Common EDI Business Terms

Today’s post covers common EDI business terms and is the first of a four part series. Next week’s post will review frequently used EDI technical terms, the following week will be about common EDI business acronyms and the last post will focus on the most prevalent EDI technical acronyms.

The terms below are common terms encountered by small businesses when they first start to investigate EDI. Some of the terms are EDI-specific and some are related to business processes associated with EDI.

Barcode – A representation of information that can be read by a scanner. Parallel vertical bars of varying width and separation are an example of barcodes and are widely used. Patterns of dots are another form of barcode that is starting to gain traction because they can store more information.

Cloud Computing – The rental of business software and related services over the internet instead of buying software. Cloud computing solutions manage complexity for clients so they can focus on running their business. Users of cloud computing services do not have to worry with buying, testing and maintaining EDI software. Sometimes also known as web-based or Saas (Software as a Service).

Compliance – Precisely following a trading partners unique guidelines for EDI transactions and following a trading partner’s unique business rules, such as shipping procedures.

Cross-dock – A warehouse that receives shipments from suppliers on one side and sends out shipments to individual stores on the other side. Suppliers shipping to a cross dock location will typically be required to label their product cartons or pallets by store to facilitate automation in the cross dock facility.

GS1-128 labels – Barcode labels affixed to shipping cartons or pallets that follow GS1-128 guidelines and the compliance guidelines for the specific trading partner to whom a shipment is sent. Formerly known as UCC-128 labels.

Duns number – A unique nine digit number used to identify a business. It is commonly used for credit purposes and is assigned by Dun & Bradstreet.

Integration – This term is commonly used in three contexts – 1) Exchanging EDI business documents with trading partners, 2) automatically importing and exporting EDI transactions with accounting or other in-house systems, and 3) automatically exchanging EDI transactions with a 3PL (Third Party Logistics Provider) or warehouse.

Trading Partner – A business entity with whom you buy or sell. For example, Target is a Trading Partner for a supplier who sells widgets to Target. EDI transactions are exchanged with Trading Partners.

Third party – A business entity other than a sender or receiver of EDI transactions. For example, CovalentWorks is a third party EDI provider to a supplier of widgets to Target.

Clink on this link for our extensive EDI glossary

As always, contact us anytime to find out more about our easy-to-use EDI solutions delivered from the cloud.

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