1. EDI 101

2. Agenda
• EDI Terminology • Industry Standards • EDI Communications Options including Value Added Networks and the Internet • EDI Transaction Sets and Their Usage in Retail • Advance Ship Notice and Bar Code Label Usage • EDI Document Structure – An in depth look at the 850 purchase order, 810 invoice, and 856 ship notice • Product Identification including UPC codes and the new GTIN • Chargeback Avoidance • RFID

3. What is EDI?
EDI is the exchange of electronic business documents between trading partners using a pre-defined formatting standard
North American standard is ANSI ASC X12
UCS Subset often used for the grocery industry
VICS Subset, in addition to X12 also used for the retail industry
Each trading partner defines an “implementation standard” which is unique to that company

4. EDI is like Certified Mail

5. VAN vs. AS2 VAN (Value Added Network) AS2
Traditional method of communication for EDI data
Charges are based on Kilo-characters
Safe method for transferring data
AS2
Becoming more common
Uses certificates to verify partners
Lacks backup/restore capabilities of VAN
More expensive in initial setup than VAN

6. VAN vs. AS2
AS2

7. EDI Data Raw EDI Data Enveloping Structure
Designed to be compact and machine/software independent
Contains no special formatting or control characters
Enveloping Structure
Data which describes and routes the EDI data to the appropriate mailbox

8. Enveloping Structure Communication Transport Protocol
Communications Session
Inter change Control Header
Inter change Control Trailer
Interchange Envelope
Functional Group Header
Functional Group
ASN #1
ASN #2
Functional Group Trailer
Transaction Set Header
Transaction Set Trailer
Invoice
ISA GS ST SE GE
IEA

9. What is Integrated EDI?
EDI data is exchanged in an automated fashion without re- keying data
Inbound documents, such as Purchase Orders, are converted without the need of data entry
Outbound documents, such as Invoices or Advance Ship Notices are generated as a natural part of the shipping/billing process

10. What is Integrated EDI?
Instead of a mere importing process, integrated EDI makes the data meaningful to the receiving system
Customer IDs, Part Numbers, and Ship to Locations, etc. are cross- referenced to the receiving system’s codes
Qualifiers are checked to correctly interpret the meaning of the data
The data interacts with the system during integration

11. EDI Terminology
Each line of raw data in an EDI document is called a segment. The sample below represents a segment
BIG* * * *22137***DR~

12. EDI Terminology A segment is made up of four individual parts:
Segment id
Elements
Element separators
Segment terminator

13. Segment ID
The segment id is the first piece of data in the segment and is followed by an element separator. It describes what specific information the segment contains. In the sample below, the segment id is BIG, which indicates that this is the beginning segment of an 810 invoice.
BIG* * * *22137***DR~

14. Elements
Elements are the individual pieces of data in the segment. In our example, the elements are , , , 22137, two empty elements, and DR.
BIG* * * *22137***DR~

15. Element Separators
An element separator is a unique character that separates each element in the segment and separates the segment tag from the elements. In the sample below, the element separators are the asterisks.
BIG* * * *22137***DR~
The element separators tell the translator where one element ends and the next one begins. Therefore, the element separator must be a character that is not typically used in anything else. For example, you wouldn’t want to use the letter R as an element separator. If you did, your translator wouldn’t read PURCHASE as the word PURCHASE, but instead as two separate elements, PU and CHASE.

16. Segment Terminators
The last character in the segment is the segment terminator. Just as a period tells you that you’ve reached the end of a sentence, the segment terminator tells the translator that it has reached the end of the segment. In our example, the segment terminator is the tilde.
BIG* * * *22137***DR~

17. Reading the Data
Now that you know the individual pieces of the segment, it’s time to put them together. When reading raw data, a specific piece of data is referred to by its segment tag and two-digit element number. In our example, the DR would be referred to as the BIG07.

18. Reading the Data BIG*20010315*00003811*20001026*22137***DR~
To determine the two-digit element number, start counting with the first element after the segment tag and count each element, including empty elements, until you get to the data in question. For example:
It’s important to note that you do not count the segment tag when counting the elements.
It’s also important to note that although there is no data in the two elements between and DR, you still count those two elements.
BIG* * * *22137***DR~

19. Reading the Data BIG*20010315*00003811*20001026*22137***DR~
After you know the two digit element number for the data, put those after the segment tag. For single digit numbers like 7, add a zero in front of it to get the two digits.
BIG = BIG07
Once you know which element you’re referring to (BIG07), you can look that up in the trading partner specs to see what information is expected in that element.
BIG* * * *22137***DR~

20. Additional EDI Terminology
There are many terms within EDI
EDI is mostly comprised of acronyms and numbers
Additional terms are available upon request

21. Industry Standards
In the EDI industry, most trading partners use EDI to reduce the amount of labor and paper necessary to trade information
EDI allows for the trading of data with a common standard so that any accounting system can be used
Standards are approved by DISA
Data Interchange Standards Association. The organization responsible for performing the administrative duties of the ANSI X12 subcommittee.

22. Industry Standards
Most US trading partners use the ANSI X12 standard for trading documents
Retail will sometimes use the VICS substandard
Grocery will use the UCS substandard
Most retail trading partners use version 4010 or higher to trade documents
4010 was the first standard to use 8 digit dates (Y2K compliancy)

23. EDI Transaction Sets and Their Usage in Retail
Most retail trading partners trade :
850 – Purchase Order
810 – Invoice
856 – Advance Shipment Notice
997 – Functional Acknowledgment
Additional documents that are traded:
855 – PO Acknowledgment
864 – Text Message
820 – Remittance Advice
860 – PO Change

24. Advance Ship Notice and Bar Code Label Usage
Advance Shipment Notice. The EDI document transmitted from a supplier to its customer to describe a pending shipment.
Utilized mostly in retail trading
Is used in combination with UCC-128 labels to identify products

25. Barcodes Many different symbologies exist
UPC – 12 digits – for single item
UCC-14 (I205) – 14 digits – for case pack quantity
UCC-128 – 20 digits – for identifying unique carton/pallet
Usually attached to products with labels or screen-printing

26. Sample Barcodes
UPC
UCC-14
UCC-128

27. Labeling Product or Containers
Create product labels for . . .
Units, Inner Packs, Carton or Pallets
Use of different size or colored labels
Assists with the identification of items
Create UCC-128 labels for pallets or cartons
Used with ASN
Does not directly identify item, but establishes a “license plate” for pallet or carton

28. ASN Data Bill of Lading Number Department Number UCC-128 Numbers
BSN*00* * *1824*0001
HL*1**S
TD1*CTN25*4****G*0*LB
TD5**2*UPSN*U*UPS
REF*BM*
REF*AO*
DTM*011*
N1*SF*Demo Progression SQL
N4*WALL TOWNSHIP*NJ*07719
N1*ST**92*200
HL*2*1*O
PRF*S909450
REF*DP*21
REF*IA*430
N1*BY**92*200
HL*3*2*P
MAN*GM*
HL*4*3*I
LIN**UP*
SN1**8*EA
PO4*1*8*EA
HL*5*2*P
MAN*GM*
HL*6*5*I
CTT*6
Bill of Lading Number
Department Number
UCC-128 Numbers

29. ASN Data Shipment Order Pack (Carton) Item Pack (Carton) Item
HL segments show structure of ASN
HL*1**S
HL*2*1*O
HL*3*2*P
HL*4*3*I
HL*5*2*P
HL*6*5*I
Shipment
Order
Pack (Carton)
Item
Pack (Carton)
Item

30. ASN Data First number increments for each HL segment Second number
HL*1**S HL*2*1*O HL*3*2*P HL*4*3*I
First number
increments for
each HL segment
Second number
shows what level
the HL is
subordinate to

31. EDI Document Structure
850 – Purchase Order
Sent to vendor with information regarding what the customer wishes to order
Generally is the first EDI document traded
810
Sent to customer with information regarding what is being billed to them for the purchase order
Generally is the second EDI document traded

32. 850 Structure Header and detail
Header contains information regarding PO number, Ship To , Bill To, Dates and Reference
Detail contains information regarding Items Ordered, Item Description and Case Pack

33. Sample 850
ST<850< BEG<00<SA<S909450<< REF<DP<21 REF<IA<430 SAC<N<<VI<OHRO<<<<<<<<<<<REGULAR STORE ORDER DTM<001< PO1<<48<EA<15.00<<UP< <VA<Item1 SDQ<EA<92<100<24 SDQ<EA<92<200<24 PO1<<60<EA<20.00<<UP< <VA<Item2 SDQ<EA<92<100<30 SDQ<EA<92<200<30 CTT<1 SE<14<
HEADER
DETAIL

34. 850 Sample PO Number And Date Cancel Date Item, Price, Qty
ST<850< BEG<00<SA<S909450<< REF<DP<21 REF<IA<430 SAC<N<<VI<OHRO<<<<<<<<<<<REGULAR STORE ORDER DTM<001< PO1<<48<EA<15.00<<UP< <VA<Item1 SDQ<EA<92<100<24 SDQ<EA<92<200<24 PO1<<60<EA<20.00<<UP< <VA<Item2 SDQ<EA<92<100<30 SDQ<EA<92<200<30 CTT<1 SE<14<
PO Number
And Date
Cancel Date
Item, Price,
Qty

35. 810 Structure Header, detail and summary
Header contains information regarding Invoice number, Ship To , Bill To, Dates and Reference
Detail contains information regarding Items Billed, Item Description and Case Pack
Summary contains information regarding totals (Invoice amount, quantity, weight)

36. 810 Sample HEADER DETAIL SUMMARY ST*810*000000001
BIG* *3748**S909434
REF*IA*1
N1*ST**92*100
ITD*01*3*0**0**30
IT1**24*EA*30.00**UP*
PID*F****ORANGE HANDLE
IT1**30*EA*40.00**UP*
PID*F****BLUE HANDLE
TDS*202560
CTT*2
SE*12*
HEADER
DETAIL
SUMMARY

37. 810 Sample
ST*810* BIG* *3748**S REF*IA*1 N1*ST**92*100 ITD*01*3*0**0**30 IT1**24*EA*30.00**UP* PID*F****ORANGE HANDLE IT1**30*EA*40.00**UP* PID*F****BLUE HANDLE TDS* CTT*2 SE*12*
Invoice Number
Ship To information
Item, price, qty
Invoice Total

38. UPC vs. GTIN UPC – Universal Product Code
Identifier of single product
12 characters
Most commonly found in grocery and retail
Current standard and widely accepted
GTIN - Global Trade Item Number
Identifier for trade items developed by GS1 (comprising the former EAN International and Uniform Code Council).
GTIN is an “umbrella” term used to describe the entire family of GS1 data structures for trade items (products and services) identification. GTIN numbers may be 8, 12, 13 or 14 digits long, and can be constructed using four numbering structures, depending upon the application used.
Starting to gain traction in the retail industry

39. Chargeback Avoidance Chargebacks
Assigned by customer for failing to meet requirements that were established by contract
Can be enforced for faulty data transmissions, faulty barcodes, improper placement of labels

40. Chargeback Avoidance
When sending EDI, check data against implementation guide
Purchase Barcode Verifier
Used to verify that barcodes are “legible” to a barcode scanner
Audit warehouse controls
Check packages for label placement, products and logistic requirements

41. RFID
Radio Frequency Identification (RFID) refers to devices that are attached to objects that store data and are able to transmit that data to an RFID receiver. 
These devices can be large pieces of hardware the size of a small book or they can be very small devices inserted into a label on a package (commonly known as smart labels).

42. A Few RFID Definitions
Active tags – RFID tags that contain their own power source and have longer read ranges.
Passive tags – RFID tags that are powered by the signal generated from the reading device.
Read/write tags – RFID tags that can be programmed multiple times.
Read only tags – RFID tags that are programmed once.
EPC (electronic product code) – A set of standards designed to utilize RFID technology for the tracking of individual items, cases and pallets.
(Similar to UPC, UCC-14 or UCC-128)

43. A Few More Definitions RFID Reader – A device that reads RFID tags.
Smartlabels – Labels with integrated RFID chips.
The concept is that you would continue to produce labels (most likely with bar codes) that are also be programmed with an RFID chip embedded in the label. This would provide all current functionality (human and machine readable text and bar codes) as well as adding RFID functionality.
Slap-and-ship – An approach to comply with customer requirements for physical identification of shipped goods.
This method implies you are meeting the customer's requirement by applying the bar code labels or RFID tags, but are not utilizing the technology internally.

44. Additional sources of research
“A to Z of EDI” by Nahid Jilovec
“From Edi to Electronic Commerce: A Business Initiative” by Phyllis K. Sokol