Type of EDI (Electronic Data Interchange)
In this article, we will understand different types of EDI (Electronic Data Interchange). Before diving into this topic first, we will take a look at what is EDI.
EDI (Electronic Data Interchange)
EDI is a process that allows one company to send information to another company electronically rather than through paperwork. In this way, companies are exchanging business documents in standard electronic format. Through EDI many documents can be exchanged such as purchase orders, invoices, customer documents, advance ship notices, inventory documents, and payment notices. To check more about EDI please go through this article Electronic Data Interchange
Types of EDI:
These are the following types of Electronic Data Interchange:
- Direct EDI/Point-to-point
- EDI via VAN
- EDI via AS2
- Web EDI
- Mobile EDI
Direct EDI /Point-to-point
In the direct connection approach, we can connect our business partner connect directly through the internet using the same communication method. It establishes a single connection between partners, so we also called it point-to-point EDI.
EDI via VAN
Value-added networks (VAN) are private networks where electronic business documents are exchanged between partners. The VAN provider handles the network and provides companies with mailboxes with the help of this they can send and receive EDI documents.
EDI via AS2 (Applicability Statement 2)
AS2 (Applicability Statement 2) is an internet communication protocol that enables data to be transmitted securely over the internet. EDI via Applicability Statement 2 delivers the functionality of EDI with the ubiquity of internet access.
Unlike EDI via Applicability Statement 2, Web EDI conducts EDI using a standard internet browser. Organizations use different online forums to exchange information with business partners. Web EDI makes EDI easy and affordable for small and medium-sized organizations and companies that have only an occasional need to utilize such a service.
Users have commonly accessed EDI either by a private network such as value added network or the internet in the order to send and receive EDI-related business documents. Mobile EDI has had limited acceptance, therefore due to security issues with mobile devices across an EDI infrastructure, but mainly due to the mobile devices themselves. The quality and size of the screen of most devices have been relatively poor until recently. There is a growing industry for developing software applications or apps for downloading onto mobile devices and it will only be a matter of time before you will be able to download supply chain add EDI-related apps from private and corporate app stores.