Every day, businesses generate and process a staggering volume of paper documents. These range from purchase orders and invoices to product catalogues and sales reports, and provide the vital information flow that must precede, accompany or follow the physical goods in a commercial transaction.
Today a competitive and profitable management implies the prompt acquisition, manipulation and use of information.
 - WHAT IS EDI AND WHERE DOES IT COME FROM?
- WHAT IS EANCOM?
|
|
1. WHAT IS EDI AND WHERE DOES IT COME FROM?
|
- What are the benefits of EDI?
Today, a majority of the data on commercial paper documents is generated from existing computer applications. The paper documents are printed and copied before the information they contain is finally communicated by mail or fax. The business partner in turn, re-keys all this information into another computer application for further processing.
This is a slow, costly and unreliable process.
EDI, or Electronic Data Interchange, provides trading partners with an efficient business tool for the automatic transmission of commercial data from one computer system directly to another.
Moreover, companies need not worry about different incompatible computer systems. Through the use of EDI message standards such as EANCOM, data may be communicated quickly, efficiently and accurately irrespective of the users' internal hardware and software equipment.
The successful implementation of EDI provides major benefits for a company and its trading partners:
- Cost efficiency
Significantly reducing the volume of paper to be handled results in immediate savings in administrative and personnel costs. Staff can be re-deployed to other more value-added functions within the organisation.
- Increased speed
Large volumes of commercial data can be communicated from one computer to another in a matter of minutes, enabling faster response and greater customer satisfaction.
- Improved accuracy
EDI eliminates the inevitable errors resulting from manual data input.
- Better logistics management and increased productivity
EDI enables companies to better manage and control production, purchasing and delivery requirements. EDI is a key component of just-in-time manufacturing and quick response customer-supplier links, resulting in significant reductions in inventory levels.
- EDI and UN / EDI FACT
Electronic Data Interchange is not a novelty in the business arena, some companies have been practising EDI on the basis of proprietary formats since the late 1960's. However if EDI implementation is to remain cost-efficient, trading partners must share a common language for their business and commercial messages.
In the mid-1970's, sectoral EDI standards began emerging in a number of countries which sometimes led to the development of national standards after a few years. It became clear that if the EDI standardisation efforts were to meet the requirements of the global business community, an international multi-industry EDI standard was needed.
By the mid-1980's the development of an EDI standard began taking shape within the United Nations Economic Commission for Europe (UN/ECE) in the working Party for the Facilitation of International Trade (WP.4). In 1987, the syntax or grammar of this common business language, known today under the acronym UN/EDIFACT, was approved as ISO standard 9735.
UN/EDIFACT or United Nations Electronic Data Interchange for Administration, Commerce and Transport comprises a set of internationally agreed standards, directories and guidelines for the electronic interchange of data.
Over 60 countries and many international organisations, such as the European Commission, IATA, International Chamber of Commerce, ISO, International Chamber of Shipping and EAN International, are represented at the UN/ECE WP.4.
EAN International is an active participant in the UN/EDIFACT development process at national, regional and international levels.
|
|
2. WHAT IS EANCOM?
|
- History of EANCOM
EAN and its member Numbering Organisations are not new to the field of EDI. Some Numbering Organisations like EAN Sweden developed sectoral standards as early as 1972, and the EAN Numbering Organisation in the UK, ANA, published the highly successful TRADACOMS standard in 1982.
In view of the Numbering Organisations' activities in EDI communications and in response to a growing demand from their member companies for an international standard, the EAN General Assembly decided in 1987 to launch the EANCOM EDI project. EANCOM was to be developed on the basis of the then emerging international UN/EDIFACT standard.
- Definition of EANCOM
EANCOM is a detailed implementation guideline of the UN/EDIFACT standard messages. UN/EDIFACT messages are often complex and users may easily misunderstand the principles and original intentions of messages designers.
A subset of UN/EDIFACT messages, EANCOM provides clear definitions and explanations which allow trading partners to exchange commercial documents in a simple, accurate and cost effective manner.
- What are the benefits of EANCOM?
In EDI, it is essential to unambiguously identify the products or services as well as the parties associated with the transaction. Coding the information exchanged in EDI is essential for automatic processing.
In EANCOM messages, each product defined in its widest sense is identified by a unique EAN standard article number and each party is identified by a unique EAN location number. Use of the EAN standards in EDI provides the following significant benefits :
- EAN Standard Numbers
EAN identification numbers are unique and recognised world-wide. Use of EAN standard numbers means trading partners do not have to maintain complex cross-references for each trading partner's internal codes.
- EANCOM Standard Messages are simple and accurate
The unambiguous coding of products and locations greatly simplifies EDI messages, reducing transmission costs and facilitating processing.
- EANCOM is a multi-industry standard
The non-significant characteristic of the EAN numbers allows any item to be identified and consequently any business, regardless of its activity, can use EANCOM.
- EANCOM is International
EANCOM messages are used world-wide. The international network of EAN Numbering Organisations, covering more than 80 countries, provides EANCOM support in their local language to an increasing number of user companies world-wide.
- EANCOM maintenance and support
EAN and its Numbering Organisations are strategically committed to maintain and further develop EANCOM. Representatives from various industries have established several project teams with the objective of analysing specific issues and developing business oriented solutions.
- What does EANCOM provide?
EANCOM provides a logical sequence of messages used in business. Trading companies agree together on messages adapted to their needs.
Standard messages available in EANCOM can be divided into the following categories :
Master Data Messages
These contain data which rarely changes (product measurements, names and addresses,...) :
- The Party Information message : is used to identify all the locations (EAN location numbers : name, address, contact persons, financial accounts,...) associated to subsequent commercial transactions and their related operational information.
- The Product Information messages : provide parties with information containing the descriptive, logistical and financial details of a product or a service.
Commercial Transactions Messages
These cover the general trading cycle from quotation request to remittance advice :
- The Quotation messages contain all details relevant to the supply of the goods or services requested by the potential buyer (terms of delivery, payment terms, price, allowances and charges,...).
- The Purchase Order set of messages relates to the ordering process from a proposed order, subsequent changes and the eventual order confirmation (relevant quantities, dates, location of delivery,...).
- The Transport and Logistics messages provide information related to the despatch transport and receipt of previously ordered products.
- The Invoice and Remittance Advice messages relate to the payment of the goods supplied. The buyer can automatically reconcile the suppliers invoice using the product receipt information.
Report and Planning Messages
These messages include general trading reports which allow partners to plan for the future :
They enable trading partners to exchange precious information in order to understand each others' requirements. They provide valuable and up-to-date reports and forecasts concerning delivery, sales and stocks and enable the partners involved to plan their activities and marketing strategies.
The Syntax and Service Report message may be sent by the receiver of any EDIFACT message to acknowledge or refuse an interchange, functional group or message.
General Message
The General message may be used to send data for which there is no specific standard message.
- EANCOM Developments
EAN International established an international committee of EDI experts : the Communication Systems Committee (CSC). Its main objective is to monitor the development and maintenance of the EANCOM standard in accordance to user needs and requirements identified in specific project teams.
EAN closely collaborates with national and international user groups around the world representing key companies in a wide range of sectors (Chemicals, Electronics, Publishers and Libraries, Healthcare,...).
|
|
