EDI PROCESS

 EDI process flow

Let’s say an Automotive Manufacturing company needs to buy some vehicle spare parts from a vendor. To do that, the manufacturing company procurement system generates a Purchase Order (PO) as a CSV file. The EDI translator software will extract the order details like the item, quantities, and agreed prices, and convert that retrieved data into an EDI document, and send it to the vendor via an EDI transmission software.

When the document reaches the vendor’s EDI transmission software, it will transfer the EDI document to the translator. The translator will retrieve order details and convert the document to a format which the vendor’s sales order system can read. Then the retrieved data will be fed to the vendor’s sales order system without any manual data entry. Sales order system will generate an invoice and transfer the document to the buyer following the same procedure.