Things to keep in mind when onboarding large amounts of suppliers

Onboarding suppliers to EDI can be costly and time consuming. A typical onboarding process will involve these steps:

  1. Engaging suppliers
    Letting them know you’ll be onboarding them to EDI.
  2. Getting them familiar with requirements (MIGs)
    All requirements are normally shared via a message implementation guide (MIG)
  3. Schedule in testing
    Set up a time and deadline for testing of messages to start
  4. Test
    Send and receive EDI messages from your suppliers to ensure they are sending the correct data.
  5. Go live!

If you’re onboarding large amounts of suppliers it’s important to keep things efficient. Here are some things to keep in mind.

Testing is the most time-consuming process

Testing is time consuming because it requires a lot of back and forth checking and communication with your suppliers. This takes time and puts more pressure on you to keep things moving along. A more efficient solution is to use a message compliance testing tool (MCT), like Colladium.

It allows suppliers to test their EDI files, often through an online portal, without your team needing to check them. This means you don't have to wait for your EDI team to match up availability with theirs. In fact, your resources don’t need to be involved at all. This also allows the supplier to fix up any issues with their mapping or EDI file generation so that when they go live, you're not scrambling to resolve issues.

Make templates for your communications

This makes it easy for anyone in your team to communicate with suppliers consistently and accurately. The templates should include who your suppliers should contact, the expectations and requirements to onboard and their scheduled time for testing. Just be aware it is pretty normal for these templates to evolve over time as you and your suppliers learn. These templates can also be tailored to the supplier’s knowledge and readiness for EDI.

Communicate internally

It’s key that everyone within your business is on the same page when it comes to onboarding. A step by step process should be finalised and communicated to your EDI team. This process should establish the roles for each part of the process and who to contact.

Have more questions? Ask our experts by getting in touch below.

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EDI for 3PLs and logistics service providers

EDI has been prominent in the retail industry for decades and one area of the supply chain that benefits the most is third party logistics providers, or 3PLs. Let’s have a look.EDI replaces postal mail, fax and email, and eliminates manual inputting of data. It allows trading documents, like orders, shipping notices and more, to be exchanged electronically between businesses. EDI can help streamline and automate logistics processes, such as:

  • receiving and stocking goods
  • managing inventory
  • managing of warehouse movements
  • expediting shipments
  • refund processing
  • repackaging processes (co-packing).

An improved experience for your customers

We’ve seen 3PLs roll out EDI solutions, including portal solutions, for their customers. It makes the whole information flow between you, your customer and their customer easier. When your customer receives an order, they can accept it and at the same time, their EDI service can send a copy of it onto you so you know what to despatch, when and where.

You can pick and pack the goods as usual, then when you create the shipping notice, you can send this via EDI to the recipient. Again, a copy can be sent to your customer for visibility.

All of this ensures you’re not relying on PDFs and emails, and data is being exchanged in the quickest way possible.

Benefits of EDI

Cost savings

With supply chain costs going up, now is the time for logistics companies to find ways to cut costs. During busy periods instead of receiving an email or phone call every time a customer needs stock shipped, you can get the request via EDI, straight into your software for processing. You won't have to worry about missing an email, or having staff on-hand to enter the PDF into your software and you won't need to 'scan' PDFs into your software and deal with potential scanning errors.

Speed and accuracy

As your orders increase, your time to process them will only increase, unless you automate. EDI allows documents your customers need to be processed and sent faster. By reducing manual inputting, EDI also reduces the risk of inaccuracies in documents you send to your customers. Here are some stats that back the benefits:

  • can speed up your business cycles by 61%. Get documents directly into your software from your customers’ within minutes.
  • It delivers at least a 30—40% reduction in errors.

Reduced manual processing

With staff shortages a big issue around the world right now, logistics companies need to find ways to make process more efficient. With EDI, not only does your speed improve, but the pressure on your staff is reduced. EDI makes it easier for you to process more shipments with fewer people which allows you to take on more customers and more of their orders.

Compliance with retailers

If your customers supply to retailers, they’ll require documents via EDI. Send advanced shipping notices (ASNs) to the stock recipient, and even have a copy go to your customer for their visibility.

Have more questions? Ask our experts by getting in touch below.

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5 reasons why companies are choosing eInvoicing

We continue to see eInvoicing gathering momentum. Here in Australia, the number of companies registering for eInvoicing is growing hugely. Here are five of the reasons companies are choosing eInvoicing.

They’re getting paid faster

Studies have shown that 72.5% of invoices globally are paid late . In 2016, Australian companies were an average of 26.4 days overdue on their invoice payments. With the help of eInvoicing, we’re seeing sellers being paid in less time. This improves cash flow and allows businesses to use their funds more strategically.

They’re saving time by reducing manual processes

With an outdated system, processing invoices involves lots of steps. With eInvoicing there’s no need to enter invoice data, saving you time. MessageXchange can even automate more processes such as matching invoices to PO numbers and more. All these things let your staff focus on more important tasks.

They’re saving costs and reducing errors

The ATO estimates paper and PDF invoices can cost between $27 and $30 to process. eInvoicing reduces the costs to less than $10. In Australia alone, 1.2 billion invoices are sent each year, so you can already see the savings that are to be made. You can save on:

  • paper costs
  • printing costs
  • additional scanning equipment costs.

Manually inputting invoices exposes businesses to human errors. The automation from eInvoicing can reduce errors by up to 37%. Errors can be costly for any business, and especially the costs involved to rectify them.

They’re using a more secure way to exchange invoices

Invoices are often a targeted way for scammers to commit fraud. A recent study by XERO found 18% of Australian SMEs have fallen victim to invoice fraud and this costs a business an average of $15,500. This number has only grown with the increase of scams during the pandemic. To avoid this, eInvoicing messages go through the secure Peppol network, which has processes in place to reduce the risk of fake or comprised invoices.

They’re on a digital transformation journey

Digital transformation is the move to digital technology to improve existing processes. eInvoicing does exactly that and is a great starting point. Can you imagine if you were still issuing invoices by fax? We’ve well and truly moved on from that, and eInvoicing is the new way.

Getting started with eInvoicing

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Check your software

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Our team connects you to the Peppol eInvoicing network

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Go live!

Want to get started with eInvoicing? Get in touch with our eInvoicing team below to learn more.

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EDI mapping explained

In most industries, there’s an EDI standard – whether it be EDIFACT, GS1 XML, ANSI X12 or something else. While standards are fantastic because they make it easier for companies to trade with each other (because they don’t need to setup different messaging standards with each trading partner), ERP software generally doesn’t export the standards out of the box, if at all. Typically, software exports an XML or CSV document. So this is where mapping comes in.

What is mapping?

A mapping translates a file from one format to another. For example, if your software exports an XML file but your customer requires an EDIFACT message, the mapping process transforms the XML to EDIFACT. The way MessageXchange work allows the mapping process to also incorporate business rules. For example, it can be used to enrich data, perform calculations and more. This is particularly helpful for those companies whose software doesn’t export all the information that a customer requires. A mapping is setup once and then it just runs. There’s no intervention needed when a new message comes in, the whole process of mapping a file is automated.

When would I use it?

As I mentioned above, mapping is typically used when software isn’t able to export the file format required by a company’s trading partners. It’s the way to mediate between your software and that of your trading partners. It can even cater for your trading partners who have different requirements – logic can be setup to use certain mappings for certain customers. Mapping cover all message types too – so if you receive an order, the purchase order can be mapped from XML to EDIFACT, but the POR, ASN and INV can be mapped from EDIFACT to XML, for example.

What are the benefits of mapping?

It allows a company to easily comply with their trading partners’ requirements

There’s no changing your software or investing in additional staff or other resources to manage this.

It automates processes

It’s ‘set and forget’. It just runs.

It’s scalable

There’s no extra work to do if your message volumes increase. Once the mapping is setup, any new messages that are exchanged automatically go through this process. If you're needing help with your mapping get in touch with our EDI experts by filling in the form below.

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The future used to be paperless. Now it’s PDF-less.

Not too many moons ago, there was a big push towards a paperless office – everything needed to be digital. No more faxes and no more mail – email was the new hero. This was a big progression at the time. It was more sustainable, there was less chance of things going awry and it was just more efficient. But times have changed.Nowadays, technology has advanced a lot more. And yes, while emailing PDFs is still much more efficient than snail mail or faxes, there are still downfalls. Many companies ‘scan’ or use optical character recognition (OCR) to truly make their invoices digital. However, many companies who come to us report only a 70% accuracy rate with OCR. Imagine then having to find the errors and on top of that, fix them. No thank you! And companies who don’t use this technology are still typing invoices in letter-by-letter, number-by-number. Yikes! We’re lucky to be in such a time where we now have better options. You might have heard of electronic data interchange, or EDI. It gets data from a supplier’s software to their customer’s software. Instead of the customer having to scan (or OCR) a PDF invoice or manually type it in, a machine-readable file is sent to the customer’s software. There’s no manual intervention required and it just appears, almost like magic. This also happens for other procurement documents like purchase orders and shipping notices. The Australian and New Zealand Governments have also identified that going truly digital brings massive benefits. $28 billion in benefits to the Australian economy over the next 10 years, to be specific. Because of this, the Australian and New Zealand Governments have worked collaboratively to bring an electronic invoicing (eInvoicing) standard to businesses: Peppol. This works in a similar way to EDI – it sends invoices from the supplier’s software straight to the buyer’s software. No typing, no scanning, no nothing. And major accounting software providers are onboard too. Both MYOB and Xero allow their customers to send and receive eInvoices. How good is that. So next time you find yourself typing another invoice into your software or fixing up an invoice mistake, have a look into eInvoicing or EDI. After all, the future is no longer paperless, it’s PDF-less!

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The art of writing MIGs

When you onboard suppliers it’s important for them to understand what the requirements are for the messages they need. A Message Implementation Guideline (MIG) refines a generic EDI standard such as UN/EDIFACT and details how it will be used for your company. In simple terms, it tells your suppliers what messages they need to send, what information the messages contain and how they’re formatted.Here are important things you need to know…

Choosing an EDI standard

There are different EDI message standards used around the world. Once you choose a standard it will be used as the base for your MIG. Here are a few of the common ones and where they’re most used:
UN/EDIFACT Standard coined by the United Nations and the most commonly used worldwide, and heavily used in the Australian retail supply chain industry.
ANSI X.12 Commonly used in North America
EANCOM Commonly used in the European retail industry
ODETTE Commonly used in the European automotive industry
EbXML Global standard developed by United Nations body for Trade Facilitation and Electronic Business Information Standards (UN/CEFACT) and Organization for the Advancement of Structured Information Standards (OASIS ).
TRADACOMS Commonly used in the UK retail industry
HIPAAhow Commonly used in the North American Healthcare industry
SWIFT Commonly used by financial institutions worldwide.
 

Choose the message types you want to use with your suppliers

This comes down to what your objectives are as a business. Here are some of the common messages and what they do:
  • Purchase order Sent from buyer to supplier to order goods or services
  • Purchase order change Sent from buyer to supplier if the original purchase order has changed
  • Purchase order acknowledgement Sent from the supplier to the buyer to acknowledge receipt of the order
  • Purchase order response Sent from the supplier to the buyer to let them know how much of the order can be fulfilled, and any discrepancies from the original order
  • Advance shipping notice (or despatch advice) Sent from the supplier to the buyer to let them know when and how the goods will be shipped
  • Invoice Sent from the buyer to the supplier for payment of the goods or services
  • Recipient created tax invoice (RCTI) Sent from the supplier to the buyer for payment of the goods or services
  • Remittance advice Sent from the buyer to the supplier to confirm payment
  • Price/sales catalogue Sent from the supplier to the buyer with up-to-date product and pricing information
  • Product activity data Sent from buyer to the supplier with the number of units sold and units on hand
  • Transport instruction Sent from a buyer to a transport supplier (and related parties) to communicate transport arrangements
  • Transport response Sent from a transport provider to confirm instructions
  • Functional acknowledgement An automated response sent from a receiver of an EDI message to confirm receipt of the message.

Find out what data your ERP system requires to process your message types

This is important because it’ll determine what fields and values you need from your partners. This includes things like:
  • character limits
  • whether only integers are allowed
  • if it needs to be number
  • how many decimal places
  • whether the field is dependent on another field (conditional)
  • whether a field is used for particular use cases only
  • how calculations are made.
From here you can provide a list of values that can be used, If not, all values in your chosen EDI standard. We have a range of MIGs from various companies you can check out here.

Putting your MIGs together

This is where you take everything from the previous steps and document it. Writing MIGs can involve a bit of work and so you can get an external party to help. This where an EDI provider, like MessageXchange, comes in. We can assist or lead the MIG writing process, developing it from scratch or upgrading your MIG. Find out more here. Have more questions? Ask our experts by getting in touch below.

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EDI documents explained: The retail industry

The retail industry has been using EDI for decades. It’s been proven to give retailers more visibility, better accuracy and truckloads of savings. And there are even benefits for suppliers too, especially those who fulfill large volumes of orders. The use of EDI is mature in the retail industry and covers basically all use cases of the procurement process. Let’s have a look at the different EDI message types that are used in the retail industry and why.

Purchase order

This is sent from a buyer (retailer) to its supplier. It will tell the supplier exactly what they want supplied. It will tell the supplier where to ship the goods to, and it might even tell them when the retailer expects the goods by. A purchase order typically starts the procurement process. In the EDI world, you might see a purchase order referred to as ORDERS (EDIFACT) or 850 (ANSI X12).

Purchase order response

A purchase order response is sent from the supplier to the buyer (retailer) to let them know whether or not they can fulfill what’s been requested on the order. Typically, there are three scenarios – the supplier accepts the order in full (if they can fulfill everything as requested), the supplier rejects the order in full (if they won’t fulfill any of the order), or the supplier proposes changes to the order. Changes on the order response are typically changes to the quantity, the price or the delivery date. In the EDI world, a purchase order response can be called ORDRSP (EDIFACT) or 855 (ANSI X12).

Purchase order change

A purchase order change comes after a purchase order or purchase order response. It’s sent from the buyer (retailer) to the supplier. As the name suggests, it can be used to make changes to the original purchase order. Or if the supplier sends a purchase order response, some retailers send a purchase order change to confirm the supplier’s changes (response).

Advanced shipping notice

This can sometimes be referred to as a despatch advice. It’s sent from the supplier to the buyer to let them know what’s being shipped and when. There are a couple of ways that retailers use a despatch advice. The first is a relatively simple one – it basically tells them how many of each product is being shipped, to where and when. It just gives retailers a bit of visibility. The second one is much more detailed. The retailer requires the supplier to tell them exactly what’s being shipped, how, to where and when. These ASNs have SSCC, or serial shipping container code, details on them. SSCCs are unique numbers that identify a unit. This can be a pallet, carton or something else. The supplier tells the retailer how many of each product are going into each pallet, for example, and what the corresponding SSCC number is. The retailer may also require the supplier to tell them the batch number, best before and expiry dates of the products in that pallet. The supplier then prints labels, with the SSCC number represented as a barcode and sticks it onto the pallet they’re sending. This information is sent to the retailer on the ASN ahead of the goods being sent. When the retailer receives the goods, they can scan the barcode to know exactly what’s on the pallet. In the EDI world, this message is called DESADV (EDIFACT) or 856 (ANSI X12).

Invoice

An invoice is sent from a supplier to a buyer to let them know what to pay them for the goods or services they’ve supplied. Unlike invoices that you might send and receive by email, EDI invoices don’t typically have bank details on them, because these are usually agreed on as part of the supplier agreement. The EDI invoices generally just outlines the total to be paid, the breakdown of what’s to be paid and sometimes the payment terms, although these can also form part of the supplier agreement. In the EDI world, you might see the invoice referred to as INVOIC (EDIFACT) or 810 (ANSI X12).

Product catalog

A product catalog gives the retailer details of the products you’ll be supplying to them. It can be as simple as supplying them with the GTIN or item number, product description and unit price. In the EDI world, this is called a PRICAT (EDIFACT) or 832 (ANSI X12).

Functional acknowledgement

Unlike the other message types we’ve discussed here, functional acknowledgements aren’t your typical procurement messages. These are usually handled behind the scenes. They tell the sender of the message whether it’s been received and if it’s A-OK or why it might have been rejected. In the EDI world, these are called CONTRL (EDIFACT) or 997 (ANSI X12).If you have any questions or need help getting started, just get in touch!

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How to use EDI with Xero

If you use Xero and you’ve been asked to use EDI, your head might be in a bit of a spin. It can seem complicated but there’s no need to worry – there are options and they’re not as complex as you might think. Many retailers require a combination of these documents:
  • Purchase order
  • Purchase order response
  • Advanced shipping notice
  • Invoice.
And you might be thinking, Xero doesn’t even have all of these. You’re right, Xero doesn’t support sales orders or advanced shipping notices. But that’s not a showstopper.

An EDI web portal is the simplest option

Many Xero users choose to use an EDI web portal. It’s a website you can login to, to view orders and respond to them with the response, advanced shipping notice and invoice. It’s simple to use, inexpensive and gets you compliant with your customer’s requirement. Here at MessageXchange, our EDI web portal is called FormXchange. If you choose to go with our FormXchange product, you can even automate the process one step further. By turning on the integration between FormXchange and Xero, you can sync the invoices you enter in the EDI portal (FormXchange) directly to Xero, so your invoices are always up-to-date in your accounting software. That means whenever you send an invoice to your customer on FormXchange, a copy will go to them, as well as to your Xero account. It’s that simple.

Who can you trade with on FormXchange?

Trade with any of these retailers on FormXchange:
  • Australian Pharmaceutical Industries (API)
  • Aldi
  • Anaconda
  • Big W
  • Bing Lee
  • Bunnings
  • Chemist Warehouse
  • Coles
  • Costco
  • David Jones
  • Drakes
  • Harris Scarfe
  • Harvey Norman
  • Kmart
  • Metcash
  • Myer
  • Officeworks
  • Petbarn
  • PFD Foods
  • Reece
  • Repco
  • Sigma
  • Spotlight
  • Symbion
  • Target
  • The Good Guys
  • Winning Appliances
  • Woolworths

How do you get started?

It’s pretty easy:
  1. Head to messagexchange.com and click register
  2. Enter your details, choose FormXchange as your service and select the retailers you wish to trade with
  3. You’ll receive a verification email so just click the link in there to verify your account
  4. Let your customer(s) know that you’re using MessageXchange as your EDI service provider (they might refer to it as a ‘VAN’ or value added network)
  5. Then once you receive your first order, follow the prompts on screen to respond to it. You can also look at our knowledge base here to walk through the entire process in detail.
If you have any questions or need help getting started, just get in touch!

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Top 5 EDI questions answered

There are some questions that seem to come up in most calls. Have a look below to find out the answers to the most frequent EDI questions we receive.

1. What types of EDI solutions are available for me?

There are two main types of EDI that are available:

Integrated EDI (EDI Gateway)

An integrated solution allows you to exchange EDI messages directly from your software. When an order is sent to you, it’ll go to your VAN (value added network) then straight into your software. There’s no need to re-key it or anything. Then when you create the order confirmation, despatch advice or invoice, it will go directly from your software to your VAN and onto your customer. This option has the least impact on your current process and requires minimal manual processing.

Web portal/EDI Webforms

The simplest solution for EDI compliance is a webform solution. This allows you to logon to a web portal to view purchase orders and respond by sending back the required information such as purchase order responses, advance shipping notices and invoices. The information input into the web portal is sent directly to your customers’ software.

2. How much does EDI cost?

The cost will depend on the product you go with:

EDI Gateway

The price to setup an EDI Gateway is determined on a few factors, including how many customers you trade with, your customers’ testing requirements, the complexity of your setup and more. After implementation, our pricing is based on your data consumption (file size) so you only pay for what you use.

EDI Webforms

There’s no setup fee to use our EDI Webforms (which we sometimes call FormXchange). You can get started from just $99 a month, which allows you to exchange as many messages as you like with one of your customers. Plus you can add an additional trading partner for just $49 a month.

3. How long does it take to implement EDI?

The implementation time varies with every solution.

EDI Gateway

The implementation time varies depending on your requirements, complexities, the amount of testing you require, the amount of testing your trading partners require, your availability and more. It can take anywhere from a day or two, through to a month or more to get started.

EDI Webforms

For EDI Webforms, you simply register on the platform and you’re good to go. Some retailers require you to go through a testing and accreditation process, but our team are here to help you through that.

4. What does my customer mean by ‘accreditation testing’?

Accreditation requires you to test your EDI messages before they’re sent to your retailers’ production systems. This just makes it more likely that you won’t have issues when you’re sending and receiving EDI messages. The testing checks your files and ensures fields are correctly formatted.

5. Do l have to make changes to my ERP system to get the EDI message?

No, you shouldn’t need to – as long as your software can export and import files, your EDI provider will do a lot of the work connecting to your ERP system and mapping, or translating, the files to EDI messages. However, if your ERP software doesn’t handle certain EDI messages, like advanced shipping notices, you might need to use another bit of software to do that. We provide our EDI portal, Colladium, to our customers to help them send and receive EDI messages that might not be compatible with their ERP system.Have more questions? Ask our experts by getting in touch below.

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How EDI can help retail supply chain shortages

Lately we’ve seen even bigger impacts to the supply chain than before, thanks to the new Omicron variant of COVID-19. The transport industry has struggled with staffing issues due to many drivers being unable to work. This has caused a domino effect. Retail stores have had empty shelves, limited the number of items customers can purchase and have been forced to operate with skeleton staff. And we’ve all heard or experienced the shortage of rapid antigen tests. Chemists have had to put on extra staff just to handle the extra phone calls they’re getting. Some of these issues are definitely unprecedented – there’s no denying that. But having efficient supply chain processes in place to start with can keep you ahead of the game when times get tough. This is where EDI comes in:

Use EDI to get faster fulfillment from suppliers

Using EDI for procurement, rather than manual procurement, speeds up the time from when you place the order to when the goods arrive. Your order is sent immediately to the supplier, you don’t need to wait for them to check their emails and enter the order in their software. The order can be picked and packed straight away by the warehouse. Manual procurement also introduces a lot of errors. These errors can take days, if not weeks, to rectify causing delays in orders being fulfilled and shipments being sent. With EDI, you can be confident that the data you send will be what’s received by your supplier.

Use EDI to get stock on shelves faster

An advanced shipping notice, or ASN, is a fantastic way to know what’s going to be delivered ahead of time – even down to what’s in each carton and pallet. When stock arrives, your team can just scan each package to see what’s arrived – no need to open them, check what’s in there or anything like that. Imagine the time it could save!

Use EDI to keep customers informed of when stock will arrive

For products that are ordered on demand, are in transit or on back order, getting advanced shipping notices or despatch advices from your suppliers will let you know when they’re to be delivered. You could even go a step further and connect to transport companies to get even more up-to-date statuses. Keeping customers informed of arrival dates is becoming an expectation from customers these days, but many retailers aren’t doing it well. If you can keep you customers more informed than your competitors, you’re ahead of the curve!If you’re interested in learning more about using EDI to help supply chain shortages, get in touch with our team.

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EDI messaging standards and formats

If you’re new to EDI, you might be a bit overwhelmed with all the new terms, acronyms and the like. You’ve probably come across EDI standards, like EDIFACT or EANCOM, and have no idea what they mean. Well, you’re in the right place. In this blog, we’ve put together some information around EDI, its different message standards and the ones that are commonly used in Australia.

What are EDI messages?

In simple words, EDI messages are business documents, often procurement-related, exchanged between companies’ software, perhaps through EDI provider(s) in the middle. These documents are often exchanged in a standardised format to make it easier to communicate with all of your trading partners. These messages can be purchase orders, despatch advices, invoices and more.

Why use standards?

EDI message standards define the rules and requirements for the structure and format of an EDI message. These standards are defined by various organisations like GS1 and Peppol. Organisations choose to exchange data in a standard format because it makes it much easier for their trading partners to get on board. If everyone exchanged a different file format, onboarding one trading partner to EDI would be like starting from scratch every time.

What are the different EDI message standards and what EDI message standards are commonly used in Australia?

There are different EDI message standards used around the world. Some of the most popular ones are UN/EDIFACT, ANSI X.12, EANCOM, ODETTE, ebXML, TRADACOMS, HIPAA, and SWIFT.[vc_column width="1/4" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

UN/EDIFACT

ANSI X.12

EANCOM

ODETTE

EbXML

TRADACOMS

HIPAA

SWIFT

[vc_column width="3/4" css=".vc_custom_1618271827363{padding-left: 10px !important;}"]

Standard coined by the United Nations and the most commonly used worldwide.

Commonly used in North America

Commonly used in the European retail industry

Commonly used in the European automotive industry

Global standard developed by United Nations body for Trade Facilitation and Electronic Business Information Standards (UN/CEFACT) and Organization for the Advancement of Structured Information Standards (OASIS ).

Commonly used in the UK retail industry

Commonly used in the North American Healthcare industry

Commonly used by financial institutions worldwide.

Out of the many EDI standards, the ones that are commonly used in Australia are UN/EDIFACT, ANSI.X12 and GS1 XML. Let’s have a look:[vc_column width="2/4" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Transaction

Purchase order

Purchase order response

Invoice

Despatch advice

Remittance advice

Product catalog

Functional acknowledgement

[vc_column width="1/4" css=".vc_custom_1646013227774{padding-right: 10px !important;padding-left: 10px !important;}"]

UN/EDIFACT

ORDERS

ORDRSP

INVOIC

DESADV

REMADV

PRICAT

CONTRL

[vc_column width="1/4" css=".vc_custom_1646013158821{padding-left: 10px !important;}"]

ANSI X.12

850

855

810

856

820

832

997

What to do if your software doesn't exchange these standards?

Don’t worry – this isn’t uncommon. If your software doesn’t produce these standards, we can help you map them. This means we’ll translate files produced by your software to the standard required, mediating between message standards and protocols and aligning business processes.

Industry-specific:

Retail (supply chain)

The retail industry in Australia has taken advantage of the benefits of EDI over the last 30 years. The industry uses EDI for procurement as well as shipping and logistics. UN/EDIFACT dominate the as the standard used in the retail sector. If you’re interested to read more about EDI in the Australian retail industry, click here.

Transport and logistics

The Australian Logistics Council and GS1 Australia developed the Australian Freight Labelling and EDI standards in 2016. The GS1 Open Global supply chain standard requires each shipment label to have a ‘license plate’ known as the SSCC code. SSCC - serial shipping container code - is a common identification among the buyers and suppliers of the transport and logistics industry in Australia. In addition to the common EDI messages like the purchase order, purchase order response, invoice, this sector uses EDI to share information about booking as well as tracking details. The transport and logistic industry commonly uses GS1 XML standard to exchange EDI documents.

Finance

The finance industry uses EDI to transfer payments, information related to payments and other financial documents. ISO20022 is the format used by MessageXchange for our customers in the finance industry. ISO20022 is an internationally-recognised standard developed by ISO. It is used for the development of financial EDI messages in the payments, securities, cards, trade services and foreign exchange business domains.If you want to learn more about EDI for your business, request a call back from our EDI experts below.

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Digital transformation: An important intervention in 2022 and beyond

Digital transformation - the topic has dominated panel discussions and media, with suggestions about how businesses can stay relevant in the digital world. In simple words, digital transformation is about harnessing technology to improve the business, its environment and its customers’ experience.

Why is digital transformation important in 2022?

It enables us to pivot quickly

In the pre-COVID era, organisations were slowly transitioning to more digital business models but as the pandemic hit, it forced dramatic changes within companies and accelerated investment in digital transformation. All of a sudden business started operating remotely. They turned to various digital platforms to streamline internal business processes in order to function to serve their customers. This paradigm shift brought by the Coronavirus made the business world realise that in order to stay competitive and meet the increasing customer demand, going digital is essential. Many of our supply chain customers turned to us for help to streamline their business process during this period. With our cloud-based EDI, we helped our customers get everything onto their accounting software where everyone can access everything remotely. With cloud-based SaaS EDI, the software is hosted in the cloud and managed by a third-party service provider, in this case it’s us. Cloud EDI is web-based and is convenient as companies’ don’t need physical on-site infrastructure, additional resources or licenses. The cloud EDI service provider maintains the software, networks, servers, security and importantly the maintenance for you. It was the companies with cloud-based EDI that companies could transition most smoothly to working from home without interruption to their supply chains.

It reduces the risk of errors and improves customer experience

Customer experience is increasingly becoming key to a company’s long-term success. Digital transformation can help businesses have more agile capabilities both in terms of IT services and user experience. MessageXchange can help you improve your customer experience by reducing the risk of errors by using EDI. With EDI, processes are automated reducing manual errors. For example, when a buyer places a purchase order (PO), and the order can be put into the supplier’s system. The supplier can raise an invoice in their software, which can be sent automatically to their customer’s software. Without EDI, all these processes would be manual which increases the risk of errors. Fewer errors mean a reduction in the number of disputes lodged as a result of accuracy. Businesses can increase customer satisfaction and loyalty by making things easier and faster with more streamlined digital processes.

It makes for more productive employees

With the impact of COVID-19, companies are not sure if their employees will fully return to the office. It is a constant challenge to manage a dispersed workforce. Digital platforms can help managers create productivity improvements and help their employees stay motivated and be more effective in their roles. For departments like finance and HR, digital transformation provides an excellent opportunity to move from traditional paper-based processes to modern automations in areas such as payroll and eInvoicing. With our eInvoicing service you can send eInvoices to your customers almost instantly and be up-to-date on the status of the invoices through the eInvoice response message to see if your customer has received the eInvoice, whether it’s been approved and submitted for payment. These automations free up employees’ time by reducing the need for follow up calls and emails and give them an opportunity to focus on more important tasks.

It’s so much more sustainable

Corporate social responsibility is becoming a necessity, not a choice these days. Many multinational companies are already focusing on sustainability and finding new ways to make their businesses more sustainable. Research by Forest ethics highlighted that Australian businesses and families use over 2.4 million tonnes of paper for printing and writing every year. Every tonne of paper needs 12-24 trees to manufacture. It is estimated that 180 trees are used for just one business each year. eInvoicing cuts out the need for paper as the invoices are exchanged electronically. Going digital is a good first step to make your business more environmentally friendly. Paperless communication and transaction mean practically no use of paper and energy used in production and transportation of paper documents. If you want to learn more about how EDI and eInvoicing can help your business smoothly transition and adopt digital processes, request a call back from our experts below.

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