The construction and engineering sector features a long chain of manufacturers, wholesalers, construction companies, installation firms, maintenance organizations, and clients. All these parties constantly exchange information with one another: from product data and quotes to orders, delivery notes, and invoices.
This exchange may seem simple, but it becomes complex as soon as organizations use different ERP systems, part numbers, data structures, and processes. After all, an order that is automatically generated by one party’s ERP system must also be interpreted correctly by another party.
The DICO Standard was developed to solve precisely that problem. DICO provides guidelines for electronic information exchange between parties in the construction and engineering sectors. As a result, systems do not need to be identical. However, they must be able to interpret the exchanged information in the same way.
1. What is the DICO Standard?
DICO is a Dutch standard for digital information exchange within the construction and engineering sectors. The standard is managed by Ketenstandaard Bouw en Techniek and is used by manufacturers, wholesalers, construction and maintenance companies, installers, and housing associations, among others.
The core of DICO is standardization. When two organizations want to exchange data digitally, they must agree on the meaning and structure of that data. For example, what do we mean by an order number? How do we identify the supplier? What data belongs to an order line? And how do we convey quantities, prices, delivery locations, and VAT information?
If every combination of customer and supplier makes separate agreements on these matters, it results in a large number of interfaces and exceptions. DICO aims to prevent this by defining a single common language.
As such, DICO is explicitly not a software package. It is a set of conventions that allows different systems to exchange data according to the same structure.
Its use has now become widespread. According to Ketenstandaard, more than 4,000 organizations use the DICO Standard, and over 130 affiliated software vendors support data exchange through their systems.
2. DICO goes far beyond just electronic invoices
DICO is often associated with e-invoicing. That makes sense: the electronic invoice is an important part of the standard. But anyone who views DICO solely as an invoicing standard misses a significant part of its value.
The standard supports various types of transaction messages. These include, among others, requests for quotes, quotes, orders, order confirmations, delivery notes, and invoices. In addition, there are messages for item and product data, as well as specific applications such as rentals and maintenance.
This allows information to flow digitally through the supply chain over a much larger portion of the commercial process.
For example, a process might begin with a digital request for a quote. Once an agreement is reached, an order is created. The supplier receives this order directly in their own system and then sends an order confirmation. Upon delivery, an electronic delivery note is issued, followed ultimately by a structured invoice.
This offers a significant advantage: information does not have to be re-entered each time.
Item number, quantity, price, order number, and other data already recorded earlier in the process can be reused throughout the supply chain. This not only reduces the amount of administrative work but also minimizes the risk of interpretation errors.
DICO, therefore, does not focus exclusively on digitizing documents. The standard makes it possible to exchange the underlying data directly between systems.
3. From Document Exchange to Structured Data
This distinction between documents and data is essential.
A PDF invoice can be sent digitally, but it remains, in essence, a document created for human consumption. An employee can read the information, but software must first recognize or interpret the content before this data can be processed automatically.
With structured electronic messages, the situation is different.
An order number isn’t displayed visually at the top of a page, but is located at a predefined position within the data structure. The same applies to, for example, supplier information, order lines, quantities, amounts, and VAT data.
As a result, the receiving system not only knows what is written, but also what the information means.
That difference enables further automation.
An order can be automatically entered into the supplier’s system. A received order confirmation can be compared with the original order. A delivery note can be linked to the same order, and an invoice can then be automatically verified against what was ordered and delivered.
The more consistently that data moves through the process, the less interpretation is needed later on.
This is particularly relevant for Purchase-to-Pay. The quality of invoice automation is not determined solely at the moment the invoice is received. Many discrepancies arise earlier in the process: incorrect item numbers, missing orders, price discrepancies, inconsistent supplier data, or differences between the order and the delivery.
By exchanging structured information earlier in the chain, a better foundation is created for automated processing at the end of the process.
4. DICO, XML, UBL, and Peppol Are Not the Same
Various terms related to electronic data exchange are often used interchangeably. However, DICO, XML, UBL, and Peppol each play a different role.
First and foremost,XML is a technical method for recording structured data. XML defines how data can be technically structured, but does not in itself specify what business information should be exchanged or what that information means.
A standard such as DICO adds those specifications. For example, the standard specifies which data elements appear in a particular message, how they are interpreted, and what rules apply to their exchange.
UBL is also a standard for electronic business documents. UBL is used internationally and forms the basis for many electronic invoice and order formats, among other things.
Peppol, on the other hand, must be viewed from a different perspective. Peppol offers an international set of conventions and a network that enables organizations to exchange standardized electronic documents.
DICO, on the other hand, focuses strongly on the specific information needs of the construction and engineering sectors.
These concepts are therefore not simply alternatives to one another. In an integration landscape, different standards, formats, and transport channels can coexist.
5. Standardization Enables Further Automation
The technical transmission of a message is ultimately only part of the issue.
The greater value arises when organizations can also automatically process the received data.
Suppose a purchasing organization sends an order electronically. The supplier then does not have to enter that order manually but can import it automatically. When the order confirmation is subsequently received, the price and quantity can be automatically verified against the original order.
After delivery, the same link can be established again with the delivery note. When the invoice finally arrives, much of the data is already known.
This forms the basis for automatic matching.
Instead of reviewing each invoice individually, the system can determine whether the order, delivery, and invoice match. Only exceptions then require attention.
Standardization thus reduces the amount of interpretation required during the process.
This is important because automation works most reliably when data is predictable. When the same information arrives in a different structure each time, mappings, recognition, or additional checks are required. The more uniform the data exchange, the larger the portion of the process that can be handled deterministically.
6. A DICO integration starts with good data and process agreements
However, a standard does not automatically solve all problems in a process.
If data in the source system is incorrect, an electronic integration will primarily transmit that data more quickly. This makes data quality a critical component of every implementation.
For example, parties must be able to be uniquely identified. Within DICO, GLNs, among other things, can be used for this purpose. A Global Location Number is a unique identifier that makes a company or location recognizable within electronic messages.
In addition, product data plays an important role. A manufacturer may classify a product in a certain way, while a wholesaler adds commercial and logistical product data to it.
Internal processes must also align.
What data does an order always contain? When is an order number required? How are delivery locations recorded? What tolerances apply to price differences? And what happens when a received message does not conform to the agreed-upon structure?
A successful DICO implementation therefore requires more than just a technical integration.
- the quality of master data;
- identification of customers, suppliers, and locations;
- item and product data;
- configuration of the ERP system;
- mappings between internal and external data structures;
- process agreements with trading partners;
- validation of incoming and outgoing messages;
- and exception handling.
7. DICO as Part of a Broader Integration Landscape
For organizations in the construction and engineering sectors, DICO is rarely the only form of digital data exchange.
One supplier operates entirely according to DICO, another sends UBL invoices via Peppol, while yet another party uses an API, EDI, SFTP, or even PDFs via email.
On the receiving end, you want these differences to have as little impact as possible on the financial process.
This is where an integration layer comes into play.
A solution like 4CEE Exchange can bring together different channels and data formats. Incoming information can be received, validated, and, where necessary, converted to the format expected by the underlying ERP or financial system. For outgoing messages, this principle works in reverse.
DICO thus becomes part of a broader architecture for document and data exchange.
Ultimately, that is also the idea behind standardization: organizations do not need to use the same system to collaborate digitally. They do, however, need to agree on the meaning of the information they exchange.
DICO puts that agreement into practice for the construction and engineering sectors.
And precisely when orders, deliveries, and invoices move through the supply chain according to the same agreements, the result is more than just faster data exchange. It creates a more reliable foundation for automated processing, verification, and further optimization of financial processes.