EDI 101
   Fearful of Chargebacks?
   Industry White Papers
   Glossary of Terms
   FAQ's
EDI Education FAQs

What is EDI?
EDI (Electronic Data Interchange) is the concept in which buyers and sellers exchange business critical documents such as Purchase Orders and Invoices electronically.

What is a Trading Partner?
A Trading Partner refers to a company that buys your product or service. In essence it is another means of referring to your Customers.

Do I really need EDI and e-commerce?
If you are like most suppliers, then the answer to this question will depend on the relationship you have with your Trading Partners. Generally speaking, when your Partners request that you start trading documents via EDI, it is more of a requirement than a request, so the answer will be “yes…you need EDI”. You should also consider that even if your Trading Partners are not requiring EDI of you, it has been proven that buyers will opt to purchase products from companies that are EDI compliant. Therefore, participating with an EDI or e-commerce program can potentially give you a competitive advantage.

What is a Transaction Set?
A Transaction Set refers to the types of documents that your Trading Partners will send and receive to and from you. A Purchase Order is one type of Transaction Set and an Invoice is another type.

How will I know what Transaction Sets my Trading Partners require?
Your Trading Partners’ e-commerce departments will provide you with these requirements. You should note that each Partner may require different Transactions. Should you choose eZCom as your e-commerce solution, our team of experts will help you with this entire process and make understanding the requirements very easy for you. For a list of commonly used Transaction Sets, you can view our List of Document Types.

Is EDI Expensive?
EDI has been around for over a quarter of a century and was originally used between large buyers and large suppliers. This was because the initial costs to implement and support the first EDI initiatives were extremely expensive. Even today, implementing an in-house EDI or e-commerce system can still be pricey. Startup fees can range from $10,000 to more than $200,000. Depending on what size your company is and how much of your business will be conducted via EDI, your annual operational costs can exceed $100,000 between personnel and processing fees. However, by using a web-based product such as that offered by eZCom, you eliminate the need to purchase hardware and software, and in most cases your current staff can easily fit the job functions into their schedule.

Do I need to hire an E-commerce expert?
If you choose to purchase and implement an in-house system, then you will need to employ at least one e-commerce expert. If you choose to outsource or use a web-based application, your current staff should be adequate in most cases.

I would like to use EDI, but I am afraid of Charge back Penalties.
And you should be. Not properly implementing an EDI and e-commerce initiative has resulted in charge backs that total more than $50,000 annually for many suppliers. However, if you are careful in choosing the right EDI solution, the application will assist you in sending out EDI transactions correctly, and thus allow you to have a pleasant and profitable EDI experience. For more information on choosing an EDI solution, you may download our white paper, Choosing the Right EDI Software.

How can eZCom help me with EDI?
eZCom employs the best e-commerce experts in the industry. Our management team has practical supply chain experience working for companies just like yours… so we understand exactly what you are going through. At eZCom we have developed the easiest and most efficient application on the market today. You will be able to meet all your EDI requirements without ever having to get involved with the technical aspects of EDI and e-commerce. We make it easy so you can stay focused on what it is you do best: getting your orders, shipping your products, and billing your customers. To better understand how we have saved many suppliers countless amounts of time and money, check out the Testimonials of your peers.


Register For Lingo Live Demo
Retailer / Hub List   •   News   •   Site Map   •   Privacy Policy   •   Terms