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EDI——Paper Free Trade



What's EDI?
EDI Benefits
Features of Our EDI Network
Our Major Subscribers

Electronic Data Interchange (EDI) is a subset of Electronic Commerce (EC) that is the computer-to-computer exchange of business information in a standard format. EDI is a means for communicating various business transactions that are currently communicated via paper, fax, phone or person-to-person.  

The following characteristics demonstrate EDI's unique attributes:

  • EDI is independent of trading partners' internal computerized application systems.
  • EDI interfaces with internal application systems rather than being integrated with them.
  • EDI is not limited by differences in computer or communications equipment of trading companies.

EDI transmission typically involves the following process: 

EDI Transmission

 
    A. The sender assembles the data using its own business application system
    B. This data is translated into an EDI standard format (i.e., transaction set)
    C. The transaction set is transmitted either through a value added network (VAN) or directly to the receiver's EDI translation system
    D. The transaction set, in EDI standard format, is translated into files that are usable by the receiver's business application system
    E. The files are processed using the receiver's business application system

EDI Benefits:

The benefits of using EDI are being realized by an increasing number of companies. Many transmit a substantial percentage of their transaction volume via EDI.

One of the major goals in creating EDI was to reduce the great volume of business paperwork and many of the clerical tasks involved in processing paper documents. Substantial productivity improvements and/or direct cost savings in company operations have resulted from the use of this technology. Consider these EDI benefits:

Reduction of paperwork

  • One-time data entry
  • Reduced errors, improved error detection
  • On-line data storage
  • Faster management reporting
  • Automatic reconciliation
  • Reduced clerical workload and phone chatter
  • Higher productivity without increasing staff

More timely communications

  • Rapid exchange of business data
  • Elimination of mail charges, courier services
  • Reduced inventory safety stocks
  • Improved production cycle

Standard communications

  • Customers
  • Suppliers
  • Banks and financial institutions

Features of Our EDI Network:

  • Hardware
    Tandem Integrity S4000
    • High reliability and fault-tolerance system, usually adopted by large financial and banking institutions and securities house
    • A capacity of processing 75 thousand EDI documents per hour, providing services for tens of thousand EDI subscribers simultaneously
  • Software
    • EDI* Switch system software by GXS, designed for EDI switching center
    • Wide coverage of global seaports, harbors, shipment and goods agencies and vast range of manufacturing industries
    • Steady performance with a number of management functions of tracing, searching and archiving
    • International standards support: X.12 and EDIFACT
  • Security
    • Private VAN, safer compared with the open architecture of Internet
    • Access control and private protocol reduce the risk of being attacked
    • Encryption and digital signature bring more trade safety to subscribers
    • Backup the documents transferred between trading partners during transaction, which can be the evidence in trade disputes.

Our Major Subscribers:

    • Johnson’s (China) Ltd.
    • P&G (China) Ltd. Guangzhou Branch
    • Panasonic (Shanghai) Co. Ltd.
    • Hualian supermarket and its suppliers
    • Elektroskandia Logistics (Shanghai) Co., Ltd.
    • Bank of China, Industry and Commerce Bank of China, Agriculture Bank of China and other eleven commercial banks
    • Shanghai Telecom, Shanghai Mobile Communication Co., Ltd., China Unicom
    • DONGFENG – CITROËN Automobile Company. Ltd.
    • LIZ Claiborne International Ltd. and it’s trade partners
    • Maersk Logistics (China) Co., Ltd. Shanghai Branch