The rules on how each envelope or package of information should be structured and processed by the communications devices are called transmission protocols.
Value-added networks (VAN) are mailbox-type services in which the sender’s and receiver’s computers are never directly connected to each other. Instead, both parties to the EDI arrangement subscribe to a third-party VAN provider.
XBRL (extensible business reporting language) was created to decrease the costs of generating financial reports, reformulating information for different uses, and sharing business information using electronic media.
Point-to-point is the traditional EDI connection, where both parties have fixed computer connections, and the computers are used solely for EDI.
XML (extensible markup language) was developed by an international group of interested organizations as an open standard usable with many programs and platforms. XML codes all information in such a way that a user can determine not only how it should be presented but also what it is.
A point-of-sale (POS) system may directly transmit information to the seller, who can then deliver products on a JIT basis.
An electronic funds transfer (EFT) system allows for the electronic transfer of funds.
Documents in a traditional purchasing system are replaced with agreements between the buyer and seller evidenced by a long-term contract.