RESOURCES • EDI FAQs
EDI FAQs: Answers to the Most Common EDI Questions
Quick, clear answers about EDI, documents, standards, and onboarding — built for non-technical teams.
Use this page to understand key EDI terms, how EDI works in the supply chain, and what you need to go live with trading partners.
- What is EDI?
- What is an ASN?
- What is AS2 vs SFTP?
- EDI vs API — what’s the difference?
General EDI questions
What is EDI?
EDI (Electronic Data Interchange) is a standard way for businesses to exchange documents like orders, invoices and shipping notices electronically between systems.
Why do retailers require EDI?
It improves accuracy and speed across ordering, shipping and invoicing, reduces manual work, and helps maintain consistent supply chain processes.
Is EDI only for big companies?
No. Modern cloud EDI platforms make EDI accessible for businesses of all sizes — including SMEs that need to connect to larger retailers.
How fast can we get set up?
Depending on partner requirements and testing, many businesses can begin processing orders in as little as 24 hours.
Documents and workflows
What is an ASN (Advanced Shipping Notice)?
An ASN is a document sent before delivery that describes what’s shipping, quantities, packaging, and tracking — helping the receiver plan and reconcile shipments.
What are the most common EDI documents?
Purchase Orders, Order Acknowledgements, ASNs / Shipping Notices, and Invoices are the most common documents in retail and distribution workflows.
What causes EDI rejections?
Missing mandatory fields, wrong codes, mapping mistakes, and partner-specific “house rules”. Validation and testing reduce rejections significantly.
What should we automate first?
Start with Purchase Orders and Acknowledgements, then add ASNs and Invoices for end-to-end automation.
Standards and connectivity
What’s the difference between EDIFACT and X12?
Both are EDI standards used to structure messages. EDIFACT is common internationally, while ANSI X12 is commonly used in North America.
What is AS2?
AS2 is a secure protocol used to send EDI messages over the internet with encryption and acknowledgements.
What is SFTP?
SFTP is a secure file transfer method used to exchange files over encrypted connections.
EDI vs API — do we still need EDI?
Many large trading partners still require EDI. APIs are common for modern apps, but EDI remains a key standard for structured B2B supply chain document exchange.
Need help with your specific partner?
Orcastream provides a flexible platform plus free support and translation throughout onboarding. Self-build workflows or let us manage the process.
