ELECTRONIC DATA INTERCHANGE - FAQ

What is EDI? - Questions about Processes & Organisations


What is Purchase-To-Pay?

The Purchase-to-Pay process refers to the purchasing processes between a company and its supplier. This process is sometimes called Procure-to-Pay or P2P. 

A company sends out an Order Response Message (ORDERS) to the supplier. The supplier can confirm this with the Order Response Message (ORDRSP). When the supplier ships the goods, this will be reported with a Dispatch Advice (DESADV). To confirm receipt of the goods by the company the Received Advice message (RECADV) can be sent. The process is completed when the supplier sends the electronic invoice (INVOIC); or if necessary, another Remittance Advice message (REMADV) can be sent.

What is Order-To-Cash?

The Order-to-Cash process refers to the sales process between a company and its customers. This process is sometimes referred to as (H)O2C. A customer places an order (ORDERS) with a company. The company then confirms the order and sends a Dispatch Advice (DESADV) when the goods are shipped. A company's accounting department completes the process with an electronic invoice (INVOIC).

What is dropshipping and how can EDI be used in dropshipments?

Dropshipping is a form of ecommerce, where ecommerce platforms offer products that they don’t have in stock themselves. When an order is placed, the e-commerce company will inform the suppliers of the order. The supplier will have to confirm that it can deliver the order and when the delivery can happen. Specifically, this means that a lot of messages are exchanged in real time: Intentory Reports (INVRPT), Purchase Orders (ORDERS), Order Confirmations (ORDRSP) and Dispatch Advices (DESADV).

Wehkamp uses EDI to organize the dropshipments of books.

Who is GS1?

GS1 is a global organization focused on the design and implementation of standards in the field of electronic communication between companies. GS1 is known worldwide for developing the barcode used on consumer packaging.

More information can be found on gs1.org

Who is ODETTE?

ODETTE is a pan-European non-profit platform for collaboration and service delivery in the automotive industry. They create EDI standards, develop best practices and provide services to support electronic data exchange in the global automotive supply chain.

More information on ODETTE can be found on odette.org

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