Cost Reporting

840 Request for Quotation

841 Specifications/Technical Information

842 Nonconformance Report

843 Response to Request for Quotation

844 Product Transfer Account Adjustment

845 Price Authorization Acknowledgment/Status

846 Inventory Inquiry/Advice

847 Material Claim

848 Material Safety Data Sheet

849 Response to Product Transfer Account Adjustment

850 Purchase Order

851 Asset Schedule

852 Product Activity Data

852 Product Activity Data Plus Module

853 Routing and Carrier Instruction

854 Shipment Delivery Discrepancy Information

855 Purchase Order Acknowledgment

856 Ship Notice/Manifest

857 Shipment and Billing Notice

858 Shipment Information

859 Freight Invoice

860 Purchase Order Change Request - Buyer Initiated

861 Receiving Advice/Acceptance Certificate

862 Shipping Schedule

863 Report of Test Results

864 Text Message

865 Purchase Order Change Acknowledgment/Request - Seller Initiated

866 Production Sequence

867 Product Transfer and Resale Report

868 Electronic Form Structure

869 Order Status Inquiry

870 Order Status Report

871 Component Parts Content

872 Residential Mortgage Insurance Application

873 Commodity Movement Services

874 Commodity Movement Services Response

875 Grocery Products Purchase Order

876 Grocery Products Purchase Order Change

877 Manufacturer Coupon Family Code Structure

878 Product Authorization/De-authorization

879 Price Information

880 Grocery Products Invoice

881 Manufacturer Coupon Redemption Detail

882 Direct Store Delivery Summary Information

883 Market Development Fund Allocation

884 Market Development Fund Settlement

885 Retail Account Characteristics

886 Customer Call Reporting

887 Coupon Notification

888 Item Maintenance

889 Promotion Announcement

891 Deduction Research Report

893 Item Information Request

894 Delivery/Return Base Record

895 Delivery/Return Acknowledgment or Adjustment

896 Product Dimension Maintenance

920 Loss or Damage Claim - General Commodities

924 Loss or Damage Claim - Motor Vehicle

925 Claim Tracer

926 Claim Status Report and Tracer Reply

928 Automotive Inspection Detail

940 Warehouse Shipping Order

943 Warehouse Stock Transfer Shipment Advice

944 Warehouse Stock Transfer Receipt Advice

945 Warehouse Shipping Advice

946 Delivery Information Message

947 Warehouse Inventory Adjustment Advice

980 Functional Group Totals

990 Response to a Load Tender

993 Secured Receipt or Acknowledgment

994 Administrative Message

996 File Transfer

997 Functional Acknowledgment

998 Set Cancellation

999 Acceptance/Rejection Advice

270-A1 Eligibility, Coverage or Benefit Inquiry

271-A1 Eligibility, Coverage or Benefit Information

276-A1 Health Care Claim Status Request

277-A1 Health Care Claim Status Notification

278-A1 Health Care Services Review -- Request for Review

278-A3 Health Care Services Review -- Response to Request for Review

820-A1 Payment Order/Remittance Advice

834-A1 Benefit Enrollment and Maintenance

835-W1 Health Care Claim Payment/Advice

837-Q1 Health Care Claim: Professional

837-Q2 Health Care Claim: Dental

837-Q3 Health Care Claim: Institutional

APERAK Application error and acknowledgement message

AUTHOR Authorization message

AVLREQ Availability request - interactive message

AVLRSP Availability response - interactive message

BALANC Balance message

BANSTA Banking status message

BAPLIE Bayplan/stowage plan occupied and empty locations message

BAPLTE Bayplan/stowage plan total numbers message

BERMAN Berth management message

BMISRM Bulk marine inspection summary report message

BOPBNK Bank transactions and portfolio transactions report message

BOPCUS Balance of payment customer transaction report message

BOPDIR Direct balance of payment declaration message

BOPINF Balance of payment information from customer message

BUSCRD Business credit report message

CALINF Vessel call information message

CASINT Request for legal administration action in civil proceedings mess

CASRES Legal administration response in civil proceedings message

CHACCO Chart of accounts message

CLASET Classification information set message

CNTCND Contractual conditions message

COACSU Commercial account summary message

COARRI Container discharge/loading report message

CODECO Container gate-in/gate-out report message

CODENO Permit expiration/clearance ready notice message

COEDOR Container stock report message

COHAOR Container special handling order message

COLREQ Request for a documentary collection message

COMDIS Commercial dispute message

CONAPW Advice on pending works message

CONDPV Direct payment valuation message

CONDRA Drawing administration message

CONDRO Drawing organisation message

CONEST Establishment of contract message

CONITT Invitation to tender message

CONPVA Payment valuation message

CONQVA Quantity valuation message

CONRPW Response of pending works message

CONTEN Tender message

CONWQD Work item quantity determination message

COPARN Container announcement message

COPAYM Contributions for payment

COPINO Container pre-notification message

COPRAR Container discharge/loading order message

COREOR Container release order message

COSTCO Container stuffing/stripping confirmation message

COSTOR Container stuffing/stripping order message

CREADV Credit advice message

CREEXT Extended credit advice message

CREMUL Multiple credit advice message

CUSCAR Customs cargo report message

CUSDEC Customs declaration message

CUSEXP Customs express consignment declaration message

CUSPED Periodic customs declaration message

CUSREP Customs conveyance report message

CUSRES Customs response message

DEBADV Debit advice message

DEBMUL Multiple debit advice message

DEBREC Debts recovery message

DELFOR Delivery schedule message

DELJIT Delivery just in time message

DESADV Despatch advice message

DESTIM Equipment damage and repair estimate message

DGRECA Dangerous goods recapitulation message

DIRDEB Direct debit message

DIRDEF Directory definition message

DMRDEF Data maintenance request definition message

DMSTAT Data maintenance status report/query message

DOCADV Documentary credit advice message

DOCAMA Advice of an amendment of a documentary credit message

DOCAMI Documentary credit amendment information message

DOCAMR Request for an amendment of a documentary credit message

DOCAPP Documentary credit application message

DOCARE Response to an amendment of a documentary credit message

DOCINF Documentary credit issuance information message

ENTREC Accounting entries message

FINCAN Financial cancellation message

FINPAY Multiple interbank funds transfer message

FINSTA Financial statement of an account message

GENRAL General purpose message

GESMES Generic statistical message

HANMOV Cargo/goods handling and movement message

ICASRP Insurance claim assessment and reporting message

ICSOLI Insurance claim solicitor's instruction message

IFCSUM Forwarding and consolidation summary message

IFTCCA Forwarding and transport shipment charge calculation message

IFTDGN Dangerous goods notification message

IFTFCC International transport freight costs and other charges message

IFTIAG Dangerous cargo list message

IFTICL Cargo insurance claims message

IFTMAN Arrival notice message

IFTMBC Booking confirmation message

IFTMBF Firm booking message

IFTMBP Provisional booking message

IFTMCA Consignment advice message

IFTMCS Instruction contract status message

IFTMFR International Forwarding And Transport

IFTMIN Instruction message

IFTRIN Forwarding and transport rate information message

IFTSAI Forwarding and transport schedule and availability information me

IFTSTA International multimodal status report message

IFTSTQ International multimodal status request message

IHCEBI Interactive health insurance eligibility and benefits inquiry and

IHCLME Health care claim or encounter request and response - interactive

IMPDEF EDI implementation guide definition message

INFCON Infrastructure condition message

INFENT Enterprise accounting information message

INSDES Instruction to despatch message

INSPRE Insurance premium message

INSREQ Inspection request message

INSRPT Inspection report message

INTCHG Interchange Control Structures

INVOIC Invoice message

INVRPT Inventory report message

IPPOAD Insurance policy administration message

IPPOMO Motor insurance policy message

ISENDS Intermediary system enablement or disablement message

ITRRPT In transit report detail message

JAPRES Job application result message

JINFDE Job information demand message

JOBAPP Job application proposal message

JOBCON Job order confirmation message

JOBMOD Job order modification message

JOBOFF Job order message

JUPREQ Justified payment request message

LEDGER Ledger message

LREACT Life reinsurance activity message

LRECLM Life reinsurance claims message

MEDPID Person identification message

MEDPRE Medical prescription message

MEDREQ Medical service request message

MEDRPT Medical service report message

MEDRUC Medical resource usage and cost message

MEQPOS Means of transport and equipment position message

MOVINS Stowage instruction message

MSCONS Metered services consumption report message

ORDCHG Purchase order change request message

ORDERS Purchase order message

ORDRSP Purchase order response message

OSTENQ Order status enquiry message

OSTRPT Order status report message

PARTIN Party information message

PASREQ Travel tourism and leisure product application status request - i

PASRSP Travel tourism and leisure product application status response -

PAXLST Passenger list message

PAYDUC Payroll deductions advice message

PAYEXT Extended payment order message

PAYMUL Multiple payment order message

PAYORD Payment order message

PRICAT Price/sales catalogue message

PRIHIS Pricing history message

PROCST Project cost reporting message

PRODAT Product data message

PRODEX Product exchange reconciliation message

PROINQ Product inquiry message

PROSRV Product service message

PROTAP Project tasks planning message

PRPAID Insurance premium payment message

QALITY Quality data message

QUOTES Quote message

RDRMES Raw data reporting message

REBORD Reinsurance bordereau message

RECADV Receiving advice message

RECALC Reinsurance calculation message

RECECO Credit risk cover message

RECLAM Reinsurance claims message

RECORD Reinsurance core data message

REGENT Registration of enterprise message

RELIST Reinsured objects list message

REMADV Remittance advice message

REPREM Reinsurance premium message

REQDOC Request for document message

REQOTE Request for quote message

RESETT Reinsurance settlement message

RESMSG Reservation message

RESREQ Reservation request - interactive message

RESRSP Reservation response - interactive message

RETACC Reinsurance technical account message

RETANN Announcement for returns message

RETINS Instruction for returns message

RPCALL Repair call message

SAFHAZ Safety and hazard data message

SANCRT International movement of goods governmental regulatory message

SKDREQ Schedule request - interactive message

SKDUPD Schedule update - interactive message

SLSFCT Sales forecast message

SLSRPT Sales data report message

SOCADE Social administration message

SSIMOD Modification of identity details message

SSRECH Worker's insurance history message

SSREGW Notification of registration of a worker message

STATAC Statement of account message

STLRPT Settlement transaction reporting message

SUPCOT Superannuation contributions advice message

SUPMAN Superannuation maintenance message

SUPRES Supplier response message

TANSTA Tank status report message

TAXCON Tax control message

TIQREQ Travel tourism and leisure information inquiry request - interact

TIQRSP Travel tourism and leisure information inquiry response - interac

TPFREP Terminal performance message

TSDUPD Timetable static data update - interactive message

TUPREQ Travel, tourism and leisure data update request - interactive mes

TUPRSP Travel, tourism and leisure data update response - interactive me

UTILMD Utilities master data message

UTILTS Utilities time series message

VATDEC Value added tax message

VESDEP Vessel departure message

WASDIS Waste disposal information message

WKGRDC Work grant decision message

WKGRRE Work grant request message

About EDI by Embassy

What is EDI?

Electronic Data Interchange, or EDI, is the electronic exchange of business data. Using a standard format, EDI provides a method of transmitting business data from one computer to another, without the need to re-key data. This electronic link can result in more effective business transactions. With EDI, paper documents such as invoices can be replaced with electronic transmissions, thus time is saved, and the potential for error is minimized. Data can be exchanged at any time. Related business expenses, such as postage, printing, phone calls, and handling, can also be significantly reduced. EDI can aid in the support of manufacturing efforts, such as Just-in-Time and Third Party Warehousing, and financial efforts, such as Electronic Payments.

What parts of the business cycle can be supported by EDI?

Any business documents that are currently exchanged using paper can be converted to an EDI. Standards. Standards include ANSI X12 and XML/EDI are primarily used in the United States, while EDIFACT is used in Europe and Asia.

What industries are using EDI?

The retail, automotive, grocery, freight, energy and financial industries were early users of EDI. The electronic, computing, insurance and the U.S. government are currently big users of EDI.

Who can use EDI?

Any company that buys or sells goods or services can use EDI. because it supports the entire business cycle, EDI can streamline the relationship that any company has with its customers, distributors, suppliers, and so forth.

Should my company use EDI?

EDI offers many potential benefits. EDI is a productivity tool that is beneficial to both suppliers and customers. It is a service to customers and is often viewed as an indicator of technical ability. A seller can get more business if buyers know that the seller has EDI capabilities.

What kind of software is needed to implement EDI?

EDI translation and communication software is available for most computers, whether PCs, minicomputers or mainframes. Basically all EDI software packages do the same thing. Translation software translates business documents into a standardized format that complies with ANSI X12, XML or EDIFACT, and communication software sends and receives documents. PassportXchange translates EDI to XML, ODBC and Flat File Text.

What kind of hardware is needed to implement EDI?

Hardware selection is dependent upon your preferences for speed, operating system, and level of integration with the current systems. The EDI system may be able to run on your existing hardware.

Which transactions does Embassy support?

Embassy Software supports all ANSI x12 Documents and some EDIFACT documents. Here are the most common we have solutions for:

ANSI X12 Document Number	ANSI X12 Document Name	Purpose
185	Royalty Regulatory Rpt	Royalty Data on minerals or petroleum
204	Carrier Load Tender	Shipment information for Motor Carriers
210	Freight Invoice	Detail of Freight charges
211	Carrier Bill of Lading	Legal Bill of lading for a shipment
214	Shipment Status	Report Shipment Status (Dates and Times of pickups and deliveries)
810	Invoice	Billing for goods and services
811	Consolidated Service Invoice	Reporting of complex and structured service invoices. Used by Communication and Utility industries
812	Credit/Debit Adjustment	Reports exceptions, adjustments, credits or debits to invoice
816	Organizational Relationships	Reports relationships to parent parent organization and other members
820	Remittance Advice	Payment detail of EFT sent from payer
824	Application Advice	Text response to EDI transactions received
830	Planning Schedule	Material Release Forcasting
846	Inventory Inquiry/Advice	Seller's Inventory Information
850	Purchase Order	Purchase Order for goods and services
855	Purchase Order Acknowledgment	Vendor information that goods are available and will ship
856	Advance Shipment Notice	ASNs describes configuration of goods Within the transportation equipment
860	Purchase Order Change	Buyer Initiated change in Purchase Order
862	Shipping Schedule	Shipping requirements for vendor
864	Text Message	Error Reports
865	Purchase Order Change Acknowledgment	Seller notification of acceptance or rejection of PO Change (860)
867	Product Transfer	Sales report and product transfers
940	Warehouse Shipping Order	Depositor advise to warehouse to make or confirm a shipment
943	Warehouse Stock Transfer Shipment Advice	Advise that a shipment has been made
944	Warehouse Stock Transfer Receipt Advice	Advise on product that has been received
945	Warehouse Shipping Advise	Advise that the shipment has been made

How does EDI get started?

EDI gets started when one company contacts another expressing interest in trading business documents electronically using Electronic Data Interchange. The two companies must first determine each other's EDI capabilities. If you do not already know your EDI capabilities, we have prepared a questionnaire to help you determine them. If you are already EDI capable, we will coordinate with your technical staff to determine a testing plan. Upon completion of testing the EDI documents, the appropriate business personnel will set a production start date to begin the exchange of EDI business data. If you are not EDI capable, we recommend you first obtain a commitment from your upper management. Your company will need to allocate resources and capital for software, hardware, testing, possible programming, and training.

What is the flow of EDI?

The flow of EDI depends on the sophistication of your systems and your EDI software. If you have internal purchasing/order entry systems, you will need interface programs that can extract and insert data out of and into these systems. EDI programs that interface with your internal systems are preferred over software that requires re-keying of data. Embassy Software specializes in seemless interface between EDI and your back office systems. Using a purchase order as an example of a business document your customer would send that PO electronically (850) to you. It could be sent either through a VAN (Value Added Network) or through an FTP server. You would take that 850 and convert it either into and ODBC database, a flat file or XML document to be imported into your Order System with the use of EDI Software such as PassportXchange.. Using EDI communication software, which is part of the PassportXchange package you would pull down data at set intervals from the VAN or FTP. These documents are then processed through EDI translation software and output to our order entry system. Finally, an EDI document called a functional acknowledgment (997) is sent to your customer

Business progresses thru 3 phases for EDI

Your business has been profitable and successful for years, you understand your market, your product provides a solution to a critical need and you just signed a major national retailer that will mean significant expansion for your business. The only problem is that you keep being told that you need to implement EDI and you are not quite sure where to turn. Your problem is not unique, in fact even companies that understand and use EDI often struggle with how much or how little attention to pay to EDI. Having a critical understanding of EDI, how it impacts your business and how you can maximize use of this technology is critical for any small and mid-sized business in today’s market of margin pressures and high competition. As a business embarks on the road to effectively using EDI, it naturally progresses through three phases:

• Phase 1 - Reactive - At this phase you have just started using EDI - usually as a result of pressure from a significant trading partner, EDI is a required nuisance.

• Phase 2 - Proactive - Eventually the business begins to see the advantages of EDI and realizes the potential cost savings and decreased time to revenue. EDI becomes more important and dedicated resources are assigned to its expansion.

• Phase 3 - Strategic - Ultimately EDI becomes a mature part of an integrated IT infrastructure with data seamlessly being shared with trading partners directly out of in-house ERP systems and becomes a critical strategic component of the company’s IT infrastructure in support of revenues and cost reduction.

Reactive, getting started with EDI

As a small business your first exposure to EDI is often a forced one - most frequently small businesses are faced with a daunting proposition - you have signed an agreement with a major national retailer - great news for your business - but in order to work with that business you are being mandated to use “EDI technology” to exchange transaction documents like purchase orders, advanced shipment notices etc. At this phase of the EDI adoption curve most businesses will typically opt for out-sourced services or for low cost, easy to use in-house software. Of course the benefits of the out-sourced service is that the EDI work is done with little or no involvement from the business - there is no software to buy, no complicated terminology to learn - you just simply use a web-based system to receive purchase orders and enter advanced shipment notices, invoices and other transaction documents. While such a solution is perfectly viable for many small organizations that are gaining first exposure to EDI questions begin to eventually arise that make an in-house solution more viable - both for the small business and for the growing one:

Security

Regardless of available technology we have all seen stories in the press about sensitive credit card data, user information and other types of restricted data being compromised - the simple truth of the matter is that there is only one way to guarantee that your data will not be at risk of compromise - keep it within your firewalls - of course with any web-based system this is simply not feasible.

Availability

As with security, the availability of a web-based system is 100% reliant on an outside party. As a business begins to rely more and more on EDI, not having access to that data can have dire consequences on financial results in understated revenues, mis-allocated expenses and break-downs in relationships with critical trading partners due to faulty or missing EDI data exchanges.

Integration with IT Policies

Although web-based systems try to account for issues such as secure access, integration of a web-based system into broader IT policies can be daunting. Disaster recovery, business continuity, access and security planning and other mission-critical IT functions & policies are simply not designed to account for a web-based system; the task often proves impossible. It is at this stage that businesses begin to look to bring EDI in-house

Proactive, bringing EDI in-house & under control

Once a business has made the decision that EDI is important to the organization there are several considerations that need to be made. Carefully planning an EDI purchase, deployment and integration within the larger context of an IT policy must be done cautiously and in advance.

1) Selecting the right Vendor

Selecting a vendor with a solid reputation for developing reliable and easy to use EDI software is a critical first step. As a mid-sized business you want to ensure that the vendor has significant experience with EDI, that they will be able to understand your problems and provide you with the type of advice that you need in order to properly establish EDI as a critical function of your business.

2) Selecting the right software for your needs

Is the software easy to use? Does it have a reputation as a trusted, reliable product that can grow with your needs? Ensuring that you have positive answers to both questions will mean that you will have an easier time setting up EDI properly and that your staff will use it accordingly.

3) Understanding the growth potential

Does the vendor you are selecting provide an upgrade path to more sophisticated products? Will you be able to start with a single-user system and grow to a multi-user and perhaps to an integrated system as your EDI needs grow? Ensuring that you have growth opportunity with the investment you are making will mean not having to re-invest in new and unproven equipment as your business grows.

4) In what other ways can my vendor help ?

Can the vendor provide you with consulting services to help you best utilize your newly purchased EDI software? Will they provide you with reviews of your environment to help you identify areas that need bolstering? Ensuring that you work with a vendor that can help you and will treat you as a key customer is critical for the small and mid-sized business that does not want to get lost in the “other” revenue category of a multi-national corporation that happens to also provide EDI software.

Strategic, - Using EDI for growth & profitability

Eventually as your business grows you will find that having EDI as a stand-alone, dedicated system begins to become cumbersome and begins to use too much man-power in managing data and reports. As your business matures and you invest in more sophisticated business tools it’s critical to keep EDI in the forefront of that planning. Integrating your EDI transactions into your ERP back-end system can save you money in faster transaction turnaround, reduced errors due to mistakes in re-keying information and improved usage of EDI. Ensuring that the vendor you have selected for your EDI software can help you through this transition is critical to ensuring that when your EDI software becomes integrated with your ERP system it will be done quickly, efficiently and with few worries. An integrated EDI system will have some significant up-front costs - but the long term benefits to a growing business will mean a return on investment measured in mere months. At this stage of development it’s also critical to understand how EDI will fit into the larger IT perspective. Is EDI part of the IT department’s disaster recovery plan (DRP)? Are you considering issues relating to security and access and how they relate to EDI? For EDI to become a strategic aspect of your company it must become a key component for both
line of business and IT departments. At this stage having the right vendor to assist you and provide you with the right advice and the right tools will be critical.

Another description about EDI

Definition

Electronic Data Interchange (EDI) may be most easily understood as the replacement of paper-based purchase orders with electronic equivalents. It is actually much broader in its application than the procurement process, and its impacts are far greater than mere automation. EDI offers the prospect of easy and cheap communication of structured information throughout the corporate community, and is capable of facilitating much closer integration among hitherto remote organisations.

A more careful definition of EDI is 'the exchange of documents in standardised electronic form, between organisations, in an automated manner, directly from a computer application in one organisation to an application in another'.

Architecture for EDI

EDI can be compared and contrasted with electronic mail (email). Email enables free-format, textual messages to be electronically transmitted from one person to another. EDI, on the other hand, supports structured business messages (those which are expressed in hard-copy, pre-printed forms or business documents), and transmits them electronically between computer applications, rather than between people.

The essential elements of EDI are:

* the use of an electronic transmission medium (originally a value-added network, but increasingly the open, public Internet) rather than the despatch of physical storage media such as magnetic tapes and disks;
* the use of structured, formatted messages based on agreed standards (such that messages can be translated, interpreted and checked for compliance with an explicit set of rules);
* relatively fast delivery of electronic documents from sender to receiver (generally implying receipt within hours, or even minutes); and
* direct communication between applications (rather than merely between computers).

EDI depends on a moderately sophisticated information technology infrastructure. This must include data processing, data management and networking capabilities, to enable the efficient capture of data into electronic form, the processing and retention of data, controlled access to it, and efficient and reliable data transmission between remote sites.

A common connection point is needed for all participants, together with a set of electronic mailboxes (so that the organisations' computers are not interrupted by one another), and security and communications management features. It is entirely feasible for organisations to implement EDI directly with one another, but it generally proves advantageous to use a third-party network services provider.

Benefits of EDI

EDI's saves unneccessary re-capture of data. This leads to faster transfer of data, far fewer errors, less time wasted on exception-handling, and hence a more stream-lined business process. Benefits can be achieved in such areas as inventory management, transport and distribution, administration and cash management. EDI offers the prospect of easy and cheap communication of structured information throughout the government community, and between government agencies and their suppliers and clients.

EDI can be used to automate existing processes. In addition, the opportunity can be taken to rationalise procedures, and thereby reduce costs, and improve the speed and quality of services. Because EDI necessarily involves business partners, it can be used as a catalyst for gaining efficiencies across organisational boundaries. This strategic potential inherent in EDI is expected to be, in the medium term, even more significant that the short-term cost, speed and quality benefits.

History of EDI

The early applications of what became known as EDI were undertaken in the United States. The idea's origins have an international flavour, however, being traceable back to the 1948 Berlin Airlift, where the task of co-ordinating airfreighted consignments of food and consumables (which arrived with differing manifests, languages and numbers of copies) was addressed by devising a standard manifest. Electronic transmission commenced during the 1960s, initially in the rail and road transport industries. The standardisation of documents was a necessary concomitant to that change. In 1968 the United States Transportation Data Coordinating Committee (TDCC) was formed, to coordinate the development of translation rules among four existing sets of industry-specific standards. A further significant move towards standardisation came with the X12 standards of the American National Standards Institute (ANSI), which gradually extended and replaced those created by the TDCC.

At about the same time, the U.K. Department of Customs and Excise, with the assistance of SITPRO (the British Simplification of Trade Procedures Board), was developing its own standards for documents used in international trade, called Tradacoms. These were later extended by the United Nations Economic Commission for Europe (UNECE) into what became known as the GTDI (General-purpose Trade Data Interchange standards), and were gradually accepted by some 2,000 British exporting organisations.

Problems created by the trans-Atlantic use of two different (and largely incompatible) sets of standardised documents have been addressed by the formation of a United Nations Joint European and North American working party (UN-JEDI), which began the development of the Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT) document translation standards. A full range of business documents is in the process of being developed.

EDI's direct impact is to reduce the amount of data capture and transcription. This generally results in a decreased incidence of errors, less time spent on exception-handling, and fewer data-caused delays in the business process. Benefits can be attained in such areas as inventory management, transport and distribution, administration and cash management.

By the time of the 1991 EDICA Conference in Sydney, it was claimed that there were 1,500 corporations using EDI in Australia and New Zealand. This would have compared favourably with the populations variously claimed for the U.S. (5,000-12,000), but less so with the U.K. (12,000) and Singapore (2,000). The transaction volumes in Australia to date were, moreover, small compared with those countries.

101 EDI

101 EDI

In today's business environment, intense competition is forcing businesses to look at new ways of operating. Leaders are constantly looking for new methods that will allow their business to do things faster, cheaper, and better than before.

The problem with most approaches is that they often sacrifice one objective in favor of another. It's one thing to cut costs in your operation, but that often increases the time it takes to service the customer. Also, depending on how cost reductions are achieved, you end up providing an inferior product.

Electronic Data Interchange, or EDI, is a tool that allows you to achieve significant improvements in all three objectives. EDI can speed up many business functions, while cutting cost in a number of areas. By reducing unnecessary delays, you have more time to produce a better product and can provide your customers with improved service.

In today's competitive world, speed is a weapon you can use against the competition. By providing your product or service faster than the competition you can not only win increased business, but reduce sales loss due to price competition.

Before describing what EDI is, it is important to describe what it is not. EDI is not new and it is not dependent on any one technology. While the buzz-word, EDI, may sound new, EDI has been with us since the late 1960's.

While EDI has benefited enormously from advances in technology, EDI is not technology dependent. There are preferred ways to implement EDI in your business, but there are many approaches to choose from. The approach you choose should be driven by your business needs, not a particular implementation or technology.

So what is Electronic Data Interchange? EDI is paperless document transfer between companies. What's a Document? A document is any form of communication, usually paper, sent between two companies. Examples include:

* Purchase Orders
* Invoices
* Shipping Notices
* Export/Import Information
* Carrier-to carrier waybills
* Funds Transfers
* Design Specifications
* Health Insurance Claims

EDI is a data processing concept independent of communication protocols or transmission media. EDI is a logical outgrowth of the standard computerization going on within business for the last several decades. The type of electronic communication between departments within a business is now being extended to reach out to other business, or trading partners.

EDI is computer-to-computer communication. Contrast this with the other forms of communications like Electronic mail. E-mail is person-to person communications over a computer. A person creates a text message, which is sent to another person. While this form of communications is electronic, it still requires people to interpret the message.

EDI replaces human-readable, paper or electronic based documents with machine readable, electronically coded documents. With EDI the sending computer creates the message and the receiving computer interprets the message without human involvement.

Let's take a standard business transaction, a purchase order, and explore how and where EDI fits into the picture. Without EDI the process might look something like this:

* The Customer determines a need to purchase an item and creates a purchase order document. Often a computer produces these documents.
* The PO is sent to the supplier via either Post Office, Express mail, Electronic Mail or Fax.
* In all cases, it takes a person at the supplier to receive and interpret that purchase order
* The PO is then transcribed into the supplier's computerized order system.


An EDI implementation simplifies the process to:

* The customer's computer system creates and sends the electronic PO.
* The supplier's computer receives the PO and places the order directly into its system.

What is clear by the example is the time saved by eliminating the post office and the people cost saved in the process. What is perhaps a subtle area of savings is the cost due to errors. How much would it cost if the order entry clerk added an additional zero to the quantity field?

History

Since the 1960s, many companies developed in-house computer systems and internal networks to streamline business functions. A typical example is the order processing system, which can process customer's orders with greater speed. Still, the speed in which a business could respond was determined by the communication link between the company and its customers. That communication link consists of the postal service and the telephone, and remains a slow and costly process even today. Some business executives were working on methods to shortcut the conventional communication link. Electronic communications was a prime consideration in circumventing the paperwork/telephone problems. It soon became clear that linking up to other business electronically had one major initial problem, information format. Very few companies use the same paper document format. One company's Purchase Order form looks different from another. The same holds true with computer systems. Information stored in one company's computer system may be in a different format than that required by others. People can deal with format problems with relative ease. When an order processing clerk receives a purchase order form in an unfamiliar format, it's not a difficult task to analyze the new form and interpret the required information. Computers do not have that ability and require information in a specific format and in an exact order. You do not want your system to interpret your trading partner's purchase order number as the quantity ordered. That could easily happen if the two companies do not agree on a format and sequence of information they exchange with one another. A supplier serving one customer can follow that customer's formats and rules for EDI. The problem arises when one supplier has to deal with different rules from different customers. Systems can be developed to interpret an electronic transaction from Company A differently from Company B. This approach, however, is extremely costly to develop and maintain and it doesn't solve the problem when Company C comes along and wants to do business electronically. A better approach would be support standards that all customers and suppliers could adopt. EDI standards are a set of formats and protocols, much like a language, that trading partners agree to communicate to each other in. A good analogy can be found in the airline industry. All over the world there are airlines and airports in different countries. Pilots and crew may converse in their native tongue, but English is required from all aircraft to control tower communications. Could you imagine the confusion if there was not one standard language? The Transportation Data Coordinating CommiteeThe Transportation Industry recognized the need for industry standards early on and formed the Transportation Data Coordinating Committee in 1968. The TDCC was formed as a non-profit organization in Washington DC and organizes data standards, formats codes, and protocols for the transportation industry. The ground rules the TDCC began its standards development with were: The EDI interface must be insensitive to computer equipment internal architecture.The EDI interface should be responsive to end users needs.EDI should leave the choice of communication speeds and services to the using parties. Several hundred people worked in teams to develop these standards. These teams consisted of shippers, railroads, motor carriers, forwarders, ocean carriers, air carriers, and banks. The end product was the publication of the TDCC Electronic Data Interchange Standards. These Standards were first used in the rail lines and later across motor carriers. TDCC estimates that 90% of all rail waybills were electronically interchanged between railroads by 1985. Today, the usage of TDCC's EDI standards include: Export/import information for international shipments carrier-to-carrier waybill exchange.Reservation or pickup request.Shipment information from shipper to carrier. Freight bill data, carrier to payer.Shipment tracing information.Payment data, payer to bank, bank to bank, bank to payee.

Private Company Standards

A few major companies, such as General Motors and Kmart, charged into the EDI arena and developed their own standards. GM's EDI involvement was an outgrowth of their "Just-in-time" plant inventory approach. With Just-in-time inventory, each plant stocked only those parts required for one day's production. Because of the low inventory levels, GM needed a fast reliable way to order parts so that they arrived at their loading docks just-in-time for assembly. This approach allowed GM to save millions in inventory costs. EDI was the enabling technology without which Just-in-time inventory would not be possible.

We should note here that while GM saved millions, the inventory cost didn't disappear. The burden of inventory was shifted to the suppliers. Some of these suppliers were large enough to absorb these costs, but many were not. This put many suppliers in tough situations as GM was requiring EDI connections for suppliers providing production material to Just-in-time plants.

To complicate matters even more, Ford and Chrysler adopted similar plans, which led to confusion throughout the Automotive Industry. Also, several large suppliers, such as Rockwell, wanted to use EDI with their own suppliers. The question was whose standard should they use?

Private Industry Standards

Relief came to the auto industry in the form of the Automotive Industry Action Group, a trade association for the industry. The AIAG worked with the automakers and suppliers to develop an EDI standard for the entire Industry.

Other industries have taken the same approach of developing specific standards of their own. Industry specific EDI Standards Development Associations include: Voluntary Interindustry Commerce Standards VICSAmerican National Standards Institute ANSI Uniform Code Council UCCAutomotive Industry Action Group General Trade Document InterchangeNational Automated Clearinghouse AssociationNational Wholesale Druggist Association Transportation Data Coordinating Council Many other industries are also developing EDI standards and many are using the TDCC standards as a base. The Grocery Industry's Uniform Communications Standards and the Warehouse Information Network are examples of TDCC derivatives.

Even the collection of industry specific standards is not enough since few businesses operate in a single industry. For example, a telephone manufacturer in the Communication Industry must buy plastics from the Chemical Industry. Once again, the need for further standardization exists.ANSI X12 StandardsThe American National Standards Institute (ANSI) chartered a committee to develop inter-industry EDI standards. This committee, known as the x12 Business Data Interchange Committee, is using the TDCC standards as their base structure. The x12 committee has added many transactions to the list provided by the TDCC. The most common transactions are the purchase order and the invoice.

Also, the TDCC is serving as the Secretariat for the X12 committee. All data field names, types, formats, and lengths are defined in a data dictionary. The TDCC keeps this data dictionary available. Everyone supporting X12 standards knows exactly what format each field or data element should use. For example, The Purchase Order Number is defined as being from 2 to 30 characters in length. A 31 character PO number is not allowed.

Industries working with X12 standards include:

Telecommunications, electronics, chemical, auto, metals, textile, and aerospace. Individual industries may use a subset of the overall X12 standard. The format and meaning of the individual data elements remains constant, but different industries have chosen to implement some fields in a different order, or to exclude certain information not appropriate for their industry.

Conversion from industry specific standards to X12 has not been easy. Once an industry has an investment in one approach, it takes time to convert to another. The grocery industry established their industry specific UCS standard in the early '80s and has been the most notable holdout from X12 acceptance. The approach in the grocery industry has been "If it's not broken, don't fix it."

Even with X12 standards, many EDI trading partners are finding it necessary to translate documents from one X12 subset to another. Additionally, as more companies move to X12, there is a great need to translate their standard X12 transactions into industry specific standards. Conversion is often required in order to communicate with trading partners that have not yet made the step to X12. This translation of formats can occur either at the originator, the destination, or a 3rd party intermediary.

How does it work?

EDI is implemented in software and is conceptually an interface between the sender's and the receiver's internal computer programs. These company specific internal programs may be operating on different types of computers and may use different internal data structures. This interface between sender and receiver is implemented in at least the two trading partners systems, and often in a third, intermediary.

We'll use the transmission of a purchase order to illustrate how EDI works. The buying party's purchase order system generates a PO and passes it to the EDI software. The EDI software converts the internal data structure into a standard EDI transaction with the required fields supplied by the data dictionary. This transaction is then transported to the supplier whose EDI software converts (using the same data dictionary) the standard transaction into the format acceptable to their order processing system.

The TDCC and other vendors provide EDI software for mainframes, mini, and personal computers. The TDCC leases mainframe software written in ANSI COBOL and is shipped on 9 track tape. TDCC provides the COBOL source code because few mainframe COBOL systems are exactly alike. The user may need to make some changes to the software to match their particular system.

The TDCC software is "table-driven." This means that all translations between internal and standard data formats are defined in easily modifiable tables. You do not have to modify COBOL programs for translation. A portion of the EDI software, called the Set Generator, converts internal format records into standard transactions. These internal format records are produced by some internal system such as a Purchase Order System. The Set Generator reads these input records and performs the translation according to the parameter tables and the information in the data dictionary.

When the transactions are received by the destination EDI software, the receiver's data dictionary and parameter tables are used by the Set Interpreter to convert the standard format transaction into the desired internal format.

Communication Alternatives

EDI specifications do not require any particular type of transport. There are 4 general methods to choose from: Point-to-point Communications lines Wal-Mart is a typical example of a point-to-point communication. Vendors dial into Wal-Mart SNA network via bisynchronous modem. Point-to-point communications lines can be established between the trading partners using standard communications protocols. This connection could either be a leased or a dial-up line. A leased line is purchased on a monthly basis and is always available for transmission. A dial-up line is established just like a normal telephone call. When the sending party has something to transmit, the call is made and the data is transmitted. When dialup links are used, senders typically batch up their transaction and at certain points make the connection and send the entire batch. The dial up approach is cheaper when the amount of data is low and sporadic. An expensive leased line can be more cost effective if the amount of transactions is high, and fairly constant throughout the day. Also, faster line speed can be achieved with a leased line and there is no dial delay or need to batch transactions. With a leased line, the transaction can be transmitted as soon as it is created. For some applications, immediate transmission and reply may be appropriate. Value-added Networks This is the most widely use method. Samples of VAN (Value Added Networks) are IBM Information Exchange and Sterling Commerce Network. Point-to point links often present a scheduling problem to trading partners. Often, it is not convenient for the receiver to get transactions when the sender chooses to transmit them. The solution to this problem is a value-added network that provides a store-and-forward mailbox service. Compuserve, Telenet, and Tymenet are examples of value added networks. The sender connects with the value-added network and sends its EDI transactions to the recipient's mailbox where they are stored. The sender then disconnects from the service. At some point that is convenient, the recipient can connect to the network and receive those transactions from their mailbox. With this approach, both sending and receiving parties must use the same EDI standard transactions.Buyer Benefits
EDI is a productivity-enhancing tool that replaces the less efficient and error-prone human processes involved with inter-company communication. EDI provides the following benefits to the buyer: Lower Inventory Levels.

Quick Order Acknowledgment:

If a supplier can not provide the product desired, the buyer can quickly seek an alternate supplier.
Time spent matching invoices to purchase orders and re-keying invoices into an Accounts Payable System is reduced.

Supplier Benefits

EDI is a productivity-enhancing tool that replaces the less efficient and error-prone human processes involved with inter-company communication. EDI provides the following benefits to the supplier: Elimination of problems and delays caused by order entry errors
Manual order entry can result in errors in as many as 50% of all documents. Errors in order entry mean missed ship dates, shipment of wrong items or quantity, and lower customer satisfaction.

• Personnel Reductions:
•  There are estimates that as much as 70% of all computer output becomes computer input. With EDI, the supplier is relieved of the process of re-keying orders and verification of orders.
• Inventory Reductions:
  
• While EDI is often used in Just-in-time inventory approaches that place the burden of inventory on the supplier, it is possible for the supplier to achieve reduced inventory levels also. Production schedules can be tuned more closely to customer demand, to reduce goods inventory.
• Improved Cash Flow:
  
• Time taken out of the invoicing/payment cycle improves the cash flow of the supplier.
• Improved Customer Service
• Improved Sales Tracking - Cost Savings
• A common benefit to both buyer and supplier is cost savings. Input, a California Based Market research firm, recently published a survey of Fortune 1000 size businesses, universities, and public companies entitled The North American EDI Service. One of the results of the survey was a comparison of the cost of manually prepared and transferred document at about $40 with the EDI document cost at about $2.10.
  

That 10 fold savings per document is impressive and when you think about the millions of such documents generated in some companies, you can see why there is pressure to implement EDI.

Examples

The following are some examples of EDI usage.

Auto Loans
 A major part of the automobile manufacturers business is the financing of the sale of its vehicles. Auto companies finance over 1/3 of all cars purchased in the U.S. General Motors Acceptance Corporation is one of the largest financial institutions in the world. To be more responsive to their customers, auto companies have implemented electronic links to credit bureaus such as TRW.

The normal process for the auto company is to request a credit history from the credit bureau via an EDI connection. The auto company's computer system electronically receives and analyzes the credit report. Each report is scored and then credit approval is provided without human involvement.

There is now movement to allow the dealers direct transaction input. This moves the personnel cost of data entry from the auto company to the dealer. This is also an advantage to the dealer as it allows them to better respond to their customers. It is possible to get back, instantaneous response to credit authorizations. Credit authorizations are often returned while the customer is still on the sales floor. The real payoff, in this example, is the extra competitive advantage the dealer has when he can offer immediate credit. Wal-MartAn EDI link between Wal-Mart and one of its suppliers, Seminole Manufacturing Co. cut the delivery time of Seminole slacks by 50%. This resulted in a 31% sales increase of these slacks in the first 9 months after the link was established. General MotorsGeneral Motors has integrated EDI Electronic funds transfer at 30% of its assembly plants. Shipping receipts are sent electronically from the GM plant to an Electronic Data System (EDS is subsidiary of GM) computer center where they are matched against electronic invoices and purchase orders. Suppliers group the shipping receipts, and one payment is made. This single payment may represent dozens of different shipments to different plants. These payments are also performed electronically via Electronic Funds Transfers. JC PenneySales of Stafford suits jumped 59% after JC Penney linked up with their supplier Lanier Clothes. EDI allowed Penney to quickly replenish stock fast enough to meet demand while cutting their overall inventory of suits by 20%. Rockwell Rockwell, a major automotive supplier received design change notifications directly from the automakers via EDI.

Rockwell has been able to react faster to their customer's constant design changes while reducing their inventory of finished goods. Parts now bypass their warehouse and go directly from their production lines to their shipping docks. Textile Industry The Textile industry is beginning to fight back against Asian competition with EDI. While the US textile industry is hard pressed to compete on a cost basis, EDI is helping them provide superior service. Service is making it easier and faster to do business with a US supplier. US Customs US Customs accepts electronic customs documentation, in advance of goods shipments. This reduces port delay and provides a competitive advantage for those ports of entry that support EDI. Market Outlook The Yankee Group, a Boston based market research group, estimates that 4/5 of all business transactions will be electronic by 2010. The EDI survey, published by Input, found that 70% of Fortune 1000 sized businesses; universities, and Public companies are currently using EDI. An additional 20% are planning EDI implementations. Input also forecasts that the EDI service market will grow to $28.2 billion by 2010. That's an annual 25% per year growth rate from the 2000 market size of $3 billion.

What is causing the growth?

One of the main reasons for the explosive growth of the EDI service market is that the business environment finally contains all the pieces to make EDI possible. Clearly, standards are a major factor. By 1986, there were over 150 standardized transaction types. Standard transaction development has a cascading affect. The Purchase Order begat the Invoice. The Invoice begat the Shipping Notification. This Shipping Receipt leads to the desire to make electronic payments, which spawns another batch of electronic transactions.

The spread of computers and available software has been a factor in EDI growth. The acceptance of the Personal Computer has been a stimulus to EDI. It is possible to develop an EDI solution based on a Personal Computer with less than $1,000 hardware investment.

Another factor is what you could call the "Domino Effect" within industries, where large companies in the center of an industry coerce their suppliers' partners to adopt EDI. Soon, the second tier suppliers require EDI links to the third tier suppliers. The automobile industry is an example of the Domino Effect.

There are two approaches to getting supplier compliance; incentive and force. Some companies have offered incentives for electronic linkups.

The retail industry relied on force with deadlines and ultimatums. If you supplied production material to a retail store, lack of EDI support meant loss of business.

What could inhibite EDI implementation? There are several factors: Lack of ease of use and accessible EDI software.Difficulty in understanding the various options for implementation of EDI.Advertisement misinformation. Inability to understand the importance of EDI as a strategic tool for acquiring new business opportunities. EDI is overcoming these obstacles to acceptance because it addresses a basic business goal within every company; the goal of reducing administrative overhead and opening new trading opportunities.

How to Proceed?

Form a taskforce with broad company representation. EDI implementation is not simply an Information Technology Group exercise, but affects the entire company. Select people across departmental boundaries to reduce operation gaps and resistance. Set your taskforce's goal to determine when, not if, to implement EDI. By setting the goal of when to implement EDI, you are acknowledging that almost every company is using EDI. If you have a large customer that is coercing you into electronic trading, you can certainly make a business case for doing it now. The threat of loss of your biggest customer can make the rest of the issues moot. Educate taskforce members on EDI, and the internal operation of the business. Make sure everyone understands that the business is a system and EDI is an important tool. Determine what form of transport, or third part services are appropriate and select software and service vendors accordingly. Determine the overall commitment to EDI within the organization. EDI can be implemented as a stand-alone process, where a workstation simply receives electronic orders and prints them on paper. The rest of the process is business as usual. EDI can also be implemented by integrating it within the overall business operation. The second approach can totally change the way you do business today. Based on your required volume, the integration may not be an option but a must do.

Future

EDI is a must in today's environment. By the end of the decade of the '90s, EDI was affecting almost every business in the U.S.The amount of standard transaction will steadily increase. All areas of business-to-business transactions will be increasingly automated with EDI. You can expect your trading partner to exchange no less than three documents (Purchase Order, Invoice, Advance Ship Notice). Other documents are mandatory in various companies like the ones that relate to electronic transfer of funds, PO automation, Inventory inquiries, shipment tracking, Item catalogs, etc. Further expansion will occur in multi-industry standards because few companies really operate in just one industry. The grocery stores, for example, sell many non-food items.