EDI in Supply Chain

EDI in Supply Chain

EDI in Supply Chain

The EDI in Supply Chain standard was developed by the Electronic Data Interchange Standards Committee. It allows businesses to exchange data electronically using a standardized format. This helps reduce errors and costs associated with manual processes.

Today EDI in the supply chain management is more important than ever, because of the pandemic several industries are affected by supply chain issues and the whole world is facing disruptions caused by delays in the supply chain.

EDI can give you the capabilities your business needs to create a well-integrated ecosystem and enable fast and secure exchanges of essential warehousing and shipping documents, including bills of lading, shipping status records, shipment authorizations, advanced shipment notices, customs documents, and inventory lists and many more.

Here is the list of EDI Transaction Document Codes used by the Logistics and Warehouse industry,

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 883

Market Development Fund Allocation

EDI 884

Market Development Fund Settlement

EDI 886

Customer Call Reporting

EDI 891

Deduction Research Report

EDI 940

Warehouse Shipping Order

EDI 943

Warehouse Stock Transfer Shipment Advice

EDI 944

Warehouse Stock Transfer Receipt Advice

EDI 945

Warehouse Shipping Advice

EDI 947

Warehouse Inventory Adjustment Advice

EDI 990

Response to a Load Tender


EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 219

Logistics Service Request

EDI 220

Logistics Service Response

EDI 222

Cartage Work Assignment

EDI 223

Consolidators Freight Bill and Invoice

EDI 224

Motor Carrier Summary Freight Bill Manifest

EDI 225

Response to a Cartage Work Assignment

EDI 250

Purchase Order Shipment Management Document

EDI 853

Routing and Carrier Instruction

EDI 854

Shipment Delivery Discrepancy Information

EDI 856

Ship Notice/Manifest

EDI 857

Shipment and Billing Notice

EDI 858

Shipment Information

EDI 862

Shipping Schedule

EDI 882

Direct Store Delivery Summary Information

5 Ways EDI In Supply Chain Can Help Your Business Grow


Reduce Costs by Eliminating Manual Data Entry

EDI in the supply chain is an open standard that enables electronic communication between trading partners. It provides a common language for exchanging business documents such as purchase orders, invoices, shipping labels, and packing lists.

Increase Productivity by Automating Processes

EDI in supply chain helps businesses automate processes so they can focus on more strategic activities. This means that you can spend less time managing manual tasks and more time growing your business.

Gain Visibility into Inventory Levels

One of the biggest challenges for any company is knowing how much inventory they have at any given moment. With EDI in supply chain, you can gain visibility into inventory levels by using barcodes. Barcodes help you track inventory throughout the entire process, from production to distribution.

Boost Customer Service by Improving Communication

Another benefit of EDI in the supply chain is that it helps improve customer service. By communicating more efficiently, you can reduce the number of back orders and out-of-stock situations. This means customers will receive faster delivery times and less frustration.

Streamline Operations by Integrating Systems

EDI in supply chain has been proven to help businesses streamline operations. It allows them to connect with one another and share data across departments. This makes it easier for everyone involved to work together as a team.

3 Upcoming EDI Trends in Supply Chain Management (SCM)


As with every industry, there have been lots of new technological advancements in EDI here are some of the trends,

  1. Adopting Cloud EDI technology

Cloud EDI has completely redefined the EDI industry on how businesses exchange EDI documents.  Today businesses of all sizes use cloud EDI to exchange EDI documents from anywhere in the world with just the internet and web browser. You don’t require complicated integrations, no software to install, and does not require highly skilled EDI professionals.

  1. EDI and API Integrations

APIs can further help improve the EDI ecosystem. With many custom APIs, EDI system can now integrate with many other internal business systems like ERPs, finance software, and many more. Making it easier for businesses to translate EDI documents that better suit their business systems. EDI and API integrations are still ongoing work and potentially bring a lot more applications in the years to come

  1. EDI in eCommerce

The eCommerce industry has grown significantly in the last 10 years especially post-pandemic the industry has seen rapid growth in many businesses stepping into eCommerce to increase their customer base. eCommerce removes the boundaries for businesses and allows easily to enter a new market and target audience around the world. Now integrating EDI with eCommerce is providing endless opportunities for customers such as providing more choices, competitive pricing, fast shipping, real-time tracking, mobile support, and personalized shopping experiences.


Affordable and best EDI Solution for Supply Chain


For over 35 years, Commport Communications has been providing the most affordable and best EDI solutions in the market. By helping companies solve complex integration issues and providing complete EDI communication between business partners.

Improve your business process and maximize your supply chain performance with our EDI solutions. Contact us today for a free consultation and demo.


Ready to find out more about Commport EDI Solutions?

Drop us a line today for a free quote!

Cloud Based EDI vs In-House EDI Solution

Cloud Based EDI vs In-House EDI Solution

Cloud EDI Solutions are the future of business. They allow businesses to communicate with each other in real-time without having to worry about sending documents back and forth.

Cloud Based EDI vs In-House EDI Solution

Before we start comparing the cloud EDI solution vs in-house EDI solutions, first let's begin to understand,

Why Cloud EDI Solutions are the Future of Business?


1. They're Easy to Implement

Cloud EDI makes it easier than ever before to implement EDI into your business. You can use cloud EDI solutions to automate processes and save money by reducing the need for paper forms

2. They're Cost Effective

Cloud EDI also helps businesses save money. Because they are hosted online, there is no need to purchase expensive hardware or software. Instead, you pay only for what you use. This means that you won't have to worry about purchasing new equipment when your company grows.

3. They're Scalable

Cloud EDI allows you to scale up or down as needed. If you start with one solution, you can easily add additional ones later. You can even switch between different cloud solutions at any time.

4. They're Secure

Cloud EDI offers several benefits over traditional EDI systems. First, they are secure. Because they use the Internet, they are protected by encryption technology. This means that no one else can access your data. Second, they are easy to use. Most cloud EDI solutions are web-based, so there's nothing to install. Third, they are here to stay. As businesses continue to adopt cloud solutions, they will become the standard.

5. They're Flexible

Cloud EDI gives businesses the flexibility to choose how much storage space they need. They also allow businesses to scale up or down as needed. Finally, they are secure. With cloud EDI solutions, businesses can rest assured that their sensitive data is safe.

Now let's compare the Cloud EDI vs In house EDI solution,

Internet EDI

In-House EDI Solutions

No software needs to be installed

Need to install a software

Access from anywhere with just internet connection and computer

Cannot be accessed via the internet and the system is installed within the organization

Does not require prior EDI knowledge to use the system

Require full technical understanding on how to use integrated EDI solution

Low startup costs

High setup and operational costs

Large IT resources not required

Require large IT resources to fully integrate the system

User-friendly and minimal training is required to use the system

Requires prior EDI knowledge, training, and experience to use the system

Suitable for small to medium-size business

Suitable for large multinational companies


Ready to find out more about Cloud EDI Solution?

Drop us a line today for a free quote!

Want read more about Cloud EDI?

Here is a link to Cloud EDI Guide

10 Cloud EDI Benefits for Small Businesses

10 Cloud EDI Benefits for Small Business

Cloud EDI is a way for businesses to exchange information without having to physically meet in person. This saves money and time and makes it easier to share documents and other files.

Cloud EDI Solution for Small Business - Commport Communications

Top 4 Benefits of Cloud EDI

1. You save time and money. Instead of sending paper invoices, you can use cloud EDI to send invoices online. That means you won’t need to print out hundreds of copies of each invoice, mail them, then wait for customers to respond. With cloud EDI, you can simply email the invoices to your customers.

2. You reduce errors. If you’re sending invoices to multiple customers, there’s a good chance you’ll make mistakes when entering the information into your system. With cloud EDI you can easily correct any mistakes before sending the invoice.

3. You improve customer satisfaction. Customers appreciate receiving invoices via email instead of snail mail. They also appreciate being able to pay bills online rather than waiting for checks to arrive in the mail.

4. You avoid delays. Sending invoices through cloud EDI eliminates the possibility of delays caused by lost or damaged shipments.

You Can Send and Receive Data Anytime, Anywhere

Cloud EDI makes it easy to send and receive data anytime, anywhere. This means you can access your data from any device at any time. You can even work with other people who aren’t physically located near you.

5. You save money. Many small businesses spend more money on postage than they do on office supplies. By using cloud EDI, you eliminate the cost of printing, mailing, and shipping invoices.

You Don't Need to Install Software or Maintain IT Infrastructure

With cloud EDI, you don’t need to install software or maintain IT infrastructure. All you need is a web browser and an internet connection.

6. You can share documents and collaborate online. If you use cloud EDI, you can easily share documents and collaborate online with colleagues and customers.

7. You can automate processes. Automating business processes saves time and money. Using cloud EDI, you no longer need to manually enter data into spreadsheets or print out paper forms.

8. You can reduce errors. Cloud EDI eliminates human error because there is no chance of miscommunication.

You Save Money

Cloud EDI also reduces costs. Because you don’t have to pay for hardware, software, or maintenance, you save money.

9. You can access your files anywhere. Whether you’re at home, work, or traveling, you can access your files from any device with an internet connection.

10. You can make changes without waiting for approval. Once you’ve made changes to a document, you can immediately send it to others

You Gain Control Over Your Data

With cloud EDI, you gain control over your data. Instead of storing documents on paper or on a computer hard drive, you store them online. This means you can access your files anytime, from anywhere.

Ready to find out more about Cloud EDI Solution?

Drop us a line today for a free quote!

Want read more about Cloud EDI?

Here is a link to Cloud EDI Guide

20 Benefits of EDI Outsourcing

20 Benefits of EDI Outsourcing

20 Benefits of EDI Outsourcing

EDI outsourcing is the process of having a third-party company like Commport Communications manage a part or entire process of using EDI to exchange data with trading partners

By outsourcing your EDI to Commport, you set yourself free to focus on your business and what you do best. EDI outsourcing means that you will not need to make any investment in EDI software, nor will you have to directly manage the EDI aspect of your relationship with your customer, including large retail clients.

EDI outsourcing is also suitable if you have implemented a fully integrated EDI-compliant system but still have partners who want to send you faxes. Commport’s managed EDI Service Bureau can be your clearinghouse for fax automation. We can process all your paper-based documents and generate their electronic equivalents in the format of your preference for electronic integration.

Commport’s Service Bureau offers managed EDI services built on our strength and expertise. We will receive your purchase orders at our office and forward them to you via fax or email. You simply fulfill the order and send the details of the shipment back to us. We’ll enter this information for you and send it on to your end customer.

Commport’s Service Bureau is your path to growth. From managed EDI to EDI Web Forms and fully integrated data processing, Commport has the solution to fit your business.

Here is the list of 20 EDI outsourcing benefits

  1. Fax-to-EDI/EDI-to-Fax solutions for everyday business transactions such as Purchase Orders (850), PO Changes (865), Invoices (810), Advanced Ship Notices (856), and Remittance Advice (820)
  2. Fax-to-EDI/EDI-to-Fax for specialty partners, industries, and transactions for example the JC Penney Routing Instructions (753/754), Planning Schedule (830), and the ability to create an ASN based on the planning schedule for Just-In-Time logistics partners (Automotive).
  3. Blended options enabling you to send/receive some documents electronically while faxing others.
  4. Easy to read reports for all transactions processed by the Service Bureau
  5. Packing instructions to accurately convey how your shipment has been prepared
  6. Comprehensive VAN Services with global connections carried on the Commport Network
  7. Products and services to support your EDI needs now, and as you grow
  8. UCC-128 labels for all shipping documents (can be made available for print at your location or can be couriered to you as a part of the service)
  9. Minimize IT / operational costs
  10. Ensure EDI efficiency and compliance
  11. Resolve critical issues quickly
  12. Quickly add trading partners
  13. Manage partner’s requirements
  14. Scale your EDI infrastructure when your business grows
  15. Maintain secure EDI communications across your business and with all your partners
  16. You always have access to the latest technology, as the service provider’s business depends on ensuring it offers the most up-to-date facilities
  1. As you are connecting with external systems, the provider facilitates the community enablement process as well as offers value-added services to enable you to trade worldwide
  2. Increase business agility by giving you a means to quickly enter new markets and territories
  3. Increase business productivity by delivering a new level of information about your performance and that of your supply chain and your business partners
  1. With fully managed EDI service you can re-allocate resources to more strategic activities

Ready to find out more about EDI outsourcing?

Here is the link to EDI Outsourcing Complete Guide

Ready to find out more Commport EDI Outsorcing Services?

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EDI Mapping

What is EDI Mapping?

EDI mapping is a tool for managing multiple EDI standards within a single EDI system, and for translating EDI-specific standards into formats that other business tools can read and understand. Fundamentally, EDI mapping is a conversion process in which translation of data structures from a proprietary file (in csv format, txt, SAP IDoc, ERP-specific etc.) to an EDI mapping standard format (EDIFACT, ANSI X12 etc.) and vice versa. 

How EDI Mapping Works

Mapping EDI to ERP data structures are translated from an EDI standard format (EDIFACT, ANSI X12, etc.) to a proprietary file that can be easily ingested into a back end system (CSV format, txt, SAP IDoc, Flat File, or any ERP specific format).

  • As shown in the diagram, trading partner 1 uses Oracle ERP which uses a JSON internal format and trading partner 2 uses the SAP ERP system with IDoc internal format. To communicate a message to a trading partner 2, that JSON file needs to be converted into an EDI transaction and sent to a trading partner 2 using a standardized EDI Format like ANSI X12 or EDIFACT.


  • Now since trading partner 2 ERP uses iDoc for its internal format, the EDI file is converted into a iDoc file before being ingested into SAP ERP.


  • Mapping for EDI systems is bilateral so EDI providers like Commport, map the dataflow in both directions. 
EDI Mapping Example
Benefits of EDI Mapping Pieces

Benefits of EDI Mapping

EDI mapping is a crucial component to meeting trading partner demands, eliminating manual entry, while streamlining the movement of data from front-end to back-end systems.

Automation –Automatically send external data to critical internal systems which creates a repeatable process not touched by human input.

Accuracy – Eliminate the manual processing which eliminates the risk for user error, and in turn ensures EDI data is accurately imported into back-end systems.

Connection – Allows for the creation of formats like XML or flat file which can easily be used to communicate EDI data to business trading partners.

Commport Communications offers fully managed EDI services, that allow you to free up internal resources and focus on your business. Let our Commport team of EDI experts handle the hard part. We work with all trading partners. Trusted by over 6000+ brands. 


Read More:

What does EDI Stand For? 

EDI stands for Electronic Data Interchange which is the exchange of large amounts of information computer-to-computer in a specified format between business partners. 



Read More:

What is EDI ANSI ASC X12 Standards?

ANSI stands for American National Standard Institute founded by the Accredited Standards Committee (ASC) in 1979 to develop uniform standards for the inter-industry electronic exchange of business transactions, namely electronic data interchange (EDI). 

11 Reasons to Choose Commport Communications as Your Managed EDI Service Provider

11 Reasons to Choose Commport Communications as Your Managed EDI Service Provider

Managed EDI Services | Commport Communications

Managed EDI Services


Commport Communications offers fully managed EDI services that allow you to free up internal resources and focus on your business. Let our Commport team of EDI experts handle the hard part. We work with all trading partners. Trusted by over 6000+ brands. 100% satisfaction guaranteed. 


  1. Achieve EDI compliance quickly and easily via Commport managed EDI services

Meet your trading partners/customers’ EDI requirements and increase your sales with Commport's managed EDI services (EDI outsourcing). Commport team can manage all aspects of your EDI transactions like sending and receiving orders, invoices, and other electronic documents quickly, easily, and cost-effectively without investing in actual EDI software or solution.

  1. Fully automate your trading process with end-to-end integration

With Commport's managed edi services, you can streamline your business processes and shorten the order-to-cash cycle. By using our FAX to EDI / EDI to FAX solutions or you can also use our blended options enabling you to send /receive documents electronically while faxing others. The solution enables you to reduce costs, increase efficiency and improve data accuracy.

  1. Reallocate your resources for more strategic activities with a fully managed EDI service

Commport will provide the experience, skills, and infrastructure to allow you to concentrate on your core business and which will allow you to reallocate your resources to manage more strategic activities.

  1. Improve business insight and performance with advanced reporting and analytics

Commport offers various types of reporting such as order acknowledgment (997 reporting), easy to read reports for all transactions processed by the service bureau. Access to Commport Network’s online real-time visibility tool, RouterLink. Packaging instructions to accurately convey how your shipment has been prepared.

  1. Grow your business with Commport global trading partner network

Quickly and easily connect to over 6000+ trading partner maps. Connect to your customer and start exchanging all the EDI messages your customers have requested. Our trading partner catalog makes it easy for you to achieve and maintain EDI compliance.

  1. More Support and Secure

Commport managed EDI service provides you with a first-class infrastructure with no requirement for hardware or software. With managed EDI service your organization will be free from the burden and risks associated with capital investment, technical issues, and maintenance costs.

  1. Fully redundancy

Fully redundant hardware, software, and networking components

  1. Maximum security

Delivered by the tier-3 state-of-the-art SOC 2 certified data center

  1. 99% uptime

Industry-leading service availability by providing a combination of the best hardware and network components.

  1. Complete disaster recovery

Robust and regularly tested disaster recovery capabilities including real-time switch processes

  1. Connecting Everything

Every trading partner requires a different communication method, internet protocols, and networks to integrate applications and exchange data. As your managed service provider, Commport will handle all integrations for you. We support,

            Unlimited data format

            Endless document types

            A wide array of communication protocols

Ready to find out more about Commport Managed EDI Services?

Drop us a line today for a free quote!

What is EDI File?

What is EDI File?

8EDI File Structure - Commport Communications

An EDI file is a data file structured using one of the several EDI standards. EDI standards are specific guidelines that govern the content and format of EDI files. EDI file contains structured data stored in a plain text format and is used for transferring business data between multiple organizations.

The primary reason for having these EDI standards is to ensure that businesses can communicate in a” universal language”.

EDI files can be saved by various standards. Here are the common EDI file formats,

  • cXML
  • xCBL
  • ebXML
  • CSV
  • ANSI X12
  • EDIFICE (Information Technology)
  • EDITRANS (Transportation)
  • ETIS (Telecommunications)


Different types of EDI File formats

  1. Flat file
  2. Variable file
  3. Fixed flat file


Flat File

A flat file is the most common EDI file format during the computer-to-computer exchange of business documents or data.

This type of EDI file potentially contains several sorts of records, such as headlines and retail lines. Headlines indicate what information is held within entire documents. Retail lines comprise commercial documents, such as lines of invoices or orders.

Variable File

Variable-Sized Flat File (VFF) is when the data are separated from each other by a particular character such as a semicolon, vertical line, or tabulation. CSV format is the best-known example

The fixed flat file

When each field has a predetermined number of characters, there is no need to separate the data by character. This is called a Fixed Flat File (or FFF). This is the case for one of the two possible formats of Systems, Applications, and Products (SAP) software: iDocs.

A fixed flat file must be accompanied by a complete description containing the position, length, type (digital or alphanumeric), and content of each data field.

The EDI File Structure


The EDI file must contain all the information that you expect to receive from your partner (if the map is inbound) or need to send to your partner (if the map is outbound).

An EDI file is a binary computer file that contains data arranged in units called data elements.  Data elements are separated by element terminators, and a group of data elements makes up a data segment.  Data segments are separated by segment terminators.

EDI File Data Segment

Some elements (known as composite elements) are made up of sub-elements (component elements).

EDI File - EDI Segment

Figure 1a:  An example of a data segment (SV1) having four elements.  The first element is a composite element with two sub-elements (or component elements) separated by a component element separator, which is ":" (a colon).

EDI Segments

Figure 1b:  A section of an EDI file with segments ISA, GS, ST, BEG, REF, ITD, DTM, N1, N2, N3, N4

A block of data segments with data that are inter-dependent to each other is called a group or a loop.  An example of a loop is the N1 loop, which may hold a company's address information.


Figure 2:  An N1 Loop

EDI Loops

Figure 2a:  A section of an EDI file with three instances of the N1 loop.  The first N1 loop consists of segments N1,N2,N3,N4.  The second and third instances of the loop consist of segments N1,N3 and N4.

The section of data segments that convey a message is called a Transaction Set or Message.  The message itself is sectioned into tables (or areas): the header (or Area 1); the detail (or Area 2); and the summary (or Area 3).

Figure 3a:  An X12 Transaction Set structure                                                                            Figure 3b:  A UN/EDIFACT message structure

Transaction Set X12


Transaction Sets (Messages) can be organized by grouping them by their topics or functions. A group of Transaction Sets is called a Functional Group. Functional Groups themselves constitute an interchange. An Interchange is an electronic equivalent of a letter envelope. It contains the destination and sender ID of the EDI message, and the date/time stamp of when it was sent.

Figure 4a:  The ASC X12 file structure                                                                                         Figure 4b:  The UN/EDIFACT file structure

X12_Structure EDIFACT_Structure


The Control Segments are the header and trailer segments that mark the start and end of their controlling structure.

• The Header/Trailer control segments of the Interchange are the ISA/IEA in X12, and UNB/UNZ in UN/EDIFACT.

• The Header/Trailer control segments of the Functional Group are the GS/GE in X12, and UNG/UNE in UN/EDIFACT.

• The Header/Trailer control segments of the Transaction Set are the ST/SE in X12, and UNH/UNT in UN/EDIFACT.

Figure 5a:  An example of an ASC X12 EDI file                                                                     Figure 5b:  An example of an UN/EDIFACT EDI file

X12 example Edifact Example

Because EDI files must be processed by computers rather than humans, a standard format must be used so that the computer will be able to read and understand the EDI files. Here is the list of 10 common EDI communication standards

10 Common EDI Communication Standards

  1. ANSI ASC X12
  6. VICS
  7. VDA
  8. HIPPA
  9. RosettaNet
  10. SWIFT


Benefits of EDI File

  1. EDI can speed up business cycles
  2. EDI speeds up the transactions in just few minutes or seconds instead of days or weeks spent on sending manual postal mail or back-and-forth email communications
  3. Automates paper-based tasks. Frees up your staff time for higher-value tasks and provides them the tools to be more productive
  4. EDI can quickly process business documents accurately, which will help reduce manual re-entry of orders stock outs and cancellations.
  5. EDI ensures that all data sent on time and is tracked in real time. Automates application data exchange across supply chain.
  6. Shortening order processing and delivery helps organizations reduce inventory
  7. EDI reduces the transaction costs of paper, printing, reproduction, storage, filing, postage and document retrieval, saving businesses 1000’s of dollars.
  8. Improve supplier relationships. Help do business with multiple trading partners.
  9. Position yourself for success by automating your processes and improve business efficiency
  10. EDI ensures order accuracy and elevates strategic decisions

Ready to find out more about Commport EDI Solutions?

Drop us a line today for a free quote!

In-house EDI Vs EDI Outsourcing

In-house EDI Vs EDI Outsourcing

In house EDI vs EDI outsourcing

In-house EDI vs EDI outsourcing - This is the question every company must answer at one or the other time regardless of business size or operations

In House EDI

In-house EDI solutions require companies to allocate space to build the EDI infrastructure this includes installation of servers, mapping and translation tools, specific data integration solutions, and communication services to manage the protocols for sending and receiving EDI transactions.

EDI Outsourcing

EDI outsourcing is the process of having a third-party company like Commport Communications manage a part or entire process of using EDI to exchange data with trading partners. While businesses of many sizes use EDI outsourcing, the primary benefit is usually associated with smaller businesses.

In-House EDI

EDI Outsourcing

Needs to build a hardware infrastructure

Existing reliable state-of-the-art infrastructure

Translation and mapping software

Managed translation via cloud / SAAS platform

Require continues learning

Decades of relevant industry experience

Needs experienced staff and consultants

You will have 24/7 expert support

Need to develop each data format from scratch

Unlimited data formats

Can only support limited document types. Adding new document types is time-consuming

Endless document types

Any given type can only support a few communication protocols. Adding new protocols needs experienced staff and skills

A wide array of communication protocols

You are completely responsible for the maintenance of your infrastructure

You do not have to worry about infrastructure or technology. Your outsourcing firm handles all of that.

In-house, EDI solution must be constantly monitored and needs to invest in manpower to do that

Outsourcing firms are experts in EDI solutions, so you do not have to be

You need to handle your trading partner’s special requirements

A third-party outsourcing firm can handle your trading partners’ special requirements

It’s difficult to enter new markets and territories

Increase business agility by giving you a means to quickly enter new markets and territories

You need constantly upgrade your technology

Your outsourcing company will always have access to the latest technology

You to develop each new solution on your own

Can provide multiple solutions under a single platform

You need to perform ongoing maintenance

EDI provider handles the ongoing maintenance which includes upgrades, mapping changes, and trading partner requirement changes

Require lots of IT resources

Reduces IT costs

It May require manual data entry

Reduce manual data entry or you can 100% automate it

Difficult to scale and add new trading partners

Easy to scale and add new trading partners. Integrates once to connect with anyone in the network

Prone to human error

Human errors are eliminated

Ongoing costs for licensing, certifications, resources, security and more

Pay only for what you use and scale up or down based on business demands

Hosted on your own servers and hardware

Cloud based technology


Ready to find out more about EDI Outsourcing?

Here is the link to Complete Guide on EDI Outsourcing

Ready to find out more about Commport EDI Outsourcing Services?

Drop us a line today for a free quote!

What is EDI in Healthcare

What is EDI in Healthcare | List of EDI Transaction Codes Used in Healthcare

What is E-DI in Healthcare

Healthcare EDI provides the system to securely exchange EDI documents between healthcare institutions, care providers and patients. The healthcare industry deals with enormous amount of healthcare data every day. Which includes patient medical records, medication data, emergency services records, and insurance claims.

Interoperability is the key to success for the healthcare industry with constant changes to regulatory requirements it is important for healthcare companies, vendors, suppliers, and care providers to be EDI compliant before starting exchanging EDI documents. Whether it is insurance claims, medical billing, operational processes, or data management, healthcare EDI will allow the complete supply chain to seamlessly navigate from one point to another point.

How Does EDI Work in Healthcare Industry?

EDI in healthcare automates much electronic data interchange (EDI) documents thus providing a better caregiving experience while handling complex and greater loads.

  • Mapping, Translation, and Documentation – Generate healthcare documents based on EDI standards and then a request for reimbursement is made. This procedure requires the mapping of documents, which means transforming documents into the set EDI format.
  • Document Validation and Testing Procedures – In this step, the documents are tested for accuracy and validated to ensure that all necessary information is present. This testing phase reduces the possibility of denied or rejected claims 
  • File Transfer – The documents are then sent across a secure platform from one entity to another.  All transfers are assured to be encrypted, authentic, and secure. Compliance and regulatory rules ensure that only relevant parties receive this information
  • Document Integration – The recipients are then required to translate the incoming documents into relevant formats and forward them to the specific route.


12 Benefits of EDI in the Healthcare Industry

  1. Automates order processing and inventory management for efficient performance
  2. Reduce manual systems through medical EDI
  3. Automated transfer of data between providers and payers through EDI payment platforms
  4. Faster turnaround of information, reduced expenses, and delays
  5. Set formats for transactions, claims, eligibility, status, and payments
  6. Clear and systematic transaction flow
  7. The electronic format allows claims to be sent and received on the same day
  8. Eligibility checks are promptly executed, and response time is much lower
  9. The interoperability feature of EDI in medical billing allows information exchange with multiple payers at one time for faster transaction processes
  10. By using EDI in healthcare industry, it greatly benefits the organization by reducing administrative expenses on paperwork, supplies and postage costs
  11. Access to patient information is another powerful tool towards efficiency and faster processes
  12. EDI documents and medical information exchanged secure protocols like AS2 and SFTP help ensure data security


List of EDI Transaction Codes Used in the Healthcare Industry

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 100

Insurance Plan Description

EDI 112

Property Damage Report

EDI 148

Report of Injury, Illness or Incident

EDI 186

Insurance Underwriting Requirements Reporting

EDI 252

Insurance Producer Administration

EDI 255

Underwriting Information Services

EDI 267

Individual Life, Annuity and Disability Application

EDI 268

Annuity Activity

EDI 270

Eligibility, Coverage or Benefit Inquiry

EDI 271

Eligibility, Coverage or Benefit Information

EDI 272

Property and Casualty Loss Notification

EDI 273

Insurance/Annuity Application Status

EDI 274

Health Care Provider Information

EDI 275

Patient Information

EDI 276

Health Care Claim Status Request

EDI 277

Health Care Claim Status Notification

EDI 278

Health Care Services Insurance/Benefit Review Information

EDI 288

Health Care Services Insurance/Benefit Review Information

EDI 362

Cargo Insurance Advice of Shipment

EDI 500

Medical Event Reporting

EDI 820

Premium Payments

EDI 834

Benefit Enrollment and Maintenance

EDI 835

Health Care Claim Payment/Advice

EDI 837

Health Care Claim

EDI 924

Loss or Damage Claim - Motor Vehicle

EDI 925

Claim Tracer

EDI 926

Claim Status Report and Tracer Reply

EDI 928

Automotive Inspection Detail

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12 Factors to Consider While Evaluating an Managed EDI Outsourcing Service Provider

12 Factors to Consider While Evaluating an Managed EDI Outsourcing Service Provider

12 Factors to Consider While Evaluating an Managed EDI Outsourcing Service Provider

Here is the 12-point checklist to evaluate an EDI outsourcing provider


  1. Pricing model

Each company has a different pricing model when it comes to selling its managed EDI services. Some of the pricing models are pay-as-you-go, monthly, and yearly. However, with Commport-managed EDI services you get to choose any of the 3 pricing models depending on your business needs.

Also, a few other things to check before signing the contract with any other service provider is check if they have any hidden or additional charges such as character limits, free VAN services, EDI mapping, or record lengths. If you are dealing with a large amount of data exchange, it might be better to look at all-inclusive packages. Commport offers many types of all-inclusive packages. Please contact our sales team now for more info.

So, to help you choose the best pricing model it’s better to first assess the volume of your data exchange which can help you choose the right pricing model that best suits your business scenario.

  1. Types of connections and integrations supported

Each trading partner you do business with may have different requirements when it comes to the integration and exchange of EDI documents and requires different communication protocols. So, it is important to choose the right solution that supports various connections and integrations. Also, it should be compatible enough to add new future connections easily, so that it does not affect your business relationship and growth.

Also, you need to evaluate what type of integration you need between your ERP and business systems and EDI. We recommend using a solution that easily integrates with your existing ERP system as that is easier to manage and track EDI documents.

  1. EDI platform security – Does the EDI provider offer a secure platform?

Security is the most important factor to consider before hiring a managed EDI outsourcing provider. Always ask for proof of accreditations and certifications. As cybersecurity is a growing concern and can disrupt business stability and lead to losses. So, it is important to ensure that the EDI outsourcing provider has a secure platform as you will be exchanging crucial documents with your business partners using EDI.

  1. Customer support and Multilingual

Having 24/7 round-the-clock customer support is crucial to ensure business continuity. Especially if you have global operations working in different time zones. Also, this means you will need EDI translation services if there are different formats in use in different regions of organizations. One another thing to also consider when your global operations are to see if the EDI outsourcing provider offers multilingual support, as some of your customers speak a different language than English, and it’s better to consider an EDI outsourcing provider which offers multilingual customer support options.

  1. Can you expect platform downtime?

In any IT environment downtime is common. Sometimes it could be planned downtime and sometimes it could be due to some technical glitches. However, the most important thing to consider is how your EDI provider manages this downtime in terms of customer communication and backup. Because it is important to note that any downtime can limit the exchange of documents and can cause losses to the business.

So, it is important to note that your provider has strong communication and backup processes in place in such a situation which could affect your business continuity. Also do clarify, what kind of support you can expect from their customer support team during downtime.

  1. Is the solution being user-friendly

The two main reasons for many businesses to switch to managed EDI services are one they don’t have time to invest in infrastructure and the other to automate the business process and avoid manual human interventions to avoid processing delays and errors. Considering these reasons, it’s important that your business chooses the right EDI vendor which offers a user-friendly solution that can be operated by individuals with minimal to no prior EDI knowledge.

It should be easy for you to add business partners and use the solution. Also, one other thing to consider as well is to check if the EDI vendor provides onboarding tutorial videos, as it makes onboarding a breeze.

  1. Experience in the Industry

The experience of an EDI vendor in a particular set of industries is also very important, as they already understand the EDI format and can also have existing connections with your trading partner in your industry. Also, the EDI standard format varies from one industry to another. The more industries the EDI vendor has experience in is better.

  1. Can the EDI solution scale as you grow?

As your business grows the solution should be able to handle the changes. A good EDI solution should be able to let you extend or increase the number of EDI business relations such as customers, vendors, or warehouses with ease. Also, you should check that the EDI provider offers an expedited onboarding process for all your vendors and customers can help you get started with EDI quickly. That’s why you should try to find a provider who has experience in your industry and has established relationships with your trading partners already, which will make the onboarding process faster.

  1. Can you add other services easily?

Going to multiple vendors for different EDI needs can be time-consuming and frustrating. It’s important to identify a vendor who offers a complete range of EDI solutions and services under one roof. As your business scale, you may require different services, and Companies like Commport Communications, not only provides managed EDI services, but can also provide EDI translation, mapping, and various other solutions under one roof. This can make your job easier and as a business owner, you don’t have to look for different vendors for different services.

  1. Implementation time and cost

As we all know time is money. The more time it takes to find a suitable solution the more money you lose as a business. So, it is important to ask your new vendor before onboarding their services how long will it take them to complete the implementation and get running. You need to ask what the time was taken for similar projects in the past and can they provide you with tentative deadlines to complete the project on time. The most important step is to check for references of past implementations. Once you learn about other companies and their experiences and challenges, it might be easier to decide.

  1. Feature compatibility

Before deciding on an EDI vendor, it’s also important to check if the services provided by the vendor are compatible with your business technology, like does it get easily integrated with your ERP, accounting, billing, order processing, and other systems at your end.  The more compatible the solution is the better it will integrate with all your internal business systems and can help automate the whole process and improve business efficiency and cashflow.

  1. Data transaction volume

As your business scale, the total data transaction number will also increase. So, it is important to note how much volume of data your vendor system can handle at any given time and is it easy to scale this volume as your business grows. Also, another important thing to consider here is the pricing, with increased data transaction volume there is a chance of an increase in pricing as well, so it’s better to understand your vendor pricing model and how it going to cost you as a business owner before signing up with any EDI vendor. The tip here is to choose a vendor who offers flexible paying options.

Ready to find out more about EDI Outsourcing?

Ready to find out more about Commport EDI Outsourcing Services?

Drop us a line today for a free quote!