DSD 101: The History of DEX

A few days ago, my wife sent me one of those Facebook 7 years ago on this date pictures of my kids. My immediate reaction was “How did this happen?” and “Where did those 7 years go?”

My first two blogs focused on “What is DEX?” and “What is the DEX process?". I thought it might be a good exercise to explore the history of DEX, and why DEX is the standard. Just like my kids, how did DEX grow up?

First, we need to quickly touch on EDI, or Electronic Data Interchange. EDI does not refer to any specific standard of electronic commerce, but is a generic term for multiple standards and technical specifications for transmitting information electronically between suppliers and retailers.

The answer to “Why DEX?” is rooted in the need for retailers and sellers to have a standard that benefits both parties by communicating electronically and eliminating paper invoices. DEX minimizes the number of people needed in each organization to handle those invoices.

Who controls the standard? DEX is defined, maintained, and updated by the GS1 Corporation (formerly the Uniform Code Council). GS1 provides additional electronic standards for commerce, as well as the management of barcodes assigned to retail products.

Finally, it is common for national retail grocery chains to require the supplier to use the retailer’s DEX system. Additionally, many local and regional chains have backdoor receiving systems with DEX capabilities.

So, for many suppliers the Gold standard for doing business with these high valued retailers is DEX.

Suppliers and retailers: Tell us why YOU use DEX?

I want to acknowledge Phil Lachmann for his contributions to the content of this blog. Thank you Phil!