IGNOU : M.COM : IBO 4 : UNIT 4 : Q - 3. What is EDIFACT? What are the other EDI standards?

 

Ans. EDIFACT was born in 1985 as a merger between the best features of UNTDI and ANSI X. 12 and out of recognition that in the world of commerce, transportation and administration there could no longer be national or regional syntax standards. United Nations introduced a common standard called UN/EDIFACT (EDI for Administration, Commerce and Transport). A single international EDI standard flexible enough to meet the needs of government and private Industry . UN/EDIFACT is fast gaining recognition and acceptance as the global EDI standard.

EDIFACT defines the syntax rules for the transmission of messages and can be used across industries, across global boundaries and for both government and private sector. EDIFACT is a fusion of European and American national standards. EDIFACT is supported by a set of rigorous messages design procedures, thus ensuring that EDIFACT messages which are endorsed by the United Nations conform fully to the standard-and hence are internationally functional. Trading community worldwide has already recognized the importance of adopting the EDIFACT message standards for the use in their international trade operations. Countries which have already implemented EDI are either using EDIFACT message standards or planning to use it.

EDIFACT covers standardization in five main areas:

1. Data elements: A unit of data for which the field specifications are defined, for e.g. data element can consists of details relating to buyer, seller, goods description and value.

 2. Syntax Rules: It is a command, or the grammar for writing a message. It can also be defined as the rules for writing a structured message.

 3. Message: A set of information stored in a predefined format along with the precise function. Messages are equivalent to documents.

 4. Segment: Segment is the immediate unit of information in a message which equates to sentence in a passage.

 5. Codes: Codes are used as abbreviations. The EDIFACT codes are built upon the existing  IS0 codes, such as country codes, location codes etc.

In general any EDI standard comprises the syntax, the message design rules (i.e. the technical rules which must be followed when designing a message) and the directories (i.e. the massages themselves and the building blocks of the messages: segments, data elements and codes).

The messages and directories

Messages are designed by technical experts in conjunction with the users. This is done in national or international committee set up for this purpose by the relevant maintenance authority for the directories.

New business functions will require changes to the directories: e.g. new messages; changes to segments; new data elements; new codes.

These changes must be agreed by the maintenance organization for the directories. Depending on the type of maintenance organization this can take a long time (two or three years in the case of international EDIFACT directories because the directory changes must be agreed at the international level).

Standards exist for you to benefit

There are even some EDI communities which have developed their own messages and maintain their own directories, based upon an international syntax such as EDIFACT. Both the insurance industry and the automotive industry maintain their own directories, as well as using some WP.4 maintained messages. The reasons for this are too complex to explain here, but the important point is that the industry or user community has confidence in the bodies that maintain the directories and they can use the massages to carry out their daily business.

Choosing the right messages

Which messages should you use? Well, this depends upon the industry you are in and the user community you wish to do EDI with. If you are a supplier to a UK supermarket then it is probable you will use TMDACOMS, and highly likely that you will use the UNTDI syntax version of the messages (such as invoice and order). If you are in the automotive industry you will probably use the ODETTES messages, which are based on the EDIFACT syntax but may not necessarily be in the official WP.4 directories. If you are in the transportation sector, or banking or trade internationally, then you will probably use the international EDIFACT messages maintained by WP.4.