A purchase order leaves your ERP. Minutes later it lands in your trading partner’s system, correctly formatted and ready to process. Three things had to happen in between those steps. The document had to be built to a standard your partner uses, sent by a method they accept, and translated into something both systems can read.
Get one wrong and the order does not arrive. Here is how each part works, and what to ask when you are choosing who runs it. New to EDI? Start with our beginners guide.
What Makes Up EDI Technology
Three core components shape how EDI works, and every trading partner requirement you receive relates to one of them. Standards define how EDI documents are structured, including what information they contain, how that information is organized, and how it is formatted. X12 and EDIFACT are two of the most widely used EDI standards.
Connectivity methods determine how data travels. These may include AS2, SFTP, a VAN, or API-based connectivity. Mapping is the translation. If your ERP does not speak X12, something has to convert between them. A retailer asking for X12 documents over AS2, with their own field rules on top, is asking for all three at once.
Plenty of businesses cover the three with three different vendors with a translator here, a VAN contract there, and maps built in-house. That works until something breaks and nobody owns it. The TrueCommerce EDI platform brings these capabilities together in one environment, helping businesses consolidate EDI operations across multiple providers.
EDI Document Standards Explained
A standard is what lets two companies who have never spoken exchange a document both systems understand.
X12 is widely used in North America, across retail, manufacturing, distribution, logistics, and healthcare. It numbers everything. An 850 is a purchase order, an 856 is an advance ship notice, an 810 is an invoice.
EDIFACT is widely used internationally, particularly across Europe, Asia, and global logistics. Same documents, different names: ORDERS, DESADV, INVOIC.
The standard is typically determined by your trading partners, industry, and regional requirements. A US supplier selling to a major retailer may be required to use X12, while expansion into Europe may introduce EDIFACT requirements.
Businesses expanding across regions may eventually need to support both, making broader standards support an important consideration. TrueCommerce supports X12, EDIFACT, retail-specific implementations such as EANCOM, and XML-based data exchange within one platform. More detail in our guide to EDI standards and our breakdown of EDI transaction codes.
How EDI Data Is Transmitted
Your partner decides how documents reach them, and the large ones do not negotiate. Four methods cover almost everything.
- AS2 is a direct, encrypted connection between two systems. It can return a signed Message Disposition Notification, or MDN, confirming that the message was received and its integrity verified. Each partner needs their own connection and certificate, and certificates expire.
- SFTP is simpler: files are shared over a secure connection, is quick to set up, and is widely supported. It’s common with mid-sized partners and 3PLs. It can confirm successful file transfer, but business-level acknowledgment requires a separate response.
- A VAN acts as an intermediary between trading partners. It can reduce the need to manage separate direct connections and is often useful when supporting a broad network of partners. Pricing models vary by provider and may be based on transaction or data volume.
- APIs provide application-level access to data and can support request-driven or event-driven interactions, often using formats such as JSON. Within an EDI environment, APIs can extend transaction data and workflows into internal systems, applications, and operational tools. TrueCommerce API access supports these types of developer-driven integrations.
Whichever connectivity method you use, monitor the acknowledgments. An X12 997 communicates whether a transaction was syntactically accepted or rejected, while an EDIFACT CONTRL message serves a similar acknowledgment function. These acknowledgments help teams identify formatting or processing issues that require attention. Most businesses use several connectivity methods at once. A supplier with 200 partners might use AS2 for the big retailers, SFTP for logistics providers, a VAN for other partners, and APIs extend transaction data into internal applications. TrueCommerce supports multiple connectivity methods, across a network handling more than 600 million transactions per year, and provides access to 3 million companies. The network includes major trading partners such as Walmart, Amazon, Costco, Target, and Home Depot. Check your specific partner list to understand the connectivity and onboarding requirements for your business.
EDI Mapping and Translation
Here’s a simple example of how mapping works in practice. Your ERP stores a purchase order one way, while your partner sends it as an X12 850. Mapping is the rulebook that connects the two, field by field, in both directions.
Units of measure are a good example. Your system uses EA and CS. One partner sends PC and CA, while another uses numbers. The map accounts for those differences, then does the same for dates, currencies, product codes, and addresses. And it repeats that process for every partner you trade with.
Mapping requires ongoing maintenance. Two retailers can structure the same 850 differently, and either can change its requirements over time, so ask who does the work. If your provider builds and maintains the maps, adding a partner is a request you send. If not, it is a project for your team every time, and it needs specialist knowledge most teams would rather not hire for.
Our fully managed EDI service covers mapping, translation, onboarding, testing, and compliance updates. TrueCommerce works with customers to build and maintain the required maps. Our FAQ has more on how mapping works in EDI.
Choosing the Right EDI Technology for Your Business
Four questions will tell you most of what you need to know. Ask them of everyone on your shortlist, including us.
Which standards and protocols does it support? Ask about support for standards such as X12 and EDIFACT, along with connectivity through AS2, SFTP, VANs, and APIs. Confirm that the platform can meet the requirements of your current partners and support future expansion.
How many of my partners are already connected? Existing partner connectivity can reduce the work required during onboarding. Do not rely on a headline number alone. Ask each provider to evaluate your actual partner list and explain what will still be required.
How well does it integrate with my ERP? A platform that drops documents into a portal still leaves someone typing them into your system. We hold accredited ERP integrations for NetSuite, Microsoft Dynamics 365, SAP S/4HANA, Sage, Acumatica, and QuickBooks.
Who maintains it? Some teams want direct control, while others prefer a managed service. TrueCommerce supports both approaches within its EDI platform.
Evaluate those four areas against your own partner list. If the answers point to one platform supporting the standards, connectivity methods, and ERP requirements your business needs, consider TrueCommerce EDI. With decades of EDI experience, TrueCommerce is trusted by brands including Vera Bradley, Ocean Spray, McCormick, and Tillamook.