The American retail landscape moves fast. Companies receiving an order from one of the major US retailers often have only a few weeks to be able to fulfill it. Those without an EDI (Electronic Data Interchange) connection at that point lose the order before it even begins.
An Opportunity That Leaves No Time
One of our clients received an inquiry from Bloomingdale’s. The American luxury department store chain wanted to list their products and sell them in its stores. Great potential, but with one clear requirement: the entire order processing must be handled via EDI. Without a functioning EDI connection, no listing.
The company had no EDI experience in the American market. Choosing the right EDI provider was crucial.
What EDI Means in the US Market
EDI is the global standard for the automated exchange of business documents between companies. Orders, shipping notes, invoices, and inventory data flow in a structured and direct manner between the systems of trading partners, without manual intervention.
In the US, EDI has been the standard in commerce for decades. Anyone wanting to ship products to Walmart, Target, Macy’s, or Bloomingdale’s must operate in compliance with EDI. There is no alternative.
ANSI X12: The Standard of the American Market
While Europe relies on EDIFACT, the USA almost exclusively uses ANSI X12. This is not a detail that can be ignored. ANSI X12 defines its own transaction sets for each document type:
- 850 = Purchase Order
- 856 = Advance Ship Notice / ASN (Shipping Notice)
- 810 = Invoice
- 832 = Price/Sales Catalog
- 846 = Inventory Inquiry/Advice
Each retailer sets its own requirements: mandatory fields, formats, deadlines, and confirmation processes. An EDI service provider familiar with the US market understands these differences and can configure the connection to meet each retailer’s specific needs.
EDIFACT, on the other hand, is the international standard, primarily used in Europe, Asia, and Latin America. For transatlantic trade, this means that anyone exporting from Europe to the USA must switch to the new standard. Those who are unaware of this or ignore it risk losing time and orders.
The Decision: Web EDI
Our client opted for a web-based EDI connection via TrueCommerce. The reason was pragmatic: no in-house EDI software, no IT project, no long implementation lead time.
Web EDI is browser-based. EDI documents are managed via an online interface, eliminating the need to install local EDI software or directly connect to an ERP system. For companies that need to deliver quickly, this is the most direct approach.
Why Web EDI Was the Right Choice
Fast connection. The connection to Bloomingdale’s was up and running in no time. TrueCommerce is directly pre-connected to the TN3 of the US network and understands the specific requirements of major American retailers.
Easy to use. No specialized EDI knowledge required. After a brief introduction, the company’s employees were able to receive orders, create shipping notifications, and send invoices themselves.
Scalability. As more trading partners are added, the connection can be expanded without starting from scratch. Whether it’s a second retailer, a marketplace, or a logistics provider: TrueCommerce already connects over 180,000 trading partners worldwide. New connections use the same platform.
What Makes the US Market Special
In addition to the ANSI X12 standard, there are other requirements that European companies should be aware of when entering the US market:
Strict compliance requirements. Large US retailers like Bloomingdale’s, Walmart, and Target work with so-called Vendor Compliance Manuals. These define in detail how EDI documents must be structured, the deadline for submitting the ASN (often before shipping the goods), and the consequences of errors. Late or incorrect documents lead to chargebacks, which directly reduce revenue.
ASN is mandatory. The Advanced Ship Notice (856) is not optional in the USA. It often needs to be submitted to the retailer before physical delivery. Content, barcode format, and timing are standardized. Errors here are costly.
Vendor Number and GS1 Standards. American retailers assign their own vendor numbers and use GS1 standards for item and shipping unit identification (UPC, GS1-128 labels). An EDI service provider with US experience supports this setup process.
Time zone and response times. EDI transactions in the US follow strict timing requirements. An 850 request often needs to be confirmed within 24 to 48 hours. Companies operating in Europe must design their processes to meet these deadlines despite the time difference.
EDI Connection, EDI Interface, EDI Service Provider: What do these terms mean?
For companies new to the topic, here is a brief overview of the most important terms:
EDI connectivity refers to the technical connection between two companies via EDI. It can be direct (point-to-point) or via a network service provider.
An EDI interface refers to the technical integration between the EDI system and the company’s own ERP or inventory management system. It converts EDI documents into internal data formats and vice versa.
EDI service providers are companies that handle the operation of EDI: transmission, conversion, monitoring, and support. TrueCommerce operates a global network that connects customers directly with their trading partners.
EDI software providers supply the technical platform for processing EDI messages. TrueCommerce combines network and software in a single solution.
EDIFACT is the UN standard for international EDI exchange, primarily used in Europe.
ANSI X12 is the American EDI standard with its own transaction sets for each document type.
What Makes TrueCommerce Different
TrueCommerce has been in the market for over 40 years. Its network now comprises over 180,000 retail partners worldwide, including major American retailers. This means that for new customers, the connection to Bloomingdale’s, Walmart, or Target is often already pre-established. No complex technical setup or lengthy coordination process with the retailer is required.
For companies entering the US market, this represents a concrete time advantage.
The Next Step
If you have received an inquiry from an American trading partner or are actively expanding into the USA, talk to us. We will analyze your trading partner’s requirements and show you which EDI connection can be implemented most quickly for your launch.