FIGURE 3.9 Overview of EDI
Figure 3.9 shows a direct private communications link between two companies. Many companies, however, choose to use a third-party value added network (VAN) to connect to their trading partners. Figure 3.10 illustrates this arrangement. The originating company transmits its EDI messages to the network rather than directly to the trading partner’s computer. The network directs each EDI transmission to its destination and deposits the message in the appropriate electronic mailbox. The messages stay in the mailboxes until the receiving companies’ system retrieve them. VANs can also provide an important degree of control over EDI transactions. We examine EDI control issues later in this section.
EDI Standards
Key to EDI success is the use of a standard format for messaging between dissimilar systems. Over the years, both in the United States and internationally, a number of formats