EDI B2B Making Exchange of Documents between Trading Firms Fast

Simply put, EDI B2B is making use of the Electronic Data Interchange for the applications involving exchanging of documents between two or more trading enterprises. A trading company can use this solution for exchange purchase orders and invoices with the concerned parties instead of paper methods. The small business organizations as well as the large one can take the benefit of B2B EDI in the fruits of enhanced efficiency, decreased costs and better throughput.

First of all, the translation of the information in the standardized forms is done in the B2B EDI process through EDI translator which is a software tool that can take in the input information, whether manually or via integration. After the completion of the translation task, the data transfer takes place. The format of the EDI transfer is governed by the EDI messaging; however there are no rules about the exchange methods. But, there are two existing methods.

The first exchange method constitutes dedicated networks called as Value Added Networks (VANs); and the other one constitutes sending information through the Internet. For the second method of exchanging data over internet, a number of applications can be employed such as AS2/AS3 (Applicability Statement 2 or 3), FTP (File Transfer Protocol) and FTPS (Secure File Transfer Protocol). Given that VAN charges can become tedious over time, business organizations generally prefer the Internet B2B EDI method.

As it has been mentioned above too, the B2B EDI must be in accordance with the varied standards that manage how EDI documents are required to be formatted. The most-accepted EDI B2B standards are ANSI X12 standard and UN/EDIFACT BN2B EDI standard.

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