MANUFACTURERS Guide to Bar Code, Common Forms and EC/EDI

9.  Electronic Data Interchange (EDI)

For companies using Electronic Commerce, a minimum set of transactions and data elements are required; they are as follows:

9.1 Minimum Transaction Set

The table below identifies primary transactions necessary for product flow throughout the channel of distribution.   The key letters in column one are used in the table that follows. The number in the EDI column refers to the ANSI X.12 transaction set designation. Be sure to use the latest ANSI X.12 revision level which will be 4.1 or higher. Revision 4.1 (sometimes called 4010) is year 2000 compliant.

9.2 Critical Data Elements

Minimum data elements required to support the identified transactions include :

9.3 Electronic Commerce Implementation

Implementing Electronic Commerce requires commitment among all of the trading partners involved.  At minimum, a common method of identifying key data elements, such as product identification, is needed.  Furthermore a common method of exchanging information must be adopted.  Use of the UCC coding standard to identify an entity, products and other critical data elements provides a common method of identifying key data elements.  Adopting ANSI X12 (latest revision 4.1 or higher) EDI provides a common method for information exchange.

9.3.1 Interface with Channel Partners

Agree on common methods for identifying products flowing through the channel.  Using the UCC/U.P.C. coding of products as the method for common item identification with cross referencing to existing catalog identification.  Manufacturers need to obtain a UCC supplier’s identification number.  This will uniquely identify each supplier for all channel integration transactions.  Each manufacturer will need to assign a unique, five digit, U. P. C. item number to each different product.  The combined manufacturer’s number and product identification number will provide unique data elements for processing through the distribution channels.

Agree on a common method for information exchange.  Use of ANSI X12 (latest revision 4.1 or higher) EDI will provide a common platform for information exchange.

9.3.2 Selection of Communications Channel

A number of basic systems for electronic communications are available.  Selection of a specific method depends on the existing system configuration, trading partner requirements, implementation cost, operating cost and many other factors.  The basic methods include:

Direct Communications a direct line connecting each trading partner. This can be dial up or via the Internet.

Value Added Network (VAN) a third party that supplies technology to provide users with virtual direct connection with trading partners.

Intelligent Mailbox a third party provider of secure electronic mailboxes for communications with trading partners.

9.3.3 EDI Application Selection

An applications interface is needed to provide translation of data from the applications into an out of the standard format for information exchange.  Depending on the system(s) in use, this may require some degree of custom software development.

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