If you want to deliver your goods to large e-shops and chains, many customers will require you to exchange business documents via EDI. At least for orders, delivery notes and invoices. The implementation of EDI consists of 5 steps, which we will guide you through in this article.
1. Find out what the customer's requirements are for EDI communication
Customers' requirements vary, for example, in the type of messages you will exchange together. The vast majority require the basic three EDI messages:
However, some customers may require additional EDI messages, such as an inventory overview ( INVRPT message) or a confirmation of receipt of goods (RECADV message).
Furthermore, different customers require data in different forms on documents so that their ERP system can process it correctly in accordance with internal processes - for example, they may want different units (pieces, pallets, etc.) or different order of items.
You must also mark each document GLN code of the facility you are shipping to. For example, you typically mark invoices with the headquarters code and delivery notes with the warehouse or store code you are shipping to.
At the beginning of the cooperation, you need to find out from the customer:
- the types of EDI messages you will exchange,
- formal requirements for EDI messages
- and an overview of the GLN codes of the customer's collection points.
It is in the buyer's interest to provide you with this information themselves , without you having to actively seek it from them. Most buyers will create a website for the supplier for this purpose, where you can find this information. Alternatively, they will send you an email or documentation with precise instructions at the beginning of the cooperation.
The EDI provider will later help you set up EDI messages to meet the customer's requirements.
2. Choose the right EDI solution and provider
EDI is a unified international standard for electronic communication, but each provider develops its own solution for it. It's like running shoes - you can run in all of them, but brands produce them with different looks and parameters.
If you do not want to invest in your own EDI team and data center operations (small and medium-sized suppliers usually do not have the finances or capacity for this), a cloud solution from an EDI provider is the most advantageous for you.
Depending on how many documents you expect to exchange per month, decide whether you want full EDI integration with your ERP system (if you have one) or use so-called webEDI for web browsers. If you are not sure, your EDI provider will direct you.
- The first option is used by companies that communicate with a large number of business partners via EDI and exchange dozens or more documents with them per month. The provider integrates EDI into your information system, so you work with it in an environment you are familiar with.
- Web EDI is mainly used by small companies that exchange units or fewer than dozens of documents with their customers per month . It is also suitable for companies that do not use enterprise (ERP) systems. You log in to webEDI via a web browser and receive and create documents directly in it.
Cloud EDI is offered by many providers from the Czech Republic and abroad. We recommend that you inquire about several providers and compare their offers. The customer himself can also recommend an EDI provider based on his or her own experience.
As a supplier, make sure that:
- whether the EDI provider can connect you with the desired customer,
- what other potential customers it can connect you with,
- What is the price of the solution?
- and whether it is a stable company that has connected similar suppliers like you to EDI in the past.
3. Ensure a stable internet connection
It may seem obvious, but some suppliers underestimate this step. EDI requires stable and reliable internet access to function. In the event of an outage, the exchange of documents stops and not all customers offer an alternative route for such cases.
4. Obtain identification of the company and items
In EDI communication, uniform standards of the independent global organization GS1 are used to identify entities and goods. Entities are identified by so-called GLN codes (global location numbers) and goods by GTIN codes (global product identification numbers, also known as EAN codes).
When connecting EDI, therefore, register on the GS1 Czech Republic website. After paying the entry fee and choosing a tariff according to your needs, you will receive a GLN and a set of GTIN codes that you can assign to operations and goods.
You will get a primary GLN for your company, which is tied to the company ID and usually indicates the company's registered office. If you have other operations such as warehouses or stores, create a secondary GLN for them in the assigned code list. GLN codes are key for EDI communication, as they are used to identify entities in all EDI messages .
GTIN (EAN) codes are used to identify goods in EDI communication. Each item you sell must be marked with a unique code. This applies even to the same product that differs in color or size, for example.
5. Implement an EDI solution
The provider will guide you through the implementation of EDI. They will help you implement the solution in your company, set up communication with the customer and test the reception, sending and correctness of the required EDI messages with you. However, be aware that the provider will also require your involvement . Especially when fully integrating EDI into the ERP system, coordination of steps with your company's IT department is necessary.
If everything is in order, let the customer know that you are ready to exchange documents via EDI .
Some customers require their own test mode at this stage, during which you exchange documents in addition to EDI via email or paper. Once both parties are convinced that the exchange of documents is taking place correctly, you will switch to the normal mode, where you exchange only EDI messages.
We will help you with EDI deployment
If you are interested in consulting on individual steps or are interested in more details about implementing EDI, please contact us . As digitalization partners, we have helped more than 3,000 companies in the Czech Republic, Slovakia and elsewhere in Europe with the electronic exchange of documents.
Are you dealing with invoice approval?
30 minutes, no obligation. We will show you how iNVOiCE FLOW fits into your ERP.
