We’ve compiled common EDI questions and answers to help you make an informed decision.

What is an EDI provider?

An EDI provider is a business that sells EDI services, including web-based or on-premise software. EDI providers may also deliver other EDI-related services, such as value-added network (VAN) services or EDI testing.

EDI providers often specialize in a particular industry, such as retail, grocery, distribution, healthcare or automotive.

Is EDI still used?

Yes. For almost 50 years, EDI has been a standard method for data exchange. It is used today by organizations around the world and continues to expand every day.

EDI has become a shorthand way of describing various modes of electronic data transmission and the business processes associated with fulfilling an order to a customer. By using EDI, trading partners can exchange business documents such as orders, shipments, inventory updates and invoices in a standard format. Other terms such as B2B integration (B2Bi), order fulfillment and eCommerce fulfillment are also used to describe a similar process.

Rather than EDI, some companies may use XML, AS2, FTP, APIs or other methods to exchange this data. In some cases, these other methods are also referred to as EDI and are supported by EDI providers.

Want to learn more about how to select an EDI provider? Get our free white paper and a list of questions to ask a prospective EDI provider.

What are the types of EDI providers?

On the surface, many EDI providers sound the same. But there are very important differences between EDI providers. There are essentially two types of EDI providers: managed service and full-service EDI providers.

Managed services provide EDI technology that users manage and maintain themselves. In contrast, full-service EDI providers offer EDI technology but also provide the associated staffing resources responsible for customizing, optimizing and operating your EDI solution.

The most helpful question for businesses trying to navigate the full vs. managed service decision is this…. “Do you consider EDI to be a core competency of your business?” Or, if you’re new to EDI, “Will on-site EDI expertise provide a competitive advantage for your business?” Or even, “As you look to compete with others in your space, will having a team of EDI experts on staff set you apart from competitors?” If the answer to those questions is a resounding “YES!,” a managed service partner is likely your best option. If the answer is an emphatic “absolutely not!,” a full-service partner is a great fit as it will allow you, your team and your business to focus on things you know to be foundational to your growth.

What exactly does a full-service EDI provider do?

Full-service EDI providers manage the EDI function on your behalf. Here are a few of the tasks they perform:

• Take ownership of understanding your trading partners’ compliance requirements and EDI mapping updates and changes
• Communicate with your trading partners about EDI requirements and issues, including picking up the phone and calling your partner’s EDI department to fix an issue on your behalf
• Optimize your EDI solution with your ERP and other business systems
• Centralize all your orders (wholesale, retail, eCommerce and marketplace) in one place
• Help you share data with 3PLs and other partners
• Provide a team of trading partner, system and EDI experts available 24×7

What is the difference between EDI providers and vendor portals?

Vendor portals are created from purchased software or developed internally. The retailer manages the software, hardware, infrastructure, personnel and training. In addition, the retailer is responsible for driving adoption of the portal with its vendors. Suppliers need to log onto a separate vendor portal for each of their retail partners.

In contrast, EDI providers deliver a single system that can be used by all retailers and suppliers. An EDI solution frees businesses from the time-consuming process of either managing or using multiple portals.

Where can I find more information about EDI providers?

By applying the foundational principles above, your business can quickly and easily decide which approach to solving this challenge is right for you!

Check out our free white paper on the 7 building blocks of full-service EDI, or download our list of questions to ask a prospective EDI provider. You can also find objective reviews of SPS Commerce Fulfillment (EDI) on the G2 Crowd website.

The Purchase Order Change is commonly known as the EDI 860. This document ensures that a final order is correct. It also helps with invoice reconciliation and proper, accurate payment.

What is an EDI 860 (purchase order change request)?

The purchase order change request is typically sent from a buyer (retailer or distributor) to a seller (vendor or supplier) when a revision to a previously submitted purchase order is required. This document provides information describing the original purchase order, as well as the changes needed.  

 Purchase order changes can occur at different times within the order cycle. For example, a buyer could send the EDI 860 to correct pricing. Or a buyer might send this document if the balance of the order needs a quantity adjustment or a new ship date. Buyers also use the EDI 860 to cancel an order. 

 It’s also important to note that some businesses don’t use this document at all. Instead, buyers provide an updated 850 EDI purchase order. 

Looking for detailed specifications of the EDI 860? Get more information in our EDI guide.

Why should buyers care about EDI 860 compliance?

Providing a consistent way to communicate order changes as well as having an audit trail is becoming more important for all trading partners.  

Here are some key benefits of the EDI 860 for buyers: 

• More accurate and faster order fulfillment
  Automation of purchase order changes allows faster order fulfillment with fewer errors. Typically, buyers can reduce lead time by two to three days with electronic versus faxed or emailed orders.
  
• Reduce in-store and warehouse safety stock and inventory
  When used in conjunction with other automated EDI documents, the EDI 860 allows buying organizations to reduce inventory by up to 5 percent. Retailers that practice just-in-time inventory should consider enabling and integrating EDI 860. It helps buyers order only as many products as needed, exactly when they are needed. 
• Improve invoice reconciliation
  Without automation, approximately 30 percent of invoices will have issues related to payment terms, quantity or pricing. Automating the order cycle eliminates the need for human intervention along with time-consuming and costly errors. Electronic purchase order changes also ensure that the retailer doesn’t overpay for items that weren’t delivered.  

How do suppliers benefit from the EDI 860?

If your retail customer has asked you to use the EDI 860, here are some potential benefits for your organization:

• Focus on more value-added work
  By automating the receipt of order changes, you can avoid time-consuming paperwork and emails. This allows your team to focus on more value-added tasks.
  
• Process orders more efficiently
  The EDI 860 reduces the time spent processing orders along with data entry errors. By automating the order process, you can reduce staffing costs and spend less time fulfilling orders.
• More accurate invoicing
  Electronic purchase order changes ensure that you invoice the retailer for the correct amount. This allows you to avoid overcharging or undercharging your customer, and having to fix invoicing errors down the road.
• Sellers can also request PO changes
  Sellers can send purchase order change requests to buyers, too. Depending on what the retailer or distributor supports, sellers might use the EDI 855 or EDI 865. This allows the buyer to choose to update or cancel the purchase order, and ultimately simplifies your order fulfillment within your warehouse. 

How can you avoid common EDI 860 issues?

The most common issue with the EDI 860 is EDI mapping. EDI maps provide the detailed EDI specifications required by a specific trading partner. You will need a unique EDI map to connect your business with each of your trading partners. 

When a trading partner requirement changes, your team will need to update the EDI maps. Mapping problems with the EDI 860 can cause an EDI transaction to fail.

The best way to eliminate the worry of EDI 860 issues is to rely on a full-service EDI provider like SPS Commerce. Full-service providers take ownership of understanding your trading partner requirements and making map changes. For example, the SPS team actively manages 9,000 map changes each year.

Want to learn more about the EDI 860?

EDI is fundamental for competing in the modern retail landscape. If you would like more details about the 860 Purchase Order Change Request,  contact an EDI expert at SPS Commerce today. 

For more insight into common EDI documents and transactions, check out our posts about EDI 850 purchase orders and EDI 856 advance shipping notices.

The EDI 852 Product Activity Report is a great way to help examine what is selling via point-of-sale (POS) data. It is also a valuable tool to track inventory. This document fosters collaboration between buyers (retailers and distributors) and sellers (vendors and suppliers). Through this collaboration, both parties can jointly improve sales and profits. 

Want more detailed specs on the EDI 852? Check out our handy EDI guide.

What is the EDI 852 Product Activity Report?

Buyers use the EDI 852 document to share inventory and sales information by location to sellers. Its four primary uses are:

• Retailers report sales, what is on order, returns, in transit and inventory levels by location to suppliers.
• Retailers report sales to suppliers so suppliers can replenish inventory or create a suggested order to the retailer for Vendor Managed Inventory processes.
• Retailers report sales to suppliers to prepare for the supplier invoicing the retailer in a scan-based trading relationship.
• Some distributors report what was sold to the supplier or manufacturer or transferred to another reseller (retailer), or sent to a joint business customer or end user.

EDI 852 data is among the most critical information a supplier can receive from a retailer. It allows suppliers to learn:

• When to start planning to make more products

• When it’s (nearly) time to ship new products

• Current stock levels in retailers’ stores

• Status of re-orders
• Any standout stores or stores experiencing a sales slump

How does the EDI 852 benefit buyers and sellers?

The Product Activity Report enables buyers and sellers to collaborate for shared success. Its advantages include:

Boost sales with better forecasting

Suppliers can use the data in the EDI 852 to sharpen their sales forecasts, and compare the sales history of specific products to prior periods. With better visibility into sales trends, suppliers and retailers can align on forecasts and increase sales by reacting quickly to changing consumer demand.

Reduce inventory risks

With EDI 852 information, suppliers gain better sales and inventory visibility, so they can ship items earlier to eliminate out-of-stocks for particular styles or locations. They can also increase production to support sales trends of a fast-selling item to help avoid stockouts. Similarly, the EDI can help prevent overstock situations with information on sell-through for particular locations.

Boost operating margins

Both retailers and suppliers can boost margins by ensuring the latest products with the highest margins are sold each season. By having the right quantity and the right assortment in each location, businesses can prevent markdowns and protect their margins.

Form more strategic trading partnerships

Collaborating with sales and inventory information creates a win-win scenario for retailers and suppliers. Suppliers can proactively advise retailers about their product performance so both parties can maximize sell-through opportunities and strengthen inventory decisions.

How can businesses avoid EDI 852 issues?

The EDI 852 is a complex and lengthy document. Analyzing the data is difficult, even for suppliers working with one retailer. Collecting and normalizing this data for multiple retailers is extremely time-consuming. Also, poor data quality, such as inaccurate inventory levels, can make it difficult to rely on the data to make decisions.

SPS Commerce handles all the details of normalizing and distributing cleansed EDI 852 data to buyers and suppliers. Our Analytics solution makes it easy for retailers and suppliers to collaborate around a common data set to jointly improve sales and margin.

Want to learn more about the EDI 852?

The EDI 852 can provide key insights into inventory and sales trends. If you would like more details about the EDI 852 Product Activity Report,  contact an EDI expert at SPS Commerce today.

For more insight into common EDI documents and transactions, check out our posts about EDI 850 purchase orders and EDI 856 advance shipping notices.

We recently sat down with product manager Scott Williams to discuss common questions and answers. Here’s a snapshot of our conversation.

What is GDSN Data Synchronization?

The Global Data Synchronization Network (GDSN) is an Internet-based product data pool. GDSN data synchronization enables companies to exchange standardized product data with their trading partners. In a nutshell, GDSN is one of the methods trading partners use to “speak the same language” about product data.

The GDSN specification was established in 2004, and is governed by GS1 standards. GS1 standards also cover other technologies such as Electronic Data Interchange (EDI), barcodes and RFID (radio frequency identification) tags.

Who uses GDSN Data Synchronization?

GDSN Data Synchronization is primarily used across retail industries, including food, apparel and general merchandise. Also, some healthcare and banking organizations have adopted GDSN. GDSN is most frequently adopted by large organizations. Yet, GDSN does not easily scale since adding new trading partners requires new manual mapping.

How does GDSN Data Synchronization work?

Every product has a unique identifier in the GDSN system. Sellers (suppliers) enter attributes about their products into the system, which is stored in a “data pool.” Data pools must comply with GS1 standards and certification requirements. This is where suppliers can find the most difficulty in using GDSN. Because only 33 percent of data pools work together, suppliers must decipher and use the ones that do.

Buying organizations (retailers, grocers and distributors) access sellers’ product data through these data pools.

Wouldn’t it be easier if there was one solution to send data to any retailer?

Is using GDSN Data Synchronization required?

To exchange product data in a language that works for both trading partners, both parties need to have a shared method of communication. To do this, some buying organizations require suppliers to use a GDSN certified data pool. 

Often, GDSN data synchronization is an option, but other methods of sharing product data can be used instead. GDSN data pools can require more manual effort than growing businesses can afford, and there are a variety of alternative tools available. 

What types of product attributes can be shared through GDSN Data Synchronization?

Product attributes that can be shared through GDSN include:

• Category
• Color
• Size and weight
• Packaging information

Some types of product data can generally not be shared through GDSN, including pricing and certain eCommerce attributes. Also, adding attributes through GDSN can be a long and tedious process. In today’s fast-paced retail market, businesses need to be able to adapt quickly.

Further, retailers often require attributes not supported by GDSN. This means that suppliers need to send spreadsheets in addition to sharing data via GDSN, causing additional manual processes for both buying and selling organizations.

For these reasons, many organizations use other methods in addition to GDSN to meet their product data needs. 

How much does it cost to use GDSN Data Synchronization?

Both buying and selling organizations pay a fee to access data through a GDSN-certified data pool. Some data pool providers base their pricing on a company’s total revenue. Others consider a company’s number of active SKUs or the number of data recipients. 

The pricing model can result in very high annual costs. Often brands that are new, niche or direct-to-consumer opt-out of the GDSN due to these costs. Instead, they choose to work directly with retailers.

What are some other ways that trading partners can manage and share product data?

Surprisingly, many companies still use spreadsheets to manage and share their product data. This is tedious and time-consuming, especially as businesses grow and add more products to their assortment. Other companies use PIMs, PDMs, and PCM systems to host product data. These are useful for storing data, but still require additional work to transfer product data to buying organizations. 

Assortment from SPS Commerce not only stores product data, but also handles the manual, time-consuming tasks associated with mapping to retail requirements and sharing product data. Selling organizations simply share their product data with SPS once. SPS does the heavy lifting of transforming, validating and delivering the data to each unique trading partner on their behalf. 

Looking for expert advice on GDSN Data Synchronization? Talk with our experts about your product data questions.

Here are five additional EDI supplier selection strategies to use for finding, vetting, and working with the right technology partner for your business.

1: Begin with understanding essential vendor selection criteria “service” definitions

Is EDI a core competency of your business? Do you want it to be?

If taking on the task of learning how to run and manage EDI isn’t part of your or your team’s career goals, know that the term ‘managed EDI service’ is a cloud-based solution term which means you do all the leg work to implement, manage and oversee it.

The EDI provider is only responsible for developing and maintaining the core technology. Your internal staff is accountable for the day-to-day customization, optimization, and operations of the technology. This generally means additional headcount for you.

Full-service EDI solutions have seven primary components:

• Technology
• Trading partner expertise
• Design and configuration
• Trading partner communication
• Testing and launch
• Proactive monitoring and analysis
• Ongoing resource access

With a full-service model, you get the cloud-based solution and related staff resources that customize, optimize, and run the technology on your behalf. In short, the provider carries out a complete business function on your behalf.

2: Utilize user reviews in your evaluation process

Get narrow on your vendor selection criteria. Include customer satisfaction and reviews. Go online and check out their customer reviews on technology review sites such as G2, Capterra or, TrustRadius.

Search for “EDI Provider” and your industry to reduce your list. From there, filter the results to weed out old reviews and only focus on recent reviews. Narrow to EDI providers that have 4 to 5-star reviews.

This should make it easier to find a handful of EDI providers, vendors, and suppliers to explore.

3: Come prepared for the conversation and ask for references

There are ways to establish which vendor likely has what it takes to bring your expectations to life. Create a list of pre-qualifying questions as part of your EDI supplier selection criteria to give you granular-level clarity on this technology partner.

Don’t be afraid to ask for references from existing customers to confirm your potential technology candidate did deliver on all aspects of implementation satisfaction.

Pre-arm yourself by asking the right questions up front and avoid hidden surprises in the negation stage.

4: Certify the automation capabilities of your potential technology vendor

Do you know exactly what needs to automate with the technologies you already have? Will the solution you are exploring automate seamlessly with your ERP, OMS, WMS, or other business integrations?

The right partner should be able to set your business up for friction-free, scalable evolution with fully automated EDI––no matter what existing applications you use and make them flawlessly compliant.

Regardless of whom you select, you must discuss everything of importance up front and in detail and, of course, at critical points along the journey.

Bottom line, getting this vendor selection criteria right before committing to any EDI solution will allow you to offload many operational and technical details that are part of managing an EDI function, and support your business for years to come.

SPS Commerce has helped retailers and suppliers of all sizes in enabling their first EDI system, To learn more about what to look for in a prospective EDI provider, download our free white paper. Or for a free “no-hassle” demonstration, speak to one of our EDI specialists.