Transport, is an internationally accepted standard developed by the United Nations to structure and exchange business documents electronically. It is widely used by companies across industries to streamline their electronic data interchange (EDI) processes, ensuring that information flows smoothly between trading partners regardless of their internal systems.
How EDIFACT Fits into the EDI Process
The electronic data interchange process begins with gathering stored information and preparing it as an electronic document. This could include invoices, purchase orders, shipping notices, or acknowledgments. Once prepared, the data needs to be translated into a standardized format. This is where EDIFACT plays a key role—providing a universal structure that ensures data consistency and compatibility across different platforms and systems.
Steps to Send EDIFACT-Based EDI Documents
Sending EDI documents that comply with EDIFACT involves three main steps. First, you prepare the document by collecting data from various sources such as ERP, CRM, WMS, or eCommerce portals. Second, you use either an in-house translator or a third-party EDI provider to convert this data into EDIFACT format, following the mapping guidelines set by your trading partner. Finally, you establish communication with your partner through protocols like AS2, FTP, or VAN and send the document.
Benefits of Using EDIFACT for EDI
One of the main advantages of EDIFACT is its global acceptance. Since it is not restricted to a particular region or industry, companies can work with international partners without facing compatibility issues. It also reduces manual errors, speeds up transaction times, and improves overall efficiency. Furthermore, as EDIFACT is maintained and updated regularly by international committees, it evolves with changing business requirements.
Communication and Response in EDIFACT Transactions
Once an EDIFACT document is sent, the recipient’s system translates it back into their internal format for processing. The recipient will then respond with an appropriate document—such as an acknowledgment or confirmation—using the same EDIFACT format. This ensures both parties remain synchronized in their transactions without the delays and inconsistencies of manual communication.
The Future of EDIFACT in Global Trade
Even with the rise of newer EDI standards, EDIFACT continues to be a preferred choice for many organizations due to its reliability and universal applicability. As global commerce expands, the demand for standardized, error-free, and secure data exchange will keep EDIFACT relevant in supply chains, logistics, retail, and manufacturing.
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