EDI — Electronic Data Interchange — is a standardised format for trading documents (purchase orders, invoices, ASNs) sent automatically between supplier and buyer systems. It's how AU retailers like Coles and Woolworths exchange data with their suppliers at scale.
The longer version.
EDI replaces email/PDF/manual entry with structured machine-readable messages following an industry standard (X12 in North America, EDIFACT in Europe, both used in AU). Each message has a number — 850 for Purchase Order, 856 for ASN, 810 for Invoice. EDI is sent through a VAN (Value-Added Network) provider like SPS Commerce, TrueCommerce or B2BE — they handle translation, routing and trading partner certification.
Key facts.
Why it matters.
- All major AU retailers require EDI for trading at scale
- Building EDI from scratch with a non-connected 3PL costs $2K–$5K + 4–8 weeks
- EDI 'mapping' errors during onboarding cause real receipt failures and chargebacks
Common pitfalls.
- Choosing a 3PL that says 'we can do EDI' but doesn't have an active retailer relationship
- Skipping the UAT phase — discovering map errors on the first real PO is expensive
- Underestimating the ongoing per-transaction cost from your VAN
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