EDI Fundamentals: The Supplier’s Guide to Retail Integration

• May 27, 2025 • 25 min read

EDI Fundamentals: The Supplier’s Guide to Retail Integration

You just closed a deal with a major retailer—maybe Walmart, maybe Target. It sounded like a win until someone casually dropped:

“You’ll need to have EDI and ERP ready before you can receive POs.”

Now you’re Googling what EDI even means while trying to figure out if your current systems are remotely compatible with anything. You’re not alone.

Thousands of suppliers find themselves in this exact situation every year. No one told you about UCC-128 labels, 997 acknowledgments, ASNs, or VANs when you were building your product line. But now they’re mandatory.

This guide is for you.

Not for IT managers.

Not for consultants.

For operational leaders, founders, and supplier-side teams who just want to get compliant and start shipping without screwing up their first big opportunity.

We’ll walk you through what EDI is, why it matters, what it really takes to implement, and how to avoid the most common and expensive mistakes.

We won’t bore you with theory; everything we write is battle-tested throughout the years of integrating all sorts of EDIs for our clients.

Let’s start at zero.

What Is EDI and Why Retailers Won’t Work Without It

EDI (Electronic Data Interchange) is how big retailers like Walmart, Amazon, and Target talk to suppliers—digitally, formally, and with no tolerance for sloppiness.

It’s not just some backend software add-on.

It replaces email, PDFs, phone calls, and spreadsheets.

Instead of sending a purchase order as a PDF and waiting for someone to enter it manually into your system, the retailer sends you a standardized electronic file (an EDI 850). Your system processes it automatically. You reply with an Advance Ship Notice (EDI 856), then send the Invoice (EDI 810), and so on.

We know it sounds a bit complicated, but you’ll eventually come to understand it.

Here’s what makes it non-negotiable:

Volume: Retailers issue millions of orders daily. Humans can’t keep up. EDI allows machines to talk—fast.
Accuracy: Every EDI message must be perfectly structured. No typos, no missing fields. If it's wrong, you’ll be fined.
Accountability: Every document is tracked, timestamped, acknowledged (with a 997), and audited. You’re either compliant or you’re in violation.

Retailers don’t use EDI because it’s fancy. They use it because without it, the system breaks.

No ASN? The truck doesn’t unload.

Mismatched invoice? You don’t get paid.

That’s the level of operational dependence we’re dealing with.

So when a retailer says “you must be EDI-capable,” what they really mean is:

You need to speak their exact data language.
You need to respond to every document correctly.
You need to do it automatically, reliably, and on their terms.

If you don’t, you’ll delay onboarding—or worse, start racking up chargebacks before you’ve shipped your first unit.

How EDI Works in the Real World (and What It Replaces)

Imagine you’re fulfilling an order from Walmart. Here’s what the full lifecycle looks like—with EDI, and then without it, just so you understand the magnitude of what’s being replaced.

With EDI (the retailer’s expectation):

Retailer sends a Purchase Order (EDI 850) → You receive it instantly, mapped to your system.
You send a Purchase Order Acknowledgment (EDI 855) → Confirm what's being shipped and flag backorders.
You pack the order, then send an Advance Ship Notice (EDI 856) → Walmart’s DC is now prepped to receive exactly what’s coming.
You ship. A UCC-128 barcode label matches the ASN. → They scan the label; if data matches, it's processed in minutes.
You send an Invoice (EDI 810) → Walmart runs a 3-way match: PO + ASN + Invoice.
They send a Remittance Advice (EDI 820) → You’re paid. Cleanly.

Without EDI (which is not accepted):

Retailer emails you a PDF PO
Someone on your team manually enters it into your ERP
You ship the goods
You forget to notify them in advance—DC isn’t ready
Products are rejected or delayed
You email an invoice
It doesn’t match their PO
Your payment is delayed 30–60 days
You get hit with chargebacks for labeling errors and late ASN
Your buyer is pissed

Ouch.

"Do I Need to Learn All This?” (No. But Someone on Your Side Does.)

You’re not wrong—EDI sounds like a foreign language at first. 850s, 856s, AS2 protocols, UCC-128 labels—it’s a technical maze.

Here’s the good news:

You don’t need to become an EDI expert.

But you do need to take it seriously, because the moment you’re live with a big retailer, EDI mistakes become expensive problems.

What does this look like day-to-day?

If you use a web portal (aka web-EDI), someone on your team will:

Log in daily to check for POs
Manually acknowledge orders
Upload shipment data and invoices
Print labels for boxes

It’s like doing admin work with a very unforgiving system. It works—but it doesn’t scale.

In contrast, if you’re fully integrated:

Orders arrive directly into your ERP or WMS
Shipments and invoices are auto-generated
You still monitor alerts—but you’re not entering line items manually

This is how mature suppliers operate. Clean. Scalable. Fewer errors.

How CrossBridge helps:

We work with suppliers across industries to handle all of this for you—from initial EDI setup to full ERP integration (and much more). Whether you’re using NetSuite, SAP, or QuickBooks, our team migrates you to our proprietary ERP (thus eliminating your potentially high ERP fees), then our team:

Implements and tests your EDI with each retailer
Manages the document flow and compliance rules
Monitors for chargeback risks
Ensures the ERP and warehouse systems are mapped correctly

You focus on product, fulfillment, and growth.

We make sure the backend doesn’t blow up.

Curious to learn more? Schedule a free 30-minute strategy call, where we will provide clarity on your next few moves.

Key takeaway: EDI eliminates the chaos of manual order handling. It creates a synchronized pipeline where the retailer’s systems talk directly to yours. When done right, your team barely touches anything—orders flow in, shipments flow out, invoices get paid.

But here’s the catch: You don’t get to decide the format, timeline, or method. Retailers dictate it. You just have to comply. And each one does it differently.

Which brings us to the actual documents you’ll be required to send. Let’s break them down.

Core EDI Documents You’ll Be Required to Send

Every retailer has their quirks, but nearly all use the same core EDI documents to control the flow of goods, shipments, and payments.

Here’s what you’ll be expected to send or receive—broken down by tier of urgency and complexity.

Tier 1 – Mandatory for Every Supplier

These four are non-negotiable. You will deal with them.

850 – Purchase Order: This is how you receive orders. It contains item SKUs, quantities, pricing, shipping location, and due dates. Every EDI relationship starts here.
856 – Advance Ship Notice (ASN): This tells the retailer what you’re shipping and when. It must match your packaging exactly (down to the box level) and include tracking numbers and barcode info. If it doesn’t? Expect chargebacks.
810 – Invoice: Your electronic bill for what you shipped. No EDI invoice, no payment. It must match the PO and ASN precisely—item, quantity, price, terms.
997 – Functional Acknowledgment: You won’t write this manually—your EDI system will send it automatically. It confirms that you received a document (like an 850) and that it was valid at the technical level. If you don’t send these, retailers will assume you’re not compliant.

Tier 2 – Common but Retailer-Dependent

Some retailers require these. Others don’t. But you’ll encounter them often.

855 – PO Acknowledgment: You confirm whether you accept the order as-is, or need to reject/modify parts. Amazon uses this to reduce chargebacks.
860 – PO Change: Sent by the retailer if they revise an order. You’ll need to be able to handle these dynamically—especially if you’re working with Target or Amazon.
820 – Remittance Advice: Payment confirmation. Tells you what’s being paid, when, and if anything was deducted. Walmart sends these. Not all retailers do.
812 – Credit/Debit Adjustment: If there’s a deduction (e.g., damaged goods, overcharge), it’ll be sent here. You’ll use this for reconciliation.

Tier 3 – Advanced or Specialized

These depend on your fulfillment model (e.g., drop-ship, collect freight, VMI).

753 / 754 – Routing Request / Instructions: Used when the retailer arranges pickup (collect terms). You request a pickup (753), they reply with instructions (754). Amazon uses this.
846 – Inventory Feed: You send available inventory to the retailer (used in dropshipping or vendor-managed inventory).
852 – POS / Product Activity Report: Some retailers (like Target) send you sales and inventory data via EDI so you can plan replenishment. This is inbound to you, not something you send.

Labels, Not Just Documents

Retailers require GS1-128 (UCC-128) barcode labels on every carton or pallet. These labels are generated based on the ASN and are scanned on delivery.

Wrong or missing label? Expect your shipment to be rejected—or fined.

“Are You Sure I Don’t Need to Understand All These?”

No—but your EDI partner does.

Most suppliers only need to work with the core 4–6 documents for each retailer. The others are layered based on retailer preference and how you ship.

When CrossBridge sets up your EDI flow, we align your system with the specific documents each retailer requires—and ensure nothing goes missing or mismatched. Whether you’re shipping from your warehouse or a 3PL, we handle the routing, labeling, and compliance edge cases, so you don’t need to memorize document codes.

EDI vs API: Why Retailers Don’t Just “Use an API Instead”

If you're coming from a modern tech environment, the first question that pops up is:

"Why are we still using EDI? Why not just connect to their API?"

Totally valid question. But in retail, the answer isn’t about what's newer—it's about what's proven to work at scale across thousands of suppliers.

Two Technologies, Two Philosophies

EDI is built for structured, scheduled, high-volume transactions. It handles shipping confirmations, invoices, routing, and payments—all in formats retail systems have enforced for decades.
APIs are built for real-time, flexible, lightweight interactions. Great for product lookups, account updates, or shipping rates—not complex order orchestration across multiple systems.

Retailers don’t use EDI because they can’t build APIs. They use it because:

It integrates with legacy ERP, WMS, and finance systems already in place.
It enforces validation rules that match their internal workflows.
It scales better across varied partners with minimal tech variability.

When APIs Are Used

Some platforms do offer API options, but only in specific contexts:

Amazon allows vendors to choose between EDI or their JSON API—but even then, the API mirrors EDI structures.
eCommerce platforms (like Shopify or WooCommerce) use APIs for front-end operations, but retail distribution (Costco, Target, Walmart) stays on EDI.

APIs are faster to work with from a dev standpoint, but they don't replace the deeply embedded, standardized EDI flows required by most retailers.

So Which One Do You Need?

If you’re selling into major retailers, the answer is simple:

EDI is required.

Even if you build your own system, you’ll be forced to map it to their EDI specs—or use a provider that does it for you.

What matters most isn’t the protocol—it’s the accuracy, compliance, and synchronization of your data. Whether the file moves over AS2, SFTP, or HTTPS doesn’t change the expectation: orders flow in, shipments flow out, documents match.

What CrossBridge Delivers

We don’t push a tech ideology.

We build systems that let you say "yes" to any retailer request—EDI, API, custom feed, or otherwise.

Behind the scenes, we maintain:

EDI-to-ERP pipelines for all major retailers
API bridges where flexibility helps (e.g. syncing Shopify with our proprietary ERP system)
Consistent compliance, no matter the protocol

This way, your team stays out of the protocol weeds, and we make sure everything talks to everything, cleanly.

ERP Systems and Why EDI Alone Isn’t Enough

Getting EDI up and running is only half the equation. Once you're exchanging documents with your retailer, the real question becomes:

Where does that data go inside your business?

If the answer is “we print the PO and hand it to the warehouse,” you're headed for friction.If the answer is “it creates a sales order in our ERP automatically,” you're aligned.

Why EDI Is Only a Delivery Mechanism

To put it simply:

EDI delivers data to you.
Your ERP (Enterprise Resource Planning system) determines what happens next.

More specifically:

EDI 850 → becomes a sales order in your ERP
EDI 856 → built from your ERP’s shipment record
EDI 810 → generated based on fulfillment, pricing, and terms in ERP

If your ERP isn't connected to your EDI system, then:

Orders are retyped
ASNs are built manually
Invoices get exported from Excel
Human errors create chargebacks

Which defeats the entire point of having EDI in the first place.

Common ERP Platforms We See in Supplier Workflows

Most suppliers expanding into big-box retail are on one of the following:

ERP	Common Use Case
NetSuite	DTC brands scaling into retail; clean APIs for integration
SAP (Business One, S/4HANA)	Large or global manufacturers
Microsoft Dynamics (BC, F&O)	Mid-market brands and wholesalers
QuickBooks	Still used by smaller suppliers with manual fulfillment
Homegrown systems	Legacy warehouses, specialty manufacturers

Each comes with different capabilities—and different levels of integration readiness.

Some require middleware or EDI connectors; others can’t handle EDI natively at all.

In our experience, clients usually hate how slow & expensive most of these ERP systems are. Especially requiring dozens of consultants to integrate new functionality, which easily brings the costs up.

Integration = Sustainability

Here’s what happens when EDI and ERP aren’t integrated:

Orders stack up in your EDI portal waiting for someone to notice
A team member miskeys an order for 100 units instead of 10,000
Shipment leaves but ASN is forgotten → warehouse rejects the delivery
Invoices don’t match shipped quantities → payment is delayed 60+ days

And here’s what happens when they are integrated:

Orders populate instantly in your ERP
Fulfillment triggers the ASN automatically
Pricing and payment terms match cleanly
Invoices reconcile with zero touch

If you're planning to scale with retail, full integration isn't a luxury—it’s required infrastructure.

Should You Use a Portal or Fully Integrate?

You’re about to set up EDI. That leads to one of the first and most practical decisions you’ll face:

Do you want to use a web portal to handle orders manually, or integrate EDI directly into your ERP and fulfillment systems?

Each path is valid. Only one of them scales.

Option 1 – Web Portal (Manual EDI)

This is the starting point for many smaller suppliers. Your EDI provider gives you access to an online portal where you:

Log in to download POs
Manually confirm or reject line items
Key in shipment data for ASNs
Generate and print UCC-128 labels
Manually create invoices in the system

When this works:

You're dealing with 1–2 retailers
You're shipping under 10 orders per day
You’re not using an ERP, or it’s too rigid to integrate right now
You need something live fast (some portals can be ready in 1–2 weeks)

But:

It’s labor-intensive
Easy to make human mistakes
Impossible to scale beyond a few accounts
You still need to monitor deadlines and compliance daily

Think of it as training wheels. Fine to start, but not a long-term solution.

Option 2 – Fully Integrated EDI + ERP Workflow

This is the path mature suppliers take—whether they grow into it or start here.

With an integrated setup:

POs auto-import into your ERP as sales orders
ASNs generate from your fulfillment system
Invoices pull from shipped line items with no duplicate entry
Label printing happens from inside your WMS or ERP
997s, 855s, etc. send automatically without human involvement

When this is the right move:

You’re shipping daily to multiple retailers
You have a fulfillment team that can’t afford bottlenecks
Your ERP is ready for integration
You want to reduce support overhead and chargeback risk

At CrossBridge, we don’t do patchwork.

We deliver fully integrated ERP + EDI infrastructure from day one.

If you’re not ready to standardize on an ERP that supports automation and clean data flow, we’re simply not the right partner.

Why?

Because anything less creates bottlenecks:

Portals waste headcount
Manual data entry invites compliance risks
Scaling becomes reactive instead of systematic

We provide an end-to-end setup that connects EDI, ERP, fulfillment, and financials into a single flow. That means:

POs become orders inside your ERP
Shipments trigger compliant ASNs with labels auto-generated
Invoices and remittance data stay reconciled without spreadsheets
Your ops team monitors—not manages—daily EDI

This isn’t even a premium tier.

This is baseline infrastructure for working with retailers at scale.

If you're onboarding Walmart, Target, Amazon, or any major retailer, full ERP integration isn’t a nice-to-have.

It’s table stakes—and we make sure you hit that mark from the start.

How to Choose the Right EDI Provider (and Spot the Traps)

Most suppliers only go through this process once, and unfortunately, many choose wrong. EDI vendors vary wildly in cost structure, onboarding time, support quality, and long-term flexibility.

Choosing the wrong one means:

Missed retailer deadlines
Months of back-and-forth just to go live
Fees for basic changes
Constant escalations for issues that never get resolved

Here’s how to evaluate a provider before they become a problem.

What Actually Matters (Ignore the Marketing)

Forget vague claims about being “retail-ready” or “plug-and-play.” Focus on these specific capabilities:

Retailer-specific experience: Ask which retailers they’ve set up recently. If they don’t have Walmart, Amazon, Target, Costco, and others in your pipeline, walk away.
Integration with your ERP: Most EDI providers say they integrate with NetSuite, SAP, Dynamics, etc.—but ask to see how that actually works. Is this integration native? Middleware? Manual file drops?
Map management: Who edits your EDI maps when a retailer changes formats? Do you need to file a support ticket and wait 2 weeks—or is it handled proactively?
Label compliance: Can they generate UCC-128 labels from your ERP data automatically? If not, you’ll be stuck in a semi-manual loop.
Testing and onboarding speed: Some providers take 2–3 months to finish testing with a single retailer. That’s unacceptable if you’ve already signed the vendor agreement.
Support responsiveness: Chargebacks don’t wait. If something breaks, will you be talking to a support desk—or an actual EDI expert?

Real-World Provider Feedback (From Suppliers)

We’ve reviewed hundreds of supplier experiences, and here’s what you’ll find again and again:

Provider	Known For	Common Complaints
SPS Commerce	Largest retail EDI network, deep retailer compliance	Portal-heavy if unmanaged; integration requires external planning
TrueCommerce	Mid-market fit, ERP-friendly tools	May require active project oversight; delays if left unowned
Cleo	Strong integration tools	Not beginner-friendly, requires in-house IT
Babelway / OpenText / DiCentral	Specialized compliance	High setup complexity, minimal guidance

Many of these vendors focus on "just getting you compliant." These aren’t bad platforms.

They’re infrastructure, and some of them are our partners.

What CrossBridge Brings to the Table

We partner directly with leading EDI platforms—including SPS and TrueCommerce—and act as your hands-on operations layer to ensure:

EDI maps match retailer and ERP logic end-to-end
Integration timelines are defined, owned, and met
Label generation flows from your actual fulfillment data
Every EDI document connects cleanly into your ERP
You know who to contact when something fails—and it’s us

You still use the industry-standard platform.

But instead of navigating it alone, you’re backed by a team that’s been through this with dozens of suppliers, across every major retailer.

What It’ll Cost: Real-World Ranges by Company Size

EDI isn’t expensive because of the software.

It’s expensive when it's done wrong, scoped poorly, or left to drift.

If you’re getting into retail distribution, you’ll be paying for:

EDI platform access (monthly fees, per-transaction or partner)
Integration work (initial setup + ongoing changes)
Support and monitoring (unless internalized)
Compliance and chargeback mitigation (whether reactive or automated)

Let’s break it down by company stage.

Tier 1 – Early Stage or Manual Ops (Web Portal Only)

Who this is for: Small suppliers just entering retail with 1–2 accounts, minimal volume, no ERP.
Platform Cost: $100–$400/month (SPS, TrueCommerce, B2BGateway)
Per Partner Setup: $300–$1,500 each (Some charge more if custom maps are required)
Labeling Tools: Often separate—$50–$100/month extra
Pros: Fast to launch, low upfront cost
Cons: Manual labor, cannot scale, high error risk

Tier 2 – Mid-Market, ERP-Integrated Suppliers (CrossBridge Clients)

Who this is for: Companies doing $2M–$50M+ in revenue, working with 3+ major retailers, already using or migrating to ERP.
Platform Cost: $500–$2,000/month (depending on document volume and partners)
CrossBridge Integration + Management: Typically bundled into monthly operations support or fixed implementation fee (transparent, scoped)
Common Stack: NetSuite + SPS or Dynamics + TrueCommerce
Pros: End-to-end automation, clean data, scalable ops
Cons: None—this is the baseline for stable supplier infrastructure

Tier 3 – Enterprise or High-Volume Complexity

Who is this for: Multichannel suppliers with complex warehouse logic, 10+ retailers, thousands of SKUs, or international operations
Total Annual Cost (All-in): $50k–$250k/year
Typical Stack: SAP or Oracle ERP + multiple EDI channels + internal IT/ops team + external partner
Pros: Fully customized, multi-retailer optimization
Cons: Requires constant maintenance, internal ownership, and high coordination overhead

Hidden Costs to Watch For

Even small suppliers can get burned by things no one flags early:

Document overages (per KB billing) – Some platforms charge by the character
“Partner” add-ons – Adding a new retailer can cost $300–$2,000, depending on the platform
Map edits – Retailer updates their EDI spec? You pay for every change
Testing time – Delays in going live often create indirect costs: lost orders, missed ship windows, buyer friction

How CrossBridge Simplifies the Cost Model

When you work with CrossBridge, you don’t deal with EDI vendors directly.

You don’t sign multiple contracts.

You don’t pay surprise document overages or get billed for every new retailer.

We absorb all those costs.

You use your EDI account—we manage the platform, the integration, the mapping, and the ongoing support.

You pay us a single monthly retainer.

No markups. No hidden fees. No escalating costs when your order volume increases or your retailer changes specs.

What’s included:

Setup and testing with each retailer
Full integration with your ERP (NetSuite, SAP, Dynamics, etc.)
UCC-128 label generation
Map edits and compliance updates
Daily transaction monitoring and exception handling
Direct coordination with the EDI platform on your behalf

The result: You get predictable monthly pricing. You stay fully compliant. And your team never touches EDI complexity.

You focus on growth. We own the backend. That’s the model.

Timeline: How Long It Actually Takes to Go Live

One of the first questions we get from suppliers is: “How fast can we go live with [retailer]?”

The honest answer: it depends on how the project is scoped and who’s steering the process.

If you’re managing EDI setup yourself, coordinating between your ERP team, your EDI provider, your buyer, your 3PL, and your IT—expect friction. If you’re working with CrossBridge, the path is direct. We own the stack and remove blockers upfront.

Here’s what the timeline typically looks like under full management.

Average Implementation Timeline (Under CrossBridge Management)

Phase	Timeframe	What Happens
Kickoff & Requirements	Week 1	We audit your ERP setup, fulfillment method, and retailer specs
EDI Account Provisioning	Week 2	We set up the required partner profiles and retailer connections
Map Development & ERP Integration	Weeks 2–4	POs, ASNs, Invoices configured and tested within your ERP
Retailer Testing & Validation	Weeks 3–6	We handle testing, UCC-128 validation, and certification
Go-Live & Monitoring	Week 5+	Orders begin flowing; we monitor, catch exceptions, adjust if needed

Typical Go-Live:

4–6 weeks from kickoff to production-ready

What Slows It Down (and How We Prevent It)

Without strong ownership, here’s what causes delays:

Retailer onboarding windows (especially for Walmart or Target)
ERP misalignment (incomplete data structure, bad SKUs, missing units of measure)
EDI provider communication gaps (missed map requirements, testing misfires)
Warehouse not ready for label printing or ASN logic

We remove those risks early.

At kickoff, we align:

Retailer expectations
ERP configuration
Fulfillment data paths
Testing gates

And we don’t hand it off to your team. We stay on point until the system is live and clean.

How Fast Can It Be Done?

If your ERP is stable, your warehouse is responsive, and the retailer is actively engaged, we’ve gone live in as little as 2–3 weeks.

If you’re integrating with multiple retailers across multiple warehouses with incomplete master data, expect 6–8+ weeks.

But regardless of complexity, CrossBridge:

Owns the project
Drives the timeline
Communicates with all parties
Flags blockers before they become delays

VANs, AS2, and Other Acronyms You’ll Hear (and What You Actually Need to Know)

Once you start talking about EDI, you’ll hear a flood of technical terms—VAN, AS2, FTP, X12, EDIFACT, and more. Most of them are protocol-level jargon that you’ll never need to touch, but you’ll hear them in onboarding calls, retailer specs, or EDI vendor dashboards.

Let’s clarify what matters and what doesn’t.

VAN (Value-Added Network)

A VAN is a private network that routes EDI messages between you and your trading partners.

Think of it as a mailbox service—each party drops off and picks up messages from a shared exchange.
You don’t set it up or manage it—your EDI provider does.
Some platforms charge per KB sent/received through the VAN

You don’t choose your VAN. It’s embedded in the infrastructure we manage on your behalf.

AS2 (Applicability Statement 2)

AS2 is a protocol that allows two parties to exchange EDI documents securely and directly over HTTPS.

Required by some retailers—notably Walmart, Target, and Costco
Offers real-time delivery with receipt confirmation. Eliminates reliance on third-party VANs—but comes with its own security and certificate requirements

Again, this is handled entirely by your EDI platform and us. You don’t configure or maintain AS2 connections directly.

SFTP, FTP, HTTPS

These are file transfer protocols used by different retailers. Some use SFTP for document drop, some require HTTPS with credentials, and others still run older FTP setups.

The important thing is this:

You don’t need to care which protocol each retailer uses.

CrossBridge configures the routing logic and security layers based on each retailer’s requirements.

X12 vs EDIFACT

These refer to the structure of the EDI files.

X12 is the U.S. standard (used by Walmart, Target, Amazon, etc.)
EDIFACT is the international standard (common in the EU and global logistics)

If you’re only selling in the U.S., you’ll only deal with X12.

All your 850s, 856s, and 810s follow that structure.

The CrossBridge Simplification

We never ask you to choose a protocol or understand a format.

We align with what each retailer expects and make sure your ERP is connected to that format, transport layer, and spec version, without adding technical clutter to your day-to-day.

You’ll see orders, shipments, and payments.

We’ll deal with the pipes, maps, and specs.

What Raw EDI Actually Looks Like

Curious what all this looks like behind the scenes?

Here’s a simplified snippet from an actual EDI 850 Purchase Order (Walmart to Supplier):

ISA*00* *00* *ZZ*WALMART *ZZ*SUPPLIER001 *230508*1200*U*00401*000000001*0*P*>

GS*PO*WALMART*SUPPLIER001*20230508* 1200*1*X*004010

ST*850*0001

…

Each line represents a structured segment:

ISA = Interchange control header
GS = Functional group headerST = Start of transaction set (here, a purchase order)

It’s not designed for humans—it’s built for machines to parse at high volume with zero ambiguity.

And this is why systems matter.

No one’s manually typing these strings. Your ERP, EDI platform, and integration layer must handle them flawlessly.

You are not meant to understand this language.

But your system better speak it natively.

Rookie Mistakes That Kill Retail Relationships

Most EDI failures don’t happen after launch—they happen before the first shipment leaves the warehouse. And they’re almost never due to platform bugs or software limitations. They’re operational, human, and entirely preventable.

Here’s what we’ve seen derail supplier launches, delay POs, or trigger immediate frustration from buyers.

Mistake 1 – Treating EDI as a One-Time Setup Project

EDI isn’t a checkbox. It’s a live connection that must be monitored, maintained, and adapted as retailers update formats or introduce new compliance rules.

Suppliers that treat it like a “set it and forget it” integration end up blind to:

Missing 997 acknowledgments
Retailer spec updates
Stale product or warehouse data
Silent map failures

At CrossBridge, we continuously monitor every transaction and update flows as specs change. This isn’t maintenance—it’s operational hygiene.

Mistake 2 – Delaying ERP Alignment

You can’t bolt EDI onto a disorganized ERP.

If your SKUs, units of measure, shipping methods, or warehouse logic aren’t standardized, EDI documents will constantly fail validation.

We’ve seen:

POs rejected due to mismatched SKUs
ASNs blocked because package dimensions were missing
Invoices short-paid due to bad tax or freight field logic

Clean ERP = Clean EDI.

Mistake 3 – Putting EDI in the Wrong Hands Internally

Often, suppliers assign EDI to:

The warehouse manager
An overwhelmed ops lead
A junior IT analyst

None of them are wrong choices, but none of them has complete visibility.

EDI touches finance, fulfillment, compliance, labeling, inventory, and customer relationships. If no one owns the whole picture, problems fall between teams.

We act as that point of ownership for clients, so internal teams can stay focused on execution without babysitting the system.

Mistake 4 – Assuming All Retailers Work the Same Way

Walmart wants AS2.

Amazon expects 855s and flexible item substitutions.

Target requires 852 POS data uploads.

Costco might want bundled UCC labels per pallet layer.

Suppliers that assume a single flow will work everywhere get blocked before launch—or worse, mid-stream.

Every retailer has its own nuance.

Mistake 5 – Skipping Exception Handling and Daily Monitoring

The system will never be 100% hands-off.

Labels get misprinted. POs change mid-cycle. Retailers drop connections without warning. Even automated flows need regular tracking & regular maintenance.

We monitor every transaction and flag:

Missing or failed documents
Retailer system outages
Unexpected format deviations
Acknowledgment gaps that could result in delayed payment

Most EDI providers leave this to the supplier.

We don’t.

If something breaks, we know first and fix it before it reaches your buyer.

How to Get EDI Right the First Time: A Tactical Checklist

You’ve made it this far, which means you’re not just trying to understand EDI—you’re preparing to implement it. This is where most suppliers stall. Not because the systems are hard, but because no one lays out exactly what needs to happen, in what order, and who should own what.

Here’s your no-fluff checklist. Follow this sequence, and you’ll stay ahead of compliance, avoid rework, and ship with confidence.

1. Lock in Your Retailer’s EDI Requirements

Request their official EDI onboarding packet (specs, label rules, test flow)
Confirm protocols (AS2, VAN, etc.) and required documents (850, 856, etc.)
Understand the timeline they expect you to be compliant

CrossBridge Note: We request and manage this directly with retailers on your behalf.

2. Finalize Your ERP Configuration

Standardize SKUs, UOMs, pricing, freight logic, and tax rules
Ensure sales order, shipping, and invoicing flows are clear and structured
Confirm label fields (GTIN, SSCC, carton IDs) can be mapped cleanly

CrossBridge Note: If your ERP isn’t ready, we won’t build on it. We make sure the foundation is stable first.

3. Identify Warehousing and Fulfillment Flows

In-house, 3PL, or hybrid?
Who prints and applies UCC-128 labels?
Do shipments leave as cartons, pallets, or mixed-mode?

CrossBridge Note: We build ASN and label logic around your real-world warehouse configuration.

4. Set Up and Integrate EDI (We Own This)

Provision EDI partner accounts
Configure document maps (850, 856, 810, 855, etc.)
Set up protocols and transmission logic (AS2, FTP, etc.)
Tie everything into your ERP directly

CrossBridge Note: This is our responsibility, from A to Z.

5. Conduct Retailer Testing

Submit test POs, ASNs, and invoices
Validate UCC-128 label scans
Get formal certification or test clearance
Align go-live window with your buyer

CrossBridge Note: We handle test cycles, fix errors, and push the retailer to move fast.

6. Go Live with Full Monitoring in Place

Start receiving live POs
Verify document round-trip flows in production
Monitor exceptions daily (we do this)
Confirm clean invoice matches and payment release

CrossBridge Note: We watch every transaction. If it breaks, we fix it before it costs you.

7. Expand to Additional Retailers (Optional, Fast)

Once the system is running, adding new retail accounts is a matter of:

Importing the retailer spec
Building the required map
Running test flow
Updating ERP logic if needed

Next Steps: Setup Guides for Each Major Retailer (Still in-progress…)

Below is a growing library of setup guides. These pages break down what each retailer expects and how we configure it end-to-end.

Walmart EDI Setup – AS2 required, strict ASN structure, UCC-128 validation at DC
Amazon Vendor Central – 855 confirmation logic, optional API support, flexible substitution rules
Target – Requires 852 POS feeds, branded labeling, long testing cycles
Costco – Unique pallet-label requirements, ASN carton logic by tier
Home Depot – Pro Xtra vendor program compliance, PO change handling
Lowe’s – Specialized freight terms and nonstandard 856 mappings
Walgreens / CVS / Rite Aid – Pharmaceutical formatting rules and DSCSA compliance
BJ’s / Kroger / Albertsons – Food and perishables: special handling on pack dates, catch weight fields

FAQs: Fast Answers to Things You’ll Ask Anyway

Can I choose my EDI provider, or do I have to use the one the retailer recommends?

You can choose. Retailers usually specify the required protocols (AS2, SFTP, VAN), but not the provider itself. You’re free to work with any EDI vendor as long as they can meet the spec.

Some retailers do offer pre-integrated onboarding with select providers, which can speed things up—but you’re not locked in.

Do I need to train my team to manage EDI?

It depends on your setup.

If you’re doing it manually (e.g. via a portal), yes—someone will need to log in daily, process documents, and print labels.
If you’re integrated with your ERP, training is minimal. EDI becomes invisible—POs create sales orders, shipments trigger ASNs, and invoices are synced.

In either case, someone needs to own the process internally, even if it’s automated.

What happens if a document fails or a transmission doesn’t go through?

If you’re managing EDI yourself, you’ll need someone to monitor logs, 997s, or rejection notices.

If you’re working with a managed service, they’ll handle alerting, investigation, and recovery.

Most issues come down to mapping errors, bad data from ERP, or retailer-side outages.

Either way: have a plan to monitor, not just send.

How often do retailers change their EDI requirements?

It varies. Some update annually, others more frequently. Even a minor change, like adding a new required field, can break a flow if not handled correctly.

If you’re managing it internally, make sure someone is reviewing spec updates and maintaining your EDI maps.

If you’re using a service provider, ask if spec updates are included in your contract or billed separately.

When you work with a partner like CrossBridge, we track and manage this for you.

Who generates UCC-128 (GS1) labels, and how does that work?

Labels are generated using shipment data from your ERP or fulfillment system.

If you’re doing this yourself, make sure your ERP or WMS can generate retailer-compliant labels.
If you outsource EDI, the provider will usually generate them and give you a printable file.

Make sure you test labels with your retailer’s DC before you ship.

What if I switch to a new warehouse or 3PL - does my EDI setup change?

Yes, usually. ASN logic, label data, and routing flows may need to be reconfigured.

If you built your system in-house, you’ll need to remap fields and possibly re-test with retailers.

If you’re working with a service partner, they typically handle the transition and retesting.

Do I need to understand EDI document standards like X12 or EDIFACT?

Not in detail.

You should understand what documents like 850, 856, 810 do—but you don’t need to learn segment syntax or loops unless you’re building or editing maps yourself.

If you’re keeping EDI internal, assign someone with technical ability to own mappings and spec interpretation.

How do I add a new retailer once I’m live?

Two ways:

If you’re managing EDI internally: request the spec, build new maps, test with the retailer, and push live.
If you’re using a service provider: they’ll typically handle the full setup based on your ERP and existing system.

Best practice: each retailer should be scoped and implemented independently—don’t assume one flow fits all.

What does “EDI monitoring” actually involve day-to-day?

At minimum:

Checking for successful transmission and receipt (especially 997s)
Verifying that shipments and invoices matched retailer expectations
Resolving rejections or exceptions immediately

Some teams use dashboards or exception queues. Others monitor logs or email alerts. It’s not about watching everything—it’s about catching the 1% that breaks.

Once I’m live, how much do I need to touch EDI daily?

In a properly integrated setup: very little.

The system handles the flow automatically based on ERP data.

The only touchpoints might be:

Releasing shipments
Investigating exceptions
Adjusting for retailer-specific nuances

If you’re using a portal or semi-manual setup, expect more hands-on time.

Conclusion

If you’ve made it this far, you understand two things:

EDI is not optional if you’re working with U.S. retailers.
It’s not just about software—it’s about how your entire operation talks to theirs.

You can build and manage it in-house, and many companies do with an EDI provider. But it takes technical discipline, cross-functional coordination, and constant maintenance.

An end-to-end partner doesn’t just “set up EDI.” They do the following:

Translate each retailer’s requirements into your ERP logic
Configure, test, and maintain all document flows
Generate and validate shipment labels
Monitor every transaction and intervene on failures
Keep systems aligned as you grow, change warehouses, or add retailers

Whether you use SPS, TrueCommerce, or any other platform, those are just tools. The outcome depends on how well they’re integrated and managed.

If you’d rather not build that capability internally, hire someone who’s done it at scale.

If you want to own it yourself, use this guide as a blueprint—and don’t skip the hard parts.

Getting EDI right doesn’t win you business.

But getting it wrong can lose it.

If you want a partner to offload this, schedule a free 30-minute call and let’s get you set up.