EDI Services: Global Trading

Many companies who come to explore the possibilities of EDI implementation often do so because a large client/customer has suggested it as a means to improve communication. While getting acquainted with an EDI system, most companies prefer to start with basic everyday transactions such as purchase orders (PO) and invoices. Once a basic familiarity is achieved, however, companies tend to progress to the next level, extending EDI integration (and its inherent automated advantages) into different back-office systems as well.

Web Based EDI Integration

The Internet, and its primary function of being a way to quickly relate data to anywhere in the world has leveled the playing field in terms of supply chain management. Regardless of a company's size or location, the ability to take advantage of labor and production options available in a global market are just a few mouse clicks away. With a web based EDI system (also known as webEDI), companies can quickly start interacting with suppliers in those regions without having to build a complex EDI infrastructure.

By using a simple web browser interface, web based EDI makes it quick and easy for small-to-medium size businesses to manage different aspects of EDI, such as creating, sending, receiving, and more.

Simple forms that meet universal EDI standards allow for pre-populated forms that meet your trading partner's requirements help reduce miscommunication errors and speed up processing times. In addition, the familiar feel of web based EDI promotes ease-of-use to a degree that EDI transactions can be received, edited, and sent as easily as e-mail, all with no EDI software to install.

Anywhere in the world where you have access to the Internet, you can use web based EDI.

EDI VAN (Value Added Network) Integration

In addition to web based EDI, another EDI integration option is EDI VAN. Some businesses prefer this option because of security and other additional features.

Here are a few of the differences EDI VAN offers in relation to web based EDI:

• EDI VAN offers a mailbox service. This service allows your trading partners to dial into a VAN through a designated network access point and use file transfer protocol (FTP) to send their messages to the VAN. The EDI VAN routes the message to the designated receiver's mailbox for receipt.
• EDI VAN also acts as a trusted thirty party serviced by inspecting and authenticating EDI messages, and verifies the identities of those involved in the EDI transaction.
• EDI VAN provides a complete tracking, recording, and audit trail of all EDI transactions and messages.
• EDI VAN notifies trading partners of EDI messages delivery via simple email notifications.
• EDI VAN also provides other support services, such as data backup, recovery, EDI mapping, and more.

While the EDI VAN model has led the way in offering extended EDI services, Internet proliferation is quickly closing that gap, making comprehensive EDI integration available to all. In emerging markets that are simultaneously developing their business models and communication models, these simple, yet thorough options are helping to create greater networks for those with an EDI system in place.

For instance, web based EDI usually follows what is know as a "hub and spoke" model, wherein the major trading partners or Application Service Providers (ASPs) are the centrally located hubs, and the smaller partners are the spokes.

• ASPs set up EDI implementation through email or virtual mailboxes
• Trading partners send EDI messages to a web-enabled EDI messaging site, via the established hub. Those EDI messages are then sent via basic web browser.
• Current advances in EDI integration are allowing for EDI messages to be displayed in a web browser and directed into the user's accounts system via open standard XML.
• And web based EDI users can interact with and EDI VAN without incurring the costs or time commitment of setting up a dedicated VAN connection

Internet Communication & EDI Standards

To ensure seamless integration and secure transmission, the Internet and EDI VAN use standard communication portals. Popular protocols include:

• File Transfer Protocol Secure (FTPS)
• Hyper Text Transport Protocol Secure (HTTPS)
• AS2

While AS2 may be the least well known of the three protocols listed, it is one of the most popular methods for transporting data securely and reliably over the Internet. In fact, the world's richest company, WalMart, uses AS2 on a point-to-point basis to communicate with each of its suppliers all over the world.


Essentially, AS2 implementation for EDI integration involves simple server-to-server communication that provides digital encryption to deliver secure EDI transmission between a client and a server over the Internet. You can find more information regarding AS2 protocols in our AS2 white paper.

Outsourced EDI

Companies of all sizes can face a long and complicated EDI implementation process. Larger companies usually have the benefit of extensive IT resources to manage hardware and software applications involved with and EDI system. Additionally, larger companies often have back-office systems involved with the total EDI integration between internal users and external trading partners. For smaller companies that will primarily be sharing purchase order information, EDI implementation can seem like a complex process.

A hosted AS2 service offered by an EDI VAN provider, such as GXS, allows smaller companies to trade with their customers without the need to implement a dedicated EDI services solution.

The diagram below illustrates the differences between trying to implement AS2 yourself, shown on the left, and outsourcing your AS2 connection to an external EDI vendor, shown on the right.
The outsourced AS2 option hosted by EDI vendor, GXS, offers many advantages over a dedicated service for EDI implementation:

• Without additional infrastructure, expense, or expertise, suppliers are able to adhere to AS2 standards
• Connection methods is based on customer preference
• AS2  firewalls, hardware, software, special skills, etc. not required
• GXS, the EDI vendor, implements and monitors AS2 work
• AS2 EDI integration information exchanged
• Pre-EDI launch testing between your company and AS2 trading partner
• Continual help desk access
• Real-time data and information exchange
• Translation is available if needed
• Cost effective option for small businesses

When outsourcing EDI services, such as AS2, you instantly gain access to global trading partners. GXS has developed a global B2B e-commerce infrastructure platform called TradingGrid^®. This platform enables the real time flow of information between companies - regardless of technical capability, standards preferences, spoken language or geographic location.


The GXS TradingGrid^® enables information to transfer between companies in real-time regardless of standards preferences, technical capability, geographic location or language.

GXS Trading Grid offers significant speed and cost advantages over traditional, do-it-yourself B2B integration solutions by combining the security and best practices of traditional B2B e-commerce networks with the agility and responsiveness of the Internet.

GXS also offers, in addition to AS2, an extensive range of EDI outsourcing services, EDI mapping and EDI translation software, infrastructure management and the enablement of trading community members. B2B EDI outsourcing is becoming an important issue for many companies, especially to help reduce costs, improve infrastructure management and increase overall business efficiency. For more information regarding the benefits of B2B EDI outsourcing, check out our B2B Outsourcing whitepaper today!