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Demystifying EDI : A Practical Guide to Electronic Data Interchange Implementation, Transactions, and Systems
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Demystifying EDI
A Practical Guide to Electronic
Data Interchange Implementation,
Transactions, and Systems
Russell A. Stultz
Wordware Publishing, Inc.
Library of Congress Cataloging-in-Publication Data
Stultz, Russell Allen
Demystifying EDI / by Russell A. Stultz.
p. cm.
ISBN 1-55622-708-6 (pb)
1. Electronic data interchange. 2. Computer networks. I. Title.
HF5548.33.S78 2000
658'.0546--dc21
00-063311
CIP
© 2001, Wordware Publishing, Inc.
All Rights Reserved
2320 Los Rios Boulevard
Plano, Texas 75074
No part of this book or the companion CD may be reproduced in
any form or by any means without permission in writing from
Wordware Publishing, Inc.
Printed in the United States of America
ISBN 1-55622-708-6
10987654321
0009
Mercator is a registered trademark of Mercator Software, Inc.
Other product names mentioned are used for identification purposes only and may be trademarks of their respective companies.
All inquiries for volume purchases of this book should be addressed to Wordware Publishing, Inc., at the above
address. Telephone inquiries may be made by calling:
(972) 423-0090
Contents
Acknowledgments ................................ix
Part 1—Introduction to EDI
Chapter 1 About This Book ........................3
Introduction ........................................3
Organization ........................................4
The CD-ROM .......................................5
Getting Started ......................................6
Chapter 2 Compelling Reasons for EDI ..................7
Introduction ........................................7
EDI Mail ..........................................7
Manual Trading ...................................7
The EDI Transaction................................10
Stepping Up to EDI ................................11
Conclusions ........................................13
Review Questions ....................................13
Chapter 3 EDI Standards and Legal Issues ...............15
Introduction........................................15
Standards .........................................15
A Brief History ...................................15
Some Background ..............................16
The Standards ................................16
Changes and Updates ............................16
Message Content ..............................16
More Adoptions ...............................17
New Applications ..............................17
Aligning the ANSI ASC X12 and UN/EDIFACT Standards ...........17
Current Status ................................19
Proprietary Standards ...............................19
ANSI X12 ......................................19
EDIFACT ......................................20
EDI Mail Small and Large .............................23
Digging Deeper ..................................23
The ANSI X12 Format ............................23
The EDIFACT Format............................25
iii
Contents
Legal Issues .......................................27
Trading Partner Agreements ..............................28
Third-Party Agreements .............................29
Laws, Rules, and Regulations ...........................29
Review Questions ....................................29
Chapter 4 Selecting EDI Software ....................31
Introduction........................................31
Analyzing Your Business.................................31
Trading Practices..................................32
Current Systems ..................................32
Staff Qualifications and Potential .........................35
EDI Benefits ....................................35
EDI Use by Others.................................36
Conversion Costs .................................37
Interface Issues ..................................38
Available EDI Applications ............................40
EDI System Alternatives .............................40
Inflexible and Flexible Systems ..........................40
What’s Next........................................41
Review Questions ....................................42
Chapter 5 Data Communications, VANs, and Security ..........43
Introduction........................................43
Data Communications ..................................43
The Value-Added Network................................45
Charges .......................................46
Electronic Mailboxes ...............................46
Checking for EDI Mail ...............................47
Trading with Multiple Partners ..........................47
VAN Interconnects.................................47
Communication Alternatives ..............................47
Internet FTP ....................................47
Point-to-Point ...................................49
Launching an Exchange ..............................50
Security ..........................................51
Man Overboard! ..................................51
Security Issues ...................................51
In-House EDI System Security ..........................52
Secure Creation of Outbound Messages ..................52
Secure Processing of Incoming Messages .................53
Secure Retention of Data ..........................54
EDI Mail Security Mechanisms ..........................54
Encryption ..................................55
Key Management ..............................56
Certification .................................56
iv

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