SPICE™

SPICE™ Glossary

The SPICE™ Glossary defines the EDI, supply chain and trading partner terms used across procure-to-pay, order-to-cash and logistics, in plain English.

Plain-English definitions of the EDI, supply chain and trading partner terms that come up when you connect your ERP to suppliers, customers, carriers and warehouses. Each entry explains what the term means, where it fits in procure-to-pay, order-to-cash or logistics, and how SPICE™ handles it.

New to EDI? Read EDI (electronic data interchange) and trading partner first, or talk to a platform specialist about your own trading partner program in plain English.

#

3PL (third-party logistics provider)A 3PL (third-party logistics provider) is a trading partner that performs outsourced logistics services, such as warehousing, order fulfillment, transportation management or freight forwarding, for another company.

A

Advance ship notice (ASN, EDI 856)An advance ship notice (ASN, EDI 856) is the X12 transaction a shipper sends before goods arrive, describing what is shipping, how it is packed and when it will arrive.ANSI X12ANSI X12 is the North American standard for EDI, defining the structure, codes and rules companies use to exchange business documents such as purchase orders, ship notices and invoices.API vs EDIAPI vs EDI compares two ways to exchange data: EDI sends standardized business documents between trading partners, while APIs let systems request and update data directly in real time.AS2AS2 (Applicability Statement 2) is a protocol for sending EDI and other business files directly and securely over the internet, using encryption, digital signatures and signed delivery receipts.

B

B2B integrationB2B integration is the automated exchange of business transactions, such as orders, ship notices and invoices, between a company's systems and those of its trading partners.Both sides of the transactionBoth sides of the transaction means managing the buying side (procure-to-pay with suppliers) and the selling side (order-to-cash with customers), plus the logistics between them, as one connected process.BYOC vs SaaSSaaS and BYOC (bring your own cloud) are two ways to run the same software: SaaS runs in the provider's cloud and is managed for you; BYOC deploys a dedicated instance inside your own cloud account.

C

CarrierA carrier is a trading partner that transports goods between locations, such as a trucking company (motor carrier), railroad, ocean line, airline or parcel service.Claims and deductionsClaims and deductions are amounts a buyer subtracts from or disputes on a supplier's invoice for shortages, damages, pricing differences, returns, promotions or compliance penalties.Cloud EDICloud EDI is EDI software and services delivered as a hosted service, so a company exchanges EDI documents without installing and running translation software on its own servers.Cost to serveCost to serve is the total cost of handling a customer's orders, from order entry and fulfillment to delivery, invoicing, disputes and support, used to judge each account's true profitability.Credit/debit adjustment (EDI 812)A credit/debit adjustment (EDI 812) is the X12 transaction one trading partner sends to notify the other of a credit or debit to an invoice or account, with the reason.Customer (order-to-cash trading partner)A customer, in B2B supply chain terms, is a trading partner that buys from your company, sending orders and receiving confirmations, shipment notices and invoices through your order-to-cash process.

D

Data pool (GDSN)A data pool is a certified product-data repository in the GS1 Global Data Synchronization Network (GDSN), through which suppliers publish standard item data to subscribing retailers and distributors.DealerA dealer is an independent business that buys products from a manufacturer or brand and resells, installs or services them for end customers, often in an assigned territory.Deployment options (SaaS and BYOC)Deployment options are the ways business software can be run: as SaaS in the provider's cloud, or as a dedicated instance in your own cloud (BYOC, bring your own cloud).Document digitization (beyond OCR)Document digitization is the process of turning PDFs, spreadsheets, scans and emailed documents into structured, validated data that business systems can process without manual entry.

E

EDI (electronic data interchange)EDI (electronic data interchange) is the computer-to-computer exchange of business documents, such as purchase orders, ship notices and invoices, between trading partners in a standard electronic format.EDI chargebacksEDI chargebacks are penalties a buyer deducts from a supplier's payment when its EDI documents are missing, late or inaccurate, or break the buyer's vendor compliance rules.EDI mappingEDI mapping is the set of rules that links each field in an EDI document to a field in another format, such as your ERP's, so data translates automatically.EDI testing and certificationEDI testing and certification is the process of checking that a trading partner's EDI documents meet your maps, data rules and test scenarios before you approve it for production.EDI transaction setAn EDI transaction set is one business document, such as a purchase order or invoice, formatted to the X12 standard and identified by a three-digit code like 850.EDI VAN (value-added network)An EDI VAN (value-added network) is a private, hosted network that receives, stores and forwards EDI documents between trading partners through electronic mailboxes, adding tracking and security.EDIFACTEDIFACT (UN/EDIFACT) is the international EDI standard maintained under the United Nations, defining the messages, segments and syntax companies use to exchange business documents across borders.ERP (enterprise resource planning)ERP (enterprise resource planning) is business software that runs a company's core processes, such as finance, purchasing, order management, inventory and manufacturing, on one shared database.Exception managementException management is the practice of detecting, prioritizing and resolving supply chain events that deviate from plan, such as missing acknowledgments, late shipments or mismatched invoices, before they reach customers.

F

Freight invoice (EDI 210)A freight invoice (EDI 210) is the X12 transaction a motor carrier sends to bill a shipper for moving a shipment, listing charges and the references needed to match them.Functional acknowledgment (EDI 997)A functional acknowledgment (EDI 997) is an X12 transaction set the receiver returns to confirm that a group of EDI documents arrived and whether they passed syntax checks.

G

Governed processA governed process is a business process in which every transaction follows defined rules, validations, approvals and service levels, with a full history, regardless of who sends it or how.GTIN (Global Trade Item Number)A GTIN (Global Trade Item Number) is a GS1 identifier that uniquely identifies a trade item, such as a product, pack or case, wherever it is sold or shipped.

H

Hybrid trading partnerA hybrid trading partner is a supplier, customer, carrier or 3PL that uses EDI for some transactions and another channel, such as a web workspace, spreadsheet or documents, for others.

I

Inventory inquiry/advice (EDI 846)An inventory inquiry/advice (EDI 846) is the X12 transaction trading partners use to share inventory levels and product availability, or to request that information from each other.Invoice (EDI 810)An invoice (EDI 810) is the X12 transaction a supplier sends to bill a buyer for goods or services, referencing the purchase order and listing quantities, prices, charges and terms.iPaaS (integration platform as a service)iPaaS (integration platform as a service) is a cloud platform for building, running and managing integrations between applications, data sources and systems, typically with prebuilt connectors and workflow tools.

L

Load tender (EDI 204)A load tender (EDI 204) is the X12 transaction a shipper sends to offer a shipment to a motor carrier, with pickup and delivery locations, dates, freight details and references.Logistics collaborationLogistics collaboration is the exchange of orders, status and invoices between a shipper and its carriers and third-party warehouses, so goods move as planned between suppliers and customers.

M

Managed EDI servicesManaged EDI services are an arrangement in which a provider runs some or all of a company's EDI program, including connectivity, mapping, trading partner onboarding, monitoring and support.

N

New item setupNew item setup is the process of collecting, validating and entering a supplier's product data into a buyer's systems so the item can be ordered, received, sold and paid for.Non-EDI trading partnerA non-EDI trading partner is a supplier, customer, carrier or 3PL that exchanges orders, shipment details or invoices with you by email, PDF, spreadsheet, phone or web instead of EDI.

O

Order lifecycle visibilityOrder lifecycle visibility is the ability to see each order's full history and status, from purchase order through acknowledgment, changes, shipment, receipt and invoice, in one connected view.Order-to-cash (O2C)Order-to-cash (O2C) is the selling process, from receiving a customer's order through confirmation, fulfillment, shipping and invoicing to collecting payment.OTIF (on time in full)OTIF (on time in full) is a delivery metric measuring the share of orders or lines that arrive within the agreed window and in the full quantity ordered.

P

Payment order / remittance advice (EDI 820)A payment order/remittance advice (EDI 820) is the X12 transaction a payer sends to explain a payment, listing the invoices paid, the amounts and any deductions or adjustments taken.Perfect orderA perfect order is an order delivered complete, on time, undamaged and with accurate documentation; the perfect order rate is the share of orders that meet every condition.PIM vs MDMPIM vs MDM compares product information management, which enriches product content for selling channels, with master data management, which governs core records such as products, customers and suppliers across systems.PO acknowledgment (EDI 855)A PO acknowledgment (EDI 855) is the X12 transaction a supplier sends to confirm whether it accepts, changes or rejects a buyer's purchase order, often line by line.PO change (EDI 860)A PO change (EDI 860) is the buyer-initiated X12 transaction used to request changes to a purchase order already sent, such as quantities, prices, dates, ship-to locations or lines.PO change acknowledgment (EDI 865)A PO change acknowledgment (EDI 865) is the seller-initiated X12 transaction that accepts or rejects a buyer's purchase order change, or proposes changes of the seller's own.Price/sales catalog (EDI 832)A price/sales catalog (EDI 832) is the X12 transaction a supplier uses to send product information and pricing to a buyer, such as item identifiers, descriptions, attributes and prices.Procure-to-pay (P2P)Procure-to-pay (P2P) is the full buying process, from raising a purchase order with a supplier through receiving the goods, matching the invoice and paying it.Purchase order (EDI 850)A purchase order (EDI 850) is the standard X12 transaction a buyer sends to a supplier to place an order, listing items, quantities, prices, dates and ship-to locations.

R

Response to load tender (EDI 990)A response to load tender (EDI 990) is the X12 transaction a motor carrier sends to accept or decline a shipment offered to it in a load tender (EDI 204).Routing instructions (EDI 754)Routing instructions (EDI 754) is the X12 transaction a buyer sends to tell a supplier how to ship an order, including the carrier, pickup timing, load references and shipping requirements.

S

SFTPSFTP (SSH File Transfer Protocol) is a secure method for transferring files over an encrypted connection, commonly used to exchange EDI, flat files and spreadsheets with trading partners.Shipment status (EDI 214)A shipment status (EDI 214) is the X12 transaction a carrier sends to report a shipment's progress, such as pickup, arrival, delays and delivery, with dates, times and locations.SKU (stock keeping unit)A SKU (stock keeping unit) is a code a company assigns to each distinct item it stocks or sells, such as a specific size and color, to track inventory.Supplier (vendor)A supplier, also called a vendor, is a trading partner that sells goods, materials or services to your company, receiving your purchase orders and sending confirmations, shipment notices and invoices.Supplier enablementSupplier enablement is the work of bringing suppliers onto a buyer's electronic procure-to-pay process, so they can receive orders and send confirmations, shipment notices and invoices in the required format.Supplier scorecardA supplier scorecard is a report that rates a supplier on agreed measures such as on-time delivery, fill rate, document accuracy and invoice accuracy, to guide performance reviews.Supply chain collaboration platformA supply chain collaboration platform is software that connects a company's ERP with its trading partners so orders, shipments, invoices and product data move through one shared, rules-based process.

T

Three-way matchA three-way match is an accounts payable control that checks a supplier's invoice against the purchase order and the receiving record before the invoice is approved for payment.Trading partnerA trading partner is any outside company you exchange business transactions with, such as orders, shipment notices, invoices or product data, including suppliers, customers, carriers and 3PLs.Trading partner ecosystemA trading partner ecosystem is the full set of suppliers, customers, dealers, carriers and 3PLs a manufacturer, retailer or distributor exchanges orders, shipments, invoices and product data with.Trading partner onboardingTrading partner onboarding is the process of connecting a new supplier, customer, carrier or warehouse to your systems, from requirements and setup through testing to live production transactions.

V

Vendor complianceVendor compliance is the set of rules a retailer or other buyer requires its suppliers to follow for orders, EDI documents, labeling, packing, shipping and delivery, usually enforced through chargebacks.

W

Warehouse shipping advice (EDI 945)A warehouse shipping advice (EDI 945) is the X12 transaction a third-party warehouse sends to confirm that an order has shipped, with quantities, carrier and tracking details.Warehouse shipping order (EDI 940)A warehouse shipping order (EDI 940) is the X12 transaction a company sends to a third-party warehouse instructing it to pick, pack and ship specific goods to a specified destination.

FAQ

Frequently asked questions

What is an EDI glossary?

An EDI glossary explains the standards, documents and processes used when companies exchange business transactions electronically, such as X12 transaction sets, AS2 and VANs, and processes like procure-to-pay and order-to-cash. This glossary also covers the trading partner roles and supply chain terms that come up in those programs.