I just received an email from our GM telling me that we are going to start implementing EDI and I need to head up that process. We have the module in Epicor, so step 1 is done, I guess. But here is my question: What exactly is EDI? I know it is Electronic Data Interchange, but what does that mean?
I am a behind-the-scenes person, not a front-line individual that uses Epicor all day, every day. I make sure the software we use works, and tweak it a bit here and there, but I do not know much of anything about the processes that the business follows, financial stuff, etc.
So yeah, I have no clue what this EDI module does, let alone what I need to do to implement it properly.
I am not looking for any in-depth discussions about what needs to be done for this. I just have one simple question: What the heck is EDI and why do we need it?
@jhecker It is a replacement for having a clerk enter data. There are document numbers ie 850 is a customer PO, 860 is a PO change. The file format is is a lovely ^
delimited file that needs to be mapped into something like xml that can then be mapped into the .app ~ tilde delimited file
that demand management process uses. There is a standard, but each partner has there twist on how to use the standard.
Depending on how many trading partners and which documents you will be exchanging will determine how much outside processing you will need. Epicor’s 1EDI is a company that will receive your documents, map them into a format you can use and send them on to you and do the same process outbound. EDI has a lot of costs depending on how you are exchanging documents, so hopefully the GM is aware of all of this. Your CAM can get you an estimate once you know with whom and what you will be exchanging.
It is possible to buy standalone software to do mapping inhouse and the needed conversions. I did this because no one would approve the monthly expenses of EDI, but I only had one partner and three document types to receive and even then it was a bear. But now those orders are entered in under a minute nightly.
Think of EDI as an API with a sur charge for every 1K if you use a van (middleman).
EDI is supposed to be a standard, which is why there are so many standards. Kidding aside, most adhere to the standard about 90% of the time, but tweaks are involved with every player trading messages.
Enter the “Van”, your middleman, who will operate in a spoke and wheel, thus you incorporate your transactions (usually referred to by their document number, like 850 for a purchase order) and the van carries the transactions, including tweaks to your partners.
Of course they want a monthly retainer and a piece of every 1K of transaction carried through their system. If you are a small player, the monthly retainer will be your gripe. If you are a heavy transaction player - Bullyaa, you are a middleman favorite!
Once streamlined - orders, corrections, shipping confirmations, invoices flow between systems. Really nice. Allows your business to scale and eliminates all kinds of errors on your part (except when they have garbage in, you have garbage in). Speeds up order to cash the way your boss envisions.
At previous company, we were a low margin business but wanted the value of EDI, so I cut out the middleman and wrote my own EDI parser. If your partners are willing to straight up swap files you can avoid the middleman and the ongoing fees.
If the monthly retainer is acceptable and you are a low transaction shop - use a Van and give yourself a throat to choke.
