So, to the basis for my article: Is XML EDI, or more specifically, Electronic Data Interchange? By definition XML is data and it can be sent electronically. So I guess it can be considered to be EDI. Prior to what retailers and suppliers have been exchanging over the last 30 years which we call EDI data, companies have traded data electronically directly with one another using custom formats, so that could be considered EDI too. Because each partnership required both parties to support custom files/format, the EDI standards were born.

There is no question that XML is supported by standards bodies and is becoming of interest. But should we abandon traditional EDI for XML? For years you may have hear that EDI will be replaced by XML, but I have yet to see that truly occur. Too many partners have soo... much invested in EDI infrastructure that I can certainly see why there has been little movement.

One area where I have seen movement is the Music industry. This Industry is supported by NAMM (National Association of Music Merchant) which have been a driver of XML standards as an EDI (Ecommerce) initiative. I learned about a new retailer, through one of my clients that is starting a project whereby they are expecting all their suppliers use the NAMM XML standards to trade electronically.

While that may seem like the right approach, building out XML Standards for Ecommerce electronically this late in the game of electronic formats will not yield the number of partners that they believe will adopt. Again, many partners are already using one format (traditional EDI) and likely would want to use what is existing to trade with this retailer.

In talking with this retailer I shared that they are going to have to support X12 too, however they were insistent that their suppliers are more than willing to use XML. I did not have the heart to tell them that the suppliers' willingness to support them was more likely around needing to keep their business, and so they'll do anything. What I did not share as well, was that companies like Best Buy, FYE, Barnes and Noble, Sam's Club, Wal-mart.. are all doing X12 (or sub standards) with the same suppliers that Guitar Center, Willis Music, Buy.com etc trade with. These suppliers have been using traditional EDI for years, so why are you asking them to support yet another method of electronic data? Surely those suppliers that are not trading EDI with other customers already, and have not built Infrastructure around that would likely support XML to get into the Electronic trading game. But those that already have something in place are not going to want to change.

For those of you thinking about only supporting XML and not both XML and X12 EDI standards, I'd make sure you have application provider partners that can assist those suppliers that are supporting EDI trading already and want to use what they have to convert to your XML requirements.

Be careful that you're not jumping on the XML band-wagon because of what your hearing others in your space are doing! As my mother use to say, "if your friends were to jump off a cliff would you?"