Electronic Data Interchange (EDI) emerged in the late‑1970s as companies looked for a faster way to exchange information than paper mail. Different organizations around the world were developing rules for formatting electronic documents, and two major “languages” eventually gained traction: X12 and EDIFACT. Both standards enable machines to exchange purchase orders, invoices, shipment notices, and other business documents without human intervention, but they were shaped by different regional needs and industries. We’ll take a quick look at how the two standards evolved, their key similarities and differences, and why EDI persists after more than five decades.
X12 – The North American EDI Standard
X12 was created in 1979 under the by the Accredited Standards Committee X12 (ASC X12) in the U.S. The goal was to standardize business document exchanges in the United States. Today, it is the most common EDI standard across North America, with more than 300 transaction sets covering communications, finance, transportation, supply chain, healthcare, and insurance.
X12 is more than a data “language”, it also refers to a chartered, non-profit organization accredited by The American National Standards Institute.
If you’re new to EDI, this might be a bit confusing.
X12 (the organization) creates, maintains, and publishes EDI standards used primarily in North America. They’re the “rule makers” behind the standard. You can find them online at x12.org.
The X12 standard refers to the actual EDI format that companies send back and forth. This is what people usually mean when they say, “we use X12.”
Different Document Types for Different Industries
The X12 committee quickly realized that different industries need different information, even when they’re using the same EDI “language.” A healthcare transaction doesn’t look the same as a grocery order or an automotive shipment. So instead of forcing every business to follow one rigid format, the X12 standard includes industry-specific versions (often called subsets) like HIPAA (healthcare), UCS (grocery/retail), and AIAG (automotive).
These subsets still follow the main X12 rules, but they add extra guidance for that industry, like which fields are required, which codes must be used, and what details must be included to make the transaction accurate and usable. The core X12 standard is the foundation, and the subsets help make sure the data fits the real-world needs of each industry.
EDIFACT – The Standard for Europe, Asia, and Cross-Border Trade
Across the Atlantic, the United Nations Economic Commission for Europe (UNECE) wanted an EDI standard that could work for market participants in different countries. That effort led to UN/EDIFACT (United Nations Electronic Data Interchange for Administration, Commerce and Transport). It became an ISO standard in 1987 and is still widely used in Europe and many parts of Asia, especially for international and cross-border trade.
In EDIFACT, information is sent using “messages.” They’re the same idea as X12 documents, but they’re named differently. For example, an X12 Purchase Order is 850, while an EDIFACT Purchase Order is often called ORDERS.
These messages are usually packaged together in one file (called an interchange), and that file can include more than one message at a time. EDIFACT also has its own formatting rules, like how the file is separated into pieces, and it can include a short optional section that tells the system which separators (think of these like the punctation marks to start, stop, and modify the data) that the file is using. And if a company needs extra protection, EDIFACT can also support optional security features like identity verification and encryption.
Comparing the Standards
Although both standards accomplish the same goal, electronically exchanging business documents, they’re different in several ways:
| X12 | EDIFACT | |
|---|---|---|
| Where it’s used most | Mostly North America (U.S. + Canada) | Mostly Europe + Asia, and common for global trade |
| Who created it | A North America-based standards group called X12 | The United Nations (UNECE) |
| What the documents are called | Uses numbers (like 850 for a purchase order) | Uses names/words (like ORDERS for a purchase order) |
| How it’s organized | Bundles transactions into a file using a “grouping” structure | Bundles messages into a file with a slightly different structure |
| How it “looks” | Very structured and consistent (common in U.S. supply chains) | Similar idea, but the labels and formatting are different |
| Industry rules | Has specific versions for industries (healthcare, retail, automotive, etc.) | Has common industry versions too (especially retail and international shipping) |
Geography: X12 is most used in the United States and Canada, while EDIFACT is favored by companies in Europe and Asia. Mexico and South America use a mix of both standards. X12 standards are maintained by the ASC X12 committee; EDIFACT is governed by UNECE and the ISO.
Document naming and terminology: X12 identifies each document with a three‑digit numeric code (for example, 850 is a purchase order). EDIFACT uses a combination of letters and numbers; the purchase order message is called ORDERS.
Industry specialization: X12 has lots of different document types, and it also has industry-specific versions for things like healthcare, retail, automotive, and shipping. There are hundreds of X12 standards because different industries need different details.
EDIFACT is more “one universal system.” It uses a common set of message types that are meant to work across industries. Instead of official industry subsets, companies usually follow extra industry or trading-partner guidelines to make sure everyone uses the messages the same way.
Message separators: Separators are the special characters in an EDI file that tell the data how to behave, for example, where to start and stop. Separators control segments, a segment “line” of information in an EDI document, like an address line, a date line, or an item line. Each segment has a label that tells you what kind of information it contains.
X12 usually uses a star (*) to separate pieces of information, and a tilde (~) to mark the end of a line (segment). EDIFACT uses symbols like plus (+) and colon (:) to split up information, and it can also include a short line at the start that tells you which symbols the file will use.
The bottom line: X12 and EDIFACT standards will look different.
Here are two examples of X12 and EDIFACT side by side.
| X12 | EDIFACT |
|---|---|
ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID * 260206*1130*U*00401*000000905*0*P*> GS*IM*SENDERID*RECEIVERID*20260206*1130*905*X*004010 ST*210*0001 B3*INV123456*PP*20260205*1250.00***20260201*SCAC C2*USD N9*BM*BOL987654 N9*PO*PO456789 N1*SH*ACME SHIPPER N3*123 SHIPPER ST N4*CHICAGO*IL*60601*US N1*CN*ACME CONSIGNEE N3*789 CONSIGNEE AVE N4*KANSAS CITY*MO*64101*US LX*1 L5*1*FREIGHT CHARGE L0*1***1250.00 SE*17*0001 GE*1*905 IEA*1*000000905 |
UNB+UNOA:1+SENDERID+RECEIVERID+260206:1130+905' UNH+1+IFTMIN:D:99B:UN' BGM+380+INV123456+9' DTM+137:20260205:102' DTM+2:20260201:102' CUX+2:USD' RFF+BM:BOL987654' RFF+ON:PO456789' NAD+CZ+ACMESHIPPER::16' ADR++123 SHIPPER ST' LOC+7+CHICAGO' LOC+ZP+60601' LOC+IS+US' NAD+CN+ACMECONSIGNEE::16' ADR++789 CONSIGNEE AVE' LOC+7+KANSAS CITY' LOC+ZP+64101' LOC+IS+US' GID+1' FTX+AAI+++FREIGHT CHARGE' MOA+203:1250.00' UNT+19+1' UNZ+1+905' |
Why We Still Use X12 and EDIFACT Today
X12 and EDIFACT may look different on the page, but they share the same long-term advantage: they’re proven standards that keep critical business data moving. That staying power is why EDI remains a foundation of technology in supply chain, logistics, retail, healthcare, and beyond. Over time, the industry hasn’t replaced EDI so much as modernizing how it’s managed — improving visibility, reducing manual work, and making partner connections faster. The formats have history, but their role in modern commerce is still very real.
X12 and EDIFACT are two major EDI standards used to exchange business documents electronically.
X12 is most common in North America and uses numeric transaction set codes (like 850). EDIFACT is widely used for international trade and uses messages (like ORDERS).
X12 can mean two things:
• ASC X12 (the standards organization in the U.S.)
• The X12 EDI format companies use to send transactions (what most teams mean when they say “we use X12”)
EDIFACT stands for Electronic Data Interchange for Administration, Commerce and Transport.
It’s often called UN/EDIFACT because it was developed through the United Nations (UNECE).
X12: mostly United States and Canada
EDIFACT: widely used in Europe and many parts of Asia, especially in cross-border trade
Mexico and South American countries use a mix of both EDIFACT and X12 depending on the trading partner and business requirements.
A transaction set is a specific X12 document type identified by a three-digit number, such as:
850 = Purchase Order
810 = Invoice
856 = Advance Ship Notice (ASN)
An EDIFACT message is the EDIFACT version of a business document, such as:
ORDERS = Purchase Order
INVOIC = Invoice
Yes. Both standards exchange the same types of business documents (orders, invoices, shipping notices). The biggest differences are formatting rules, naming, and regional adoption.
Yes. X12 includes industry-specific subsets (often called “guides” or “variants”) so industries like healthcare, retail, and automotive can standardize required fields and rules while still using core X12 structure.
No, most companies use the standard that fits their trading partners, region, and industry requirements. In real-world EDI, compatibility matters more than preference.
Yes. Many organizations support both, especially if they operate in multiple regions. A common setup is:
• X12 for North American partners
• EDIFACT for international partners
An EDI VAN (Value-Added Network) simplifies and secures the exchange of X12 and EDIFACT transactions across your trading partner network. Instead of managing separate AS2 connections, certificates, and delivery monitoring for each partner, a VAN provides a centralized hub for routing, tracking, confirming delivery, and resolving issues quickly.
At Kleinschmidt, we go beyond basic message routing.
We specialize in EDI translation and managed integration services, supporting not only X12 and EDIFACT, but also XML, JSON, and flat-file formats.
For example:
If your ERP system (such as SAP) generates an IDOC XML ASN, but:
• Your North American partners require X12 856
• Your European partners require EDIFACT DESADV
We can translate that single XML source file into both standards automatically. You maintain one internal workflow while your partners receive the format they require.
We manage complex mapping, partner-specific implementation guides, compliance changes, and ongoing maintenance.
The result: reliable connectivity, accurate data translation, and scalable EDI management across regions and formats.
