Internet EDI Solutions

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Internet EDI

Internet EDI can mean two things in the EDI world;

• Communication of EDI messages via the Internet.
• Using Internet technologies to deliver EDI software over the Internet.

Communication of EDI messages via the Internet. Internet EDI is most often considered in contrast to doing EDI via a VAN (Value Added Network). In this situation, Internet EDI is simply a communications pathway, where EDI data is passed between trading partners using Internet protocols. Internet EDI is done via a variety of protocols, such as file transfer protocol (FTP), secure file transfer protocol with SFTP (SSH File Transfer Protocol) or FTPS (FTP over SSL) and AS2 (applicability statement 2). When Wal-Mart announced that they would start doing Internet EDI with all their trading partners in 2003, this created major difficulties for the Value Added Networks. Before Wal-Mart went to Internet EDI, most of their business was based upon retailers transacting EDI with their trading partners via VANs. Within a few months’ after the announcement of Wal-Mart’s change to Internet EDI, revenue for the major VANs plummeted – in some cases by several hundred million dollars. Internet EDI was a major change in an industry that had been virtually the same for the preceding twenty years.

Using Internet technologies to deliver EDI software over the Internet: Internet EDI in this context is really software as a service where the EDI software is delivered in a hosted multitenant or ASP environment over the Internet. This means that in contrast to most EDI software installations, Internet EDI is rented or leased and delivered over a browser. Internet EDI is in contrast to the types of software that is installed on a computer behind a firewall. There are some notable difficulties with Internet EDI, but most of them are centered around the difficulty of doing high volume EDI transactions because of the need for manual entry. In some cases Internet EDI can be integrated with backend systems, but most often it is not. Even when Internet EDI is integrated with accounting or ERP systems, high volume transactions are difficult (some would say impossible) to attain. This means that Internet EDI would be most suitable for very small businesses, before they had significant business with major companies. Internet EDI where the software resides on computer servers offsite and is delivered via a browser has another major issue that should be considered – the EDI data isn’t really controlled by you. This is a significant issue in disputes where the Internet EDI vendor can withhold your data from you until the dispute is resolved, effectively crippling your business. Though there are few examples of Internet EDI vendors having this as a practice, it may become more prevalent with time.

The term Internet EDI is used to refer to EDI communications that take place over the internet.  Internet EDI will sometimes also be referred to as AS2 or AS3 EDI; these terms are simply the technical protocols used by Internet EDI to connect two trading partners.  The reason Internet EDI is becoming increasingly prevalent is because the use of Internet EDI can provide significant cost savings over other more traditional means of EDI communication, such as modem connections to a VAN.  The use of Internet EDI allows trading partners to communicate directly, saving monthly fees by bypassing costly Value Added Networks (often referred to as VANs).  Internet EDI really began to take off when Wal-Mart began to require that all of its trading partners communicate directly through Internet EDI.

Selecting a good Internet EDI solution can be quite a challenge for any business.  A small business should be aware that just because the software it selects is capable of processing Internet EDI, this does not necessarily mean that your trading partner will be satisfied with that particular Internet EDI solution. Internet EDI solutions are available either through the open source community or via private software.  The best Internet EDI solutions are required to go through a certification process to ensure that the Internet EDI communications are functioning according to accepted standards.  This method of certification of Internet EDI software is often referred to as Drummond Certification.  EMANIO offers a fully Drummond certified Internet EDI solution that will work out of the box with our EDI platforms, Trading Partner® Desktop and Trading Partner® Workgroup.

Internet EDI software, however, does not necessarily need to be certified. Many retailers will allow Internet EDI solutions that use unsecure means – such as FTP connections.  Internet EDI solutions that use unsecure protocols are typically much cheaper and much more cost effective.  EMANIO’s iNetFTP is just such an Internet EDI solution.  The future of Internet EDI holds a lot of promise.  Internet EDI is being adopted more frequently by more and more retailers.  Many research firms estimate that Internet EDI will become the dominant EDI exchange method in the next few years.  As you look for an Internet EDI solution, it is critical to ensure that your Internet EDI provider is a company that is reputable, stable and reliable.  Internet EDI solutions from EMANIO fit all these criteria, making your Internet EDI experience better and more profitable.