ERP and EDI often go hand in hand, streamlining business processes and enabling seamless communication between systems. One such amazing integration for B2B businesses is the Infor EDI integration. This integration ensures that businesses can automate data exchange, reduce manual errors, and improve operational efficiency.
For B2B companies looking to stay competitive, this integration is worth considering as it enables faster transactions and better supplier-customer collaboration.
Methods Of Infor EDI Integration
When integrating Infor ERP with an EDI system, businesses can choose from three main methods:
Direct Integration
In this method, your in-house team develops a point-to-point connection between your Infor ERP system and your vendor’s ERP system. This requires custom coding or APIs (application programming interfaces) and an EDI translator tool to map and translate EDI messages. Once the connection is established, it ensures seamless communication between both systems. While this approach gives you complete control over the integration, it demands skilled technical resources to manage the process and maintain updates. Direct integration is ideal for businesses that want full control and have the necessary expertise in-house.
Indirect Integration
This fully managed solution relies on third-party service providers to handle the entire integration process. It includes two popular options:
- Value-Added Network (VAN): A secure, centralized platform that manages the data exchange between your ERP system and your vendors. VANs are reliable for businesses that prioritize security and need a robust infrastructure for their communication.
- iPaaS Solutions: Cloud-based platforms that link applications and systems. iPaaS solutions, such as DCKAP Integrator, provide flexibility, scalability, and advanced security features, making them a strong choice for modern businesses. They are especially effective for streamlining workflows and accommodating rapid business growth. Choosing the right iPaaS is crucial, as not all solutions deliver the same level of performance.
Indirect integration is the best way to connect for companies looking for a hands-off approach while leveraging expert management and secure, scalable tools.
Hybrid Integration
This method combines the best of both direct and indirect integration. You can handle simpler integrations in-house, maintaining control over key processes, while outsourcing complex or resource-intensive tasks to a third-party provider. Hybrid integration gives you the flexibility to tailor the approach based on your business priorities, cost considerations, and technical capabilities.
Selecting the right integration method depends on your goals, resources, and the complexity of your business needs. Each method is designed to ensure seamless communication, faster operations, and stronger B2B collaboration.
Also read: EDI vs APIs in B2B Supply Chain Integrations
How Infor EDI Integration Works
Let’s understand with an example. Suppose you’re a distributor working with a manufacturer to restock your inventory. Instead of manually managing orders and communication, your integrated Infor ERP and EDI system handle the entire process seamlessly. Here’s how it works:
- Distributor Sends a Purchase Order (PO): You, as the distributor, create a purchase order in your system and send it to the manufacturer in an EDI format (say, EDI 850).
- EDI Translator in Action: The EDI system receives the PO and uses an EDI translator tool to convert it into a format the manufacturer’s system (likely another ERP) can understand. The translator ensures both systems communicate effectively.
- Manufacturer’s ERP Processes the Data: The translated PO is automatically fed into the manufacturer’s ERP. It updates their system with details such as the product quantities you’ve requested, delivery schedules, and agreed pricing.
- Purchase Order Acknowledgment: The manufacturer’s EDI system generates a Purchase Order Acknowledgement (EDI 855) to confirm receipt of your PO, including any adjustments or confirmations and sends it back to your EDI system. This ensures you’re updated on the status of your order.
- Order Fulfillment and Shipping: The manufacturer fulfills the order and ships the products. Their EDI system sends an Advanced Shipping Notice (EDI 856) to your EDI system, providing all the shipping details, including tracking numbers and expected delivery dates.
- Invoice Generation: Once the shipment is on its way, the manufacturer’s system sends you an Invoice (EDI 810) for the products. This invoice is processed automatically by your Infor ERP, updating your accounts payable and closing the transaction loop.
This entire process eliminates manual intervention, reduces errors, and speeds up communication between you and your manufacturer, ensuring a smooth and efficient workflow.
Also read: Understanding QuickBooks EDI Integration [Methods + Types + Top Tool]
Common Transaction Sets in Infor EDI Integration
Here is a list of the standard EDI transaction sets commonly used in the distributor-manufacturer workflow:
- EDI 850 (Purchase Order): Buyers use this to order goods from suppliers.
- EDI 855 (Purchase Order Acknowledgment): Suppliers use this to confirm receipt of the purchase order and communicate any updates.
- EDI 860 (Purchase Order Change Request): It is used to request changes to the existing purchased order.
- EDI 810 (Invoice): Suppliers send this to invoice buyers for purchased goods.
- EDI 856 (Advanced Shipping Notice): Manufacturers send this to notify distributors about shipment details.
- EDI 940 (Warehouse Shipping Order): Directs warehouses to ship goods to the distributor.
- EDI 945 (Warehouse Shipping Advice): Notifies the manufacturer that goods have been shipped to the distributor.
Benefits of Integrating Infor ERP with EDI
Integrating your Infor ERP with EDI offers numerous key benefits, empowering businesses to operate more efficiently and stay competitive. Here are the key advantages:
Automated Processes
Manual data entry becomes a thing of the past. EDI automates critical processes like order processing, invoicing, and inventory updates, saving time and reducing labor costs.
Error Reduction
By eliminating manual input, businesses can significantly reduce errors in data transmission. This leads to fewer discrepancies in orders, payments, and inventory records.
Enhanced Efficiency
Integration creates a streamlined workflow between your ERP and trading partners. It accelerates transaction cycles, helping businesses fulfill orders faster and improve customer satisfaction.
Improved Visibility
With real-time data synchronization, businesses gain better visibility into supply chain operations. This enables quicker decision-making and more effective inventory management.
Stronger Partner Relationships
EDI integration ensures seamless communication with business partners. The consistency and accuracy in transactions build trust and strengthen relationships.
Cost Savings
Automated processes and fewer errors translate to lower operational costs. Businesses also save on paper, postage, and manual labor associated with traditional methods.
Scalability
As your business grows, EDI integration makes it easy to onboard new trading partners, handle higher transaction volumes, and expand into new markets without a significant increase in resources.
Compliance and Security
EDI ensures compliance with industry standards and trading partner requirements. It also provides a secure platform for data exchange, reducing the risk of breaches.
Sustainability
By replacing paper-based processes with electronic communication, EDI integration contributes to an eco-friendlier operation, supporting sustainability goals.
Competitive Advantage
In today’s fast-paced business environment, integrating your ERP with EDI gives you a competitive edge by improving operational speed, accuracy, and reliability.
Also read: Salesforce EDI Integration Explained [Methods + Steps + Benefits]
Challenges and Solutions in Infor EDI Integration
When integrating Infor ERP with EDI, you might face some challenges. But don’t worry—there’s always a way to tackle them. Let’s go through the common problems and practical solutions:
1. Complex Setup and Customization
- Challenge: Setting up Infor EDI integration requires custom coding and specialized tools. It can be overwhelming for businesses without experienced in-house teams.
- Solution: Leverage external expertise if you lack in-house technical resources. Work with a managed service provider or an experienced EDI consultant to handle the setup and customization. This ensures the integration is done correctly and efficiently.
2. Data Mapping and Translation Issues
- Challenge: Incorrect mapping of EDI messages to your ERP can lead to data mismatches. This disrupts operations and causes delays.
- Solution: Use a robust EDI translator tool. Test and validate your mappings thoroughly before going live. Regularly monitor data flows to catch and resolve issues early.
3. System Compatibility Problems
- Challenge: Your Infor ERP and the vendor’s systems might not “speak the same language,” leading to communication gaps.
- Solution: Invest in middleware or iPaaS solutions that act as a bridge between systems. These tools handle compatibility issues, ensuring seamless data exchange between your systems and your trading partners.
4. High Implementation Costs
- Challenge: Custom coding, tools, and resources can make the integration expensive, especially for smaller businesses.
- Solution: Start small by integrating high-priority processes or partners first. Consider using a hybrid approach—combine in-house efforts with third-party solutions to balance costs and control.
5. Security Risks
- Challenge: EDI systems handle sensitive business information. Security breaches can lead to data loss or theft.
- Solution: Choose secure solutions, such as iPaaS platforms, with strong encryption and compliance standards. Implement firewalls, regular security audits, and role-based access controls to protect your data.
6. Managing Multiple Trading Partners
- Challenge: Dealing with different formats and requirements for multiple partners can complicate the integration.
- Solution: Use a scalable EDI platform that supports multiple trading partners and formats. Automation tools can handle variations in partner requirements, ensuring consistency.
7. Lack of Real-Time Monitoring
- Challenge: Without real-time visibility into EDI transactions, issues can go unnoticed, causing delays.
- Solution: Implement dashboards or tracking tools that provide real-time insights into your transactions. This helps you quickly identify and resolve any issues.
8. Employee Resistance and Training Gaps
- Challenge: Employees may find it difficult to adapt to new systems, slowing down the integration process.
- Solution: Provide hands-on training and involve employees in the integration process from the start. Show them how the new system makes their work easier and more efficient.
Also read: SAP EDI Integration: A Complete Guide to Streamlining Data Exchange
Top ERP Integration Solution For Manufacturers And Distributors – DCKAP Integrator
The DCKAP Integrator is a trusted solution designed specifically for manufacturers and distributors. It’s built to handle the complexities of these industries, automate processes, and integrate all your business systems seamlessly.
This cloud-based EDI integration solution is easy to use and goes beyond just integration. When needed, it can also function as an EDI tool. That means it handles data mapping, EDI data translation, and system integration effortlessly.
Plus, the DCKAP team has extensive experience working with various ERPs and EDI systems for both manufacturers and distributors. They know the challenges you face and can provide expert support whenever you need it.
In short, it’s everything you need for smooth, seamless integration. Want to learn more? Get in touch with us today!
FAQs
What is Electronic Data Interchange (EDI) and how does it benefit enterprises?
EDI is the process of electronically exchanging business documents between trading partners in specific message standards. It helps enterprises automate routine tasks, ensure data integrity, and streamline processes, reducing administrative overhead and errors.Â
What are EDI Standards, and why are they important?
EDI Standards are predefined formats for structuring data in EDI files. They ensure that all trading partners interpret the message details consistently. Common EDI standards include ANSI X12 and EDIFACT, which simplify inbound and outbound transactions across businesses.
What steps are involved in processing EDI customer orders?
The steps include:
- Receiving inbound transactions from the demand side.
- Mapping and translating data into the EDI database.
- Verifying message details for data accuracy.
- Sending functional acknowledgment to confirm receipt.
- Exporting outbound data for integration with accounting systems.
What is a key consideration for mid-sized companies adopting Infor EDI integration?
Capacity planning is crucial. Mid-sized companies should evaluate their current number of transactions, demand-side needs, and outbound data requirements to ensure scalability.
Why are EDI Transactions better than print messages?
EDI transactions are superior to print requests of a message because they ensure faster communication, eliminate the need for manual data entry, and maintain data integrity through standardized EDI transaction formats. Unlike print requests, which involve administrative tasks like re-entry, printing, and mailing, EDI automates processes, reducing errors and enhancing efficiency. It handles inbound and outbound transactions seamlessly, ensuring accuracy in customer orders, item master data, and exported data. EDI also scales easily for enterprises and mid-sized companies, providing secure links for data transfer while supporting functional acknowledgments. Additionally, it’s cost-effective, environmentally sustainable, and integrates effortlessly with accounting systems and customer code lists.
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