An EDI Integration Project focuses on implementing electronic data interchange solutions to automate data exchange, streamline operations, and communication

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How to Choose the Right EDI Provider for Your Small or Medium Business

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Choosing the right EDI (Electronic Data Interchange) provider isn’t always straightforward, and we, at EDI2XML, get it—it can feel like a big decision. Over the years working with businesses in a variety of industries, especially retail and transportation, we’ve seen a wide range of needs and challenges. That experience has taught us one thing: there’s no one-size-fits-all solution when it comes to EDI.

Choosing EDI Provider

Search online, and ask other business owners, and you will come across a plethora of EDI providers, there are many options, and each provider promises to make your business operations smoother, faster, and more efficient. But how do you really know which one is right for your business?

Here’s the truth: the key to finding the best EDI provider isn’t about choosing the most popular name or the biggest provider. It’s about understanding your unique needs and choosing a partner who can meet them.

We have been involved in electronic data interchange for over 20 years and have seen what works and what doesn’t. Here are a few tips based on real-world experience to help you make the right choice.

New to EDI X12? Start with this comprehensive guide: EDI X12 Explained: Codes, Standards, and Real-World Impact

Start by Taking Stock of Your Needs

Before you even start comparing EDI providers, spend some time thinking about your business. What’s driving your need for EDI? Are you trying to meet a new trading partner’s requirements, or is it about automating tasks that are eating up your team’s time?

For example, we have worked with small retailers who just needed to exchange a couple of EDI documents, like purchase orders (EDI 850) and invoices (EDI 810). On the flip side, we have helped larger companies integrate EDI into their ERP systems for a full end-to-end solution. The point is, that knowing what you need helps you figure out which providers are worth your time.

Ask yourself:

What types of EDI transactions do I need?
How many trading partners am I dealing with, and what are their requirements?
Do I need this to integrate with my existing systems, like Shopify, QuickBooks, Salesforce or SAP?

When we work with clients at EDI2XML, these are the kinds of questions we ask upfront. Our team makes sure you get exactly what you need without overcomplicating the process.

Useful: If you find it challenging to assess your EDI needs, book a free consultation with our experts. They will help you identify your requirements and determine the most effective solution for your business.

The Right EDI Provider: It’s Not About Size, It’s About Fit

When choosing an EDI provider, the size and nature of your business play a significant role. Large corporations with complex operations, multiple trading partners, and high transaction volumes often benefit from partnering with a large EDI provider. These providers typically offer enterprise-grade solutions designed to handle extensive integrations and high levels of customization.

But for smaller companies, especially suppliers who need EDI to fulfill requirements from a large retailer or trading partner, these big providers can feel like overkill. These larger providers often come with higher costs, lengthy onboarding processes, and services that exceed what a smaller business actually needs.

A small supplier doesn’t need an expensive, feature-packed solution designed for a Fortune 500 company. What they need is something straightforward, cost-effective, and tailored to their specific use case—like the ability to exchange a few essential EDI documents, such as purchase orders (EDI 850) or invoices (EDI 810).

In cases like this, a more tailored, flexible EDI provider is often the better choice. At EDI2XML, we specialize in helping small and medium-sized businesses implement EDI solutions that are cost-effective, easy to use, and perfectly aligned with their trading partners’ requirements.

For example, if you’re a small manufacturer trying to meet the EDI requirements of a large retail chain, we can set up an EDI solution that keeps things simple and affordable.

Look for an EDI Provider That Speaks Your Language

EDI can get technical fast, and we have seen businesses struggle with providers who just throw jargon at them. It shouldn’t be like that. You want a provider who can break things down in plain language and guide you through the process.

One thing we pride ourselves on at EDI2XML is making EDI accessible, even for clients who are completely new to it. Whether you’re a small business owner or a team manager, we’ll walk you through everything—no tech talk needed.

Useful: Download Guide: Intro to EDI

Check for Integration Options and Scalability

This one’s a biggie. Integration is what takes EDI from being just another system you use to being a tool that works with your business. Whether it’s your ERP, accounting software, or e-commerce platform, the right provider will make sure everything connects seamlessly.

But it’s not just about today. Think about where your business is headed. Will the provider be able to scale with you? Can their solutions adapt if you take on new trading partners or enter new markets?

We have seen clients get stuck with rigid systems that couldn’t keep up as their business grew. It’s one of the reasons we focus on flexible, scalable solutions at EDI2XML.

Compare Prices without Compromising Quality

Budget matters, especially for SMEs. We have seen it a lot—small companies start by looking for the cheapest option, or often free online EDI converter. Sure, it’s tempting to save money, but the reality is, you usually get what you pay for. And with something as critical as EDI, you’re not just risking your business operations—you’re also putting your data security on the line.

Look for providers that are upfront about their pricing and can offer a good mix of affordability and solid service.

With EDI2XML there are no hidden fees. Our goal is to provide cost-effective solutions that really add value. That is why we offer various EDI solutions such as Fully Managed EDI Services and Web EDI Service for which we provide a free trial period, so you can see how EDI Web Service works before committing. However, in both cases, you receive full support from our specialists.

Don’t Overlook Support

This might sound obvious, but it’s worth emphasizing: choose a provider who’s there for you when you need help. Things can and do go wrong with EDI—files don’t transmit, compliance requirements change, and errors creep in. Having someone you can call makes all the difference.

At EDI2XML, we’ve built a reputation for being hands-on with support.

Let’s Talk About Your EDI Needs

With over two decades of EDI implementation, we’ve seen the challenges companies face when trying to implement EDI and have successfully helped them overcome them.

Whether you’re a retailer managing purchase orders, a shipping company coordinating deliveries, or a business in another industry, we’re here to help.

Our company works closely with customers across the U.S. and Canada to provide EDI solutions that are a perfect fit for any business.

We’re not just another EDI provider – we’re your partner in making your business work electronically. Contact us for a free consultation with our experts and see the difference!

November 27, 2024/0 Comments

How to Simplify EDI Processes Through API for Faster Data Integration

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Over the past two decades, I’ve worked with countless businesses struggling to integrate their data efficiently across various systems applications, and trading partners. In all this time, one thing has remained constant: businesses need a reliable way to exchange data quickly and accurately, without unnecessary complexity.

Streamlining Data Integration with EDI and APIs

Electronic Data Interchange (EDI) has traditionally been the go-to for this, especially in industries like logistics and retail. However, as technology evolves, Application Programming Interfaces (APIs) have emerged as a powerful and flexible alternative for real-time data exchange.

While both technologies serve the same fundamental purpose of facilitating data integration, they do so in different ways, and understanding how to leverage each can significantly improve operational efficiency.

Moreover, there is a possibility to work with EDI via REST API, which will be addressed in this article.

In this blog post, I will explain how companies today can leverage their own expertise into consuming REST API to work with EDI, without the need for an extensive EDI knowledge or experience. This will effectively improve their data integration efficiency and delivery in a fast-paced technological and supply chain world.

Let’s start with a little refresher about both terminologies:

EDI vs. API: A Quick Overview

What is EDI?

Electronic Data Interchange (EDI) is a transmission of structured data between organizations using predefined formats following a certain standard (i.e. x12); The EDI standard has been around for decades and is commonly used in industries like manufacturing, logistics, retail, and healthcare, where businesses frequently exchange standardized documents such as invoices, purchase orders, and shipment notifications.

For more on EDI, check out this article from our blog: What is EDI (Electronic Data Interchange)?

What is API?

Application Programming Interface (API) is a modern technology that allows different applications to communicate with one another, usually over the internet using standard web protocols (i.e. HTTPS), to exchange data based on a pre-defined structured format (i.e. JSON, XML…) without the presence of a third party in the middle. APIs are flexible, versatile, and widely used in software development and integration.

For more on APIs, check out our article: API Web Service for EDI X12 exchange – Discover the advantages

Use Cases: EDI and API Integration Side by Side

In a well-connected business world of today, there are plenty of use cases where data integration enforces the use of EDI along with API; here is a short list:

E-commerce Platforms: Retailers often use EDI to communicate with suppliers and manufacturers but rely on API implementation from another side, to update their online storefronts in real-time.
Logistics and Transportation: EDI is often used to exchange shipment details, but on the other side, APIs can provide real-time tracking and status updates to customers.
Healthcare: EDI facilitates the exchange of patient records and insurance claims, while APIs enable the integration of modern cloud-based applications and patient portals.

The list can go on and we can uncover more use cases where API and EDI work side by side, for a complete integration cycle.

Can EDI and API Work Together Using Just One Modern Technology?

The short answer is yes. Instead of managing two separate technologies, businesses can streamline their integration processes by leveraging EDI through a REST API.

let me elaborate, by explaining how to work with an EDI process via REST API, using one of the above use cases (e-commerce platforms).

EDI Integration for an E-commerce Platform (Use Case)

In a real-world use case, a retailer (i.e. Amazon) would send a specific transport company an EDI document (EDI 204) “Motor Carrier Load Tender”. The receiving party would be a logistic and transportation company and will be asked to send his pricing and bid for a transportation job.

That transportation and logistics company will need to receive this EDI 204 document, process this EDI transaction into their own system that can be based on a cloud ERP/CRM software, or home-grown ERP or even and branded CRM/ERP.

Currently, the integrators at the transport company would be transforming these 204 documents than mapping each field into their own ERP, to be able to process.

What we can offer is a single “API call” step to transform the EDI 204 document to xml, via EDI2XML’s own REST API for them to be able to work with a modern XML file (rather than x12 raw files) in such an integration project.

Adding one step into the flow of integration, that does not require much efforts, will allow the developer to work and map the “equivalent” xml file of the EDI document and be able to easily process.

Why Use EDI2XML’s REST API for EDI Integration?

There are several advantages for an integrator to use EDI2XML’s REST API, in his integration project, rather than working with raw EDI files in such an integration:

Simplicity: Working with xml is much more comprehensive and simpler than working with EDI, x12 format for example
Data Accuracy: While doing the transformation from x12 to xml, EDI2XML REST API will extract every node and element found in the edi file; all data are accounted for
Standardized Schemas: When processing an xml message processed by the EDI2XML REST API, the manufacturer is providing the xsd schemas built from the ground up with comprehensive naming terminology based on the appropriate standard (i.e. x12)
Cross-Platform Compatibility: Calling a REST API in general is not technology or O/S dependant; in today’s world, all technologies support https and REST api calls.
No EDI Expertise Required: No need for any EDI expertise to understand and interpret the transaction converted to xml, it is self-explanatory based on the schemas

Improve Integration Efficiency Using a Middleware

While EDI2XML REST API is clearly an API to transform EDI to xml and xml to EDI, it is not by any means a middleware to allow mapping of fields and data to accelerate the integration development, the deployment and onboarding process.

However, based on our many years of experience and hundreds of implementations, I can recommend a great middleware and integration platform Magic xpi.

This great platform would turn integration projects from months and weeks into a matter of days from development to go live.

Useful reading: How to Optimize Your Business Processes with Magic xpi Integration Platform

Best Practices in Data Integration Projects

To make the most out of your integration projects, please consider these best practices:

Understand project requirements: Determine what type of data integration and what are the business needs.
Adopt a Hybrid Approach: Combining EDI via API using EDI2XML REST API for standardized EDI, along with batch processing with APIs for real-time updates gives businesses the flexibility to meet various demands without sacrificing operational efficiency.
Prioritize Security: Exchanging EDI and API handle sensitive data, so it’s important to ensure that your integration strategy includes robust security measures like encryption, authentication, and regular audits.
Utilize Middleware: Middleware platforms such as Magic xpi, can streamline data integration, allowing systems to communicate without heavy custom development, especially if your company is operating one of the branded ERP/CRM solutions. Thanks for Magic xpi validated and certified connectors to most of the systems in the marketplace.
Future-Proof Your Integration Strategy: As more businesses transition to the cloud and leverage APIs, make sure your systems are agile and adaptable to new technologies.

Can We Review Your API Integration Strategy Together?

Our specialists with over 24 years of experience in EDI and API integration will be happy to help hope on a FREE one-hour Teams meeting to listen to your challenges and offer you the best approach and recommendation.

Just book a time convenient for you in our calendar.

Or click on this image to book your FREE consultation.

September 16, 2024/0 Comments

The Advantages of Business Automation through EDI

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Today, there are still decision-makers who are debating whether to invest in EDI integration projects or to hire a few new employees to manually enter and process data from trading partners.

Since EDI is still a difficult topic for non-technical people to understand, hiring data entry administrators may seem like a reasonable choice. It is commonly believed that EDI requires a significant initial investment.

Let’s take a look at what EDI automation is and how companies can find the most cost-effective solution.

What is EDI Automation?

EDI (electronic data interchange) is a technology used by business partners to exchange business electronic documents in standard formats without requiring human intervention.

These exchanged documents are called – EDI Transaction Set. If you want to see the full list of documents that can be exchanged in EDI format check our Complete List of EDI X12 Codes.

How Does EDI Benefit Businesses?

The use of EDI greatly improves the overall state of the business as it has many benefits.

– Reducing costs. Saving time for employees to process documents and enter them into databases. EDI reduces an enterprise’s printing, shipping, and storage costs.

– Speed. Documents can be exchanged instantly with a business partner. You won’t lose documents along the way or among the papers on your desk.

– Automation. EDI significantly improves the business because it automates processes and reduces the time delays associated with manual data entry.

– Accuracy. Elimination of errors associated with manual data entry.

Useful: Download our free Guide “Introduction to EDI Communication” to learn more about EDI

What Documents are Used in EDI?

As mentioned above, you can exchange almost any type of document using EDI, but the most common ones are:

Purchase Order – EDI 850

Useful Reading: All You Need to Know About EDI ANSI X12 Transaction Set 850 Purchase Order

Invoice – EDI 810

Useful Reading: What is an ANSI ASC X12 EDI 810 Invoice?

Purchase Order Acknowledgment – EDI 855

Useful Reading: What is EDI 855 Purchase Order Acknowledgment?

Inventory Inquiry/Advice – EDI 846

Useful Reading: What is EDI 846 document?

Advanced Ship Notice (ASN)– EDI 856

Useful Reading: What is Advanced Ship Notice (ASN) 856 Transaction Set?

Below is an example of an EDI flow between trading partners.

Types of EDI (Electronic Data Interchange) Solutions

Currently, many EDI providers offer various EDI solutions. There is no one-size-fits-all EDI solution for every company. A company should evaluate which option will be most cost-effective for its business model. Thus, the main offers on the EDI market are:

Our company offers all three named EDI solutions. If you don’t know which solution is right for you, contact our experts for a free consultation.

EDI Document Business Flow

1. One business partner (generally the buyer) generates a document (i.e. Purchase Order) in his internal ERP system (i.e. SAP, Microsoft Dynamics, JD Edwards, etc.). Depending on the company’s business process, the document can be generated automatically or manually.

2. EDI providers can either pick up the generated document directly from the company’s ERP system, or they can transfer it to them.

3. The EDI provider converts the document into an X12 EDI transaction set. After conversion, suppliers receive an EDI X12 document.

What is the Fastest Way to Connect to EDI?

With EDI2XML and its “HTTP EDI Web Service (REST API)” model, companies can connect their EDI partners in less than one hour! EDI web services reduce the cost of EDI integration projects and improve efficiency and accuracy in a short amount of time.

As a result of using the EDI Web Service from EDI2XML, a company can quickly and efficiently exchange business documents with its business partner.

Learn more about EDI2XML Web Service its advantages and how it works.

Request EDI2XML Web Service Price List

July 29, 2022/0 Comments

The Top 6 EDI Documents for Retail Suppliers

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In this post, I’ll give a brief overview of the top 6 EDI transactions used in the Retail industry, the main differences between documents exchange via EDI and email, and how you can quickly satisfy the request of a large retailer (such as Walmart, Target, Costco) about EDI compatibility and start exchanging EDI documents fairly quickly.

What is Electronic Data Interchange (EDI)?

EDI is a protocol to exchange business information between two organizations electronically based on a predefined standard. EDI has replaced the use of paper documents or the exchange of business information by email.

EDI in the Retail Industry

Electronic Data Interchange (EDI) has been widely adopted in the retail industry to facilitate efficient and accurate communication between trading partners. EDI is the electronic exchange of business documents between two or more organizations in a standardized format.

The retail industry has been using EDI for over 30 years. Can you imagine the volume of business documents flow at large retailers? They have thousands of transactions every month with hundreds of suppliers and tens of thousands of products.

For such large trading companies, it is simply impossible to do business without exchanging EDI. That is why they force their suppliers to exchange documents through EDI.

What is a Retail Supplier?

Supplier is any legal entity (organization, enterprise) or individual that provides goods to another entity. Retail suppliers are business-to-business (or B2B); they sell products to other companies, and not directly to the consumer.

Suppliers can be manufacturers, as well as various resellers (including wholesalers).

The supplier carries out business activities by the terms of the concluded supply agreement.

Giant retailers such as Best Buy, Wal-Mart, Costco, and Target have supply agreements with many different suppliers from whom they buy goods in bulk and then sell them to the final consumer in their stores or online stores.

What is the Difference Between EDI and Email?

Let us make a comparison between sending a purchase order from a Retailer to a supplier by email and another one by EDI. Here are some major differences:

1. Transfer or exchange of business information

Both methods have secure communication channels, however, EDI communication channels use higher security standards.

2. Standards and structure

The content of the email is not structured at all. There is no standardization when placing a purchase order via email. Thus, the supplier needs to check many elements such as subject, message body, attachments, because the information about the purchase order can be either in the body or in one or multiple attachments.

The content of an EDI Purchase Order (EDI 850) is very well structured, and it conforms to a specific standard (i.e. X12, EDIFACT, …). Each element and loop have a pre-defined purpose.

3. The ability to integrate with business systems (ERP/CRM)

Extracting the data “automatically” from an order coming by email is very difficult (not to say extremely difficult), while extracting the purchase order information from an EDI X12 850 for example, or a UN/EDIFACT ORDER is much more standard.

As a conclusion: exchanging business documents complying with EDI standards, enables companies and business partners in the retail to automatically integrate data into their internal business systems, efficiently and with great accuracy without human intervention.

Commonly used EDI Documents in Retail

Large retailers using EDI can standardize the process with their trading partners, thereby improving all business processes, increasing profits and customer satisfaction. For all size suppliers, the use of EDI gives access to large retailers and therefore a stable volume of orders. Let us look at the main EDI transactions used in B2B trading between retailers and suppliers.

1 – EDI 846 – Inventory Inquiry/ Advice | EDIFACT INVRPT

EDI 846 (EDIFACT/INVRPT – Inventory Report) is a notification that the supplier usually sends to the retailer, which contains information about the availability of goods. This EDI transaction is used to inform your trading partners (retailers) about stock levels but does not oblige them to make a purchase. Usually, EDI 846 also includes pricing information.

For more information about EDI 846 read our article: What is EDI 846 document?

2 – EDI 850 – Purchase Order | EDIFACT ORDERS

EDI 850 (EDIFACT/ORDERS) is an electronic document that is used to place an order for goods.

EDI 850 is usually sent by retailers to their supplier of goods. This document indicates the quantity of the required goods as well as all the details regarding the order (Item description, price, and quantities, shipping details, requested delivery date, and location(s) of delivery).

If you want to know more about EDI 850 read the article: All you need to know about EDI ANSI X12 Transaction Set 850 Purchase Order

3 – EDI 855 – Purchase Order Acknowledgement | EDIFACT ORDRSP

The EDI 855 (EDIFACT/ORDRSP – purchase Order Response) is a reply to the message (EDI 850). It is sent by the supplier after receiving the order from the retailer.

By returning the 855 messages, a supplier agrees to fulfill the order or proposes to amend. In other words, using EDI 855, the supplier either notifies the full, partial, or refusal to fulfill the order. This message helps the retailer avoid supply disruptions.

You will find detailed information about EDI 855 in this article: What is EDI 855 Purchase Order Acknowledgment?

4 – EDI 856 – Advance Shipment Notice | EDIFACT DESADV

EDI 856 (EDIFACT/DESADV – Despatch Advice) is a notification sent by the supplier immediately after the shipment of the goods leaves its warehouse.

The idea behind this message is that the retailer may know in advance about the fact that the products have been loaded, its quantity, and the expected delivery date. This way, he can efficiently plan the receipt and scanning of the goods at his warehouse.

You will find detailed information about EDI 856 in this article: What is Advanced Ship Notice (ASN) 856 transaction set?

5 – EDI 861 -Receiving Advice/Acceptance Certificate | EDIFACT RECADV

The EDI 861 (EDIFACT RECADV – Receiving Advice) acts as a response message to EDI 856 which confirms the acceptance of the goods.

Acceptance is communicated from the retailer to the supplier. It indicates there is a discrepancy between what was sent by the supplier and what was received by the retailer and details the list of goods received.

Besides, the retailer can provide additional information such as information about damaged items during transportation, etc.

Complete List of EDI Transactions, Sets & Codes for ANSI ASC X12 Standard

6 – EDI 810 – Invoice | EDIFACT INVOIC

EDI 810 (EDIFACT INVOIC – Invoice) is an electronic document provided by the supplier to the retailer to bill for the goods delivered. EDI 810 contains a list and description of goods, their quantity, and price, as well as information about the sender and recipient.

For complete information on EDI 810 read this article: What is an ANSI ASC X12 EDI 810 invoice?

These are some of the most commonly used EDI documents in the retail industry, facilitating efficient communication and transaction processing between trading partners.

EDI flow in the retail industry

Let us look at a typical EDI flow between trading partners (where the retailer acts as a buyer) in which the top 6 EDI transactions described above are involved.

1. The supplier sends or feeds the retailer his inventory status, to inform about the availability of goods – Inventory Inquiry/ Advice (EDI 846).

2. The retailer sends the Purchase Order to the supplier (EDI 850).

3. The supplier checks the availability of the goods in the warehouse and sends the Purchase Order Acknowledgment (EDI 855), in response to the Purchase Order.

4. The supplier immediately after shipment of the goods, generates and sends to the retailer an Advanced Ship Notice (EDI 856).

5. The retailer, after acceptance of the ASN received from the previous step, generates and sends the supplier a Receiving Advice/Acceptance Certificate (EDI 861).

6. The supplier, based on the above acceptance notifications, generates an Invoice (EDI 810).

This EDI flow is considered for the case when the trade agreement between the retailer and the supplier has already been concluded, and the retailer has a list of goods from each supplier in its business system.

Benefits of using EDI

EDI has long been an integral part of B2B especially in the retail vertical. Using EDI to exchange business information provides many business benefits to both large and small businesses. Here is a short list of those benefits:

Speeds up workflows

You can send any document in seconds.

Prompt exchange of documents speeds up the process of ordering and delivery of goods. The main benefit for the retailer is the uninterrupted replenishment of goods. For the supplier, a quick payment for the delivered goods.

Saving resources and time

No need to use operators for manual processing of business documents, duplicate on paper, store, send by mail, or courier.

One standard for everyone

EDI makes it easy to start selling to large retailers. Exchange EDI documents without worrying about format differences and compliance with business systems (ERP /CRM) of your trading partner.

Accelerate the acceptance of goods

When EDI is integrated into the retailer’s business system, data from suppliers goes directly to the accounting system. Thanks to automatic item matching, goods are accepted very quickly. The process of accepting the goods is quick and easy.

Reduces risks

EDI eliminates errors associated with manual data input, as well as the loss of documents.

Secured data transmission

EDI documents are transmitted over secured channels in encrypted form, or through private value added network, no concern about data breach.

About EDI2XML services

EDI2XML offers a wide range of EDI services to automate the exchange of documents between all parties in the retail and transportation industry, whoever they are: retailers, suppliers, shippers, consignees, and transport companies.

We help your company get started on exchanging EDI with your partners in a fairly and relatively short period of time, and on budget. Whether adopting our Fully EDI managed EDI Service or our EDI2XML self-service Web service, we can empower your company with the ability to send and receive any type of electronic documents such as Purchase Order (EDI 850) PO Acknowledgment (EDI 855), Invoices (EDI 810), ASN (EDI 856) and many more.

Useful Reading: Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?

March 17, 2021

ORDERS and ORDRSP: The main EDIFACT messages in the supply chain management

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This post was updated to reflect current trends and information.

Receiving and processing EDI purchase orders is the most common transaction faced by small businesses. This electronic business document is used to place a commercial order for goods or services by a buyer or business partner.

It’s still possible to use phone, email, or fax between two small businesses, but if you want to collaborate with a large retailer, distributor, or manufacturer, there is a high probability that you must be EDI compatible to receive orders from your B2B partners, in addition to other potential EDI documents or transactions.

What is EDIFACT ORDERS?

ORDERS (Purchase Order) is a type of EDIFACT message that contains requests for the supply of goods or services.

In EDI ANSI ASC X12 standard which is widely used in North America, the ORDERS is referred to as EDI 850 Purchase Order.

Large companies, working with small contractors demand mandatory use of EDI. Requirements for EDI compatibility is specified in contracts or in partners selection criteria.

High competition forces the business to comply, and start exchanging electronic data quickly and accurately, spending minimal time and resources on this business process. Thus, small enterprises must comply with the imposed conditions, in order not to lose a source of profitable purchases.

EDIFACT ORDERS message content

The most important main information contained in an EDIFACT ORDERS message:

Order number
Required date
Delivery date
Reference to supply contract number
Price and qualifier (including VAT and other taxes)
Identifiers of the consignee and sender, delivery location, customer, carrier, recipient
Information about the contents of the order (barcodes, quantity, item name, etc.).

EDIFACT ORDERS Processing

After signing the contract, the buyer uses ORDERS to send the seller a list and quantity of goods ordered.

Typically, a buyer creates the order in his ERP system (the most popular are SAP ERP, Microsoft Dynamics, Oracle JD Edwards EnterpriseOne). The created Purchase Order is instantly converted into an EDIFACT ORDERS message which is immediately sent to the seller. The seller must receive the EDIFACT message and quickly process it. He should transmit a Purchase Order Response (ORDRSP) in response to the Purchase Order received.

EDIFACT and ERP/CRM integration

To save time and money by processing the vast amount of information received from business partners, most companies (both retailers and suppliers) choose to integrate their EDI / EDIFACT messages into their ERP systems. Basically, with integration, they connect the received EDI messages and push it directly to their ERP software, through Integration Connectors designed specifically to synchronize and integrate into their ERP systems.

For example, using Magic xpi Integration Platform a company can connect a variety of heterogenous business systems such as ERP, CRM, finance, etc. by implementing out-of-the-box certified and optimized connectors.

You can find useful information on EDI integration with ERP Systems in the following articles:

How to make EDIFACT ordering even easier

As the number of outgoing or incoming orders increase, companies try to optimize the exchange of orders. In case the number of your orders exceeds a couple of hundreds per month, it’s worth thinking about integrating the flow of orders directly into your business software solution and save your company the time and money associated with human errors, delays to deliver, and increase efficiency.

The process of Order creation can be fully automated; it will not require human intervention. To do this first it is necessary to integrate your business system with EDI.

Related article:

Usually, after starting to use ORDERS message, the buyer will most likely request to receive replies to his orders, which means connecting another type of EDI message – ORDRSP. In addition, he can ask you for the dispatch advice (DESADV), and he can send you the delivery advice message. (RECADV).

What is ORDRSP and what are the benefits of using this EDIFACT message

ORDRSP (Order Response) is a type of EDIFACT message in which the supplier confirms or rejects the delivery of goods to the buyer. Using ORDRSP, the supplier can propose amendments, notify of a complete or partial delivery or confirm the entire delivery, before even processing the delivery.

Using UN/EDIFACT ORDRSP improves the logistics chain: the parties save on transportation, reduce returns due to incorrect deliveries of merchandise, increase the accuracy of delivery of the right products.

Through ORDRSP, the supplier can notify the buyer of the lack of certain products, thus avoiding disruption of supplies and maintaining a loyal business relationship. Customer, having this information, can order a similar product from the presented assortment or place an order from another supplier.

The buyer can always understand whether the supplier will deliver the goods on time, or not. He sees preliminary price confirmation and quantity of products, predicts the state of stock based on ORDRSP, and the supplier can automatically book goods for delivery in his warehouse when processing a Purchase Order Response.

What does ORDRSP contain?

ORDRSP has a direct relationship with ORDERS and are complimentary to each other. ORDRSP consists of:

Order number
GLN numbers of the buyer and seller
Order confirmation number
Date of planned delivery of goods
Scheduled time
Item No
Quantity approved (To Ship)
Price approved
Reason of rejection (when parameters are not matching between Order and supplier)

EDI/EDIFACT integration

In EDI/EDIFACT documents exchange, the EDI provider plays a key role. He is the one who ensures the conversion and integrity of message formats and tracking data transfers. For over 21 years now, our company EDI2XML has been successfully helping companies of all sizes switch to Electronic Data Interchange. We help speed up working with orders, shipments, acceptance, inventory of goods and reduce the risks of human errors. We have no hidden fees or confusing rates.

December 2, 2019

What is EDIFACT? | UN / EDIFACT Standard Overview

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UN / EDIFACT Standard Overview

What is UN/EDIFACT standard?

United Nations/Electronic Data Interchange for Administration, Commerce and Transport (UN/EDIFACT) is the International EDI standard ISO 9735-1987, developed under the UN

The general standard is adopted by national and sectoral standards bodies to better reflect the needs of each industry.

At least twice a year, the standard is updated globally. The reason of this update is to create a new directory of data and messages, in addition to improving the usability of existing EDIFACT messages.

The UN/EDIFACT standard has been developed for trade and transport management. The concept of “trade” was interpreted in a broad sense (orders, deliveries, insurance, payment of goods, customs formalities). Currently, the use of UN/EDIFACT has expanded to include accounting, customs control, pensions, health care, social insurance, judicial practice, employment, statistics, construction, finance, insurance, manufacturing, tourism, trade, freight, and container transportation.

The UN/EDIFACT standard is developed and supported by two international organizations: United Nations Economic Commission for Europe — UN ECE and the International Organization for Standardization. – ISO

EDIFACT Subsets

EDIFACT is predominant outside of North America. Due to its complexity, branch-specific subsets of EDIFACT have been developed. These subsets are subsets of EDIFACT and contain only the functions relevant to specific user groups, such as:

EANCOM consumer goods industry
ODETTE European automotive industry.
CEFIC chemical industry
EDICON standard used in the construction industry
RINET – the Insurance industry
HL7 standard is used in healthcare.
IATA air transportation
SWIFT banking
UIC 912 rail transport
EDIFICE electronics, software, and telecommunications industry. EDIFICE has played an important role in the implementation of RosettaNet standards in Europe. EDIFICE became the European RosettaNet User Group.

EDIFACT Messages: Structure and Syntax of the Standard

EDIFACT is a special, structured data language that describes all types of commercial activities, based on information logistics. Using elements and segments of standard informational messages, you can create a description of any document, generate its electronic form and transmit it in open telecommunication networks without fear of interception of private commercial information.

UN / EDIFACT Structure

Any document in UN / EDIFACT standard has a hierarchical structure. The entire electronic document is called a message. A message consists of data groups combined in some way, for example, a data group describing customs payments, a group of data describing the attributes of documents, etc. In turn, the group consists of typical data segments that describe document attributes in more details. The standard provides about 200 different types of segments from which messages are composed. The segments themselves also have a hierarchical structure and consist of data elements that can be simple (data field) and composite (usually 2-3 data fields).

The following is the structure of an EDIFACT transmission:

Service String Advice
Interchange Header
Functional Group Header
Message Header
User Data Segments
Message Trailer
Functional Group Trailer
Interchange Trailer

Example EDIFACT

UNA:+.? ‘

UNB+UNOB:2+ XYZCORPORATION:ZZ+COMPANYX:ZZ+190521:1604+906019++++++1′

UNH+1+ORDERS:D:96A:UN’

BGM+220+4500265532+9′

DTM+137:20190425:102′

RFF+CT:CompanyX’

NAD+BY+2010::91′

CTA+OC+2010:G. Smith ‘

COM+044-1010605:TE’

COM+044-1010662:FX’

NAD+SE+0000906300::92′

CTA+SC+0000906300′

NAD+DP+++Consulting Inc St+ Begun + Laval++8003+CA’

CUX+2:CHF:9′

LIN+10++TH300010:BP’

PIA+1+000000000000500807:SA’

IMD+A++::92:HIR0010H12′

QTY+22:1:PCE’

DTM+2:20190423:102′

LIN+20++T0004671:BP’

PIA+1+000000000000501516:SA’

IMD+A++::92:CCGT060204NS LT1110S’

QTY+22:10:PCE’

DTM+2:20190423:102′

LIN+30++T2001171:BP’

PIA+1+000000000000501328:SA’

IMD+A++::92:LTPNG-R20-3.0′

QTY+22:1:PCE’

DTM+2:20190423:102′

UNS+S’

UNT+28+1′

UNZ+1+906019′

Principles and Technologies of Application of the UN / EDIFACT Standard

The EDIFACT Standard has three types of reference books:

The first type is directories that are based on the ISO standards. It includes directories of currency codes, country codes, units of measurement, modes of transport, delivery conditions, and some others.

The second type of directories, are the ones included in the EDIFACT standard., by default

The third type of directories is developed by different organizations responsible for issuing codes. Here is the list of organizations 3055 Code list responsible agency code

There are four main components in EDIFACT that are subject to standardization, when preparing documents for exchange between business partners.

data elements
standard data segments
standard messages
syntax rules

Data elements are the smallest, non-dividing parts of information, for example, the document date, the name of the destination, the amount of tax. More than 600 data elements used in international trade and transport have been published in a special UNTDID directory.

EDIFACT Standard Principles

The UN / EDIFACT standard is based on the following principal:

1. Standardize data at the segment and element level. Any document intended for electronic exchange should consist of typical segments. This means that the segment of the supplier’s address or delivery address is described by the same elements, regardless of what kind of document it is – invoice, order, declaration, etc. The practice has shown that to describe almost any document, it is enough to have no more than 100 typical segments. The fields inside the segments are standardized the same way, and the ratio of fields to segments is one-to-many, i.e. the same field can be included in different segments.

2. Record the fields used in segments as code. It is assumed that the partners exchanging electronic documents have identical code tables (directories). The composition and content of the reference books is standardized at three levels – international, national and corporate.

3. The independence of standards from the language of communication. The peculiarity of the UN / EDIFACT standards is that more than 90% of the electronic message consists of different codes. Another feature is that only the content of the document is transmitted, without a form. The document form is restored when the message is decoded.

Book a FREE one-on-one EDIFACT consultation session with our in-house experts.

EDIFACT Messages

The EDIFACT standard which provides a set of standard messages has greatly simplified international and multi-branch trade and the exchange of electronic business documents between countries and various industries.

The standard message UN / EDIFACT has a six-letter identifier that reflects the short name of the message, for example:

CUSDEC – CUStoms DEClaration
CUSRES –CUStoms RESponse

Some of the standard EDIFACT messages with X12 equivalent are listed in the table below.

X12 Transaction Number	EDIFACT Transaction ID	Transaction name
850	ORDERS	Purchase order message
855	ORDRSP	Purchase Order Acknowledgment
846	INVRPT	Inventory Inquiry/Advice
856	DESADV	Shipment Notification ASN
810	INVOIC	Invoice
997	CONTRL	Functional acknowledgment
860	ORDCHG	Purchase Order Change – Buyer Initiated

Due to the independence from the language and the transfer of only the contents of the document, the restoration of the form of the document takes place on the receiving side in accordance with the rules that apply in this place.

Benefits of EDIFACT

EDIFACT has a competitive advantage that positively affects the efficiency of a company and improves business processes. The main advantages of EDIFACT:

Profitability – reducing the volume of papers to be processed leads to a decrease in personnel and administrative costs.

Efficiency – large volumes of commercial data can be transferred from one computer to another within minutes

Accuracy – the use of EDIFACT eliminates human errors that are inevitable when manually keying in data.

EDIFACT is a key component of a just-in-time strategy that ensures prompt customer satisfaction. EDIFACT in conjunction with the Internet allows real-time electronic transactions and accelerates the interaction between trading partners.

Easy EDIFACT Integration

Our company has many years of proven experience in implementing EDI and EDIFACT projects. We offer our clients Fully managed EDI Service and HTTP Web Service.

July 26, 2019

Top 3 Reasons For EDI Integration With Shopify

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This post was updated to reflect current trends and information.

In short, Shopify is one of the leading Canadian eCommerce platforms offered to businesses and individuals, based on a monthly subscription fee. Anyone can subscribe and then begin to showcase their products online, to sell directly to the public. For more information about Shopify, you can visit their website here.

Who Uses Shopify?

Shopify is a popular e-commerce platform that can be used by individuals and businesses of all sizes to create and manage their online stores. Here are some of the types of people who use Shopify:

Small business owners: Shopify is an excellent platform for small business owners who want to sell products online without having to deal with the technical aspects of building an e-commerce website.
Entrepreneurs: Many entrepreneurs use Shopify to create and sell their own products online, whether it be clothing, beauty products, or digital downloads.
Large businesses: Shopify’s scalability makes it a popular choice for larger businesses that need a platform that can handle high levels of traffic and sales.
Dropshippers: Shopify’s integrations with popular dropshipping apps and tools make it an attractive option for dropshippers who want to sell products without having to hold inventory.
Non-profits: Shopify offers special pricing and features for non-profits, making it an excellent platform for charities and other non-profit organizations to sell merchandise and raise funds online.

Overall, Shopify is a flexible platform that can be used by a wide range of people and businesses to create and manage their online stores.

A Word on Drop-Shipping

One important thing to emphasize here is that with the emergence of the online retail (or eCommerce) market, companies selling products through the Internet on platforms such as Shopify, are not necessarily carrying inventory of their products anymore.

More and more, once a company receives an online order from a customer (through the Shopify platform), these orders are then transferred to the manufacturing business partner(s) for shipping and delivery of the bought item(s), where they are told the “white label” the delivery package. This concept is called “Drop-Ship” (or Drop Shipping) in the retail and eCommerce world. Basically, the seller receives orders from their online retail store and is paid via the Internet (through PayPal or credit card) and then forwards the order to the manufacturer to then ship directly to the client. For many, there is now no need to hold inventory in a local warehouse.

What Does EDI Have To Do With eCommerce?

For those who aren’t very familiar with EDI (or Electronic Data Interchange), it is a set of standards and processes to exchange business documents electronically between Business (or Trading) Partners. Common business documents include Purchase Orders, Invoices, ASNs (Advance Ship Notice), Inventory Inquiry/Advice and more. This data exchange can happen in both directions – incoming and outgoing.

In the context of online sales over the Internet, on an eCommerce platform like Shopify as well as with the introduction of drop-shipping, EDI comes into play for several reasons;

1. Most major manufacturing and distribution companies will require a system-to-system integration through some sort of EDI. This speeds up processes and allows for greater efficiency in partner communication.

2. Shipping companies also require integration via EDI.

3. Today, consumers are very well educated and require to be informed on the status of their orders at every step of the way during the shipping process.

As you may notice, all of the above requires system-to-system integration between so many unrelated or diverse systems and platforms. At this point in time, most major companies and retailers are well equipped with EDI platforms and standards in which they have been investing in for many years now. Companies are now finding more ways to use their EDI to increase efficiency and are truly seeing returns on their investments.

Top 3 Reasons Why You Need EDI Integration With Shopify

The reasons may seem obvious to you at this point, but I will re-iterate the top 3 reasons for EDI integration with your Shopify store or any other eCommerce platform;

If you are in the Drop-Ship business and you are selling online through Amazon, Wal-Mart, Cabela’s or Target, for example, chances are that these retailers will impose certain rules, and require that you go on EDI. If you are dealing with suppliers, they will also impose similar rules and require the use of EDI.

If you are selling online through your own store via Shopify, and you have a high volume of clients that expect to the informed of their orders at any given moment, this is another big reason why you should have EDI integrated with your Shopify store.

If you are dealing with shipping companies like FedEx, Purolator, UPS, etc., and you have a high volume of shipments on a daily basis, then you need to integrate your management systems AND Shopify with EDI.

The above are the main reasons for EDI integration but there are tons of other ways EDI can improve your processes and reasons to talk with an EDI consultant today.

How Can I Integrate My Shopify Store with EDI?

This integration is very feasible however you will most definitely need a team of system integrators with a high knowledge and expertise in EDI. With the right team like the EDI2XML team, there is no going wrong.

If you are interested in learning more about this topic or any other issue related to EDI integration projects, please contact us today and receive your free consultation.

May 27, 2017/2 Comments

How To Successfully Complete SAP/R3 EDI Integration Projects Using iDoc

Blog, EDI2XML

Article written by Pierre Namroud, EDI Integration Specialist & Business Consultant

During my professional career as an integrator and EDI expert, I had the opportunity to work on several major integration projects. Some of them were in an Oracle environment while others had to do with integrating with SAP/R3. Other projects included integrations with different types of systems such as Salesforce, Shopify, Microsoft suites, etc.

In today’s EDI2XML post, I will share my experience as an ‘Integrator’ to lay down the basis of a successful integration project of EDI and SAP/R3. Please note, however, that I am not an SAP expert and during these integration projects I worked closely with SAP professionals and credit them for all of their efforts in completing the SAP portions of this type of project.

What is SAP/R3?

SAP/R3 is an Enterprise Resource Planning (ERP) software solution produced by the well-known German company, SAP. This specific version,“R3”, has been renamed to ECC (ERP Central Component). SAP Business One is also a sub-set ERP software from the same Software Provider and it is designed for Small Businesses.

SAP ERP Solutions are widely present in corporate enterprises in North America, Europe and all around the world. It is one of the most popular corporate ERP software solutions.

Does SAP support EDI Integration?

SAP ECC (or R3), out of the box, does in fact support EDI integration. The EDI format that is currently supported by SAP is called iDoc. Simply put, iDoc format files or messages are proprietary to SAP and they are similar to, and based on, EDIFACT messages.

In essence, if an iDoc file is provided to SAP, it will get processed using some specific BAPI and it will turn the iDoc into an order, in SAP.

EDI Transformation for SAP Integration

Most integration projects that I have worked on involved integrating EDI X12 formats within the SAP system, in both directions (incoming and outgoing messages). Since X12 EDI format is far from the iDoc format, our team was tasked with handling the transformation and EDI translation from X12 EDI to iDoc format.

Checklist for a Successful EDI Integration Project with SAP

Now that the basics are defined, I will share my recommendations, in a checklist format, to help guide you through a successful integration project for SAP and EDI.

Make sure you know how to work with SAP backend. If you are not highly knowledgeable or an expert in SAP, make sure to most definitely include someone who is, as part of your team. This is a must.
Make sure you work in a Development SAP environment, rather than a Production environment when doing the work.
Make sure to use the appropriate SAP BAPIs or RFC, well identified for each point you plan to integrate with SAP. This is very important and it is crucial to be identified. Your SAP expert can take the lead in this area.
Make sure to equip yourself and your integration team with an efficient integration framework. The completion timeline and success rate of this project will definitely be better if you equip your integration team with an efficient integration tool.
To avoid getting into an unknown space, outsource the translation of the EDI X12 or EDIFACT (or any other protocol) to a reliable, knowledgeable Service Provider. By teaming up with an EDI partner, you’ll quickly notice the real value they will bring to the table since they will handle all of the complexities that an EDI project can bring. Their task will be to do the EDI transformations and create one single iDoc format of EDI for your integration flows to SAP.

Conclusion

I sure hope that I was able to expose some of the challenges and complexities surrounding a typical SAP integration project, with the above checklist, and properly explained my recommendations, from my own personal experiences.

If you are interested to learn more about this topic or any other issue related to EDI integration projects, please click on the image below and I will be more than happy to contact you for a FREE consultation.

May 5, 2017

EDI X12, EDIFACT, CSV, XML – Why is a conversion necessary?

Blog, EDI

This post was updated to reflect current trends and information.

EDI formats are not understood or easily read by just anyone. It requires an EDI expert to be able to read the files and dissect them. Many large Trading Partners impose their own rules and requirements on top of those outlined by the standards, which is why, in many cases of translation, it is not always as straightforward as hoped. Most business executives are hesitant to begin trading via EDI because of these complexities.

However, if you find the right EDI Provider, who can handle all translations, all EDI mapping, all Partner configurations and all outbound and inbound communication with your partners, then you have nothing to worry about.

Our very own EDI2XML translation and integration services eliminate all of these complexities for you and you can begin trading electronically in no time. If you have your own in-house EDI and IT integration expert(s), then they can simply use our EDI2XML Web Service.

If you’re looking to meet your Trading Partner’s requirements but also keep your business processes streamlined and integrated internally, then check out EDI2XML. Our team of EDI experts are experienced and flexible enough to work with any EDI format, where specs are readily available, and convert to a format your team or system can work with. It’s about keeping costs low and simplifying the whole EDI communication process. Contact us today!

October 6, 2015/0 Comments

Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects

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Today’s business environment is full of complex business processes; lead time to deliver, merchandise fulfillment, forecasting and more. On top of these processes, there are constantly new strict regulations imposed on businesses by major retailers, like Amazon, Sears and Wal-Mart. Most often, restrictions are enforced when dealing with data exchange, stock and inventory availability and other compliances.

Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects

Luckily for companies, a diversity of efficient ERP systems, EDI tools and enterprise software applications, such as JDE, Salesforce, SAP, are running businesses of all sizes. Integration between different systems is becoming more than a luxury, it is a necessity. Enterprises of all sizes are making greater efforts to equip their IT systems with the capability to comply with requirements imposed on them by major retailers. One such issue is EDI integration and the ability to exchange and comply with retailer’s requirements. The key is to ensure you have chosen the right technology and the best team to handle the integration projects.

In my previous article, I addressed the major issues related to EDI integration with JDE. In today’s blog, my focus is on EDI integration with Salesforce or any other software CRM application. These projects can be long and costly if not done right, therefore read below to have an efficient, cost effective and solid integration for EDI communication.

What is Salesforce?

Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects 2 Salesforce is a cloud-based CRM (Customer Relationship Management) software system. It is very popular amongst enterprises of all sizes as it is best known for its openness for integration. Developers and integrators can read and write data using API and web services. Many companies use Salesforce as a unified tool for leads, campaigns, opportunities and customer tracking.

EDI Integration with Salesforce

Salesforce is simply a CRM system but add-on modules have been developed so users can enter sales orders for clients and confirm processing. However, when it comes down to needing to complete further business processes, which are included in an ERP solution, such as EDI communication, a different approach should be followed. Integrating EDI orders sent by retailers to a CRM user requires further expertise by a team of IT professionals with a solid knowledge of integration and EDI.

Read: Why we love EDI2XML for EDI Integration with JDE (And You Should Too!)

Following are the top 3 challenges that any EDI integration project manager should consider and overcome:

1) The Technology

It is essential in any EDI integration project with Salesforce to be using good technology; that is scalable, flexible and easy to use, with little training necessary. Such technologies exist in the IT marketplace and if properly used, it can be leveraged to save a lot of time, effort and money in the integration process. The ideal tool should be able to interact with XML and Salesforce and all its interfaces (API, SOAP…).

2) EDI via AS2 or VAN

The second issue to consider during an EDI integration project with Salesforce is in regards to the communication protocol to transmit EDI data between you and the retailer. More and more, retailers such as Amazon, Wal-Mart and Sears, are mainly offering AS2 connectivity for suppliers wishing to exchange EDI with them. AS2 is a protocol of secured communication of EDI files from point A to point B. When setup and implemented correctly, this kind of implementation saves a lot of money.

However, most often, companies go with a VAN due to the retailers’ incompliance with AS2. It is difficult to do business with these big players without them enforcing their rule by using the service of EDI VAN to all their suppliers. Therefore, the choice to even go with a third party service provider is not given but it does exist.

3) EDI Translation

The EDI translation and integration into the Salesforce databases is the biggest challenge of all. It truly takes some major evaluation and analysis of the situation before beginning. One major question to consider and ask is whether to do the EDI translation and mapping on-premises or as a service. Of course, it all depends on the company’s budget and the capacity of the company’s IT team and knowledge of EDI communication. Also, another consideration is the type of technology. Nowadays, there are experienced service providers that are capable of taking on the service of:

Receiving EDI transactions from the retailer
Processing the EDI files
Translating the EDI files and integrating it into the company’s Salesforce system

What’s Next?

As you might know, a lot of parameters are involved in EDI integration projects, whether you want to integrate with Salesforce or any other software application. A professional opinion from EDI experts is important and very much needed for any business.

Namtek’s IT & EDI Consultation is free and at your convenience. Do business the right way – contact us today.

May 23, 2014/0 Comments