Electronic Data

Interchange (EDI)

Presented by :
Hasnain Ali Shah(03)
Noman Aslam(08)
Shahid Iqbal (11)

Presented to:
Sir Mohsin Mateen
 Contents of the Topic
• What is EDI
• Why do Business use EDI?
• Comparison b/w paper and edi
• How does EDI work?
• Standards of EDI
• Types of EDI
• EDI delivery models
• EDI USERS AND TYPES OF
ACTIVITIES
• Selecting an EDI service provider
 EDI:
 Structured transmitting of data between organizations by electronic means

 It is used for B2B communications

 Through it the firms send their purchase order, invoices, ASNs(advance shipping notices)
 Why do Business use
EDI?

Cost Reduction
Manpower, communications, resources, storage
Speed
Electronic transfer Vs mail/ courier
Accuracy
Avoids duplicate data entry and error margin
Security
Information less susceptible to interception/
falsification
System Integration
EDI can be integrated with internal system to send
& receive data
 How does EDI work?

• EDI it is a coded conversation between two computer systems

regarding the ordering, delivery and payment of goods or services.
Comparison
 Standards of EDI

 ANSI X12 is the standard that any industry can use

 X12 developed this standard
 It relates to order replacement, invoices, and payment of ordrs
 UN/EDIFACT
 The ANSI X12 and European standards

 It is the reconstruction of European standards known as “Guidelines for Trade Data

Interchange “(GTDI)
 It is reconstructed by United Nations Economic Commission for Europe (UNECE)
 Types of EDI

• There are two types of EDI

1. Web EDI
• simple EDI through an Internet browser
• Replicates paper into webform
• Form contain fields where users enter information

2. Integrated EDI
• Require EDI software application
• install the edi with accounting solution software
•NetSuite, Intacct, Sage, SAP, QuickBooks, etc.
 EDI delivery models
There are two main EDI models
1. On-premise EDI
On-premise EDI or in-house EDI as
it is also known is a solution that is
hosted locally and maintained by
internal IT resources.
2. Outsourced EDI
Outsourced EDI solutions are
hosted by a third party provider
meaning that no costly hardware or
software is required
 EDI USERS AND TYPES OF
ACTIVITIES

Any company that (buys, sells goods, services) can potentially use EDI.
Because it supports the entire business cycle
EDI can update the relationship that any company
has with its (customers, distributors, suppliers)
 EDI USERS AND TYPES OF
ACTIVITIES (continued)

Companies of all types and sizes are able to utilize EDI.

Federal Government
Automakers
suppliers to send all purchase orders and invoices
electronically
Industry
banking
healthcare
retailing
travel
Manufacturing
insurance
 Examples of EDI service provider

Some world famous EDI service providers are

as follows
Growing trend of Edi in
Pakistan
Thank You