How to Extract more Value with EDI Integration?

  October 27, 2020       By Ray Atia

Introduction to EDI Integration

More than just a simple model for data/information exchange, Electronic Data Interchange (EDI) is an advanced method of multi-point networking that delivers sublime partner data exchange. It allows enterprises to exchange, manage, and govern huge amount of B2B data generated by enterprise systems in both structured and unstructured file formats.

Business entities can securely and efficiently exchange business information and provide basic to high level support to B2B operations with the robust EDI capabilities. Some of the best EDI solutions offer multiple benefits such as

  • Improved B2B governance
  • Streamlined business process management
  • Automation of operations
  • Real-time Visibility
  • Information Accuracy
  • Heightened business efficiency
  • Faster onboarding
  • Cost minimization, and many more…

It helps enterprises to accelerate its growth and drive the productivity to a next level.

How EDI Integration Works?

In order to support the emerging business requirements, most of the businesses are seeking EDI Integration solutions for EDI modernization initiatives, which may extend the present EDI data integration and automation capabilities beyond a standard EDI. no matter the industry or domain, it becomes critical for enterprises to possess one, integrated EDI approach which will deliver automated workflows, increase visibility into operations, and improve customer service.

Let’s look how EDI integration works with an example:

Stage 1: A sender exports a business document from an in-house system or a computer application. Example - a sale order to shop for goods or services.

Stage 2: The business document to be transferred, here a sale order, is converted from the in-house computing system into the EDI format through data transformation mapping software or EDI translators available.

Stage 3: The EDI business document is thereafter run through EDI processing software to make sure that it's structurally accurate and error-free based upon the mutually agreed EDI standards.

Stage 4: With the built-in feature within the validation software; the info from the EDI document is transmitted to some VAN (Value Added Network) with the help of a secure communication protocol (Indirect EDI integration). It also can be through with the assistance of another application, or it are often transmitted right to the client via an immediate connection over similar protocols (Direct EDI integration).

Stage 5: Direct EDI over AS2, as an example, creates a secure line between two different businesses, and corporations can hook up with trading partners with zero document fees and gain real-time communication capabilities along-with it.

Stage 6: The receiving party has its own process to unfold: It receives the file -> verifies the credentials -> authenticates the source -> decrypts the file. Thereafter, it imports the EDI documents into its systems.

Stage 7: Receiver end sends back a message disposition notice (MDN) to acknowledge delivery of the sent documents

What are EDI implementation Challenges?

Although adaption of EDI Integration has considerable benefits, its implementation poses several challenges as well. Overlooking these EDI implementation challenges can disrupt the abilities of organizational to simplify and strengthen the data exchange in a secure way. Therefore, enterprises should ensure that they have a solid plan in place for strategizing EDI operations and overcome the challenges faced due to the implementation of EDI.

How to draw more values from EDI Integration?

Below mentioned are some industry-proven best practices that will help an organization to stay prepared and choose the best in order to draw more value from EDI implementation in their business. Let’s have a look at such solutions:

Be aware of different forms of EDI Frameworks: 

There are numerous forms of EDI and enterprises should not mistake them as one. EDI vendors ideally have different solutions for different use cases in their bank of solutions. Few EDI solutions in the market serve only a few of the B2B capabilities and combine only two business partners. Whereas, some EDI approaches support real-time data exchange and that too with a large number of business partners at the same time. Understanding different forms are very important as such details help enterprises in knowing the limitations of their EDI solution and work accordingly.

Look for Self Service Partner activation:

Conventional EDI solutions don’t support an important parameter and that is partner enablement with self-service. These solutions require heavy coding at all ends for building B2B integration flows. Organizations also lose significant revenue during this process as business operations are side-tracked till the time all the flows are built and tested and made live.

B2B processes can be accelerated significantly if all partners build onboarding flows by themselves without relying on a lot of coding and thus saving a lot of time and revenue. With the best EDI solutions in place, business partners don’t have to wait for a long time for bringing data from their partner networks.

Opt for an EDI Solution rather than an EDI Tool:

Enterprises should look for an enterprise-class solution instead of tools that are not capable to lift heavy workloads and heavy run time changes. Many EDI tool vendors promise effective and ease of use but end up with painful customizations which leads to compromise on ERP updates. Such EDI tools are difficult to be worked on and maintained in a hybrid fast-moving computing ecosystem. On the other hand, a modern EDI solution takes care of each aspect including the start-to-end integration needs of a business as well as supports multi-server and multi-instance environments.

Get Support for Multiple Data Standards: 

Modern Enterprises use modern and technically advanced cloud-based technologies that use completely different databases as well as data models than traditional applications. Transformation of data stored in all for factors and standards between the ground systems and applications with Cloud-based technology must be supported by the EDI frameworks and organizations should ensure that they use the same. The proposed advanced EDI framework should always support instant data mapping and data transformations activities flawlessly.

Ensure Automation: 

Adapting Automation instead of manual and repetitive tasks can speed up B2B operations while reducing the excessive operational costs. Many aspects of B2B operations can be managed easily with the involvement of fewer resources. From a single window, business users can easily monitor transaction status and generate order fulfilment reports with the automation activity.


Factoring the above mentioned best EDI practices into your business data/information exchange strategy is not a small thing to achieve as even the big enterprises with robust competency centres face problems in accommodating advanced capabilities in their existing EDI framework. If your business  faces a similar EDI integration challenge; Amosoft would love to hear from you and would love to assist you with our next-generation EDI integration solutions. They can bring efficiency and advancement into the operations of your business.

Extract more value with Amosoft’s EDI Integration Solutions. A One-stop platform for all your EDI problems.