Matis is EDI Capable

What Is EDI?

Electronic data interchange (EDI) is commonly defined as the application-to-application transfer of business documents between computers. Many businesses choose EDI as a fast, inexpensive, and safe method of sending purchase orders, invoices, shipping notices, and other frequently used business documents.
EDI is quite different from sending electronic mail messages or sharing files through a network, a modem, or a bulletin board. The straight transfer of computer files requires that the computer applications of both the sender and receiver (referred to as "trading partners") agree upon the format of the document. The sender must use an application that creates a file format identical to your computer application.
When you use EDI, it's not necessary for you and your trading partner to have identical document processing systems. When your trading partner sends a document, the EDI translation software converts the proprietary format into an agreed upon standard. When you receive the document, your EDI translation software automatically changes the standard format into the proprietary format of your document processing software.

Why Would I Use EDI?

Save Time and Money
EDI is a tremendous cost- and time-saving system. Since the transfer of information from computer to computer is automatic, there is no need to rekey information. With no data entry, the chance for error drops to near zero. RJR Nabisco estimates that processing a paper purchase order costs the company $70. Processing an EDI purchase order reduces the cost to a mere 93 cents.
Improve Customer Service
EDI is also a method of improving customer service. The quick transfer of business documents and marked decrease in errors allow you to fill orders faster. KMart and other retailers have implemented a program called Vendor Stock Replenishment (VSR). VSR requires that vendors maintain appropriate inventory levels in all stores. With VSR, you don't risk having the store run out of your product while you wait for a purchase order. You send stock as your EDI system reports it is necessary and automatically bill the client. It cuts days, even weeks, from the order fulfillment cycle and ensures that your product is always on the shelf.
End Repetition
EDI documents are stored in a mailbox. You can look at the documents in your mailbox at any time. If your customer wants a copy of an invoice, instead of calling you they simply check their mailbox. Imagine the time savings from not having to copy and fax/mail copies of invoices or purchase orders.
Expand Your Customer Base
Many large manufacturers and retailers are ordering their suppliers to institute an EDI program. When evaluating a new product to carry or a new supplier to use, the ability to do EDI is a big plus. Keep in mind, too, that these same companies tend to stop doing business with suppliers who don't comply with EDI.
There are other uses for EDI as well. Universities use EDI to exchange transcripts quickly. Auto manufacturers use EDI to transmit large, complex engineering designs created on specialized computers. Large multinational firms use EDI to communicate between locations.


How Does EDI Work?

EDI starts with a trading partner agreement between you and your trading partner. You make joint decisions about the standard to be used, the information to be exchanged, the network carrier (called a value-added network or VAN), and when information will be sent.
You create a document, such as an invoice, in your business application. The EDI translator automatically reformats the invoice into the agreed-upon EDI standard. The translator creates and wraps the document in an electronic envelope that has an ID for your trading partner.
The communications portion - which could be part of the translation software or a separate application - dials the phone number for the network. The envelope containing the document is then transmitted to the VAN. The VAN reads the ID on the envelope and places it in the correct mailbox.
Your trading partner's modem calls the network and retrieves everything in the mailbox. The EDI translator opens the envelope and translates the data from the standard form to the format read by their application. Accounts payable creates a check from the electronic invoice.
The key to efficient EDI is to input the data only once. The EDI system does the rest of the work. Data moves without intervention from your business application to your trading partner's application with no additional steps to slow the process. It's that easy.


How Does The Data Move From My Application To The EDI Translator?

It is very important that your business application seamlessly integrate with your EDI translation software. No matter which piece you select first, make sure the other can easily talk to it. After you define the document in the business application, you use an EDI mapper to create a map of the business document.
With the mapper, you describe the relationship between the datafields in your business application and the EDI standards. The mapper is an integral part of the overall EDI solution.
If both the EDI translator and business application are on the same type of computer, the data will move faster and more easily from one to another.


What Do I Need To Do EDI?

  • EDI translation management software - for optimum performance the translation software should be on the same platform as your business application.
  • Mapper - levels of mapper implementation or integration vary greatly from translator to translator.
  • Communications software - can be a module to the translator, a programming tool that enables you to write communications protocols, or a separate application.
  • A modem - the higher the baud rate, the faster the communications will be.
  • A VAN - a network that you connect to. One network can act as a gateway to another. (Some trading partners offer a direct connection to their EDI computer).