EDI: Alive and Well After All These Years

Computerworld - Don't believe reports you might hear about the death of electronic data interchange. Not only is EDI alive more than 20 years after its birth, it's also thriving at companies that use it to exchange purchase orders, invoices and other information with trading partners.
Retailers such as Wal-Mart Stores Inc., J.C. Penney Co., Supervalu Inc. and Hallmark Cards Inc. delivered that message loud and clear to a packed session at the recent UConnect Conference in Anaheim, Calif., sponsored by Uniform Code Council Inc.
And the majority of over 20 respondents to a Computerworld poll last week echoed those sentiments. Most said they're either adding new trading partners or increasing the number of EDI transactions they do. They also noted that they expect that trend to continue, even though some are exploring XML-based alternatives.
"A few years ago, everyone was making claims that EDI was on its deathbed and XML was the greatest thing since sliced bread," said Jay Herman, EDI coordinator at Knouse Foods Cooperative Inc. in Peach Glen, Pa. "Internet EDI and competition have brought the cost of transactions down, and EDI volume continues to increase."
One of the most influential companies driving new technology trends is Wal-Mart. But during a panel discussion at the conference, Teresa Breshears, a senior business analyst at the Bentonville, Ark.-based retailer, said it has no plans to move away from standard EDI transactions.
"If there's a need, we will come up and do XML," she said. "But right now, I don't see us migrating away."
The far bigger trend in EDI for the past 18 months has been sending EDI transactions over the Internet using the Applicability Statement 2 protocol, which describes how to send data securely and ensure that messages are received.
Wal-Mart in September 2002 asked its suppliers to shift from value-added networks (VAN) to AS2. But few companies drive change to the degree that Wal-Mart does. Several users said they have moved to AS2 with only one or a handful of trading partners, although they expect more to follow.
Henry Figura, IT officer at Recochem Inc., said management had to be convinced that it needed to invest in AS2 software from Inovis Inc. to comply with just one customer. Now the Montreal-based producer and distributor of chemical products hopes more customers follow suit with AS2, since the company has cut its VAN costs by 20% for its 800 transactions per month with Wal-Mart.
Piggly Wiggly Carolina Co. has cut costs by 70% since going from a VAN to AS2 with