Glossary

General Terms

ANSI (American National Standards Institute)

ANSI sets U.S. technical standards, including the X12 EDI format.

API (Application Programming Interface)

An API lets two systems talk in real time — like checking orders, updating inventory, or sending shipment info instantly.

Automation

Automation removes manual steps. Orders flow in, invoices go out, shipments get booked — without typing or uploading files.

Data Integration

Data integration connects systems so info moves automatically between your ERP, TMS, WMS, and accounting software.

EDI (Electronic Data Interchange)

EDI is a standard way to send business documents electronically, like orders and invoices, system-to-system.

ERP (Enterprise Resource Planning)

A big software system that runs core business functions like finance, HR, manufacturing, and supply chain.

System Integration

System integration links your business apps so they work as one — like connecting ERP, TMS, WMS, and more.

TMS (Transportation Management System)

Software that manages logistics and transportation operations, from routing and loads to fleet management.

WMS (Warehouse Management System)

Software to manage warehouse operations — tracking inventory, optimizing storage, and order fulfillment.

X12

The standard EDI format in North America, ensuring companies can exchange orders, invoices, and shipment updates.

Retail EDI Document Types

Advance Shipping Notice (EDI 856)

A heads-up that a shipment is on the way. Tells the retailer what’s in the box, how it’s packed, and when to expect it.

Invoice (EDI 810)

The electronic version of an invoice. Details what was shipped, the prices, and how much is owed.

Order Acknowledgment (EDI 855)

A supplier’s response to a purchase order. Confirms whether the order is accepted, rejected, or needs changes.

Purchase Order (EDI 850)

A digital purchase order with items, quantities, prices, and delivery details.

Purchase Order Change (EDI 860)

Used when the buyer needs to make a change to an existing purchase order.

Transportation EDI Documents

Freight Invoice (EDI 210)

The electronic bill a carrier sends after delivering a shipment. Includes charges like mileage and fuel.

Load Tender (EDI 204)

A digital request to a carrier to pick up and deliver a shipment. Includes all shipment details.

Shipment Status Update (EDI 214)

Real-time updates about a shipment—pickup times, location, and delivery confirmation.

Tender Response / Acceptance (EDI 990)

The carrier’s reply to a load tender, confirming whether they’ve accepted or rejected the shipment.

Warehouse EDI Documents

Warehouse Receipt Advice (EDI 944)

Sent after the warehouse receives an inbound shipment. Confirms quantities received.

Warehouse Shipping Advice (EDI 945)

The warehouse’s way of confirming, “It’s on the truck.” Lists what was shipped and when it left.

Warehouse Shipping Order (EDI 940)

Tells a warehouse exactly what to ship, where it’s going, and how much to send.

Warehouse Stock Transfer Shipment Advice (EDI 943)

Sent when inventory is moving between facilities, so the receiving warehouse knows what to expect.

Integration + Communication Protocols

Advanced File Transfer

Builds on FTP/SFTP with enterprise features like encryption, delivery confirmations, and audit trails.

EDI VAN (Value-Added Network)

A managed network service that securely routes, translates, and tracks EDI documents between trading partners. Provides delivery confirmations and reduces the need for direct point-to-point connections.

FTP / SFTP

Methods to transfer files between systems. SFTP adds encryption for secure transfers.

Web EDI

A browser-based approach to EDI that lets smaller or less-technical trading partners log in to a web portal to send and receive standardized business documents without needing a full in-house EDI system.

Web Services

Internet-based ways to send or receive data. Often used in API-driven integrations.

Data Formats + Structures

CSV (Comma-Separated Values)

Simple format for storing rows of data in plain text, often used for bulk uploads or exports.

EDIFACT

Global EDI standard used more often in Europe and international supply chains.

Flat File

A plain text file with structured data, like CSVs or tab-delimited files.

JSON (JavaScript Object Notation)

Lightweight data format used in APIs. Flexible, fast, and developer-friendly.

XML (eXtensible Markup Language)

Structured data format still common in enterprise systems and API responses.

X12

North America’s most widely used EDI format. Structures documents like POs, invoices, and shipping notices.

Logistics Roles

3PL (Third-Party Logistics Provider)

Manages logistics services on behalf of another business—warehousing, transportation, fulfillment.

Broker

Connects shippers with carriers. Helps find capacity, negotiate rates, and streamline load tenders.

Carrier

The company responsible for physically transporting goods.

Shipper

The company that initiates a shipment. Relies on EDI/API for load tenders, tracking, and confirmations.

Supplier

Provides the products or materials. Often sends/receives POs, invoices, and advance ship notices.

Trading Partner

Any company you exchange business documents with—retailers, suppliers, warehouses, carriers.

Security + Compliance and Other Terms

Authentication

Verifies who or what is connecting to your system, keeping data secure from the wrong parties.

Disaster Recovery

Plan to get systems back online after outages caused by attacks, failures, or disasters.

Encryption

Protects data in transit and at rest, ensuring only the right systems can read it.

Resilience

Your system’s ability to keep running even when something goes wrong.

Secure Transmission

Ensures documents move safely between systems without being intercepted or altered.

SOC 2

A trusted audit framework that shows an EDI VAN or API provider can handle sensitive data responsibly.

Uptime

The percentage of time a system is available and running without interruption.

Integration Approaches

B2Bi (Business-to-Business Integration)

The systems and processes that connect one business to another, via EDI, APIs, or both.

Document Conversion

Turns unstructured files (PDFs, Excel, Word) into clean, structured data your systems can use.

EDI Outsourcing (Managed Services)

Working with a partner to handle the technical side of EDI—connections, mappings, and trading partners.

Hybrid Integration

Mix of automation + manual support. Uses both API and EDI to connect with large and small partners.

In-House Integration

Your internal team builds and manages EDI/API connections. Often supported by external experts.