EDI Implementation

A Complete EDI Standards Guide: Definitions and Types

From rapid computer-to-computer communication to fewer manual errors, Electronic Data Interchange (EDI) offers several advantages that make it one of the most efficient methods for sending and receiving important business documents. By automating data transfers and standardizing forms, EDI eliminates common issues like typos, misinterpreted handwritten data, inconsistent formats, and missing or duplicate information. This boosts accuracy and streamlines supply chain operations.

Among the several key components that make it all possible are EDI standards.

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Overview

In this guide, we’ll explain what EDI standards are and why they matter by highlighting 20 standard EDI formats used across multiple industries and regions.

01

What are EDI Standards?

Think of an EDI standard as a shared language that ensures two computer systems in an EDI exchange can communicate effectively. Just as different languages are spoken in different countries around the world, EDI standards vary depending on the specific industry, region, or business requirements.

EDI standards generally fall into two categories:

  • Private/proprietary standards: Some companies or industries develop their own EDI standards to meet specific internal needs. For example, Railinc in North America uses proprietary EDI standards for the rail industry, facilitating communication between railroads, equipment owners, and shippers. This ensures that trading partners follow a format specifically designed for the unique requirements of rail logistics and operations.

  • Public standards: Many companies rely on these standards for cross-industry communication. For instance, Walmart follows the ANSI X12 standard, a public standard widely adopted in North America. Similarly, many companies outside North America use EDIFACT. These standards enable seamless communication between different industries and regions.

Regardless of the type, the goal remains the same: ensuring trading partners can seamlessly exchange information to improve operational efficiency.

02

3 Benefits of EDI Standards

Emails deliver messages electronically, just like EDI. However, what sets EDI apart is its automation and standardization of business-critical documents, such as invoices and purchase orders.

Here’s why uniform formats make EDI one of the most efficient communication methods:

Reduced errors and increased efficiency

Imagine two musicians trying to play together without sheet music, each one interpreting the melody differently. Now, picture them following the same sheet music, ensuring they stay in sync and perform flawlessly. Similarly, uniform EDI formats help trading partners avoid misunderstandings that arise from inconsistent data formats. This reduces errors and speeds up communication, allowing both parties to exchange information quickly and with confidence.

Improved communication with partners

EDI standards ensure that every message follows a consistent structure, whether it’s an invoice or a purchase order. With this uniformity, partners spend less time interpreting data and dealing with errors, resulting in faster, more reliable communication.

Enhanced regulatory compliance

In certain industries, such as healthcare, EDI standards help businesses comply with legal requirements for secure data exchange. Additionally, some jurisdictions require EDI for tax compliance, making standardized communication critical for regulatory adherence.

03

20 Types of EDI Standards

To meet the growing demands of businesses, developers are constantly creating new EDI solutions for different purposes. Today, the most widely used standard EDI formats across various industries and regions include:

ANSI X12

Formerly known as ANSI ASC X12, ANSI EDI is one of the primary formats used in North America, adopted by professionals from over 300,000 companies across multiple industries. Developed in 1979 by the Accredited Standards Committee (ASC) under the American National Standards Institute (ANSI), these standards facilitate cross-industry EDI communication.

Today, ANSI X12 standards encompass over 350 transaction sets used across various sectors, including:

  • Finance: X12F

  • Insurance: X12N

  • Transportation: X12I

  • Supply Chain: X12M

  • Communications and Controls: X12C

UN/EDIFACT

Developed in the late 1980s, UN (United Nations)/EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport) are also widespread EDI standards used by:

  • 90% of agents (carriers)

  • 95% of terminal operators

UN/CEFACT (UN Centre for Trade Facilitation and Electronic Business), the organization behind EDIFACT, continually updates these standards to keep pace with industry trends and expand their application to new sectors.

EDIFACT facilitates communication across many European industries, including transport and logistics, retail, customs, agriculture, healthcare, and insurance.

TRADACOMS

Though still in use by some, TRADACOMS (Trading Data Communications Standard) is much less common today, as its development ceased in 1995. It was once widely adopted by retailers in England, Scotland, Wales, and Ireland for handling business documents such as purchase orders, invoices, and delivery confirmations.

GS1

This EDI format, developed by an entity of the same name, assigns unique identifiers to locations, shipping containers, parties, and products. GS1 is an ideal choice for businesses seeking standards that enable easy tracking of transactions and inventory.

EDIA

EDIA (Electronic Data Interchange Association) is an organization that oversees the effective use of EDI, with branches that vary by country. In the U.S., the non-profit was formerly known as the Transportation Data Coordinating Committee (TDCC).

While these standards were initially designed to streamline communication in the transport industry, they are now used in various sectors. EDIA standards were first introduced to businesses in 1979.

UCS

This format, a subgroup of ANSI X12, is known as the Uniform Communication Standard. It’s widely used for fast and accurate EDI transactions in the grocery industry, making it suitable for businesses of all sizes and levels of complexity.

WINS

Another ANSI X12 subset, WINS (Warehouse Information Network Standards) is an EDI format for distribution and warehousing. Established in 1982, it’s widely used in North America and stands for Warehouse Information Network Standards.

RosettaNet

Developed in the late 1990s, this XML-based document standard enables seamless supply chain communication for IT industries. RosettaNet is widely used in high-tech sectors such as electronics, logistics, and telecommunications.

Unlike other EDI standards like ANSI X12 and EDIFACT, RosettaNet focuses on process and process modeling, offering a more specialized approach to managing supply chain interactions.

COMPORD

In addition to ANSI X12, COMPORD (Computer Orders) is one of the most widely used EDI specifications in the steel industry, particularly in North America. It helps companies streamline inventory and shipping management through real-time reporting.

ODETTE

ODETTE (Organization for Data Exchange by Tele Transmission in Europe) provides standards for the automotive industry. These standards automate key business functions like shipment tracking, invoicing, and order processing for thousands of Tier 1 and Tier 2 suppliers and assembly lines.

EANCOM

Initially designed for the retail industry, EANCOM (European Article Number Communication) now benefits a range of sectors, including healthcare, construction, and publishing. One of its key advantages is its availability in local languages across more than 80 countries.

EANCOM simplifies tracking the flow of goods through its standard numbering system, offering a straightforward and accurate solution for managing transactions.

VDA

These EDI specs, developed by the Verband der Automobilindustrie, are tailored for the German automotive industry. VDA enables companies like Bosch, Audi, and Continental to exchange fast, reliable supply chain messages with a focus on data integrity.

HIPAA

Standards established under the 1996 Health Insurance Portability and Accountability Act (HIPAA) offer several advantages, including enabling faster patient care. HIPAA EDI ensures secure and accurate billing and communication for healthcare providers.

Oracle Gateway

This EDI format allows Oracle applications to integrate with translation software. The Oracle EDI Gateway streamlines communication for industries such as finance, manufacturing, and distribution.

SAP

SAP EDI enables efficient communication across the SAP (Systems Applications and Products in Data Processing) network. SAP IDocs (Intermediate Documents) facilitate the exchange of messages such as invoices, advanced shipment notices, and purchase orders.

SWIFT

SWIFT (Society for Worldwide Interbank Financial Telecommunication) standards are the formats used across SWIFTNet, the infrastructure that facilitates communication between financial institutions. For example, if Goldman Sachs were to need Citibank to stop a check payment, they would use SWIFT to process the request.

VICS

Thousands of companies use VICS (Voluntary Interindustry Commerce Standard), which boasts vast adoption in the retail industry. As a reliable subset of ANSI X12, it ensures accurate message transmissions between merchandisers, retail stores, and suppliers.

UBL

OASIS developed the UBL (Universal Business Language) format using XML, making it easier to read than other markup languages and simplifying communication. It supports various syntaxes, including JSON, making it accessible to a broader range of businesses. This global format supports supply chain functions across multiple industries.

HL7

This standard also facilitates real-time, error-free communications in healthcare.

The difference between HL7 (Health Level Seven) and HIPAA transactions is scope. Where HL7 communication is often between an organization’s electrical systems, HIPAA transactions typically happen between various enterprises, such as a hospital and an insurance company.

Notably, some HIPAA transactions include HL7 messages, such as patient details.

Trademark EDI

This text-based format primarily serves the retail industry. Developed by the Uniform Code Council (UCC) and the National Retail Federation (NRF), Trademark EDI helps suppliers, stores, manufacturers, and other retail stakeholders save time and reduce communication costs.

04

Find a Suitable Standards Solution with Orderful

EDI standards provide efficient communication, but navigating their complexities can be time-consuming, especially for small and medium-sized businesses. Without the right support, managing multiple standards and meeting partner requirements can quickly become overwhelming. A trusted partner can simplify the process, helping you meet your supply chain requirements with ease while focusing on what matters most — growing your business.

Looking for flexible EDI solutions? Book a demo with an Orderful expert, and we’ll help you integrate the right EDI standards into your systems quickly and efficiently.

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