Transmission Modes of EDI
EDI is the structured transmission of data between organisations by electronic means. There are many transmission modes that are enforced by EDI for smooth data exchange across a trading community.
From the point of view of an organisation, whether using EDI for the first time or expanding an existing EDI infrastructure to support business partners across the globe, the transmission mode being utilised for EDI depends on the needs of the business, its technical capabilities, and its budget.
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Hybrid EDI transmission modes are also implemented by many big companies to connect with their business partners, depending upon the size and frequency of their transactions.
Transmission modes of EDI are of the following types:
- EDI via VAN
- EDI via Internet/AS2
- Web EDI
- Direct EDI/Point-to-point
- Mobile EDI
- EDI Outsourcing
The figure shows various transmission modes of EDI:
Value Added Network
The Value Added Network (VAN) is a commercially owned, secure, and private network, which can be used by trading partners to send and receive EDI documents between them. Organizations availing of VAN are each provided with a mailbox by VAN service organizations. The VAN service organizations act as intermediaries during EDI document exchange.
The documents are sent and received from the mailbox and the concerned organization checks the mailbox periodically to retrieve its documents. Usually, an alerting service is offered by the VAN providers, so that a sender is notified when its messages have been sent successfully and also sends an alert to the recipient to inform that a new message is waiting.
VAN is generally a preferred mode of transmission for EDI due to value-added services such as auditing, tracking capabilities, and in some cases, formatting services, which VAN providers can provide. The vast majority of EDI still occurs through VAN in spite of the influx and growth of flexible low-cost approaches such as Web EDI or EDI via AS2.
Although companies also try to implement a hybrid strategy where different types of EDI are implemented as per the requirement of a business, VAN remains core to these installations.
Along with secure communications, some of the additional services provided by EDI via VAN are:
- Full mailbox service: Messages are automatically routed to the correct mailbox. Trading partners connect to the VAN to retrieve their messages.
- Inspection and Authentication of All EDI Messages: The VAN verifies the identity of the trading partner and the validity of the message.
- Full Audit Trail: All EDI messages are tracked and recorded.
- Message Notification: Trading partners are notified when the message enters their mailbox.
- Ancillary Services: VAN providers offer an extensive range of services, including data backup and recovery, document mapping, and compliance.
Internet/AS2
AS2 or Internet/AS2 is also one of the most popular methods for transporting EDI data securely and reliably over the Internet. In this transmission mode, two computers are involved, a client and a server. They are connected in a point-to-point manner through the Web.
AS2 uses digital certificates and data encryption to secure the data and create an “envelope” for the EDI data, enabling it to be sent securely over the Internet.
EDI via AS2 is a point-to-point transmission mode, thus, it necessitates the organization’s server that is on the receiving end to be always “listening out” for messages directed to it. It is similar to a telephone without an answering machine; the incoming message is lost if the server is not available to take the call.
Thus, organizations that want to avail the benefits of AS2 decide to outsource it to an EDI network provider to be available always and receive EDI transmissions non-stop.
Availing the resources of an EDI network provider provides the following benefits to an organization:
- The AS2 mandates can be followed without actually incurring the expense of the AS2 infrastructure, such as software, hardware, firewalls, and expertise, which would otherwise be needed to implement AS2 in the organization.
- The EDI network provider takes care of the exchange of AS2 setup information.
- The EDI network provider carries out AS2 testing for the organization and its business partners.
- Documents are exchanged in real time because there is a point-to-point connectivity
- The organization benefits from the EDI network provider’s infrastructure, skills, and security without the need to invest in these itself.
Web EDI
Web EDI takes the help of an Internet browser for carrying out EDI. In Web EDI, paper documents are replicated as Web forms. These forms contain fields for users to enter information. After the form is filled with all the relevant information, the form gets converted automatically into an EDI message. This message is then sent over the Internet using secure Internet protocols such as File Transfer Protocol Secure (FTPS), Hyper Text Transport Protocol Secure (HTTPS), or AS2.
Web EDI is one of the easiest modes of EDI transmission because the trading partners are not required to install specific EDI software. Neither do they have to manage the complex EDI environment. Thus, it enables the participation of all trading partners in EDI; even those from countries where IT and EDI skills are limited.
Web EDI is simple and easy to implement, thus it allows small and medium-sized businesses to create, receive, reply to, and manage electronic documents using a browser. The Web forms allow an easy way of communication between diverse businesses and comply with their trading partners’ requirements by adhering to business rules. Thus, trading partners all over the world can easily avail of EDI without dedicating IT resources to their EDI implementation.
Direct EDI/Point-to-Point
Direct EDI or Point-to-Point EDI establishes a single secure line between two business partners. An organization communicates with each of its business partners individually thus having to manage hundreds or thousands of separate connections.
In this approach, a business and its partners are connected directly through the Internet, using the same communication method or protocol. If different business partners are using different communication protocols, this approach becomes complex and resource intensive.
Usually, different trading companies use different protocols. Thus, the system must be able to support all of the different, required protocols.
Mobile EDI
Mobile EDI is a transmission mode that enables the exchange of EDI documents through mobile devices. This model has benefits, for example, a salesperson is able to see the status of a delivery to a supplier while on the road, or a business manager is able to review supplier performance while in a meeting.
The limitation of the mobile device is its only drawback. The quality and size of the screen for most mobile devices are relatively poor.
However, with the advent of the iPad and other tablet computers, the scenario is changing, and a lot can be achieved with mobile computing devices. It is not an overstatement to say that these devices are changing the way users interact with their organizations.
EDI Outsourcing
Mobile EDI is a transmission mode that enables the exchange of EDI documents through mobile devices. This model has benefits, for example, a salesperson is able to see the status of a delivery to a supplier while on the road, or a business manager is able to review supplier performance while in a meeting.
The limitation of the mobile device is its only drawback. The quality and size of the screen for most mobile devices are relatively poor.
However, with the advent of the iPad and other tablet computers, the scenario is changing, and a lot can be achieved with mobile computing devices. It is not an overstatement to say that these devices are changing the way users interact with their organizations.
EDI Outsourcing
For businesses that prefer to outsource their EDI processes, EDI outsourcing is an option, which is also called managed services. Managed services are the outsourcing of an organization’s EDI process to a third-party provider.
Sometimes, implementing and managing an EDI platform can be a daunting task for an organization. It requires heavy capital investment in hardware, software, and also in technical skills.
The key reason for outsourcing EDI is the reduction in the cost of investing in the organization’s own infrastructure while ensuring that there is access to the right level of skills to deliver the required service.