E-commerce Standards and EDI

The Christian Retail Channel established X-12 Electronic Data Interchange (EDI) version 4010 as the industry standard. A robust and proven system, EDI automates most business-to-business transaction processes through standardized electronic documents, such as purchase orders, purchase order acknowledgements, advance ship notices, and invoices. In many retail channels, EDI automates the entire B2B transaction, from ordering to receiving and reconciling, to invoice payment, saving significant time and costs.

EDI documents create technical standards for quick, easy transactions, but trading partners must ensure common business practices also are followed. For example, which pricing—suggested retail or wholesale—do you send in a document’s price field?

Implementing some documents may require significant company process changes. The Advance Ship Notice, for example, requires suppliers to identify at carton level which products are being shipped, and then notify retailers of what’s coming and how before shipments arrive.

Pubnet

Pubnet is the channel’s EDI provider. Because of EDI’s order accuracy, processing time-savings, and faster cycle times, suppliers pay transaction costs so retailers use it for free. Pubnet currently provides e-commerce transaction services for the U.S. and Canadian general-market publishing industries. For details, visit Pubnet.org

Obstacles & Compliance

The industry EDI Certification plan establishes a path to fully implement EDI in the Christian Retail Channel. Currently, most companies only use electronic purchase orders and purchase order acknowledgments. Fully automated transactions require Advance Ship Notices and Invoices.

Retailers are reluctant to use EDI because suppliers often don’t provide best-available pricing for EDI orders, or retailers can’t see when order quantity levels might qualify for additional discounts. Some larger suppliers are moving to providing best pricing via EDI as an incentive to use the e-commerce system, and rapid POAs.

Supplier and POS provider compliance is the primary obstacle to robust industry EDI. Retailers should encourage suppliers and technology providers to assess internal systems and capabilities to develop effective EDI capability. See detailed technical standards at right.