Global Trading
Many companies who embrace EDI technology for the first time will be doing so as a result of a request from a major customer. Most companies will start by simply exchanging PO and invoice information before proceeding to see how these processes can be automated still further by integrating with back-office systems. For a company wishing to source parts from a different country, trading electronically need not necessarily become more complex as there are many ways to achieve this.
Web-Based EDI
The Internet has provided a means for any company, no matter how small or where they are located in the world, to become part of a major supply chain initiative hosted by a global retailer or manufacturing company. Many companies around the world have shifted production of labour intensive parts to low-cost, emerging regions such as China and Eastern Europe. Web-based EDI, or webEDI, allows a company to interact with its suppliers in these regions without the worrying of implementing a complex EDI infrastructure.
In its simplest form, webEDI enables small to medium-sized businesses to receive, turn around, create and manage electronic documents using just a web browser. This service seamlessly transforms your data into EDI format and transmits it to your trading partner. Simple pre-populated forms enable businesses to communicate and comply with their trading partners' requirements using built-in business rules. Using a friendly web-based interface, EDI transactions can be received, edited and sent as easily as an email. You will also be able to receive EDI documents and send EDI invoices and shipping documents with no software to install. All you require is an Internet connection. WebEDI has the added advantages that it is accessible anywhere in the world and you do not need a dedicated IT person to manage any software installation. In order for a company to decide whether they should implement a Value Added Network (VAN) or webEDI solution, it is important to understand the differences between the two.
VANs have traditionally been favoured for EDI transmission because of their security and their additional features:
The Internet, as with VAN providers, uses its own communications protocols to ensure that EDI documents are transmitted securely. The most popular protocols are File Transfer Protocol Secure (FTPS), Hyper Text Transport Protocol Secure (HTTPS), and AS2.
AS2 is one of the most popular methods for transporting data securely and reliably over the Internet. An implementation of AS2 essentially involves two computers-a client and server-communicating with each other over the Internet. AS2 creates an envelope for a message which is then sent securely, via the use of digital certificates and encryption, over the Internet. The US retailer Wal*mart is a good example of a company who uses AS2 on a point-to-point basis to communicate to each and every one of its suppliers. Further information about AS2 is discussed in a white paper which can be found in the resource area of this microsite.
Outsourced EDI
For many companies, large or small, implementing an EDI system can be a long and complicated process. Larger companies will have extensive IT resources who manage both the software applications and the hardware, e.g., computers and network, which are used within the company. The larger company will also want to integrate their EDI system to back-office systems in order to try and establish a seamless trading environment for its internal users and external trading partners. For the smaller company, implementing EDI can appear to be a complex process, especially when all they want to do is exchange purchase order information with their customers.
In order to allow the smaller companies to trade with their customers without the need to implement a dedicated EDI solution, it is possible to use a hosted AS2 service offered by a VAN provider such as GXS. The diagram below illustrates the differences between trying to implement AS2 yourself, shown on the left, and outsourcing your AS2 connection to an external vendor, shown on the right.
The outsourced AS2 option hosted by GXS offers many advantages over implementing a dedicated service:
If your company decides to use an outsourced AS2 service from GXS, you will have access to trading partners around the world. GXS has developed a global B2B infrastructure platform, Trading GridSM, which enables the real time flow of information between companies regardless of technical capability, standards preferences, spoken language or geographic location.
By combining the security and best practices of traditional e-commerce networks with the agility and responsiveness of the Internet, GXS Trading Grid offers significant speed and cost advantages over traditional, do-it-yourself B2B integration solutions.
In addition to AS2, GXS offers an extensive range of EDI outsourcing services, data mapping and translation, infrastructure management and community enablement. B2B outsourcing is becoming an important issue for many companies, especially to help reduce costs, improve infrastructure management and improve overall business efficiency. For further information about the benefits of B2B outsourcing, please refer to our white paper which is available in the resource area of this microsite.
Web-Based EDI
The Internet has provided a means for any company, no matter how small or where they are located in the world, to become part of a major supply chain initiative hosted by a global retailer or manufacturing company. Many companies around the world have shifted production of labour intensive parts to low-cost, emerging regions such as China and Eastern Europe. Web-based EDI, or webEDI, allows a company to interact with its suppliers in these regions without the worrying of implementing a complex EDI infrastructure.
In its simplest form, webEDI enables small to medium-sized businesses to receive, turn around, create and manage electronic documents using just a web browser. This service seamlessly transforms your data into EDI format and transmits it to your trading partner. Simple pre-populated forms enable businesses to communicate and comply with their trading partners' requirements using built-in business rules. Using a friendly web-based interface, EDI transactions can be received, edited and sent as easily as an email. You will also be able to receive EDI documents and send EDI invoices and shipping documents with no software to install. All you require is an Internet connection. WebEDI has the added advantages that it is accessible anywhere in the world and you do not need a dedicated IT person to manage any software installation. In order for a company to decide whether they should implement a Value Added Network (VAN) or webEDI solution, it is important to understand the differences between the two.
VANs have traditionally been favoured for EDI transmission because of their security and their additional features:
- They offer a mailbox service; trading partners dial into a VAN via a network access point and use a file transfer protocol to send EDI messages to the VAN. The VAN automatically routes the message to the receiving partner's mailbox and the trading partner dials into the VAN and retrieves the message
- VANs act as trusted third parties by inspecting and authenticating the EDI messages and verifying the identity of trading partners depositing and accessing them
- VANs take responsibility for providing an audit trail of all EDI transactions and for tracking / recording the trail of a message
- VANs can send email notifications to partners that EDI messages have been deposited in their mailboxes
- Finally, VANs offer an extensive range of other services, for example, data backup, recovery, document mapping and other outsourced services
- Hubs or ASPs implement EDI using email or virtual mailboxes
- Trading partners can send EDI messages directly to a web-enabled EDI messaging site, via the hub. EDI messages are simply sent using a web browser
- Systems that are currently being developed will enable EDI messages to be displayed in a web browser and directed via open standard XML, directly into the user's accounts system
- WebEDI-based users can interact with VANs without incurring the costs of setting up a dedicated VAN connection
The Internet, as with VAN providers, uses its own communications protocols to ensure that EDI documents are transmitted securely. The most popular protocols are File Transfer Protocol Secure (FTPS), Hyper Text Transport Protocol Secure (HTTPS), and AS2.
AS2 is one of the most popular methods for transporting data securely and reliably over the Internet. An implementation of AS2 essentially involves two computers-a client and server-communicating with each other over the Internet. AS2 creates an envelope for a message which is then sent securely, via the use of digital certificates and encryption, over the Internet. The US retailer Wal*mart is a good example of a company who uses AS2 on a point-to-point basis to communicate to each and every one of its suppliers. Further information about AS2 is discussed in a white paper which can be found in the resource area of this microsite.
Outsourced EDI
For many companies, large or small, implementing an EDI system can be a long and complicated process. Larger companies will have extensive IT resources who manage both the software applications and the hardware, e.g., computers and network, which are used within the company. The larger company will also want to integrate their EDI system to back-office systems in order to try and establish a seamless trading environment for its internal users and external trading partners. For the smaller company, implementing EDI can appear to be a complex process, especially when all they want to do is exchange purchase order information with their customers.
In order to allow the smaller companies to trade with their customers without the need to implement a dedicated EDI solution, it is possible to use a hosted AS2 service offered by a VAN provider such as GXS. The diagram below illustrates the differences between trying to implement AS2 yourself, shown on the left, and outsourcing your AS2 connection to an external vendor, shown on the right.
The outsourced AS2 option hosted by GXS offers many advantages over implementing a dedicated service:
- Suppliers comply with AS2 mandates without adding infrastructure, expense and expertise
- Connect the way they prefer
- NO AS2 software, hardware, firewalls, special skills, etc. needed
- GXS does all the AS2 work
- Exchange of AS2 set up information
- Provide testing between your company and your AS2 trading partner
- Access to a help desk to resolve issues
- Real-time document exchange
- Optional translation services
- Often lower cost than implementing direct AS2 when considering the total cost of ownership and risk-avoidance
If your company decides to use an outsourced AS2 service from GXS, you will have access to trading partners around the world. GXS has developed a global B2B infrastructure platform, Trading GridSM, which enables the real time flow of information between companies regardless of technical capability, standards preferences, spoken language or geographic location.
By combining the security and best practices of traditional e-commerce networks with the agility and responsiveness of the Internet, GXS Trading Grid offers significant speed and cost advantages over traditional, do-it-yourself B2B integration solutions.
In addition to AS2, GXS offers an extensive range of EDI outsourcing services, data mapping and translation, infrastructure management and community enablement. B2B outsourcing is becoming an important issue for many companies, especially to help reduce costs, improve infrastructure management and improve overall business efficiency. For further information about the benefits of B2B outsourcing, please refer to our white paper which is available in the resource area of this microsite.
