AS2 EDI is a facet of Electronic Data Interchange communication methods that supports all EDI communication and any other transmittance of information through the Internet using HTTP. Internet-based EDI communication has been available for some time, but popularity increased in the early 2000s with the use of AS2 EDI and its products. In 2002, AS2 EDI was adopted as standard practice by the Retail and CPG Industry, which increased the usage of AS2 EDI across various industries.
How Does AS2 EDI Work?
AS2 EDI provides a secure Internet connection between the client and a particular server. This method is a way to transfer EDI data securely between vendor and supplier reliably and efficiently. For AS2 EDI to work accurately, both buyer and supplier must have a stable Internet connection in addition to the required EDI translation software.
Using AS2 EDI Internationally
AS2 EDI is an internationally recognized and approved method for transmitting business documentation and data over the Internet in a secure manner. AS2 EDI is a simple way for global and international companies to communicate. This is especially true of those whose trading partners who already use EDI communication to transmit purchase order or inventory data. This method decreases costs and improves overall performance without restructuring the formats of EDI documents themselves. Many organizations have already transitioned to AS2 EDI communication.
AS2 EDI Performance
Technically, AS2 EDI stands for “Applicability Statement,” with the “2” specifying exactly how to transport the data. AS2 EDI can do the following:
- Connect to an organization’s computer system
- Deliver the EDI document(s)
- Validate the document for correct “to” and “from” directions
- Provide a receipt to the sending party that the EDI document was received
It’s important to note that AS2 EDI has no bearing on how the EDI document is forwarded to the proper contact within the organization or how the EDI document is translated. Once the EDI document is transmitted successfully, AS2 EDI has done its job.
Why Use AS2 EDI?
Organizations have transitioned to AS2 EDI for three primary reasons: confidentiality, authentication, and non-repudiation. AS2 EDI communication can save companies significant network costs, add flexibility to the EDI data, and increase control over how that data is reported.
Specifics of AS2 EDI
Part of AS2 EDI’s popularity and efficiency lies in its use of digital signatures, receipts, data compression, and encryption codes. All of these factors increase the security of EDI communication and information transmittance. This is especially critical in an age where encrypted transactions are essential to avoid third-party unauthorized interception of company or client data. With AS2 EDI, companies can remain confident in their transmission of sensitive business data.
Another benefit is that AS2 EDI doesn’t depend on additional software that must be added at the supplier’s end of the communication chain. Because AS2 EDI technology is “push” technology (Peer-to-Peer, also known as P2P), the speed of AS2 EDI communication is instantaneous. Delivery methods of data occur at a much faster rate because the document doesn’t have to be stored then forwarded. AS2 is unlike EDI communication using Value Added Networks (VAN), modems, or Bulletin Board Systems (BBS).
Every AS2 EDI document can receive an automatic response. With an AS2 system, the sending party is alerted when the document was received successfully, or if unsuccessful, a message informs them that the document will be queued for re-sending. This allows parties to know with immediate certainty that an EDI transactional set was sent without having to manually check each time.
Reputable EDI providers, such as DiCentral, provide the tools required to streamline supply chain communication and simplify business processes:
- Leverage EDI data with 100% browser-based, multi-user reporting.
- Automate 100% of your EDI and eliminate manual maintenance hassles.
- Create custom EDI reports in a 100% drag-and-drop environment.