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Integrations

What is EDI, and does a small distributor need it?

The short answer

EDI is a set of standard formats trading partners use to exchange orders, invoices and shipping notices system to system, instead of by email or phone. A small distributor usually needs it only when a large trading partner makes it a condition of doing business.

Updated

What it is

Electronic data interchange defines structured documents — purchase orders, invoices, advance shipping notices — in standards such as X12 and EDIFACT. The two partners agree which versions and fields they will use, and how the files move between them.

When a small distributor needs it

Mostly when a major customer or supplier requires it. Until then, the real problem is usually re-keying: the same order typed into several systems. The test for any integration is whether that re-keying stops, not which format the document arrives in.

The problem underneath

The worse re-keying is often internal, between the storefront, the warehouse and accounting. Oryx, a distribution platform we are building, serves a storefront, a dealer portal, a back office and a sales CRM from one application over a single ledger and permission model, so each audience reads the same records.

How we build it

EDI-style feeds sit alongside supplier catalogues, logistics and freight rating in our integration work, carried by routers with retries, idempotency and a failure digest that reaches a person.

Asked next

A large customer wants our orders by EDI. Where do we start?

Get their specification in writing: which documents, which standard and version, and how files are exchanged — a VAN, AS2 or SFTP. That document scopes the work, and it is the first thing an integration partner will ask for.

Can EDI orders go straight into our accounting and inventory?

Yes, and that is the point. An incoming order should create the same records a hand-entered order would, in every system that needs them, so nobody re-keys it.