Web Based EDI

  February 04, 2013       By Ray Atia
Web-based EDI is a new option open for everyone in the world of electronic commerce. It lets companies with access to the World Wide Web conduct EDI in an inexpensive and simplified manner. With Web-based EDI, spoke companies rely on software development from third-party vendors. The EDI software lets a partner company or organization enter information on an e-form using a standard Web browser, that is then translated into an EDI transaction and sent on to the hub company, which greatly reduces paperwork and communication errors. I-Iub companies have invested in Web-based EDI because they believe its inherent simplicity, user-friendly interface, and low cost will entice second-tier companies to use web based EDI as well. Web-based EDI can be easier as well as more cost effective for second-tier companies, but there are some disadvantages. Web based EDI is often limited to only common and straightforward transactions such as purchase orders and invoices. Another disadvantage can be that third-party vendors often allow only in-network orders and EDIs to be used, so vendor to vendor transactions would be out of the question. With Web-based EDI, it also requires second-tier trading partners to manually enter information into e-forms, which creates its own set of delays and errors. Unfortunately, the standardization that web based EDI relies on, is further compromised as third party vendors develop their own proprietary web software.