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Electronic data interchange (EDI) allows businesses to send business documents, communicate messages, and synchronize data quickly and securely with other business partners and vendors in their supply chain. EDI protocols are fundamental to the EDI communication process.
Imagine EDI protocols as a type of language – both trading partners have to use the same protocol for effective communication. Different protocols accommodate various needs based on the type of data a business is exchanging, the level of security required, and the type of technology a business is using.
The X12 protocol is one of the most popular EDI protocols, used in virtually every industry that exchanges EDI data.
The X12 EDI protocol was developed in 1979 by The American National Standards Institute (ANSI) as a means for exchanging large volumes of data securely. While the military and logistics industries were the first to make use of X12 EDI transactions, a wide variety of industries have created X12 transaction sets to serve their needs as well.
As technology has improved, so has the X12 protocol, which delivers real-time communication between trading partners around the world. Since X12 EDI transactions are highly secure, it is one of the preferred communication methods for governments and the international finance industry. In fact, X12 is the national HIPAA protocol that was mandated for health care transactions after Congress passed the Health Insurance Portability and Accountability Act (HIPAA) in 1996.
In general, X12 transmissions are broken down into three main elements:
Fortunately, you won’t have to worry about how the data within the X12 protocol is structured and organized because EDI software does that for us.
X12 transaction sets accommodate a wide variety of communications. Below are some of the most common uses:
View more EDI X12 t-sets here.
Although most businesses that use EDI don’t use X12 exclusively, it remains one of the most popular EDI protocols utilized today. The X12 protocol is the standard EDI protocol for a variety of industries because it’s fast, secure, and reliable.
In the digital age, where cyber security is a major concern, businesses prefer time-tested technologies that have proven themselves over and over. The X12 protocol meets the strict security standards of HIPAA regulations and government communications, exceeding the security needs of most small-to-medium-sized businesses that use EDI.
While you might expect a powerful technology to put a financial burden on your business, X12 EDI transactions are actually more cost-effective than other methods of communication – especially when you outsource to an affordable EDI VAN such as BOLD VAN.
In fact, businesses that switch to BOLD VAN save up to 80% on their EDI costs with our signature Trading Partner Pricing, while exchanging EDI data every month!
There’s no hardware to purchase, no software to configure, and no IT knowledge required. All you need is an internet connection to get started, and we handle everything else for you.
In addition to the X12 protocol, our EDI service allows you to use any EDI protocol you need, and we even handle EDI compliance for you to ensure you successfully exchange EDI data with all of your preferred vendors.
Contact us today to learn more!
Tags : COMPLIANCE, protocols