• The EDI environment
• EDIFACT standards
• Illustration

• The first includes the proper applications for each user. Almost all EDI messages are issued from an application or arrive at an application. These applications are often owned, that is developed for the specific needs of a particular organisation. Data handled by the application is structured according to a true format at the company, but normally, setting up EDI does not lead to the modification of the informatics programme.

• The second component is necessary to enable the partners to speak. An EDI interface is used in this case and allows the speakers to talk in the same language. This consists of translation software and a set of standard messages. The software will serve to get a kind of performance information through, which is exploitable by all your partners. It constructs EDI messages from data which it receives following standards available, and translating messages received in a method usable by specific applications.

• Finally, a message transport service is used to dispatch information from one company to another. This service can be operated by a simple direct link via a telephone network. Commercial parties can communicate in real time by sending files directly from one computer to another. But more often, a VAN (Value Added Network) is opted for. VAN plays the role of central server. Each partner has a specific network address or letterbox in the VAN. To send EDI messages, the transmitter sends them in the VAN, without entering into communication with its interlocutor. The VAN saves messages in the receiver's electronic letterbox, until they are looked at. Additionally, apart from the role of letterbox, VAN generally offers related services and targets specific sectors.

EDI allows commercial operations to be automised. Within EDI, computors are no longer used solely for receiving information, but also for interpreting it, for notifying the user of specific points, and to update basic data with new information. It is not therefore a matter of electronic messaging on the band of these three systems requiring a human-machine interface (at least chain extremity) and generally the user must interpret and reintroduce the exchanged data.



EDIFACT standards

International reference standards enabling a common language, are called EDIFACT (Exchange of Data Information For Administration, Commerce and Transport). These standards define the vocabulary and the different kinds of normalised messages, as well as directives which allow trading partners to exchange commercial documents, notably orders, invoices, sales data and consignment notes.

These standards are used in the most diverse sectors, from the law courts, to deliveries, health, the social sector, tourism, ... The EDIFACT standard is maintained and coordinated by CEFAC (Centre for Trade Facilitation and Electronic Business), an organisation related to the United Nations.

As an example, the table below, taken from the book " Exporter " by the Centre Français du Commerce Extérieur, includes some terminology defined by this standard.

This system affects many aspects of international commerce, including the movement of goods, the accompanying documents, as well as payments. Take for example the Single Administrative Document, there is one EDI version of it with the possibility of an electronic signature.



Illustration

To illustrate the function of EDI, take the example of its use during a sale with international payment by transfer. In the most common scenario, the cycle begins from the moment a purchaser sends and EDI order from to a supplier. This leads to, first of all, an acknowledgement of receipt to the purchaser, then, at the time of delivery, it receives a delivery note, followed by an invoice, these documents all being transmitted by EDI. To finish, the purchaser has the information sent to the bank concerning payment of the invoice, and the money is transferred to the supplier's bank account.