Chris Reddick (President and CEO at Clarity Ventures) and Ron Halversen (Vice-President of Sales and Marketing at Clarity) talk about some common uses of EDIs in multiple industries.

Part 3 of a 4-part series (return to Part 2)

CHRIS: I just want to throw a few more examples out there. This might flow into some of our future slides, so I'll keep it pretty high-level. But I think that was a great idea to just throw out examples here to start with.  
 
And what you just stated, Ron, is absolutely the crux of a lot of what we see in the C2C, B2B, and B2B eCommerce space. This idea of updating inventory, pricing information on an eCommerce site, for example, being able to populate orders and progress them through the fulfillment process, and then provide updates back to the site so the site can show to the user the status of their order. These are just core fundamentals.

what is hipaa

RON: There are some interesting edge cases per industry where, like you said, a lot of our clients end up being buying groups. In many cases they will do drop ships, and whenever they're doing drop shipping, they tend to have sophisticated ordering models where they're having to do split-shipping and split-payment because it is a group purchasing organization, or buying group.  
 
And by its nature you're going to see these relatively complex scenarios. EDI can handle that perfectly. And it's excellent for handling those types of scenarios. And what's really cool is, we can dynamically split out these complex orders and then send them out to the manufacturers or the distributors who are going to be placing the order with dynamically.  
 
That is so powerful, as a buyers group platform, to be able to scale up and know that this process is completely locked in. And the more orders you get, the better it is. You don't have to staff up more, etc. Similarly, like you were saying with the inventory, another example that we've worked in extensively with EDI eCommerce, is dealing with companies that have maybe multiple organizations, multiple legal entities that are transferring stock between them.  

Or they might have multiple locations. So we'll do the buy online pick up and store (BOPIS). There's some mechanical accounting that has to happen to take care of all the back-office accounting, all the inventory management. Maybe there's a store transfer that we need to do where the item is actually being fulfilled from a warehouse and it goes on to a truck. And that truck is in the distribution network for this multi-location retail arm of a company.  

We've done this before where there's a direct drop shipping component of a company and then a retail arm of the company. And there may be different organizations such as the group shopping platforms we've discussed throughout this webinar series.. You can see how complicated this can get when you're trying to scale everything rapidly.  
 
That is the beauty of EDI. We can sit down with you in the discovery process, go through what the specific workflow is, document that out, and then execute on that using EDI in eCommerce. It's so powerful.  

One more example that I want to briefly share is the medical space, and these are just examples that get you thinking about scenarios that might apply for you, and in particular encourage you to think about the possibilities with EDI. You may not have been exposed to all of these concepts and we just want to encourage you. There's probably a lot that's possible that can be automated that you may not just be aware of yet, and we'll also include links in the description so you can dig in if you'd like, either by contacting us or by looking at additional resources with more detail. 

In the medical space, including medical group buying platforms, it's pretty interesting because a lot of the EDI has its own format, It’s HL7v2, HL7v3, it's essentially an EDI type of model, but tailored to the medical space. It's really powerful because this flat-file format is standardized across the entire industry. There are some really incredible things you can do. If you're not aware of these, they includes things like being able to look at patient information, appointments, detailed records, and transferring these detailed records. But you can also do some pretty powerful things with inventory management, making sure that the steps of a procedure are available.  
 
It gets very granular as to what you can automate and set things up so that, whenever we get a patient in and it's this type of patient, we have this workflow kick off and then we reorder inventory because we know we need this testing device. Maybe it's a blood test and an x-ray or something because it's this type of patient. Okay, well, like you said, Ron, go in back, order those supplies or reorder them, etc.  
 
Being able to do these things in each particular space in your industry for your buyers groups, it can be what allows you to put your focus into growing your business instead of dealing with all the logistics.  
 
RON: I'm sitting here, as you're talking, coming up with all these ideas. I'm remembering back in the day, back in the early 90s, I was the director of IT at WordPerfect. And back then, we really didn't have an ability to connect to all of our third-party vendors that we dealt with. And so one of the things that we had with our email system back then called GroupWise was an async gateway. It was an inbound and outbound mailbox, and you could send these flat files, you could email to it, you could fax to it, you could do anything to it.  

Basically, it was like a VAN back in the day, where, any time I went out to integrate a client‘s site—and I was rolling out big sites like we were doing Chrysler and the Postal Service and Callaway Golf and Shell Oil—every time I'd go out there and they would say, “Well, we have this third-party machine and we have no idea when it's down. “ And I'm like, “Well, when it goes down, does it send a file?” They’d say, “Yes.” “OK, well, great. Well, let's send that file.”  

And I would just point it at the async gateway and give it an inbound queue. And we could automate the reporting and basically the forwarding of these files, either through email or appointments or reporting system or anything. Back in the day, 30-something years ago, back then it was almost like an EDI, but it was for a communication system, which is what we're doing.  

what is hipaa

RON: Now we've gone through a number of the examples for buying groups and other eCommerce stores, let's talk about X12 being the U.S.-based one, and the EDIFACT,  the European one. It's also become so popular that there's an organization, if you want to go out to their website, it's XML.org that they've standardized for the commerce companies that, when you set up these different file types and you set up these different connections, if they use a different file type—and because they're all flat files, you can name some of the fields anything you want.  

If you do that, let's say, for example, I say given name instead of first name, and I dump that file in there and it goes and grabs a given name. Well, then I have to have a template. They call it a DTD, a definition template document, that says, “Oh, for this particular vendor, I'm connecting to grab the given name field and map that over to our first name field.” Setting up these connections can take a little time if you have to have unique IDs. So there was an organization, I remember it was 1994, 1996, something like that, that defined a commerce XML standard for EDI file exchange. That's at the CXML.org, and that’s standardized.  
 
So we've got a number of different formats. You've got XML and CXML integration and X12 and the EDIFACT. Is there anything else you want to cover before we actually go into the file numbers in the file types. I think we've covered most of this, but is there anything we've missed on the different types of file formats and how they relate to group buying platforms?  
 
CHRIS: Nothing major. I'll just reinforce that this is something that is very low effort and very critical, and you should really see it as a blocker, and something that you need to clearly understand what you're going to do whenever you're dealing with different standards across different vendors that you work with or buyers, etc. It’s not a huge technical issue, necessarily, unless you don't get it upfront. This is something you want to think about subconsciously. This is a big deal. It's not necessarily complicated, but you have to figure this out. So with that, I think we can dive in and look at these actual document types now.  

Continue to Part 4 to learn about what to look for in an EDI developer.