Key takeaways
- Being “EDI capable” means you can receive your buyer’s purchase orders and send back invoices (and often ship notices) as EDI files, over a connection they accept.
- EDI is not one piece of software. It is a set of standard documents, such as the
850order and the810invoice, plus a way to exchange them. - A small supplier usually needs a hosted EDI service, its own EDI identifier and a few days of testing, not an IT project.
What does “EDI capable” mean?
When a buyer asks if you are EDI capable, they want to know whether their system can send you purchase orders and receive your invoices without anyone retyping them. EDI (electronic data interchange) is the agreed format for those business documents. Large retailers, grocers and distributors process thousands of orders a day, so they stop accepting email and PDF once a supplier is set up.
So the honest answer to “are you EDI capable?” is about three things: which documents you can exchange, how the files travel, and whether your files pass the buyer’s tests.
Which EDI documents will your buyer expect?
Most retail relationships start with the 850, the 810 and the 997. Many add the 856 ship notice, which comes with carton labels. Your buyer’s EDI guide lists exactly which ones it requires; it is the document to ask for first. You can read many retailers’ guides for free in the Weredi network.
What do you need to say yes?
- An EDI service. Something that turns orders into readable screens and your invoices into valid EDI files. For a small supplier this is a hosted web application, not software you install.
- Your EDI identifiers. A qualifier and ID that name your company in every file (often your phone number or a DUNS number). Your buyer adds them to its system.
- A connection. The route files take, usually AS2 or SFTP. Your buyer’s guide names the ones it accepts. More in AS2, SFTP and FTPS connections.
- Product data. UPCs for your items, and a GS1 company prefix if you will send ship notices with carton labels.
- A test phase. The buyer checks a few test documents before the first real order. See how to test EDI before you go live.
You choose the provider, not the buyer Retailers certify your connection and your files, not a specific vendor. Some point new suppliers to a portal run by their own EDI network. That works, but you then pay that network’s fee and type orders into their screens. Any provider that passes the buyer’s tests is acceptable.
Is EDI worth it with low order volume?
Often the buyer decides for you: once EDI is required, orders stop coming any other way. The question is then what it should cost. With a handful of orders a year, avoid pricing that charges per trading partner, per document or a setup fee for each new customer, because those fees dwarf the orders. Our guide to what EDI costs lists the fees to ask about.
“Your first EDI partner should cost what your thirtieth does.”
How long does it take to become EDI capable?
The setup itself takes a day or two. The calendar is set by your buyer’s testing team. Our 7-day onboarding plan lays out the steps day by day, and the getting started with EDI page covers the basics.
How Weredi helps a first-time supplier
Weredi is hosted EDI for suppliers: orders arrive as readable screens, and the 855, 856 and 810 are built from the order, checked against your buyer’s guide before they leave. One flat plan covers unlimited trading partners and transactions over AS2, SFTP, FTPS or FTP. If you would rather we set it up and run the tests with your buyer, we do that at no extra charge. See pricing.
Questions
What does it mean when a vendor asks if you are EDI capable?
It means they want to send you purchase orders and receive your invoices (and often ship notices) as EDI files, through a connection their system accepts, instead of by email or PDF.
Is EDI a software or a file format?
Both ideas are involved. EDI is a standard format for business documents, such as the X12 850 purchase order. You use EDI software or a hosted EDI service to read, create and exchange those files.
Can a small business do EDI without an IT team?
Yes. A hosted web EDI service handles the files and the connection; you read orders on screen and send documents built from them. Testing with the buyer is the longest step.
Does my retailer choose my EDI provider?
No. Retailers test and approve your connection and your documents. You can use any provider whose files pass their tests.