XML and EDI... the break-through for EDI

To XML/EDI Demo

The inter-company exchange of business documents - like orders, invoices, delivery notes - by use of EDI (electronic data interchange) is a technology used by authorities, industry, trade and service companies in the whole world because of its open and industry-spreading standards. The advantages offered by EDI are undisputed:

  • Gaining competitive advantages
  • Optimization of internal business processes
  • Cost reduction
  • Customer service improvements
  • Securing existence of the business
  • Building of strategic business partnerships

However, if one regards the actual number of existing EDI connections in Germany, the same dilemma is detected in most industries. EDI key players would like to operate electronic data exchange with as many business partners as possible very quickly. With the top 20% of its customers and suppliers, EDI is status quo for many enterprises. But most of them place themselves the same question: How do I get the remaining 80% - with a simple, economical solution?

The linkage of XML - the eXtensible Markup Language - and EDI – electronic data interchange – makes it possible to realize the advantages of the electronic course of business for the remaining partners and to handle the complete communication of the enterprise via one single "electronic pipe".

XML and EDI – how does it work?
The operational principle of XML/EDI can be well demonstrated using the example of a trade company, automating the order processing workflow with its suppliers: The trade partner uses the existing EDIFACT interface for the exchange of orders, despatch advice and invoice messages. Under use of the classical communication way X.400 the data is transmitted to a XML/EDI server. Conversion of EDIFACT data to browsable XML format, routing and forwarding of the messages to the corresponding business partners takes place on this server. Encryption of the data provides security, so that these can be read and answered by the recipients just using the internet.

Displaying and handling of the data takes place in the browser of the recipient with help of applets/servlets, which enable the supplier to generate a response message without EDI system. Since the entire handling can take place in off-line mode and online operation is necessary only for transmission of the data, communication costs and technical facilities are insignificant.

The response generated in XML format (e.g. a despatch advice as response message to an order) is likewise transmitted to the XML/EDI server and converted into EDIFACT format. Semantic and syntactic checks can likewise take place on the server, so that the trade partner can be sure to receive data instead of paper from all business partners that can be processed in its applications automatically.

The advantages of XML/EDI:

  • Use of existing EDI infrastructure and processes in connection with widespread internet technology
  • Supplement of EDI classic for multiplicity of smaller business partners
  • 100% compliant with existing EDI transactions
  • Solution for the future that can be flexibly adapted
  • All business partners can be connected with one single "electronic datapipe"
  • Starting electronic business this way is simple, fast and economical for supplier/customer
  • Minimum subsequent costs for supplier/customer
  • Good arguments for the definite EDI connection of the business partners for EDI key player
  • Development to integrated solution possible for the business partner

Did we wake your interest in XML/EDI? Then call us or send us an eMail for further information. In order to see a demonstration of the mode of operation of XML/EDI, please click here.