History of EDI


COMPANY HISTORY

EDInternational is a company specializing in the implementation and maintenance of Electronic Data Interchange systems for mid-size companies with international trading partners, primarily those involved with Latin American Countries.

EDInternational is based in Austin, Texas, a rapidly growing area in the computer technology industry. The company consists of both a technical and training support staff to ensure that your companie's change will be the most complete, timely, and efficient one possible.

EDInternational is a relatively new company but posesses the expertise and knowledge of a team of individuals who have been employed in the computer industry for many years. Our current clientele consists of many mid-size to small companies who work directly with larger organizations including the US Government. For a detailed list of clients please make a request on the customized response form at the bottom of the screen.

For further information on the history of Electronic Data Interchange continue reading this page.

EDI DISCUSSIONS BEGIN

The early signs of EDI date all the way back to the early 1960s when a few large companies had their major suppliers dial-in and download orders from their computers. Each company had its own format, so suppliers had to program differently for each trading partner.

TDCC DEVELOPS THE 1ST EDI STANDARDS

In 1968, the transportation industry recognized that the abundance of paperwork was beginning to present a problem. Transportation companies were forced to process tremendous amounts of paperwork in order to conduct their businesses. The time-consuming nature of this paperwork was slowing the movement and consignment of shipments. The transportation industry decided to correct this problem by organizing a committee, called the Transportation Data Committee (TDCC), to develop standard formats for exchanging business information.

TDCC organized an industry wide program for data standards, message formats, standard codes, communications protocols, and other details that would support the new concept of computer to computer electronic data interchange; and eliminate paperwork altogether. In 1975, TDCC released the first EDI documentation: Rail Transportation Industry Application.

Soon the transportation industry's success spread to other industries. More and more companies began communicating via EDI within their industry. Unfortunately, all the standards that were developed at this time supported only transportation related issues. Soon the question was raised "How can my business enjoy the benefits of EDI too?"

ANSI CHARTERS THE ASC X12e

In 1978, The American National Standards Institute (ANSI) used the pioneering work of TDCC and the National Association of Credit Management Credit Research Foundation to charter a committee known as the ASC (Accredited Standard Committee) X12. This committee's main objective was to develop uniform standards for inter-industry electronic interchange of business transactions.

MORE INDUSTRY-SPECIFIC STANDARDS

In 1981, the Retail Grocery Industry plunged into the EDI arena with the publication of Arthur D. Little Inc.'s report on "Electronic Data Interchange Grocery Industry Feasibility Report". This report resulted in the formation of the Uniform Communication Standard Program (UCS), which provided industry specific transactions - purchase orders and invoices - for use in the grocery and retail community.

The Public Warehousing Industry created the Warehousing Industry Network Standards (WINS) in 1982, which provided transactions that best suited the needs of their members.

There were many other industries that played a major role in the development of EDI; one notable industry was the Auto Industry Action Group (AIAG) which insisted that by 1988, all U.S. automakers and their supppliers would use the standards that were to be developed by ANSI. Car makers notified their vendors that if they were not able to communicate electronically by that time, they would take their business elsewhere.

ANSI STANDARDS PUBLISHED

In 1983, ANSI published the first five American National Standards for EDI. Today there are well over 300 additional standards and guidelines in development.

THE DEVELOPMENT OF INTERNATIONAL STANDARDS

As users began to conform to the X12 standards, they ran into problems when communicating electronically outside of their national boundaries. International users found that the U.S. standards often did not meet their specialized needs. In 1988, the United Nations chartered UN/EDIFACT (Electronic Data Interchange For Administration, Commerce and Trade) to develop international EDI standards. These standards take the form of United Nations Standard Messages (UNSMs), which are analogous to what ANSI X12 calls Transaction Sets.

EDIFACT has played a significant role in increasing competitiveness as well as helping to remove trade barriers in Europe. This emphasis has led many to believe that EDIFACT is a "European Standard". While many European countries have selected UN/EDIFACT as their EDI standard of choice, this selection is by no means restricted to Europe. Canada, for example, selected UN/EDIFACT as its national EDI standard over 5 years ago.

Users involved in EDI will reap various benefits by adopting this universal EDI standard: overseas expansion, expense control, and the elimination of support for multiple formats. However, in countries where EDI is already well established, particularly the USA, national standards will probably continue to be used for domestic EDI for some time to come.

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