Electronic data interchange (EDI) is an important technology for creating a smooth and automated data flow between your business and your partners, both suppliers and sellers. Configuring an EDI connection is not always simple, however, which is where EDI templates come in.
EDI is the process of electronically exchanging business data that was traditionally handled with paper. This can include purchase orders, invoices, and billing information. All of these items are typically delivered electronically, but some very specific EDI standards have been put in place to ensure that businesses can seamlessly and automatically share this type of information in a usable format between systems.
With EDI, an organization can speed up the business cycle by 61 percent and enable transactions to take place within minutes instead of days or weeks, according to data by EDI Basics. EDI also reduces transaction errors by up to 40 percent.
This is possible because EDI does more than share documents. EDI also sets rules and standards for the entire electronic interchange process. This includes the transmission, document format, message flow and software that is used to send and receive the documents. As part of this, EDI dictates mandatory information that must be included in an electronic exchange, as well as optional information for a particular document. It also provides rules for structuring the document.
Sometimes EDI is used for efficiency with suppliers and sellers. Other times, its use is a precondition mandated by the partner business.
Enterprise resource planning solutions (ERP) are built to handle EDI because it is so widely used by businesses. Each EDI connection must be individually set up by a business, however, and that implementation is not often turnkey.
To make EDI implementation easier, businesses that use the SAP S/4HANA Cloud Public Edition ERP solution can take advantage of our EDI template engine available on SAP’s Business Technology Platform (BTP). The BTP is an online marketplace for plugins, integrations, and low-code solutions that extend S/4HANA Cloud, and our BTP EDI Flows solution on the BTP enables fast creation of EDI connections with the help of the popular SPS Commerce platform.
The Navigator BTP Flows for EDI acts as a translator and bridge between your SAP system and SPS Commerce, enabling automated and accurate EDI communication. This translates to a more efficient supply chain, reduced costs, and stronger relationships with your suppliers and sellers.
The BTP Flows for EDI is specifically designed to handle different document types commonly shared across EDI, including Purchase Orders (850), Purchase Order Acknowledgments (855), Shipment advice (856), Invoices (810) and Inventory Inquiry/Advice (846).
This templated EDI solution translates data between your SAP S/4HANA Cloud system and SPS Commerce, which acts as a VAN (value-added network) for EDI communication. The BTP digital bridge converts SAP web calls into EDI documents formatted as XML files, just the way SPS Commerce understands. This ensures seamless communication, regardless of the technical differences between the systems.
Importantly, the Navigator BTP Flows for EDI extract customer material data from your SAP system. This data specifies what products your customers typically order. Based on this information, the solution automatically creates the needed EDI Customer Material Data (846) tailored for each of your trading partners.
These documents include relevant warehouse inventory and purchase order data, formatted according to SPS Commerce's specifications. This ensures your trading partners have the latest information on your inventory levels and any purchase orders they have placed, facilitating smoother collaboration and more accurate order delivery.
Businesses don’t have to use the Navigator BTP Flows for EDI when connecting their S/4HANA Cloud ERP solution to other systems through EDI. However using an EDI template brings four significant advantages over configuring EDI manually.
First, it leads to a faster implementation. Templates can significantly reduce the time and resources required for integration compared to custom coding.
Second, it reduces cost. Pre-built solutions are typically more cost-effective than custom development.
Third, there are fewer errors. Templates have been tested and refined, minimizing the chance of integration errors.
Finally, the use of an EDI template helps with process standardization. Templates ensure consistent data flow and processes between your ERP and other systems.
The BTP gives businesses that use S/4HANA Cloud Public Edition more than just EDI templates. Businesses also can leverage other integration templates that are available on the BTP for areas such as Amazon or UPS integration, and for additional ERP functionality that does not come standard with S/4HANA Cloud.
To learn more about EDI templates and how the BTP can help your business, contact one of our experienced ERP consultants at (801) 642-0123 or by writing us at info@nbs-us.com.