How Is EDI Compliance Related to System Security?

Posted by Brooke Lester on Feb 15, 2018 8:47 AM

How Is EDI Compliance Related to System Security?

Trust is the bedrock of every business relationship. However, trust must be earned. One of the ways you earn trust is by operating in a secure manner so that no one thinks their transactions with you are vulnerable, and they know that if they receive information from you, it is the genuine article.

In business, complying with your trading partners’ EDI system requirements is an excellent way to build trust and to demonstrate that you value security. Read on to learn what EDI compliance is and the role security plays in it.

What Is EDI Compliance?

EDI compliance means that you are meeting your trading partners’ standards for sending information to its EDI system. If you send a document that does not meet those standards and follow your partner’s data rules, your partner will not be able to fulfill the request. 

EDI translation is essential to maintaining compliance with your partner’s EDI system. Until information passes through an EDI translator, it is meaningless. The EDI translator ensures that the information conforms to EDI standards and that it follows formatting rules.

Consider the following example to understand EDI compliance. Suppose your company sells toys to a major national retailer. This retailer has an EDI system, and in order to do business with this chain, you have to comply with the system’s rules. 

The retailer’s EDI system has very specific rules about the format of shipping labels, invoices, and other documents its trading partners send. If those documents are not formatted properly, the EDI system cannot receive them. That situation leads to all sorts of headaches; the retailer will not get its shipments delivered on time (or at all), and the trading partner will not get paid.

How Does Security Fit in with Compliance?

EDI system security plays a crucial role in complying with trading partners’ rules. When you keep your system secure, you are protecting it from threats that compromise the integrity of your transactions and your own EDI system.

Your security is only as strong as its weakest link. What is your weakest link? Is it your employees? Are their workstations protected against digital threats? Encryption ensures that unauthorized third parties cannot read messages as they travel from your EDI system to that of your trading partner, protecting them from modification.

Unless your business’ core competency is EDI systems, security can be challenging. That is why many businesses trust their EDI system to a VAN; VANs have security expertise and knowledge to keep your EDI system safe. When a VAN uses the IBM Sterling B2B Integrator, you can trust that your EDI system will be secure.

The IBM Sterling B2B Integrator supports multiple document standards, so you never have to worry about message translation. Moreover, it adheres to standards for multiple industries, ensuring that you can work with a range of trading partners.

To maintain your current business relationships and build new ones, prove that you are trustworthy. Choose the right partner to secure your EDI system. Learn more today by contacting us.

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