Commerce Policy Division,
Ministry of International Trade and Industry

July 16, 1999

1. Outline of the Study

• MITI has been undertaking the development of soft infrastructure electronic transaction, such as the development of the JEDICOS (standardized message format for distribution business), toward dissemination of the EDI (Electronic Data Interchange) into the overall process of trade and commerce activities business.
• In FY 1998, MITI commissioned the Distribution Systems Research Institute to exercise the study on standardization of electronic transaction in distribution business with a view to promote infomationizing trade activities between distribution and logistic business.

(Note 1)
EDI (Electronic Data Interchange) facilitates effective and accurate business by reducing work load for data input and cost reduction. EDI also promotes alliances among businesses through data sharing which leads to the realization of quick response to various and rapidly changing consumer needs.

(Note 2)
MITI has been developing since FY 1994 the standardized EDI message formats for distribution industries called JEDICOS (Japan EDI for Commerce Systems) based on UN/EDIFACT.

2. Major Points of the Study

• Development of "JEDICOS" has been primarily intended for transactions of groceries (confectionery, processed foods, miscellaneous daily necessities), since electronic ordering system is suitable and well popularized.
• This year's study was conducted by selecting transactions of cosmetic products (traded between manufacturers and retailers) as a base model considering the complexity of actual transaction between distributors and logistic businesses:

1. developing a draft for a "standardized logistics service transaction agreement" by clary defining business processes between logistic businesses and their partners, and
2. developing 10 kinds of standardized messages and proposing data items for each message.

3. Future Application of the Study Results

The standardized logistic EDI format was developed through examinations of to actual commerce activities ( i.e., distributors, logistic businesses, manufacturers etc.) and is expected to be used by various business entities.

(Reference)

Research Arrangement

Establishment of "Distribution Business Electronic Transaction Standardization Research Committee"

Standard Messages Developed in This Research

Shipment instruction (manufacturer -> warehouse business)

Truck allocation/delivery instruction (manufacturer -> delivery business)

Truck allocation confirmation report (delivery business -> manufacturer)

Shipment collection plan contact (manufacturer -> warehouse business)

Shipment completion report (warehouse business -> manufacturer)

Delivery completion report (delivery business -> manufacturer)

Warehouse billing (warehouse business -> manufacturer)

Warehouse payment notice (manufacturer -> warehouse businessman)

Delivery billing (delivery business -> manufacturer)

Delivery payment notice (manufacturer -> delivery business)

(Glossary)

UN/EDIFACT

Electronic Data Interchange for Administration, Commerce and Transport developed by UN/ECE in 1987; international standard EDI syntax rules, a part of which are prescribed in ISO9735 as international standards.
After October 1997, UN/CEFACT (The Centre for Facilitation of Procedures and Practices for Administration, Commerce and Transport) has been revising UN/EDIFACT.

<Inquiries>