What is EDI? A plain-English guide for new suppliers
If a retailer just told you that you need EDI, you're in the right place. Here's what EDI is, how it works and what you'll need to get started, without the jargon.
EDI basics
EDI stands for electronic data interchange. It's how businesses send each other documents like purchase orders, ship notices and invoices, computer to computer, in a standard format, instead of by email, spreadsheet or paper.
Large retailers, distributors and manufacturers ask their suppliers to use EDI because it lets them process thousands of orders without retyping anything. When you become a supplier, EDI is usually part of the deal.
The documents follow published standards: X12 in North America and EDIFACT for many international partners. Each document type has a number. A purchase order is an 850, for example, and an invoice is an 810.
How EDI works, step by step
EDI documents are structured data files, not something you read like an email. Each one goes through three stages: your trading partner's system creates it, a VAN delivers it and it gets translated into something your system or your team can use. Here's how a typical order works.
An order comes in
Your retailer's system creates a purchase order, the EDI 850, and sends it to you through a VAN.
It's translated for you
The order is mapped into your ERP or other system, or it shows up on screen in a portal, so you can read it and fill it without retyping.
You ship it
You send an advance ship notice, the EDI 856, so the retailer knows exactly what's arriving.
You get paid
You send an invoice, the EDI 810, and it's translated back into EDI on the way out.
Along the way, the receiving system sends back a 997, which tells the sender whether the document passed a syntax check. Retailers may ask for other documents too. See every EDI document explained.
What is an EDI VAN?
A value-added network, or VAN, delivers your EDI documents to and from your trading partners. Think of it as a secure post office for EDI. You connect once, and the VAN reaches every retailer and partner you do business with, whatever network or connection each one uses.
What your retailer will ask of you
Every retailer publishes its own rules, usually in a vendor manual or routing guide. They tend to cover the same ground:
- The right documents, such as purchase orders, ship notices and invoices, in the retailer's format.
- Compliant shipping labels, often UCC-128 (GS1-128) labels that match the ship notice. This is where most new suppliers get stuck.
- On-time shipping, within the retailer's ship window.
- Testing before you go live, so the retailer can confirm your documents meet its rules.
Missing a requirement usually shows up later as a deduction, or chargeback, on your payment. That's why it pays to get set up correctly from the start. More on EDI compliance.
Your options for getting started
We don't force-fit you into more than you need. The right starting point depends on what you have today.
BOLD Fulfillment
A warehouse and shipping system with EDI built in, a WMS Lite. Receive orders, pick, pack, print compliant labels and ship, all in one place.
BOLD FulfillmentBOLD Integration
We map EDI into and out of the system you already run, so orders flow in and documents flow out without retyping.
BOLD IntegrationBOLD Transmission and Connectivity
An EDI VAN that moves the documents you already create to every trading partner.
EDI VANThrough Dec. 31, 2026, mapping is free when you start with BOLD Integration, BOLD Fulfillment or BOLD Exchange. See the event details. Not sure which fits? Help me choose.
How long does it take?
Faster than most new suppliers expect. With BOLD Fulfillment, an onboarding call comes first, and you're typically testing in about three days. With BOLD Integration, maps are typically ready to test in two days. A BOLD Transmission and Connectivity connection is typically live within a business day.
Going live with a retailer also depends on that retailer's testing, so start as soon as you know you need EDI.
Common questions about EDI
What does EDI stand for?
Electronic data interchange: sending business documents like purchase orders, ship notices and invoices between companies' computer systems in a standard format.
Do I need EDI to sell to retailers?
Usually, yes. Many large retailers, distributors and manufacturers require EDI from their suppliers, and it's often a condition of becoming a vendor.
How is EDI different from email or spreadsheets?
Email and spreadsheets need a person to read and retype them. EDI documents follow a standard format that computer systems process automatically, which is faster and cuts down on errors.
What are X12 and EDIFACT?
They're the two main EDI standards. X12 is used mostly in North America; EDIFACT is common with international partners. BOLD VAN handles both.
What is a 997?
A 997, or functional acknowledgment, tells the sender whether a document passed the receiver's syntax check. It can report acceptance or rejection, and it doesn't mean the order or its content was accepted.
Do I need to buy EDI software?
Not necessarily. BOLD Fulfillment includes everything you need to receive, ship and invoice in one system, and with BOLD Integration, we map EDI into the system you already run. You only need EDI software of your own if you want to handle the mapping yourself, and then BOLD Transmission and Connectivity moves your documents.
How much does EDI cost?
Our EDI services are priced by trading partner. See pricing or talk to us about your situation.
How long does it take to get set up?
With BOLD Fulfillment you're typically testing in about three days after an onboarding call, and with BOLD Integration, maps are typically ready to test in two days. Going live also depends on each retailer's testing.
New to EDI? Talk it through with us
Tell a US-based EDI expert which retailer you're working with and what you have today, and we'll walk you through it. No pressure and no obligation.
Ready for your first retailer?
We'll help you get set up, tested and shipping, with US-based EDI experts at every step.
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