EDI Industry Standards

Posted on: November 11, 2024 | By: Guy Logan | ERP Selection, Professional Services, Wholesale Distribution

EDI was developed in the 1960’s by Ed Guilbert as a form of electronic communication between shipment supply chains in the US Army. It is now looked at as more of a methodology, combining best practices, standards, processes, and technology to allow the flow of information between businesses.

The information has been formatted into a set of different standards for both domestic and international use. The standards set the baseline for document specific information that can be leveraged in communication between organizations. Businesses often adopt these public standards and create a more proprietary version of their own based on their more specific need.

Common EDI Standards by Region & Industry:

EDI industry

The most adopted EDI Standard in North America is the ANSI X12 (Accredited Standards Committee X12) and was introduced by the American National Standards Institute in 1979. The most common standard in Europe is UN/EDIFACT (United Nations/Electronic Data Interchange for Administration, Commerce and Transport) and was developed by the UN in 1987.

GS1 EDI, VDA, and PEPPOL (Pan-European Public Procurement Online) are more modern developments across many global supply chains. PEPPOL is unique as it is not only a document standard it is also a communication standard by the same name.

When a company adopts a standard, they make it their own which means they leverage specific segments/elements of that document that are formatted within different hierarchical structures through the document. They do this to best leverage the document for their needs. They may over time adjust the use of the format based on their changing needs and create various revisions and versions of the document. These changes will then get pushed out to their various trading partners to ensure they comply and adapt their EDI systems to handle the new changes.

So, while business practices and processes can continue to evolve and change these standards have been around years and continue to add value to many companies supply chains.

 

Next Step

For more information about EDI Standards and to enhance your business, contact Logan Consulting today!