As per Relevance of the word electronic, we have this rfc below:
Network Working Group W.
Request for Comments: 1865 Dept. of Veterans
Category: Informational J.
Athena
C.
C. Hage
January 1996
EDI Meets the
Frequently Asked Questions
Electronic Data Interchange (EDI) on the
Status of this
This memo provides information for the Internet community. This
does not specify an Internet standard of any kind. Distribution
this memo is unlimited
This memo is targeted towards the EDI community that is
with the Internet, including EDI software developers, users,
service providers. The memo introduces the Internet and assumes
basic knowledge of EDI
Table of
1. Introduction ................................................ 4
1.1. What is this document .................................... 4
1.2. What do you mean by electronic data interchange (EDI) ? . 4
1.3. What are the X12 Standards that I should be aware of ? .. 4
1.4. To whom do I send comments and suggestions ? ............. 5
1.5. How can I get a copy of this document? ................... 5
2. General Information ......................................... 6
2.1. What is the Internet ? .................................. 6
2.2. Is there a difference between EDI
electronic commerce (EC) ? ............................... 6
2.3. What makes the Internet useful for EDI ? ................ 6
2.4. Does this means we will now have to coordinate
EC/EDI activities with the Internet? .................... 7
2.5. How do I find the addresses of other Trading
on the Internet if I don't have to coordinate my
activities with a central organization or VAN? .......... 7
2.6. How fast is the Internet? ............................... 7
2.7. What about reliability of the Internet? ................. 7
2.8. What are RFCs and where can I get them ? ................ 8
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2.9. Where can I get general information about the Internet? . 8
3. Getting Connected To The Internet ........................... 9
3.1. What do I need to get to use the Internet? .............. 9
3.2. What software is used to support electronic mail? ....... 9
3.3. What types of client-server or server-
protocols exist on the Internet? ........................ 10
3.4. What methods exist to broadcast information
the Internet? ........................................... 12
3.5. What are the ways to connect to the Internet ? .......... 13
4. Organizational Issues ....................................... 15
4.1. Why is the way we currently do EDI so limiting to
growth? .................................................. 15
4.2. My organization has an internal automated system
processing requisitions and issuing purchase orders, but
does not create the X12 formatted EDI transactions;
should we do ? ........................................... 16
4.3. My organization already has a dial-in bulletin
service (BBS) where we post transactions; should
keep it? .................................................. 16
4.4. My organization currently has a Trading
Agreement with each trading partner we're
doing business with. Can we keep them ? .................. 16
4.5. It would be nice to get more trading partners and/
more competition, but I'm worried about getting too
transactions to be able to handle them. Has this been
problem ? ................................................ 17
4.6. Does this mean that I'll receive more messages ? ......... 17
4.7. If we see a transaction posted on VAN, how do
respond in electronic format ? ........................... 18
4.8. My organization has an established
relationship (such as an existing contract. Can
send these transactions via the Internet ? ............... 18
5. The Role Of Value Added Networks ............................ 18
5.1. What is a VAN? ................... ....................... 18
5.2. What is an Internet Service Provider (ISP)? .............. 19
5.3. How might an ISP be used for EDI? ........................ 19
5.4. Doesn't EDI presume the services of companies
Value Added Networks (VANs)? ............................. 19
5.5. If I can use X12 protocol and my VAN to
transactions, what is the benefit of
the Internet? ............................................ 20
5.6. Can we expect VANs to offer connections to other
via the Internet? ........................................ 20
5.7. How can I use the Internet directly for exchanging
messages without going through a VAN? .................... 20
5.8. Can the ISA 06 or 08 identify any entity other than
'end' Trading Partners (i.e. a routing entity) ? ......... 21
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5.9. Can we specify both the recipient's address and
VAN address in the ISA ? ................................ 22
5.10. Are there other options for routing EDI X12
messages ? ............................................... 22
6. US Federal Involvement ...................................... 22
6.1. What is the commitment of the US Federal
to EDI ? ................................................ 22
6.2. What is the timetable for the Federal effort ? .......... 23
6.3. Will the US Government use the Internet to
EDI transactions ? ...................................... 23
6.4. I heard the US Government prohibited commercial
of the Internet? ........................................ 24
6.5. The US Government is using both Internet and
E-mail protocols. What should one consider
choosing which to use ? ................................. 24
6.6. How is the US Government using VANs to
business opportunities? ................................. 25
6.7. How would use of the Internet for Federal
change this RFQ process? ................................ 25
7. EDI Resources On The Internet ............................... 26
7.1. Are EDI Standards available on the Internet ? ........... 26
7.2. Are EDIFACT Standards available on the Internet ? ....... 28
7.3. The EDI X12 standards are quite complex. How do
decide what X12 transactions to implement and how ? ..... 29
7.4. What Implementation Conventions (ICs) are
over the Internet ? ..................................... 29
7.5. How can a trading partner keep up with all
implementation conventions (ICs) and revisions
X12 and EDIFACT? ......................................... 31
7.6 Where can I get information on EDI
software ? ............................................... 31
7.7. How do I keep in touch with others pursuing EDI
Electronic Commerce on the Internet ? .................... 32
7.8. Can I get messages that have been previously
to the EDI mailing lists ? ............................... 35
7.9. How do I make EDI related material
to the Internet community ? .............................. 35
7.10. Where are EDI Archives on the Internet ? ................. 35
8. Security Considerations ..................................... 36
8.1. What security measures are needed to connect to
Internet ? ............................................... 36
8.2. How do we go about protecting our system ? ............... 36
8.3. Is there good publicly available software I can use? ..... 37
8.4. How good are electronic or digital signatures ?
Can they be used in court ? .............................. 38
8.5. Are there other US government standards
I should be aware of? .................................... 38
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9. References .................................................. 39
10. Credits .................................................... 40
11. Authors' Addresses ......................................... 41
1.
1.1. What is this
This document is informational in nature and attempts to
frequently asked questions concerning the use of the Internet
Electronic Data Interchange (EDI). The primary audience is the
community that is unfamiliar with the Internet, including
developers, users, and service providers. The reader needs
understanding of EDI. Informational RFCs are prepared by
Internet Engineering Task Force (IETF) to improve understanding
effectiveness in the use of the Internet
1.2. What do you mean by electronic data interchange (EDI) ?
Except as noted, the document refers to EDI as the use of
1) X12 standard developed by the ANSI Accredited
Committee X12
2) EDIFACT[1] standard United Nations Economic Commission
Europe (UN/ECE), Working Party for the Facilitation
International Trade Procedures (WP.4).
The differences between these standards is beyond the scope of
FAQ. Both standards activities are managed in the US by
Data Interchange Standards Association, Inc
1800 Diagonal Road, Suite 200
Alexandria, Virginia, 22314-2852
Voice: 703-548-7005
FAX: 703-548-5738
There are numerous other standards one could use for EDI,
discussion of them is not in the scope of this document
1.3. What are the X12 Standards that I should be aware of ?
ACCREDITED STANDARDS COMMITTEE (ASC) X12 Standards are available
DISA at the address specified in Question 1. The following is a
starting set of X12 standards
1. ASC X12S/94-172, An Introduction to
Data Interchange, DISA 1994 Publications
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2. ASC X12.3 Data Element
3. ASC X12.5 Interchange Control
4. ASC X12.6 Application Control
5. ASC X12.22 Segment
6. ASC X12.58 Security
1.4. To whom do I send comments and suggestions ?
Readers are invited to add questions; please include an answer if
know or want to suggest one. Of course corrections and comments
welcome; send them to the IETF-EDI mail list by subscribing
described in question 7.6. Or a send your comment
houser.walt@forum.va.gov
1.5. How can I get a copy of this document
Request for Comments documents (RFC) are available by anonymous FTP
Login with the username "anonymous" and a password of your e-
address. After logging in, type "cd rfc" and
"get rfc1865.txt".
A Web address for the RFC is
ftp://ds.internic.net/rfc/rfc1865.
RFC directories are located at
o Africa at: ftp.is.co.za (196.4.160.2)
o Europe: nic.nordu.net (192.36.148.17)
o Pacific Rim: munnari.oz.au (128.250.1.21)
o US East Coast: ds.internic.net (198.49.45.10)
o US West Coast: ftp.isi.edu (128.9.0.32)
RFCs are also available by mail. Send a message to
mailserv@ds.internic.net. In the body type
"FILE /rfc/rfc1865.txt
NOTE: The mail server at ds.internic.net can return the document
MIME-encoded form by using the "mpack" utility. To use this feature
insert the command "ENCODING mime" before the "FILE" command.
decode the response(s), you will need "munpack" or a MIME-
mail reader. Different MIME-compliant mail readers exhibit
behavior, especially when dealing with "multipart" MIME
(i.e., documents which have been split up into multiple messages),
check your local documentation on how to manipulate these messages
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2. General
2.1. What is the Internet ?
It is the inter-working of existing corporate and government
using commonly used telecommunications standards. It is not a
physical network, although some new facilities may be needed
Rather, it is based on mutual interests of users to communicate
effectively via electronic message and file transfers.
communications may be interpersonal (person-to-person) E-Mail
process-to-process like EDI. Messages may be inquiries to
databases and responses. Messages may be entire files
2.2. Is there a difference between EDI and electronic commerce (EC) ?
Electronic Data Interchange (EDI) is defined as the inter-
(computer application to computer application) communication
business information in a standardized electronic form.
Commerce includes EDI, but recognizes the need for inter-
(human to human) communications, the transfer of moneys, and
sharing of common data bases as additional activities that aid in
efficient conduct of business. By incorporating a wide range
technologies, EC is much broader than EDI. However, the focus
this document in on EDI, not electronic commerce
2.3. What makes the Internet useful for EDI ?
The greatest benefits will derive from
o Adoption of common standards and proven inter-operable systems
o Adoption and deployment of a distributed Directory
capability, so that one can readily contact electronically
other organization in the world
o Explicit commitment by participating organizations
cooperatively route traffic, work to resolve addresses,
meet required standards
o Ubiquitous network coverage from many service providers.
allows the customer to choose the level of service needed
o Layering of applications (such as EDI) over existing, proven
applications
o A standards process with reference implementations
all vendors have equal access. (a.k.a. a level playing field).
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o Widely available public domain software including but
limited to applications, protocol/transports and
platform development tools
2.4. Does this means we will now have to coordinate our EC/
activities with the Internet
The Internet is not an organization or government agency. You
the Internet to do business like you would use the telephone.
same Internet connection your organization uses to send
mail would be the one you use to send EDI transactions.
developers write EDI translators, packages or templates for your e
mail system so that you can handle your own EDI transactions.
EDI activities do not need to be coordinated, but your connection
the Internet does
2.5. How do I find the addresses of other Trading partners on
Internet if I don't have to coordinate my EDI activities
a central organization or VAN
The Internet works by assigning names or "domains"
networks/companies/machines. This is called the Domain Name
(DNS). It works from a distributed tree structure. The
requires registration of your Internet Protocol (IP) address
Domain Name in the Domain Name Service (DNS). Your internet
provider can do this for you or assist you in contacting the
people to get your assigned addresses and domain names
2.6. How fast is the Internet
For a modest amount of data with a dedicated connection, a
transmission would occur in a matter of seconds, unless the
selected one of the trading partners is overloaded. The
delay over the internet backbones is at most a few seconds. Like
interstate highway system, speed depends on how close you and
trading partner are to Internet backbones. Unfortunately, some
may lack the capacity or "bandwidth" to handle the workload
organization requires. Contact your local Internet Service
for details on service in your area. Also, the more you are
to spend, the better the service. The Internet is inexpensive,
(contrary to popular mythology) it is not free
2.7. What about reliability of the Internet
For high reliability mission critical applications, redundant
may be used (with separate backbones), and redundant mail servers
separate locations can be used. A single internet email or
address can be used to transparently route to any of the
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servers or network connections
If a dedicated Internet connection is used to transmit information
e.g., via SMTP (see questions 3.2 and 3.5), then the message
delivered directly to the trading partner's system and delivery
assured. If a part time store and forward connection is used,
the integrity of the message depends on the ISP or other
used in the forwarding of a message
2.8. What are RFCs and where can I get them ?
RFC stands for Request For Comments. The RFC series of notes
a broad range of topics related to computer communications. The
topics are the Internet and the TCP/IP protocol suite. There
three categories of RFCs today, Standards Track, Informational,
Experimental. Many of the RFCs describe de-facto standards in
Internet Community. Copies of RFCs are often posted to the
newsgroup comp.doc and obtainable from archive sites such
ds.internic.net
ftp://ds.internic.net/rfc
2.9. Where can I get general information about the Internet
Your local bookstore probably has one of the many recent
publications on the Internet. In addition, look for (or have
get you) the following bibliographies for free
RFC 1175
Bowers, K., LaQuey, T., Reynolds, J., Roubicek, K.,
Stahl, M., and A. Yuan, "FYI on Where to Start -
A Bibliography of Internetworking Information",
08/16/1990 (FYI 3)
ftp://ds.internic.net/rfc/rfc1175.
RFC 1463
Hoffman, E., and L. Jackson, "FYI on Introducing
Internet -- A Short Bibliography of
Internetworking Readings for the Network Novice",
05/27/93 (FYI 19)
ftp://ds.internic.net/rfc/rfc1463.
The reader may want to look at the Frequently Asked Questions (FAQ
document for the newsgroup alt.internet.services. This FAQ, as
as all Usenet FAQs, can be retrieved via ftp from rtfm.mit.edu in
directory /pub/usenet/news.answers. These FAQs are also
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from ftp.sterling.com in the directory /usenet/news.answers
3. Getting Connected To The
3.1. What do I need to get to use the Internet
You need to know your existing telecommunications connectivity
address resolution, and routing capabilities. Then you need
establish and operate an Electronic Mail gateway and/or
application gateway, e.g., for the file transfer protocol (FTP).
Larger organizations may supply their trading partners with
TCP/IP software and X12 translator interfaced to E-mail or FTP
3.2. What software is used to support electronic mail
a) Simple Mail Transfer Protocol (SMTP)
A dedicated internet connection usually uses SMTP software to
and receive messages. The SMTP server may transfer messages to
"spool" area for incoming email in the file system, may queue
messages for transmission via UUCP, may hold mail in a POP server
or may transfer the message to a proprietary email system
b) Unix-to-Unix Copy (UUCP)
A UUCP server is used to transfer messages when a store
forward is used, either between machines within a WAN, or
another machine with a dialup link
c) Post Office Protocol (POP) mail
A POP server holds email which can later be retrieved by a
application run by the user, typically on a PC which might not
running 24 hours a day. The TCP/IP protocol is used either over
LAN or dialup SLIP connection to retrieve messages
d) Mail User Agents (Mail Readers
Uses or applications employ client programs to retrieve
display email messages from the file system mail spool area,
from another server computer using POP or some other
protocol (e.g. Microsoft-Mail). This mail user agent (UA)
is also used to compose and send email via a POP server or
email
The mail user agent may also process attached files using
proprietary format within a mail message, using one of the
de-facto standards, or using the Multipurpose Internet
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Extensions (MIME) internet standard. Among other things,
permits the identification and concatenation of message
(called "body parts") into a single message that can traverse
Internet using the SMTP protocol. The Work in Progress, "EDI
MIME" provides the necessary standards for MIME compliant
agents to identify EDI body parts. A MIME compliant mail
can process the contents of the messages and dispatch data
external software. For example, files can be dragged to
system directories, images can be displayed, and audio data can
played. In the case of EDI, a message formatted according to
MIME-EDI specification could be automatically transferred to
EDI processing program
e) Automated Mail
A typical Mail User Agents is an interactive application.
there are automated email message processing programs which
sort incoming mail, process forms returned by others, or in
case of EDI data, transfer the message contents to the EDI system
Messages formatted according to the MIME EDI specification can
properly recognized by any MIME compliant mail processing program
3.3. What types of client-server or server-server protocols exist
the Internet
Internet email is typically used for two party messaging. The FTP
gopher, and HTTP protocols allow many users, possibly anonymous,
retrieve data from a central source. For example, corporate
can be restricted by potential customers
a) File Transfer Protocol (FTP
Companies with existing connectivity to the Internet may use
to transfer files to one-another or to their VAN. This
employs the same TCP/IP used for SMTP. Furthermore,
documents such as EDI in MIME Work in Progress are available
FTP on the FTP server "ds.internic.net."
b) gopher service protocol
Gopher service is a way of organizing selected documents and
on an Internet server in a simple tree menu, so that users
other Internet computers can find them easily. Most gopher
are also linked to other gopher menus elsewhere, so that users
easily jump from one Internet server to another. There
thousands of gopher servers in operation worldwide
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c) The Hypertext Transfer Protocol (HTTP
HTTP defines http-server and http-clients that comprise the
Wide Web (WWW). WWW was developed by the European Laboratory
Particle Physics (CERN) as a tool for exchanging multimedia
between researchers. Although there is also no specification
graphics in HTTP, most web browsers are graphical in nature
Mosaic, available free from the National Center for
Applications (NCSA), provides a Graphical User Interface (GUI
that facilitates user access to information on the Internet
Mosaic interprets hypertext based information on the WWW, as
as to other linked Index/Directory services such as Archie, FTP
Gopher, and X.500 Directory information. Mosaic also supports
line Graphic Interchange Format (GIF), Joint Photographic
Group (JPEG), Motion Picture Experts Group (MPEG), QuickTime,
other document, image, and audio types. Vendors have
product catalogues using Mosaic servers
d)
WHOIS servers generally offer information about the
to which they belong. There are many WHOIS servers
throughout the Internet. To obtain a list of registered
servers, anonymous FTP to rtfm.mit.edu and get the
/pub/whois/whois-servers.list. You can
o run a client program on your own machine to access
WHOIS server
o telnet to a site which hosts the server, eg: telnet
whois.internic.net and type help to access the full
o send an email message to retrieve information from
database. eg: send email to mailserv@internic.net
a command in the Subject field. Any information in
body part of message will be ignored. ie
Subject: whois
Therefore, to find information on the Internic
Service, the subject should contain: whois
Moreover, to obtain help information on this service you
send two separate email with the following in their
line, respectively
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whois
3.4. What methods exist to broadcast information across the Internet
There are also some usual methods to broadcast messages to
recipients as described below
a) Usenet
Usenet news is a cooperative broadcast of messages to
participants. Messages are organized into categories
newsgroups, and there are over 10,000 newsgroups carried by
major ISPs. Individual customers typically subscribe to
subset of these which is of interest to the organization
Messages are typically held for a week or two, then
archived or discarded. Some newsgroups are free form, i.e.
can post a message, while others are "moderated", i.e.
approval prior to posting
Though not currently used for any type of EDI, Usenet news
be used to broadcast RFQs. For example, comp.newprod is used
announce new products, and misc.jobs.wanted is used to
job openings
b) Mailing
If the interest is limited, a mailing list may be used in lieu
a newsgroup. These are typically used for discussion groups
announcements of a particular nature. Mailing lists are
open, i.e. anyone can "subscribe" by sending an email message to
server. For discussion groups, anyone can send a message to
server which is then rebroadcast to all subscribers.
Internet email is extremely inexpensive, there is normally
charge for use of a mailing list, except for the content
e-magazines, etc. Sponsors of an email list typically provide
list as a public service
For example, a mailing list could be used to broadcast EDI RFQs
etc. Vendors might subscribe to various lists related to
product or service in order to receive messages sent by
customers. Mailing lists could be provided by large companies
internal use, by industry organizations, or VANs. For example,
firm or government agency could sponsor various mailing lists
EDI RFQ's, new product announcements, etc. related to procurement
The organization could easily allow other potential customers
use the same mailing lists to contact vendors. All parties
benefit, and the improved access to vendors from an open
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list would more than offset the cost to support the mailing
server. Thus service might be available for free
3.5. What are the ways to connect to the Internet ?
The following provides a general overview of connectivity options
available
a) Dedicated
Typically a leased telephone line is used to connect a
computer or Typically a leased telephone line is used to connect
gateway computer or bridge/router of a corporate LAN/WAN to
router of the Internet Service Provider's (ISP) Point-Of-
(POP, not to be confused with the Post Office Protocol).
connection may be of various types and speeds, e.g. modem, ISDN
DS0, or DS1 line
With a dedicated connection, the SMTP protocol is typically
to deliver email directly to a trading partners system. Also
real-time client server applications can be run directly with
trading partners system, including information transferred
the FTP and HTTP protocols
Some ISPs provide optional services even with
connections. For example, store and forward email on an
server can be used as a backup for a direct SMTP server
by a trading partner. The ISP may offer disk space on their
and HTTP servers with a high speed connection to the Internet
For example, a trading partner might use a 14.4Kb modem
dedicated email transfers and use a 1.5Mb connection operated
the ISP to distribute FTP and HTTP information
b) On-demand
An on-demand connection operates like a dedicated connection
except a dialup ISDN or modem connection is used. If the
remains idle for a certain period of time, the connection
dropped. Some ISPs offer dial-out capability so any inbound
outbound traffic can reestablish the link. However, many
require their customers to dial-in, so only outbound traffic
regular polling will establish the link. In the latter case,
and forward would likely be used for email, and the ISP
would be used for FTP and HTTP information
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c) Part-time Polled
The Unix-to-Unix Copy (UUCP) protocol is typically used for email
news, and (rarely) file transfers. A client
periodically dials the ISP and transfers email and Usenet news
the organization, then disconnects. Typically, the client
the ISP at regular intervals, e.g. every 20 minutes, though
ISPs dial out when a message is to be delivered. Outgoing
can be sent immediately, or queued for transmission with
specified maximum delay
A UUCP connection may be used to transfer messages to an
number of people or automated mail processing programs. A
UUCP connection may also route messages to other systems, e.g
divisions within a corporation. UUCP and store-and-forward
synonymous
Since UUCP is only used to transfer mail and news messages
interactive internet client-server applications like FTP and
are not available, except using a server provided by an ISP.
a separate dialup account might be needed to retrieve
from other FTP or HTTP servers. UUCP might be used for
email transfer, and a on-demand dialup connection would be
for interactive internet client applications
Though UUCP accounts imply a delay (up to the polling interval)
processing a message, many ISPs allow a customer supplied
to process messages immediately on the ISP's machine. Though
can be used to transfer files directly, usually files
transferred by encoding them within an email message
Transmission within internet email messages is much more
supported and can be gatewayed into proprietary systems
d) Dial-up Shell
With a dial-up account, a single user with a personal
running a terminal emulator connects to the ISP's computer.
readers, news readers, HTTP browsers, etc. can be run on the
machine. Data on the ISP machine can be transferred to
personal computer manually using a protocol like X-Modem, Z-Modem
or Kermit
The ISP's host computer may run one of the usual UNIX command
(shell) programs, or may use a custom BBS or other menu
user interface. A proprietary client-server program may be used
lieu of a terminal emulator to provide a graphic user interface
Some of the proprietary GUI clients provide access to
internet applications, e.g. gopher
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A dialup ISP typically has a direct internet connection,
very low cost providers might only have a UUCP connection to
Internet. Some large proprietary networks such as CompuServe
not offer a direct internet connection, and only support
email and, sometimes, Usenet news gateways to the Internet
d) Personal Serial Line Internet Protocol (SLIP) or Point to
Protocol (PPP)
A SLIP/PPP account is also available as a cross between the
demand and dial- up. Like the on-demand account, a single user
connect to an ISP and run mail reader, news reader, FTP,
browser, etc. client applications directly from a
computer. Unlike the on-demand account, the dial-out
functions as a client only and not a server, and would be used
a single user rather than as a gateway to a LAN
With a SLIP/PPP account, the POP (Post-Office-Protocol)
is used for a user's mail reader client to retrieve
stored in the ISP's server. Unlike, UUCP, the POP servers
mail for a single user (i.e. individual email address).
With a SLIP/PPP connection any standard TCP/IP application is
directly into the internet. Thus unlike the proprietary
software supplied by the ISP, any TCP/IP client application can
used
A program such as TIA (The Internet Adapter) can be run on a
account which allows a standard UNIX shell account to function
a SLIP/PPP account. However, some ISPs do not support TIA as
charge extra for SLIP
4. Organizational
4.1. Why is the way we currently do EDI so limiting to its growth
There is a tendency for each organization to establish is own
and administrative policies, leading to rising costs of dealing
multiple trading partners, each in turn with its own requirements
procedures. However, new technologies and business practices
necessary if EDI is to move beyond the 30 to 40,000
presently using EDI. According to Department of Labor and
Revenue Service statistics, there are about 6.2 million entities
employees and about 14 million other "business" entities. A
that wants to sell chairs, for example, would have to check with
different customers to see if they had any requirements. By
it possible for a business to use a common method to look
customers, the barriers entering to the electronic marketplace
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greatly eased. This does not mean that there is only one source
everyone goes to for a list of current business opportunities
Rather, a prospective supplier only needs to go to a
electronic marketplace. To communicate with each other, the
participants in electronic commerce need to harmonize
procedures and processes. Examples include common trading
registration and the adoption of standard implementation
for EDI messages
4.2. My organization has an internal automated system for
requisitions and issuing purchase orders, but it does not
the X12 formatted EDI transactions; what should we do ?
You could enhance your existing system, for example, by adding
translation software. VANs often offer EDI "translation
capabilities that convert flat text files into EDI X12 or
format. This translation software may be designed with a
technical solution in mind; carefully consider how the software
be used and what applications and telecommunications software
need to interact with it. You don't want to inadvertently
yourself into using only one supplier
4.3. My organization already has a dial-in bulletin board
(BBS) where we post transactions; should we keep it
Yes, but that puts you in the role of being your own VAN. By
independently, organizations have established their own dial-
electronic bulletin board system with their own unique,
functionally equivalent, operating rules. Your BBS will be a
different that the next organization's, making it difficult
suppliers to access. By getting transactions from the VANs
specialize in moving information, your organization will get
widest circulation possible. You will be able to reach
partners you may not even know existed, resulting in more
bids. Because of their idiosyncratic nature, BBS are not
with the idea of a "single face to industry" espoused by the
Government
4.4. My organization currently has a Trading Partner
with each trading partner we're currently doing business with
Can we keep them ?
In the short run you may want to keep some Agreements in place
cover unique circumstances. But be careful not to create
agreements and directions for your trading partners. Follow
procedures common to your particular line of business. In the
run, less is better. Hopefully, the introduction of EDI into
commercial practice will eliminate the need for EDI-
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agreements
4.5. It would be nice to get more trading partners and/or
competition, but I'm worried about getting too many
to be able to handle them. Has this been a problem ?
The answers to this and related questions presupposes a
to participate in the open bidding process. While this process is
legal requirement for government agencies, many private
choose not to adopt the practice. The technology of the
facilitates competition, but the cost of putting these practices
place limit their value. This is a business decision, not
technical one. Will companies competitively procure
supplies absent a long term relationship with the supplier?
essential inputs that will make or break customer satisfaction
productivity, the benefits of competition may not be worth the risks
Many organizations experience some increase in the number
transactions; for competitive procurements, the winning bid should
significantly better than those received prior to using
electronic system. The impact of an increase in volume needs to
evaluated on a situation by situation basis. For example,
acquisition support system may need to be re-engineered to
handle bids by ranking and presenting them to your buyers in low
high order. Your new or enhanced system should make it easy
receive and reply to any inter-personal messages that are sent
linked to a bid (that is, an SMTP/MIME message or the EDI X12.864
text message transaction set).
4.6. Does this mean that I'll receive more messages ?
There is a strong likelihood the number of messages will increase
There is a strong likelihood the number of messages will increase
you reach more and more trading partners. After a reasonable
period, your EDI trading partners should be relying on EDI
disinclined to use alternative forms of communication that don't
EDI/EC. Once you use EDI/EC to communicate with a trading partner
you should consider discouraging the use of telephone calls or
messages or other non-EDI/EC messages by pointing out the fact
telephone or fax messages are processed more slowly. By
electronic messaging, you can establish a written and dated
trail. Your application system can route the message to the
and "attach" it to a "case file". However, if your organization
not use automated systems, you will want to adjust your approach
dealing with non-EDI messages
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4.7. If we see a transaction posted on VAN, how do we respond
electronic format ?
This function is typically handled by applications software, not
the Internet. For example, a vendor that wishes to bid on
particular Request For Quotation (RFQ) would prepare a bid (X12-843)
and send it via their VAN of choice. The identification
in the interchange control header (ISA) and functional group
(GS) will be interpreted by your VAN and forwarded to the buyer's
or to the buyer directly, depending on the reply address. VANs
reject messages from unregistered sources; otherwise they
forwarded to (or otherwise made available to) the buyer. If a
is using dial-up access to a VAN, then they will have to call-in
their messages
4.8. My organization has an established bilateral
(such as an existing contract. Can we send these
via the Internet ?
Yes, the Internet can be used to send transaction sets to
trading partners via SMTP or FTP messages. VANs were typically
for bilateral relationships between companies, whereas the
is useful for establishing multilateral relationships.
bilateral relationships are usually quite stable, but both
had to agree to share the same VAN or get their VANs to interconnect
Multilateral relationships are between organizations that don'
necessarily have existing relationships and may be rather ephemeral
The Internet is suited to dynamic multilateral relationships that
later evolve into static bilateral relationships between
using VANs. Therefore, the issues concerning the Internet (security
availability, etc.) are manageable in the early stages of forming
relationship. If your current VAN is not capable of using
Internet, you may need an alternative route for those messages
Later, as the business relationship matures, the use of VANs may
appropriate as the level of communication becomes more important
For example, unless your system has a directory of all
trading partners, you lack the capabilities to screen and
transactions that arrive at your site
5. The Role Of Value Added
5.1. What is a VAN
The use of EDI over the Internet is in the early stages, although
technology and services are developing remarkably rapidly. In
past, organizations doing EDI typically have relied on
firms called Value Added Networks (VANs) for technical assistance
Many of these organizations will look to their VAN for assistance
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using the Internet. VANs specializing in EDI applications
technical support, help desk and troubleshooting for EDI
telecommunications problems. They assist in configuration
software, upgrades to telecommunications connectivity, data
computer security, auditing and tracing of transactions, recovery
lost data, service reliability and availability. Some EDI
services can include broadcasting an RFQ to a collection of vendors
or storage of EDI information for later search and retrieval
5.2. What is an Internet Service Provider (ISP)?
VAN services have typically used proprietary network or a
gatewayed with a specific set of other proprietary networks.
contrast an Internet Service Provider (ISP) offers generic
access (i.e. not specific to EDI) for all computers connected to
internet. A direct internet connection permits real time computer
computer communication for client-server applications
Alternatively, a part time internet connection can be used to
internet servers using an on-demand basis, or access another
via email which includes a store and forward method. Internet
may be used as a gateway to proprietary networks if the
network has an email gateway
5.3. How might an ISP be used for EDI
Internet email can be configured for a dedicated connection
real-time transfers, or a store and forward method (like
VANs), or a combination of the two, e.g. where a direct delivery to
trading partners system is used when a link is operational, and
store and forward from an ISP is used as a backup
A large organization can connect their network to the Internet at
internet exchange point, however, most use a commercial ISP, either
major backbone provider, or local resellers of service off one
more backbones. The ISP provides technical assistance and access
local telecommunications links
5.4. Doesn't EDI presume the services of companies
Value Added Networks (VANs)?
EDI only specifies a format for business information;
transmission of the information is covered under other standards.
real world analog is sending a business form from one company
another. The "form" could be sent via US mail, US Registered mail
via private carrier (UPS/FEDEX) or simply faxed between
companies. EDI only requires that the trading partners follow
content standards
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5.5. If I can use X12 protocol and my VAN to send transactions
what is the benefit of using the Internet
The Internet E-mail standards have hierarchical address spaces
are defined and updated in what the Internet calls "domain
servers." Unfortunately, X12 has a flat address space. So, when
send an interchange (not via the Internet) to a partner who is on
different VAN, your VAN must do a table look up to figure out
VAN the receiving party is on. If you use only X12 without
Internet, before you can send a message to this partner, you
first contact the recipient's VAN and have them add you as an
to his VAN's table. If the ISA contained the VAN ID of
recipient, then you could (in theory) send interchanges to
via the VAN interconnects without having to notify the recipient'
VAN first. However, this theory needs to be worked out in practice
In contrast, thanks to the domain name service, Internet e-mail
(and Postal users) don't have to call up their service
before sending a message across an "interconnect" to another
provider
5.6. Can we expect VANs to offer connections to other VANs via
Internet
All VANs connected to the Internet are connected to one another,
avoiding most of the problems of interconnecting
networks. VANs can then focus on services to their customers such
automatic bid submission, market and business opportunity analysis
and translation software
5.7. How can I use the Internet directly for exchanging EDI
without going through a VAN
You and your trading partner must agree on one of the
protocols for exchanging messages and then agree upon some
with the exchange
a) Email based
The simplest and most widely supported means of
messages is via internet email. Typically, the IETF-
encapsulation specification would be used to enclose the
data within the email message, and the trading partners
need to agree upon an encryption method for secure email
typically PEM or PGP (see question 8.4).
The trading partners would then exchange
1. The internet email address for EDI
2. An internet email address for personal
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related to
3. Agreement on the encryption and digital
protocols, including email acknowledgment, e.g
support for the "Return-Receipt-To:" email header
or X.400 extended email header fields
4. Public Keys for PEM or PGP encryption and
signatures. (or private keys for DES encryption
5. Agreement on the format of the message, e.g. IETF MIME/EDI
A convention for naming email addresses might
established, e.g. edi@edi.xyzcorp.com for messages
ediinfo@xyzcorp.com for an automated response for human
information on establishing internet EDI,
edisupport@xyzcorp.com for a personal contact
b) FTP based
To exchange EDI messages via FTP, some setup information must
included in the trading partner agreement. Typically, an
would be created for each trading partner for a FTP login
including a password. Typically, each X12 or EDIFACT
would be stored in a file, and the trading partner agreement
define the conventions for naming files and directories
the messages
The trading partner agreement would include
1. FTP login name and
2. Machine(s) from which the login will be
3. Additional security protocols, e.g. Kerberos[?]
4. Directory and file naming
5. File encryption protocols and
6. Wrappers around EDI data, e.g. MIME/EDI headers
PEM/PGP wrappers, etc
There are several compression routines and utilities available
virtually any computer system that uses the Internet. Many of
utilities will convert across platforms (say UNIX to Mac, UNIX to PC
and vise versa) and are available for free from one of several
archive servers. Use of these compression routines should be
with care when one is employing an encryption technique such as
or PGP
5.8. Can the ISA 06 or 08 identify any entity other than
'end' Trading Partners (i.e. a routing entity) ?
Yes, although the ISA06 and ISA08 elements are supposed to be used
identify the sender and receiver of the interchange, the receiver
the interchange could be a clearinghouse (as well as a VAN)
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processes the interchange and then forwards the data to the
recipient. In this case, you could put the receiver ID of
clearinghouse into the ISA08. The clearinghouse would probably
to determine the ultimate recipient of the message by looking
the transaction set (or perhaps by using the GS03). Alternatively
you could put the receiver ID of the ultimate recipient into
ISA08 and the clearinghouse would route the interchange based on
ISA08 value (just as a VAN does).
5.9. Can we specify both the recipient's address and their
address in the ISA ?
There was an X12 DM (data maintenance) request proposed to the X12
standards committee for a change to the ISA segment (X12
information) that would allow users to specify the recipient's VAN
in addition to the recipient's ID. The intent was to provide
hierarchical address in the ISA. The top level would be the VAN ID
and the next level would be the recipient ID. To date, this DM
not been approved
5.10. Are there other options for routing EDI X12 messages ?
Yes, the GS02 and GS03 data elements can be used for a second
of routing. The GS03 is the application receiver's code. Some
users use the GS03 for routing a functional group to a
department or application within the receiver's corporation.
example, you could use the ISA08 to identify the receiver as "
Corporation" and use the GS03 to identify the receiving
as the "Purchasing department (within Acme Corporation)". Many
users simply put the same value in the ISA06 and the GS02, and
the same value in the ISA08 and the GS03. Interestingly, there
VANs that will broadcast a message. Other VANs will map the value
the ISA08 into a distribution list VAN mailbox ids maintained by
VAN. Thus, each recipient receives the exact same copy of
interchange and the value of the ISA08 is not changed by the VAN
6. US Federal
6.1. What is the commitment of the US Federal Government to EDI ?
In the Federal Information Processing Standard (FIPS) 161-1
Electronic Data Interchange[2], the US Government committed to
EDI X12 and EDIFACT standards in the exchange of business
with trading partners already using EDI. On October 26, 1993,
President Clinton signed an Executive memorandum requiring
agencies to implement the use of electronic commerce in
purchases as quickly as possible. As the initial step
President's Management Council (PMC) Electronic Commerce Task
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(ECTF), chaired by the Administrator, Office of Federal
Policy (OFPP), chartered the Federal Electronic Commerce
Team (ECAT) memorandum. The PMC gave ECAT the task of defining
architecture for the government-wide electronic commerce
system and identifying the executive departments or
responsible for developing, implementing, operating, and
the Federal electronic system
ECAT has become the Federal Electronic Commerce Program
Office (ECA-PMO). The National Institute or Science and
(NIST) maintains an HTML home page for the ECA-PMO
http://snad.ncsl.nist.gov/dartg/edi/fededi.
6.2. What is the timetable for the Federal effort ?
To implement EC and to achieve his objectives for EC, the
set forth the following four milestones
1) By March 1994, define the architecture for
government-wide EC acquisition system and
executive departments or agencies responsible
developing, implementing, operating, and
the Federal electronic system. The ECAT
the architecture and recommend actions that each
should take. These documents are available via ftp
ds.internic.net in the directory /pub/ecat.library
ftp://ds.internic.net/pub/ecat.library
2) By September 1994, establish an initial EC
to enable the Federal government and private
to exchange standardized requests for quotations (RFQs),
quotes, purchase orders, and notice of awards and
government-wide implementation
3) By July 1995, implement a full-scale Federal EC
that expands initial capabilities to include
payments, document interchange, and supporting data bases
4) By January 1997, complete government-wide
of EC for appropriate Federal purchases, to the
extent possible
6.3. Will the US Government use the Internet to send EDI transactions ?
According to the ECAT, achieving the following objectives
essential for a successful ubiquitous government EDI capability
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1) E-mail systems may be used as the transport medium for
transactions
2) FTP, FTAM, SMTP, X.400, or X.400 compatible
are the preferable transport methods for EDI
3) EDI functionality must be supported such that the user
choose between the Internet Protocol Suite (IPS) and
Systems Interconnection (OSI) protocol support
4) Directory services will be provided through the X.500
as services become available
5) Initial implementation of X.400 shall support the user
services defined in P2 and P22 protocols
6) By 1996, the X.400 implementations shall contain
services defined in the X.435 specification
7) The Internet network may be used for EDI transactions
it is capable of providing the essential reliability
security, and privacy needed for business transactions
6.4. I heard the US Government prohibited commercial use of
Internet
The Internet contains many Internet Service Providers (ISPs),
with its own internal policies governing the conduct of
customers. One of the largest ISPs is the National
Foundation. At one time, NSF adopted what is called the
Use Policy of the National Science Foundation (NSF) was intended
prevent commercial uses of the original NSF-sponsored
telecommunications backbone. However, the growing number
commercial providers and backbones now part of the Internet have
this policy obsolescent. NSF is currently reducing its
support in favor of subsidies to universities and other NSF
organizations. Today the US Government is actively
commercial uses of the Internet
6.5. The US Government is using both Internet and OSI E-
protocols. What should one consider when choosing which to use ?
For more than a decade, Federal policy has been to promote the
Systems Interconnection (OSI) telecommunications protocols
by international standards bodies. Despite this policy,
agencies, like the private sector, have invested far more in
than OSI compliant products. Marshall T. Rose's "The
Message"[3] compares the two alternative protocol suites and
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clearly in favor of the IPS for messaging in general. For
specifically, the advantages of the IPS are its simplicity,
availability, and security provided by Privacy Enhanced Mail (PEM
see below). IPS lacks a number of desirable features and
something of an efficiency penalty for binary transfers. On
other hand, t