1. EDI Concepts and Terminology - 1 Source: EDI Fundamentals and Standard - Overview IEEM 5352 E-Enterprise Integration

2. EDI Concepts and Terminology - 2 Source: EDI - Electronic Data Interchange EDI is the computer to computer exchange of routine business documents in a standard format. Ship Notices Invoices Bills of Lading Purchase Orders Payments

3. EDI Concepts and Terminology - 3 Source: Trading Partners Suppliers Manufacturers Distributors Customers

4. EDI Concepts and Terminology - 4 Source: Electronic Data Interchange Suppliers Manufacturers Distributors Customers Purchase Orders Invoices Payments Forecasts Advance Shipment Notification Warehouse Authority To Ship Shipment Confirmation Forecasts Advance Shipment Notification Warehouse Authority To Ship Shipment Confirmation Sales Orders Invoices Payments

5. EDI Concepts and Terminology - 5 Source: EDI Business Partnership Customer Supplier Purchase Order Response to Request for Quote Request for Quote Purchase Order Acknowledgment Ship Notice Invoice Payment

6. EDI Concepts and Terminology - 6 Source: EDI Requires Review of Business Models and Reengineering Order Business Model for Stand Alone Purchase Orders Buyer Seller Purchase Order Forecast/Plan Cycle (Optional) Shipment/Payment Business Model Pre-Order Business Model (Optional) Purchase Order Acknowledgment Change Order Seller-Initiated Change Change Order Acknowledgment

7. EDI Concepts and Terminology - 7 Source: Commerce Without EDI Purchasing Agent Purchaser’s Computer Data Entry Supplier’s Computer Billing Clerk Fax Phone Mail Mail Transfer Data Entry Post Office BuyerSupplier

8. EDI Concepts and Terminology - 8 Source: Commerce With EDI Purchasing Agent Supplier’s Computer Buyer’s Private Mailbox Value Added Network Supplier’s Private Mailbox Purchaser’s Computer Billing Clerk BuyerSupplier Electronic Post Office

9. EDI Concepts and Terminology - 9 Source: Benefits of EDI Reduces costsReduces costs Decreases cycle timeDecreases cycle time Improves productivityImproves productivity Improves customer service and satisfactionImproves customer service and satisfaction

10. EDI Concepts and Terminology - 10 Source: EDI Imperative Not just nice to have Not optional Not an afterthought EDI MUST BE INTERGRATED INTO APPLICATION

11. EDI Concepts and Terminology - 11 Source: EDI Standards EDIFACT StandardASC X12 Standard

12. EDI Concepts and Terminology - 12 Source: EDI Standards Building Organizations (ANSI) ASC X12 STANDARDS Accredited Standards Committee X12 commissioned by ANSI Used Predominantly in North America (UN) EDIFACT STANDARDS ‘EDI For Administration, Commerce and Trade’ Board chartered by the United Nations Used Predominantly in Europe & Asia Considered the International Standard

13. EDI Concepts and Terminology - 13 Source: EDI Regional Standards ODETTE Organization for Data Exchange Through Telecommunications in Europe Automotive in EuropeTRADACOMS Trading Data Communications Standard in Europe

14. EDI Concepts and Terminology - 14 Source: ASC X12 Versions/Releases

15. EDI Concepts and Terminology - 15 Source: EDIFACT Directories

16. EDI Concepts and Terminology - 16 Source: EDI Standards All STANDARDS have architecture and syntax rules to define (~Transactions/Messages) Electronic Documents (~Transactions/Messages) (~Segments) Records (~Segments) (~Data Element for Standard Codes or Your Data) Data Elements (~Data Element for Standard Codes or Your Data)

17. EDI Concepts and Terminology - 17 Source: Business Documents to Standard Transactions and Messages Business Document Invoice Purchase Order Shipment and Billing Notice Change Order Price/Sales Catalog Customs Declaration EDIFACTINVOIC ORDERS n/a ORDCHG PRICAT CUSDEC X12810 850 857 860 832 n/a

18. EDI Concepts and Terminology - 18 Source: Paper and X12 Terminology Comparison BUSINESS DOCUMENTS Invoices Purchase Order EQUAL PO Number PO Date Part Number Item Quantity Schedule Quantity Schedule Date TRANSACTIONS 810 INVOICE 850 PURCHASE ORDER GROUPS OF DATA EQUAL SEGMENTS Basic PO Data PO Line Item Schedules BEG Segments PO1 Segments SCH Segments INDIVIDUAL DATA EQUAL DATA ELEMENTS BEG03 PO NUMBER BEG06 PO DATE PO107 PROD/SERVC ID CD PO102 QTY ORDERED SCH01 (SCHEDULE) QTY SCH06 (SCHEDULE) DATE

19. EDI Concepts and Terminology - 19 Source: Hierarchy of Segments Header - BEG Beginning - N1 Name and Address Items (within Header) - PO1 Item Data Delivery Schedules (within Item) - SCH Scheduling

20. EDI Concepts and Terminology - 20 Source: Sample ASC X12 Purchase Order (850 Transaction) ST~850~123’ BEG~00~SA~P54356~~~960102~~CN2345’ N1~BT~ACME CORP.~92~AC323’ N1~ST~ACME CORP.~92~AC9876’ PO1~1~500~23.99~CT~BP~PD34~VP~V545434’ SCH~200~EA~~~~002~960115’ SCH~300~EA~~~~002~960315’ CTT~1~500’ SE~9~123’

21. EDI Concepts and Terminology - 21 Source: ASCX12 to EDIFACT Comparison ASC X12 PURCHASE ORDER TRANSACTION ST~850~0001@ BEG~00~SA~P54356+~~960626~~CN2345@ N1~BT~ACME CORP.~92~AC323@ N1~ST~ACME CORP.~92~AC9876@ PO1~01~500~2.99~CT~BP~1820- 0232~EC~C~VP~GF9876@ SCH~200~EA~~~~002~960715@ SCH~300~EA~~~~002~960820~ CTT~1~500@ SE~9~0001@ EDIFACT ORDERS MESSAGE UNH+0001+ORDERS:2:921:UN:EIVER1’ BGM+105+P54356+9’ DTM+4+960626:101’ RFF+CT:CN2345’ NAD+BT+AC323:92’ NAD+ST+AC9876:92’ LIN+01++1820-0232:BP’ PIA+1+C:EC+GF9876:VP’ QTY+21:500:PCE’ PRI+1:2.99:CT::1’ SCC+1+DD’ QTY+133:200’ DTM+2:960715:101’ QTY+133:300’ DTM+2:960820:101’ CNS+S’ CTN+2:1’ CNT+19+1800 UNT+19+0001’

22. EDI Concepts and Terminology - 22 Source: Sample ASC X12 Transaction Specifications 850 Purchase Order Functional Group ID=PO Introduction: This standard provides the format and establishes the data contents of a purchase order transaction set. The purchase order transaction set provides for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information.

23. EDI Concepts and Terminology - 23 Source: Des.No. ASC X12 Transaction Specifications - Header Segments Heading: ID Name Use Pos.Seg.Req.Max. Comments Notes and 010STTransaction Set HeaderM1 020BEGBeginning Segment for Purchase OrderM1 040CURCurrencyO1 050REFReference NumbersO12 070TAXTax ReferenceO3 080FOBF.O.B. Related InstructionsO1 100SSSSpecial ServicesO25 150DTMDate/Time ReferenceO10 210PWKPaperworkO25 240TD5Carrier Details (Routing Sequence/Transit Time) O12 LOOP START (200) 310N1NameO1 360PERAdministrative Communications ContactO3 LOOP END

24. EDI Concepts and Terminology - 24 Source: ASC X12 Transaction Specifications - Detail Segments Detail: Pos.Seg.Req.Max.Notes and No.ID Name Des.UseComments LOOP START (100000) 010PO1Purchase Order Baseline Item DataM1 080PKGMarking, Packaging, LoadingO200 090PO4Item Physical DetailsO1 100REFReference NumbersO12 120SSSSpecial ServicesO25 130ITAAllowance, Charge or ServiceO10 230SCHLine Item ScheduleO200n1 250TD5Carrier Details (Routing Sequence/Transit Time) O12 LOOP END

25. EDI Concepts and Terminology - 25 Source: ASC X12 Transactions Specifications - Summary Segments Summary: Pos.Seg.Req.Max. No.ID Name Des.Use 010CTTTransaction TotalsM1 030SETransaction Set TrailerM1 Transaction Set Notes 1.The SCH segment is used to specify various quantities of items ordered that are to be (SCH02) scheduled. When this segment is used the unit of measurement code (SCH02) should always be identical to the unit of measurement code in the associated PO1 segment (PO103) and the sum of values of quantity (SCH01) should always equal the quantity (PO102) ordered (PO102) in the PO1 segment. 2. (CTT01PO1 The number of line items (CTT01) is the accumulation of the number of PO1 segments. (CTT02)(PO102) If used, hash total (CTT02) is the sum of the value of quantities ordered (PO102) for PO1 each PO1 segment.

26. EDI Concepts and Terminology - 26 Source: ASC X12 Data Dictionary Data Elements Segment / Position Data Type BEG03 324 PURCHASE ORDER NUMBER Requirements Designator M AN 1/22 Data Element Number Minimum/Maximum Length

27. EDI Concepts and Terminology - 27 Source: X12 Data Element 92 - Purchase Order Type Code specifying the type of Purchase Order. Type: ID Min=2 Max=2 Transaction Qualifiers BK - Blanket Order CF - Confirmation CP - Change to purchase order RE - Reorder SA - Stand alone order

28. EDI Concepts and Terminology - 28 Source: X12 Data Element 374 - DATE/TIME Qualifier Code specifying type of date or time, or both date and time Type: ID Min=3 Max=3 Data Value Qualifiers 001 - Cancel after 002 - Delivery requested 003 - Invoice 004 - Purchase order 005 - Sailing 007 - Effective 219 - Plugged and abandoned SCH

29. EDI Concepts and Terminology - 29 Source: ASC X12 Data Element Qualifiers - Examples N103 66 ID CODE QUALIFIER C ID 1/2 N104 67 ID CODE C ID 1/30 DE66 CODE LIST 1 = DUN & BRADSTREET 9 9 = Duns plus 4 digits 91 91 = Assigned by Buyer 92 92 = Assigned by Seller DTM01 374 DATE/TIME QUALIFIER M ID 3/3 DTM02 373 DATE C DT 6/6 DE374 CODE LIST 002 002 = Delivery Requested 010 010 = Requested Ship 017 017 = Estimated Delivery 069 069 = Promised for Delivery PO106 235 PROD/SERV ID QUALIFIER O ID 2/2 PO107 234 PROD/SERV ID C AN 1/30 DE235 CODE LIST BP BP = Buyer part EC EC = Engineering Change DR DR = Drawing VP VP = Vendor Part

30. EDI Concepts and Terminology - 30 Source: ASC X12 Example Purchase Order Segment

31. EDI Concepts and Terminology - 31 Source: ASC X12 Code Conversion/Cross Referencing X12 Data from SENDER ST* N1*ST*ACME*91* ABC *BT N1*BT**91 XYZ *XYZ CT REF*CT*CON24 PR REF*PR QT97 *QT97 TD5**92* UPSBL RECEIVER cross reference SHIP TO ‘ABC’ = ‘NT1234’ BILL TO ‘XYZ’ = ‘TT987’ CONTRACT ‘CON24’ = ‘986’ PRICE QUOTE ‘QT97’= ‘9864’ CARRIER ‘UPSBL’ = ‘UPS2’ MAY BE REQUIRED TO CROSS-REFERENCE CODES BACK TO ORIGINAL CODES FOR RETURNED TRANSACTIONS Cross-Reference codes to internal application codes.

32. EDI Concepts and Terminology - 32 Source: Components in the EDI Process Business applicationsBusiness applications EDI Application Integration SoftwareEDI Application Integration Software EDI TranslatorEDI Translator CommunicationsCommunications

33. EDI Concepts and Terminology - 33 Source: EDI Transaction Flow Data Comm EDI Translator Application Interface Applications ISA~ BEG~00 N1~ST~ Table Std.File Inbound Flow Outbound Flow 850BT12 35789SG 41825520 Interface File

34. EDI Concepts and Terminology - 34 Source: EDI Application Integration Software EDI EX*tender Oracle Applications Flat File Format or Tables Oracle EDI Gateway Oracle EDI Gateway General Code ConversionGeneral Code Conversion Location Code ConversionLocation Code Conversion Inbound: Loads Data to Application Interface TablesInbound: Loads Data to Application Interface Tables Outbound: Extracts Data from base ApplicationOutbound: Extracts Data from base Application

35. EDI Concepts and Terminology - 35 Source: EDI Translator Software bridge between EDI Standards and applications Software bridge between EDI Standards and applications It is the last process before the standard transactions are sent, and the first process after receiving standard transactions It is the last process before the standard transactions are sent, and the first process after receiving standard transactions Insulates applications from Standards and Standard versions/releases Insulates applications from Standards and Standard versions/releases Each Trading Partner chooses their own EDI Translator Each Trading Partner chooses their own EDI Translator EDI Gateway is EDI Translator Independent EDI Gateway is EDI Translator Independent

36. EDI Concepts and Terminology - 36 Source: EDI Translator Set Up Trading Partner Set Up (Mandatory) Define electronic mailbox Activate transactions Set test/production flags Specify communications method Code Conversion Set Up (Optional) Define internal and external codes Apply code conversion as appropriate

37. EDI Concepts and Terminology - 37 Source: EDI Translator - Data Functions Perform data mapping Perform code conversion Perform compliance checking Wrap and compress data before sending Unwrap and uncompress data after receiving

38. EDI Concepts and Terminology - 38 Source: Generate Functional Acknowledgments Match Functional Acknowledgments to transaction Generate audit reports Requeue transactions for resubmission EDI Translator - Monitoring Functions

39. EDI Concepts and Terminology - 39 Source: ASC X12 810 Invoice - Wrapped and Compressed ST~810~189’BIG~980208~TF87654~980112~KJ98 76-34~~PR’N1~BT~RUNNER UNLIMITED~92~MTB1 ’N1~ST~RUNNER UNLIMITED~92~MT01’N1~SE~AC ME SUPPLIES~92~AC987’IT1~01~100~EA~10~EA ~BP~98754-987~EC~E~VP~5986-0834’IT1~02~2 ~EA~200~EA~BP~BK454532~EC~W~VP~ 646455-5 6’TDS~1400’CTT~2@SE~10~189’ Invoice TF87654 2/8/98KJ9876-341/12/98 Invoice TF87654 date 2/8/98 for PO KJ9876-34 dated 1/12/98. MTB1 Bill to Runner Unlimited location coded MTB1; MT01 Ship to Runner Unlimited location coded MT01. AC987. Selling Party is Acme Supplies location coded AC987. There are two line items: ‘01’98754-987 E5986-0834100 IT1= ‘01’ which is the PO line item number. Buyer part is 98754-987 with engineering change E. The vendor part is 5986-0834 for 100 units 02’BK454532 W.646455-56200 IT1 =‘02’ which is the PO line item number. Buyer part is BK454532 with engineering change W. The vendor part is 646455-56 for 200 units

40. EDI Concepts and Terminology - 40 Source: EDI Implementation Guide Used by all Trading Partners (TP’s) Is an agreement on how a transaction is used Makes a generic standard specific Large corporations often force specific Implementation Conventions (IC’s) on TP’s Governments too HIPAA - Health Care DoD - Department of Defense

41. EDI Concepts and Terminology - 41 Source: Communications Value Added Networks (VANs)Value Added Networks (VANs) Direct ConnectsDirect Connects EDI over the InternetEDI over the Internet Diskettes, Tape CartridgeDiskettes, Tape Cartridge

42. EDI Concepts and Terminology - 42 Source: Value Added Network and Trusted Third Party Services Value Added Network - VAN u Electronic Mailbox u Central Clearinghouse u Secure and Private u Backup / Archive u Protocol Conversions u Simplify Data Communications

43. EDI Concepts and Terminology - 43 Source: EDI Communication Without a VAN Sender 1 Sender 2 Sender 3 Sender 4 Receiver A Receiver B Receiver C Receiver D

44. EDI Concepts and Terminology - 44 Source: EDI Communication with a VAN Sender 1 Sender 2 Sender 3 Sender 4 Receiver A Receiver B Receiver C Receiver D Third- Party Network VAN

45. EDI Concepts and Terminology - 45 Source: Value Added Networks AT & TAT & T IBM Information ExchangeIBM Information Exchange HarbingerHarbinger SterlingSterling GEIS - General Electric Information ServicesGEIS - General Electric Information Services TradeVanTradeVan......

46. EDI Concepts and Terminology - 46 Source: EDI Versus Web-Based Applications Web-based applications: Require data entry at sending site Do not support mass batches of data Good for status inquiries Good for transactions where EDI cannot be established

47. EDI Concepts and Terminology - 47 Source: Problems with EDI Setup is expensive and time consuming VAN’s can be expensive Large Trading Partner populations are difficult to manage EDI is affordable by only large corporations Hub and Spoke architecture Good for large company Difficult and expensive for small company

48. EDI Concepts and Terminology - 48 Source: Two New EDI Directions EDI over the Internet Focuses on Security at message level Uses S/MIME and PGP/MIME and public key encryption XML/EDI Not concerned with security Based on existing EDI standards Integrates standard file format and process logic