Electronic Data Interchange (EDI) enables companies to exchange data with automated data entry instead of manual processes. EDI supports businesses by improving efficiency and facilitating more partnerships between companies along the supply chain. One type of EDI is EDI XML, which uses the XML open standard to communicate data. Companies can use EDI XML to transmit documents with their trading partners.
EDI can bring advantages for some companies, though others will face challenges. Understanding EDI XML and its functions can help your business decide whether to implement this technology.
EDI XML is a means of formatting EDI data in an Extensible Markup Language (XML) format. XML provides a set of rules for computers to encode documents. EDI via the XML open standard differs significantly from other standards-based EDI because XML comprises information gathered into tags rather than having set positions for the data like the EDIFACT and X12 standards.
Using tags within XML results in files much larger than other types of message files. Although the messages are larger, the tags within the code make the messages more easily read, allowing quicker troubleshooting.
The Beginning of EDI XML
EDI XML has been a hot topic since 1998. In the late 1990s, the EDI XML file format promised an easier-to-understand, easier-to-use method for exchanging data between businesses. This XML format was touted as simpler to comprehend, straightforward, and easier to integrate into in-house systems than traditional EDI > EDI Formats.