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by Shawn Lindsey | April 26, 2024

Web EDI: Definition, How It Works, Benefits, and Why You Need It

web edi

Electronic Data Interchange (EDI) has long been an essential component of efficient supply chain management, offering significant benefits such as standardization, automation, and considerable cost reductions. Traditional EDI systems facilitate standardized electronic transactions between business partners, enhancing the speed and security of these exchanges while reducing manual errors. Despite these advantages, traditional systems face challenges as businesses grow and evolve. These traditional systems often struggle with scalability and flexibility, requiring elaborate setups tailored to specific trading partner rules, which can lead to complex and error-prone operations.

Web EDI offers a solution to the limitations faced by traditional EDI systems. By leveraging the internet, Web EDI simplifies the exchange of business documents, making it more accessible and manageable, even for small businesses that lack the resources for complex IT setups.

This modern approach addresses the following critical challenges of traditional EDI:

  • Scaling: Web EDI facilitates easier scaling of business operations by accommodating an increased number of transactions. It also handles more varied partner-specific requirements without the complexity and overhead associated with traditional systems.
  • Bad data: One of the perennial issues with traditional EDI is the management of data integrity. Web EDI provides enhanced tools for finding and correcting data errors, such as incorrect pricing or duplicate orders, before they disrupt the supply chain.
  • Pace of business: The modern business environment demands speed and agility. Web EDI enhances the capability of EDI systems to process transactions in real time, thereby meeting the fast pace of contemporary commerce and increasing customer expectations.
  • Transparency: As supply chains become more complex and consumer demands shift towards more personalized services, transparency across the supply chain becomes increasingly crucial. Web EDI improves visibility for all stakeholders, which is essential for effective logistics management and direct-to-consumer delivery models.
  • Proactive partnership management: With Web EDI, businesses can take a more proactive approach in their relationships with partners. High visibility and real-time data exchange allow businesses to demonstrate their capabilities and reliability, potentially moving them up in their partners' implementation queues.
  • Complexity: Traditional EDI often involves detailed configurations and constant maintenance to meet the specific needs of different trading partners. This can lead to high operational costs and increased potential for errors. Web EDI reduces this complexity by utilizing standardized web interfaces that simplify interactions and integration processes.

What is web-based EDI?

Web-based EDI is a modern adaptation of traditional EDI that leverages the internet to facilitate the exchange of business documents between trading partners. By using a standard web browser interface, Web EDI significantly simplifies the EDI process, reducing the need for specialized software and extensive IT support. This approach democratizes EDI technology, making it accessible to businesses of all sizes, including those that might lack the resources for more complex setups.

Web EDI enables users to create, exchange, and manage electronic documents through simple, pre-populated online forms. These forms help businesses meet compliance requirements with built-in logic, ensuring that data is correctly processed and transformed into EDI messages. Once filled, the information is automatically converted into an EDI format and securely transmitted using internet protocols such as FTPS, HTTPS, or AS2.

The automated conversion of data into EDI format not only streamlines the overall EDI process but also broadens its applicability. This enhanced accessibility makes Web EDI an ideal solution for extending EDI capabilities to partners in regions with limited IT infrastructure.

What Is the difference between classic EDI and web EDI?

While both classic EDI and Web EDI aim to facilitate the standardized exchange of business documents, they differ significantly in their approach, technology, and user experience.

Classic EDI

These systems typically require direct connections between business partners through private networks. This method involves substantial upfront investments in EDI software and hardware, along with continuous IT support for maintenance and troubleshooting. Classic EDI is highly secure and robust, but tends to be inflexible, often necessitating specific protocols and standards that are agreed upon by all trading partners. Additionally, data exchange usually occurs in batches, which can delay processing and affect timely decision making.

However, Web EDI streamlines the process by using the internet. It allows users to send and receive documents directly via a web browser, simplifying the process of generating EDI documents from user data. This approach significantly reduces initial costs and lowers the barriers for smaller or mid-sized businesses to adopt EDI. Part of a web EDI solution is the automated conversion of data into the proper EDI format, ensuring secure transactions that adhere to necessary standards. Web EDI provides real-time data exchange, enhancing the speed and efficiency of business communications.

How does web EDI work?

The architecture of Web EDI commonly adopts a hub-and-spoke model which enhances its functionality and scalability across diverse business environments. In this structure, a major business entity, referred to as the hub , sets up the Web EDI framework and develops web forms that are accessible for smaller, associated entities, known as spokes . These web forms are hosted on the hub’s site or by an EDI network service provider, facilitating easy access for the spokes.

Smaller partners connect to the hub through a standard web browser to engage with these forms, which are designed to simplify the exchange of documents. The data entered in these forms is converted automatically into EDI-compatible formats and is then processed by the hub. This model reduces the complexity and resource requirements for smaller partners, allowing them to participate in EDI transactions that would otherwise be beyond their technical reach.

The Web EDI workflow can be broken down into three main stages: data entry, data conversion, and secure transmission.

  • Data entry: The first stage of the Web EDI process is the input or upload of business document data into the system via a web-based portal. Users can either manually fill out web forms that replicate traditional EDI documents or automate the process by integrating data from internal business applications, such as ERP systems.
  • Data conversion: Following data entry, the system converts the submitted information into standardized EDI formats like EDIFACT or X12. This step is crucial as it ensures compliance with specific EDI standards, making the data interpretable and actionable for the recipient's systems.
  • Secure transmission: The final stage of the process involves the secure transmission of the correctly formatted data to the trading partner. This phase employs encryption and secure protocols such as AS2, FTPS, or HTTPS, which protect the data during transmission over the internet. These protocols are critical for preventing unauthorized access and data breaches, ensuring that sensitive business information remains confidential and secure.

Crucial benefits of web-based EDI

  • Improved efficiency: The primary advantage of Web EDI is its real-time data exchange capability. Unlike batch processing in classic EDI, Web EDI allows for immediate transaction processing, which is crucial for businesses needing quick turnaround times, such as in fast-paced retail environments or supply chains requiring just-in-time delivery.
  • Reduced errors: Web EDI addresses scalability and data accuracy issues prevalent in traditional systems. As businesses grow and transaction volumes increase, Web EDI systems can scale more easily without the need for significant additional investment in infrastructure. Additionally, the automation of data entry and conversion processes minimizes the data errors common in manual processes, thus enhancing overall data quality and reducing costly errors and rework.
  • Cost savings: Web EDI also presents a cost-effective alternative to traditional EDI systems, eliminating the need for costly infrastructure investments and ongoing maintenance. As an internet-based solution, Web EDI allows businesses to forgo expensive dedicated communication lines or value-added network (VAN) subscriptions, significantly reducing overhead costs associated with B2B transactions. This approach not only minimizes initial setup costs, but also decreases operational expenses over time, as it simplifies the document exchange process and reduces the burden on IT resources.
  • Faster transactions: Web EDI significantly accelerates the pace of business transactions by facilitating real-time data exchange across the internet. Unlike traditional EDI, which often relies on batch processing through private networks or value-added networks (VANs), Web EDI enables immediate communication and document exchange directly via web-based portals or cloud platforms. This real-time data exchange allows businesses to respond swiftly to market demands and supply chain requirements, enhancing the speed of order processing, invoicing, and shipping.
  • Scalability: Web EDI provides a scalable solution that adapts to the growing needs of businesses, allowing them to expand their operations without the constraints of traditional EDI systems. By using cloud-based platforms, Web EDI can handle increasing volumes of transactions and a growing number of trading partners with ease. This flexibility is crucial for businesses looking to enter new markets or scale their operations, as it eliminates the need for extensive infrastructure upgrades.

CData Arc: An all-in-one EDI solution

Whether web-based or traditional EDI makes more sense for your organization, it’s important to leverage the right tools for EDI implementation. CData Arc provides streamlined EDI adoption that seamlessly integrates with web portals or stands alone as an automated end-to-end system.

CData Arc saves time, money, and frustratio Uplevel your EDI processes with a free 30-day trial of CData Arc. n during EDI onboarding or scaling by providing robust EDI translation, transmission, and mapping with comprehensive data integration. With its no-code visual interface, CData Arc allows users, regardless of technical skill, to easily manage EDI translations and mappings through intuitive drag-and-drop operations.

If you're looking to modernize your legacy EDI system, reduce operational costs, and improve connectivity with your trading partners, explore CData Arc EDI and see how it can streamline your business processes today.

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WebEDI is a cloud-based EDI subscription service that makes connecting and doing EDI with your valued customers fast and painless. You can start doing EDI within hours with any of our many supported grocers and retailers.

Your customers want you to do edi now what.

Thousands of suppliers use WebEDI as their EDI solution to sell to their valued customers or to comply with an EDI mandate. WebEDI offers a low-cost alternative to in-house EDI while providing the many benefits of EDI including speeding the transfer of business documents, eliminating lost paperwork, reducing administrative phone calls with customers, and minimizing chargebacks.

GET CONNECTED

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Partial Representation of Supported Trading Partners

We support the EDI specifications of an extensive network of grocers and retailers for thousands of suppliers. Get connected with WebEDI today.

WE DO EDI SO YOU DON’T HAVE TO

WebEDI takes the complexity out of doing EDI by allowing you to easily function as an EDI trading partner with your customers without having to know EDI. There is no software to download, install, or support, and no data mapping to be accomplished. WebEDI does it all for you.

WEB EDI IS POWERFUL AND EASY TO USE

  • Transact with multiple trading partners from one interface.
  • Built-in error checking provides alerts when specific trading partner data is required.
  • Download order data for importing into any application and export invoice data to WebEDI.
  • All documents can be archived for easy access at any time.

webedi homework

HOW WEB EDI WORKS

1 Your customer sends an EDI Purchase Order (PO) the way they do with all of their EDI suppliers.

2 You receive an email alerting you a PO has arrived. Then you log into WebEDI using a web browser.

3 You process your new PO for viewing and printing in a readable format. WebEDI then sends an EDI acknowledgment back to your customer confirming you received the PO.

4 When goods are ready to ship and invoice, you select a PO and an invoice screen appears already populated with billing information from the PO.

5 Your invoices are converted to EDI and delivered to your customer. You can also send PO acknowledgments and ship notices and print packing labels.

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Visit the WebEDI Demonstration at WebEDI.com

SOME KIND WORDS FROM OUR THOUSANDS OF WEB EDI USERS

“We have been using Edict Systems as our EDI solution for over 20 years now. WebEDI is very inexpensive, but has all the advanced technical capabilities that we need. Their staff is able to quickly answer our questions, walk us through new EDI customer testing procedures, and customize as needed. We strongly recommend Edict Systems.”
“The ease of using WebEDI couldn’t be rated any higher! The lack of hands-on administration allows me to be more productive without having to worry about my EDI customers.”
“Edict Systems has been our EDI service provider for 18 years and consistently delivers outstanding support as our business and customer EDI needs continue to grow. We are now automating our EDI orders/invoicing directly from EDI to our ERP system. Edict has not just been a provider, but rather a true partner.”
“WebEDI provides me with a fast easy way to track purchase orders, invoice quickly, eliminate a large paper mess, at the same time sending my information to customers in minutes rather than days like regular post.”
“WebEDI allows me the confidence to know that my customer’s contract pricing is as accurate and entered into the customer’s system.”
“WebEDI saved our company thousands of dollars in EDI setup and maintenance charges.”

WEB EDI FEATURES AND BENEFITS

Subscription-based tiered pricing so you only pay for what you use and can cancel at any time. Learn More >

SIGN UP OR CONTACT US TODAY

Satisfaction guaranteed.

Sign up risk-free with a 45 day money-back guarantee. If not completely satisfied with our service, we will provide a full refund.

EDI IS EASY AND LESS EXPENSIVE WHEN WE DO IT FOR YOU HERE’S HOW YOU GET STARTED

We’ve EDI-enabled over 30,000 suppliers and currently support many of the world’s largest buyer organizations. Contact us and our EDI professionals will get you started. You don’t have to know EDI, just who you want to trade with.

Catch up on our latest webinars - we explore how EDI is changing to help support the modern challenges global supply chains face.

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The Power of Web EDI for Global Supply Chains

As businesses strive to optimise their operations and enhance collaboration with their partners, the concept of Electronic Data Interchange (EDI) has played a crucial role in streamlining B2B transactions. 

However, the traditional approach to EDI, with its complex networks and sometimes high costs, has posed challenges for many organisations. 

That’s where EDI web services come into the picture.

In this blog, we will delve into the world of Web EDI and how it can revolutionise your business interactions, helping you stay ahead in the dynamic and interconnected world of global supply chains.

Suggested reading: Want a deeper understanding of EDI is and its applications for businesses? Check out EDI 101 for more information.

webedi homework

What is web based EDI?

Web based EDI  (also known as Web EDI or Internet EDI) is a modern approach to electronic data interchange specifically designed to streamline B2B communication in the global supply chain sector. 

While traditional EDI relies on proprietary networks and value-added networks (VANs) , Web EDI leverages internet technologies to enable secure and real-time data exchange between trading partners.

With Web EDI, organisations can use web-based portals or cloud-based platforms to exchange business documents, eliminating the need for dedicated communication lines or VAN subscriptions. 

Unlike traditional EDI, which often involves upfront investments in infrastructure and ongoing maintenance costs, Web EDI offers a more accessible and cost-effective alternative for businesses of any size. Often Web EDI also provides a user-friendly interface accessible through standard web browsers, allowing a non-technical audience to engage with the software.

This democratisation of EDI enables a wider range of organisations to engage in seamless data exchange, fostering collaboration and efficiency throughout their supply chain.

How Web EDI Works

Web-based portals or cloud-based platforms serve as the foundation for Web EDI. These platforms provide a central hub from which users can access the necessary tools and functionalities for document exchange. 

The process of document exchange in Web EDI involves three key steps:

  • Data Transformation: Business documents are converted from internal formats (such as XML or CSV) into the standardised formats used in EDI, such as EDIFACT or X12. This transformation ensures that the data can be accurately interpreted and understood by the recipient’s systems. 
  • Validation: The transformed documents undergo validation, which involves checking for compliance with the predefined standards and business rules. Validation helps identify any errors or discrepancies that may exist in the data, ensuring its integrity before transmission. 
  • Transmission: Finally, the validated documents are securely transmitted over the internet using various protocols such as AS2 (Applicability Statement 2) or FTP (File Transfer Protocol), ensuring that the data reaches the intended recipient in a reliable and timely manner.

The role of messaging standards

Messaging standards play a crucial role in Web EDI: they ensure interoperability and seamless integration between trading partners. 

They provide a common language for communication, facilitating efficient collaboration and improving overall supply chain efficiency. Standards such as EDIFACT and X12 are widely adopted in the global supply chain industry. 

Messaging standards define the structure, format, and content of different types of business documents, such as purchase orders, invoices, and shipping notices. By adhering to these standards, trading partners can exchange information seamlessly, regardless of the systems or software they use.

Suggested reading: For more information on messaging standards and t-sets, see our messaging standards overview.

Advantages of Web EDI

As you might have already gathered, Web EDI has many advantages over traditional EDI methods:

  • Increased Accessibility: Web EDI offers a user-friendly interface accessible through standard web browsers, minimising the number of complex systems businesses require. 
  • Cost-Effectiveness: Web EDI eliminates the need for costly infrastructure investments and ongoing maintenance associated with traditional EDI approaches. It removes the requirement for dedicated communication lines or VAN subscriptions, resulting in significant cost savings for businesses.
  • Real-Time Visibility and Secure Data Exchange: Web EDI leverages internet technologies to enable real-time data exchange, facilitating faster and more transparent B2B transactions. It also ensures the security of data transmission through the use of encryption protocols and secure web-based portals or cloud-based platforms.
  • Scalability and Flexibility: Cloud-based platforms used in Web EDI provide scalability, allowing businesses to handle increased data volumes and adapt to changing needs. It offers flexibility in terms of partner onboarding, allowing organisations to easily integrate new trading partners into their EDI network.
  • Enhanced Visibility and Accuracy: Web EDI provides improved visibility and tracking of orders, enabling organisations to have real-time insights into the status of their transactions. It reduces errors and improves data accuracy through data transformation and validation processes, ensuring consistent and reliable information exchange.

These advantages enable organisations to optimise their B2B transactions, streamline processes, and stay competitive in today’s interconnected supply chain landscape.

How to best implement Web EDI

While Web EDI is accessible to any business, it is still another layer of complexity to your tech stack. If you want to implement it effectively and reap all the benefits above, then the the best way to do so is by partnering with an EDI expert who can manage it for you.

Data Interchange can guide you through the entire process, from initial setup to ongoing support, so that you can ensure a smooth transition to a Web EDI model.

We work with businesses of any size to make:

  • Onboarding suppliers easy so that Web EDI is adopted across your entire supply chain.
  • Your supply chain flexible and future proof . From our web portal, you can add and integrate suppliers into your EDI process with ease.
  • Order processing consistent so that even the smallest suppliers can provide data back to you the same way as larger suppliers do.

By partnering with Data Interchange, you can focus on your core business while enjoying the advantages of Web EDI – safe in the knowledge that its implementation and management is in capable hands.

Drive efficiency in your supplier management process today. Speak to an expert . 

Transform your approach to supply chain management

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What is Web EDI?

Will

Video transcript:

Web EDI is a tool for connecting to suppliers that lack the infrastructure to conduct electronic data interchange (or EDI) in the traditional manner.

In addition to enabling your suppliers to read the EDI messages you send to them, Web EDI allows suppliers to create follow-up documents and return them to you. Web EDI thus enables businesses to extend automation across more of their supply chain.

For your smaller partners it allows simple transmission of EDI documents via a web portal. For you, meanwhile, deep integration with your ERP system ensures that message exchange via Web EDI looks no different to that via classic EDI.

Why is Web EDI needed?

Generally speaking, a supply chain business’s suppliers can be divided into two distinct groups: larger suppliers and smaller suppliers.

  • Larger suppliers: Larger suppliers are typically already able to do classic EDI. All that’s required to start exchanging EDI messages with them is for a message implementation guide to be exchanged and mapping and routing to be completed.
  • Smaller suppliers: Smaller suppliers on the other hand generally don’t have the ability to conduct EDI and are only able to trade automated messages if their partner provides access to a Web EDI portal.

Although each smaller supplier may not seem significant, when added together, smaller suppliers often constitute a substantial proportion of a business’s partner network (this is referred to as “the long tail”). Communication with smaller partners also typically requires a huge amount of time and effort from internal teams to ensure everything is processed correctly.

An efficient EDI solution should aim for total automation of supply chain communication and should thus cater for both types of supplier. As Web EDI offers the only way to achieve automated exchange of structured documents with partners lacking EDI capability, it is therefore an essential part of a successful EDI solution.

What does using a Web EDI system involve?

So what does using a Web EDI system involve? To answer this let’s examine your perspective and that of a partner using your Web EDI portal.

From your perspective

As far as your ERP system is concerned, once smaller partners have been provided with access to your Web EDI portal, there is no difference between the messages received via Web EDI and those received from larger partners via traditional EDI. All B2B message exchange is automated, with all incoming messages arriving directly into your ERP and all outgoing messages sent directly from your ERP. Essentially no additional work is required (assuming your EDI provider takes care of updates and monitoring).

From your supplier’s perspective

For your suppliers the experience involves slightly more input. First they will be provided with a login to your own tailored portal, within which access rights and alerts can be set as desired.

When an incoming message is received, the supplier is alerted via email to make sure it isn’t missed. The structured data in the EDI message is converted into a human readable format and can be downloaded as PDF. This can then be filed/stored by the supplier as desired.

When sending messages via the portal no EDI knowledge is required either. All the supplier needs to do is enter the relevant information and click send. The portal converts the data into the agreed format and delivers it to your ERP.

Outgoing messages can even be semi-automatically filled with pre-populated information, based on incoming messages. For example, to send an order response the supplier may not need to manually enter any information, as the data will be pulled directly from the incoming order. This process is also known as a “PO flip”.

In the best systems your ERP and Web EDI platform will always be in sync, meaning suppliers will be able to see any order changes in real time. In such systems it may even be possible for individual order changes to be merged automatically.

For example, let’s say you ordered 4 crates of bananas from your supplier initially, but then subsequently wanted to amend this order to cancel one crate of bananas and add a crate of apples.

In a modern system your changes would update the original order in the Web EDI portal directly and notify your supplier instantly.

In addition to reducing the likelihood of you experiencing order issues, the combination of real time synchronisation and automatic data merging makes life much easier for your suppliers.

The benefits of Web EDI

In summary, Web EDI provides several benefits for both suppliers and customers.

For customers the main benefits are…

  • A more streamlined partner network
  • Cost and time savings through increased automation
  • …and reduced pressure on in-house teams

For ecosio customers these benefits are also bolstered by 24/7 platform monitoring, automatic updates and unparalleled data visibility thanks to deep ERP integration.

For suppliers, the benefits include…

  • Semi-automated creation of key B2B documents
  • The ability to trade with larger partners
  • … and access to real-time purchase order information and purchase order changes (in ecosio’s system all order changes can also be merged automatically)

Find out more

At ecosio we are experts when it comes to Web EDI and efficient, automated partner connections. Please click here, if you would like to learn more about our unique ecosio’s Web EDI Solution.

Alternatively, feel free to contact us. We’ll be more than happy to help you experience the benefits of Web EDI and are always happy to answer any questions you may have!

Keep on reading

8 minute read

How Does a Web EDI System Work and What Does It Look Like?

A Web EDI system can be hugely useful in helping you to extend automation across your partner network. But what does a system look like?

5 minute read

Web EDI - What, Why and How?

What is Web EDI and how does it work? Read our article to find out the basics about Web EDI and whether it can benefit your business.

4 minute read

Three Challenges for Web EDI Solutions

Discover the three main challenges that a Web EDI system must overcome to be successful.

7 minute read

Is Web EDI the Key to Streamlined Supplier Onboarding?

Could intelligent Web EDI be the solution to your supplier onboarding issues? Find out what a good system can do.

3 minute read

Why cloud-based EDI solutions are a silver lining for your business

Thinking about making the jump to cloud-based EDI management, but still not sure if it’s right for you and your business? Here are four powerful reasons why it’s worth considering...

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Web EDI Solutions are designed to exchange a small number of EDI messages through specific web forms.

  • Learning Center
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In terms of cost and speed of implementation, non-integrated solutions are the best alternative for getting started in EDI communications  when there is not an excessive volume of documents to be exchanged. 

These solutions provide the user with a web environment to fully manage all the electronic messages exchanged with their business partners.  

The construction of the various EDI messages is based on online forms that allow them to be composed quickly and intuitively. In this way, the data that form documents such as invoices or shipping notifications are entered manually. The EDI software then translates them into the standard expected by the recipient. It also processes them through the required communication protocol to ensure that they reach the recipient as expected. 

Such solutions can, in practice, be complete EDI tools with which to manage any transaction. However, because they are non-integrated solutions, they are not recommended for EDI projects involving high document volumes or multiple business partners. For these cases, it would be more advisable to consider an integrated solution adapted to the characteristics and volume of the messages to be exchanged.

When is it advisable to use a Web EDI Solution?

Few edi documents.

These are tools designed to exchange a limited volume of EDI messages. Remember that an invoice or a shipping notification must have been previously generated in your management system and then replicated in the web form to reach your client correctly. Therefore, if you have to exchange a high volume of documents, you should consider the option of an automatic solution integrated with your ERP.

Few EDI Business Partners

If you do not have many EDI business partners, and provided that the volume of documents to be exchanged is limited, such a solution can be useful for your company.

Low Complexity EDI Messages

Purchase orders, invoices, or shipping notifications should be easily recorded in the ERP for incoming messages and in the web solution for documents to be sent to your EDI business partners.

What features should a Web EDI Solution have?

Multi-standard.

It must be able to manage EDI documents in multiple standards such as EDIFACT or X12.

Alert Management

It must have the appropriate tools to monitor and correct incidents or errors in the messages managed through them.   

Syntax Validators

It must have the required validation mechanisms to guarantee that the registered messages have the minimum data that the EDI message must contain, according to the rules of mandatory fields required in the different standards.

Semantic Validators

The information recorded must be expressed in the units of measurement and with the limitations required according to the nature of each document.

Business Rules Validation

Each business partner you send an EDI message to will impose a series of specific controls such as recording line-level discounts, verifying that the purchase order number is identified, etc. Your Web EDI solution must consider the EDI guidelines defined by your clients to ensure the generation of compliant transactions.

Automatic Generation

It must allow the automatic generation of almost all documents, such as invoices from transactions received as purchase orders. In this way, they will contribute to an agile issuance of documents without errors and be duly traceable to the transaction originating the business relationship.

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