Electronic Data Interchange (EDI) is a cornerstone of modern business-to-business communication. By standardizing document formats, EDI enables seamless, automated exchanges of crucial business information. This post explores 20 real-world EDI examples, complete with sample EDIFACT messages, to illustrate how EDI streamlines operations across various industries.
What is EDI?
EDI (Electronic Data Interchange) is a method for transferring data between different companies using approved formatting standards. It replaces paper-based exchanges with electronic ones, reducing errors, saving time, and cutting costs.
What is EDIFACT?
EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) is a widely used international EDI standard developed by the United Nations. It defines a set of syntax rules to structure data, along with standard messages for various business transactions.
20 EDI Examples in Action
For each example, we'll provide:
- A real-life scenario
- A simplified human-readable message
- An EDIFACT message sample
1. Purchase Order
Scenario: Walmart sends an electronic purchase order to a supplier for laptop computers.
Human-Readable:
PO#: 12345 Supplier: ABC Electronics Item: Laptop Computers Quantity: 500 Price: $800 per unit Delivery Date: 2024-08-15
EDIFACT (ORDERS message):
UNH+1+ORDERS:D:96A:UN:EAN008' BGM+220+12345+9' DTM+137:20240815:102' NAD+BY+5412345000013::9' NAD+SU+4012345000094 LIN+1++4000862141404:EN' PIA+1+ABC123:SA' QTY+21:500' PRI+AAA:800' UNT+9+1'
2. Invoice
Scenario: An auto parts manufacturer sends an electronic invoice to a car company for supplied components.
Human-Readable:
Invoice#: INV-9876 Customer: XYZ Auto Item: Brake Pads Quantity: 1000 Total Amount: $25,000 Payment Due: 2024-09-30
EDIFACT (INVOIC message):
UNH+1+INVOIC:D:96A:UN' BGM+380+INV-9876' DTM+137:20240930:102' NAD+SU+5412345000013::9' NAD+BY+4012345000094::9' LIN+1' PIA+5+BP12345:SA' QTY+47:1000' MOA+203:25000' UNT+10+1'
3. Shipping Notice
Scenario: FedEx sends an advance shipping notice to a recipient, detailing package contents and expected delivery date.
Human-Readable:
Tracking#: FDX123456789 Recipient: John Doe Package Contents: Electronics Weight: 5 lbs Expected Delivery: 2024-07-28
EDIFACT (DESADV message):
UNH+1+DESADV:D:96A:UN' BGM+351+FDX123456789' DTM+137:20240728:102' NAD+CN+John Doe' LIN+1' PIA+1+ELEC123:SA' QTY+12:1' MEA+PD+AAA+KGM:5' UNT+9+1'
4. Inventory Update
Scenario: A pharmaceutical distributor provides a real-time inventory update to a pharmacy.
Human-Readable:
Product: Aspirin 100mg Current Stock: 5000 units Reorder Point: 1000 units Last Updated: 2024-07-25 14:30 EST
EDIFACT (INVRPT message):
UNH+1+INVRPT:D:96A:UN' BGM+35+INV12345' DTM+137:202407251430:203' NAD+SU+5412345000013::9' LIN+1' PIA+5+ASP100:SA' QTY+145:5000' QTY+145:1000' UNT+9+1'
5. Payment Confirmation
Scenario: A bank sends an electronic payment confirmation to a business after processing a transaction.
Human-Readable:
Transaction ID: PAY-987654321 Amount: $10,000 From Account: 1234567 To Account: 7654321 Date: 2024-07-25 Status: Completed
EDIFACT (REMADV message):
UNH+1+REMADV:D:96A:UN' BGM+481+PAY-987654321' DTM+137:20240725:102' MOA+9:10000' FII+BF+1234567' FII+BO+7654321' UNT+7+1'
6. Customs Declaration
Scenario: An international shipping company submits customs declarations electronically for faster border clearance.
Human-Readable:
Declaration#: CD-001122 Shipper: Global Exports Inc. Destination: France Contents: Textiles Value: $50,000 HS Code: 6204.62
EDIFACT (CUSDEC message):
UNH+1+CUSDEC:D:96A:UN' BGM+952+CD-001122' DTM+137:20240725:102' NAD+EX+Global Exports Inc' LOC+27+FR' GDS+1' FTX+AAA+++Textiles' MOA+128:50000' CST+620462' UNT+10+1'
7. Healthcare Claim
Scenario: A hospital submits a patient insurance claim electronically to a health insurance provider.
Human-Readable:
Claim#: HC-789012 Patient ID: P-12345 Provider: City Hospital Service Date: 2024-07-20 Procedure: Appendectomy Amount: $15,000
EDIFACT (MEDREQ message):
UNH+1+MEDREQ:D:96A:UN' BGM+71+HC-789012' DTM+137:20240720:102' NAD+PT+P-12345' NAD+SLA+City Hospital' IMD+A+PRO+Appendectomy' MOA+9:15000' UNT+8+1'
8. Order Status Update
Scenario: An online retailer sends order status updates to customers throughout the shipping process.
Human-Readable:
Order#: ORD-56789 Customer: Jane Smith Status: Shipped Carrier: UPS Tracking#: 1Z999AA1234567890 Est. Delivery: 2024-07-30
EDIFACT (ORDRSP message):
UNH+1+ORDRSP:D:96A:UN' BGM+231+ORD-56789' DTM+137:20240730:102' NAD+BY+Jane Smith' STS+1+12' RFF+ON:1Z999AA1234567890' UNT+7+1'
9. Product Catalog Update
Scenario: A wholesaler distributes updated product catalogs to its network of retailers.
Human-Readable:
Product ID: TOOL-123 Name: Power Drill Price: $79.99 Available: Yes Category: Power Tools Last Updated: 2024-07-24
EDIFACT (PRICAT message):
UNH+1+PRICAT:D:96A:UN' BGM+9+CAT12345' DTM+137:20240724:102' LIN+1' PIA+5+TOOL-123:SA' IMD+F++:::Power Drill' PRI+AAB:79.99' UNT+8+1'
10. Warehouse Transfer
Scenario: A large supermarket chain manages inventory transfers between its warehouses using EDI.
Human-Readable:
Transfer#: WT-4567 From: Warehouse A To: Warehouse B Item: Canned Soup Quantity: 1000 cases Transfer Date: 2024-07-26
EDIFACT (INVRPT message):
UNH+1+INVRPT:D:96A:UN' BGM+351+WT-4567' DTM+137:20240726:102' NAD+WH+Warehouse A' NAD+WH+Warehouse B' LIN+1' PIA+5+SOUP123:SA' QTY+70:1000' UNT+9+1'
11. Bill of Lading
Scenario: Trucking companies exchange electronic bills of lading with shippers and receivers.
Human-Readable:
BOL#: BL-112233 Shipper: Acme Goods Consignee: Best Retail Carrier: Swift Trucking Items: 10 pallets of merchandise Weight: 5000 lbs
EDIFACT (IFTMCS message):
UNH+1+IFTMCS:D:96A:UN' BGM+701+BL-112233' DTM+137:20240725:102' NAD+CZ+Acme Goods' NAD+CN+Best Retail' NAD+CA+Swift Trucking' GID+1+10:PA' MEA+WT+AAB+KGM:2268' UNT+9+1'
12. Production Schedule
Scenario: An automobile manufacturer shares production schedules with its tire suppliers to ensure timely delivery.
Human-Readable:
Schedule ID: PS-789 Product: Sedan Model X Quantity: 1000 units Start Date: 2024-08-01 End Date: 2024-08-31 Tire Requirement: 4000
EDIFACT (DELFOR message):
UNH+1+DELFOR:D:96A:UN' BGM+241+PS-789' DTM+137:20240801:102' NAD+BY+5412345000013::9' NAD+SU+4012345000094::9' LIN+1++4000862141404:EN' QTY+113:1000' DTM+11:20240831:102' QTY+1:4000' UNT+10+1'
13. Sales Report (continued)
EDIFACT (SLSRPT message):
UNH+1+SLSRPT:D:96A:UN' BGM+81+SR12345' DTM+137:20240724:102' NAD+SU+FF-123' MOA+9:15675' QTY+47:523' LIN+1' PIA+5+CHBURG:SA' QTY+153:287' UNT+10+1'
14. Loan Application
Scenario: Banks process mortgage applications received electronically from brokers.
Human-Readable:
Application#: LA-456789 Applicant: Sarah Johnson Loan Amount: $250,000 Purpose: Home Purchase Credit Score: 780 Annual Income: $85,000
EDIFACT (FINSTA message):
UNH+1+FINSTA:D:96A:UN' BGM+715+LA-456789' DTM+137:20240725:102' NAD+HQ+Sarah Johnson' MOA+9:250000' FTX+AAI+++Home Purchase' MOA+341:85000' UNT+8+1'
15. Employee Benefits Enrollment
Scenario: A company's HR department submits employee benefits enrollment information to insurance providers.
Human-Readable:
Employee ID: E-1122 Name: Michael Brown Plan: Family Health Coverage Dental: Yes Vision: Yes Effective Date: 2024-09-01
EDIFACT (PAYDUC message):
UNH+1+PAYDUC:D:96A:UN' BGM+351+BE12345' DTM+137:20240901:102' NAD+HQ+E-1122' NAD+CN+Michael Brown' IMD+A++:::Family Health Coverage' PCD+12:100' UNT+8+1'
16. Flight Booking
Scenario: Travel agencies make flight reservations through EDI connections with airlines.
Human-Readable:
Booking Ref: ABC123 Passenger: Emily White Flight: AA100 From: LAX To: JFK Date: 2024-08-15 Departure: 10:00 AM
EDIFACT (PAXLST message):
UNH+1+PAXLST:D:96A:UN' BGM+745+ABC123' NAD+FL+Emily White' TDT+20+AA100' LOC+125+LAX' LOC+87+JFK' DTM+189:202408151000:203' UNT+8+1'
17. Prescription Order
Scenario: Doctors send electronic prescriptions directly to pharmacies.
Human-Readable:
Rx#: 987654 Patient: Robert Green Medication: Lisinopril 10mg Quantity: 30 tablets Refills: 3 Doctor: Dr. Lisa Brown
EDIFACT (MEDPRE message):
UNH+1+MEDPRE:D:96A:UN' BGM+720+987654' DTM+137:20240725:102' NAD+PAT+Robert Green' NAD+DOC+Dr. Lisa Brown' LIN+1' PIA+5+LIS10:SA' QTY+47:30' QTY+194:3' UNT+10+1'
18. Repair Order
Scenario: Auto repair shops send electronic repair orders to parts suppliers for quick fulfillment.
Human-Readable:
RO#: REP-5678 Vehicle: 2022 Ford F-150 VIN: 1FTEW1E53NFA12345 Parts Needed: Air Filter, Oil Filter Labor Hours: 2 Expected Completion: 2024-07-27
EDIFACT (ORDERS message):
UNH+1+ORDERS:D:96A:UN' BGM+220+REP-5678' DTM+137:20240727:102' NAD+BY+5412345000013::9' VEH+1+1FTEW1E53NFA12345::5+:::2022 Ford F-150' LIN+1++4000862141404:EN' PIA+5+AIRFILT:SA' LIN+2++4000862141405:EN' PIA+5+OILFILT:SA' UNS+S' UNT+11+1'
19. Quality Control Report
Scenario: A food processing plant shares quality control reports with regulatory agencies.
Human-Readable:
Report ID: QC-789 Product: Canned Tomatoes Batch#: BT-456 pH Level: 4.2 Contaminants: None Detected Inspector: John Smith Date: 2024-07-25
EDIFACT (QALITY message):
UNH+1+QALITY:D:96A:UN' BGM+380+QC-789' DTM+137:20240725:102' NAD+MF+5412345000013::9' LIN+1' PIA+5+CANTOM:SA' IMD+C++:::Canned Tomatoes' RFF+BT:BT-456' MEA+PH+AAA:4.2' FTX+AAI+++None Detected' UNT+11+1'
20. Tax Filing
Scenario: Businesses submit tax returns and payments electronically to government tax authorities.
Human-Readable:
Filing Type: Quarterly Sales Tax Business ID: BIZ-987654 Period: Q2 2024 Total Sales: $1,500,000 Taxable Sales: $1,200,000 Tax Due: $72,000 Payment Method: Electronic Transfer
EDIFACT (TAXCON message):
UNH+1+TAXCON:D:96A:UN' BGM+751+TF12345' DTM+194:20240630:102' NAD+DT+BIZ-987654' MOA+125:1500000' MOA+124:1200000' MOA+150:72000' PAI+::42' UNT+9+1'
Benefits of EDI
- Reduced Costs: Eliminates paper, printing, and postage expenses.
- Increased Efficiency: Automates data entry and processing.
- Improved Accuracy: Reduces human errors in data handling.
- Faster Transaction Speed: Enables real-time information exchange.
- Better Relationships: Enhances communication between trading partners.
Implementing EDI
To implement EDI in your business:
- Identify your EDI needs and potential partners.
- Choose an EDI solution (in-house or cloud-based).
- Select the EDI standards you'll use (e.g., EDIFACT, X12).
- Map your internal data to EDI formats.
- Test thoroughly with trading partners.
- Train your staff on new processes.
- Go live and monitor performance.
Conclusion
These 20 examples demonstrate the versatility and power of EDI across various industries and business processes. By adopting EDI, companies can significantly improve their operational efficiency, reduce costs, and stay competitive in today's fast-paced business environment. Whether you're in retail, manufacturing, healthcare, or any other sector, EDI can transform your business-to-business communications and streamline your operations.