Free Encyclopedia of Ecommerce » Free Encyclopedia of Ecommerce » Electronic Data Interchange (EDI) - Advantages Of Edi, How Edi Works, Security Issues, The Future Of Edi

Electronic Data Interchange (EDI) - Advantages Of Edi

companies paper reduces time

Companies use EDI to exchange information for a variety of different reasons, mainly increased efficiency and cost savings. For example, EDI allows business transactions to occur in less time and with fewer errors than do traditional, paper-based means. It reduces the amount of inventory companies must invest in by closely tying manufacturing to actual demand, allowing for just-in-time delivery. By doing away with paper forms, EDI also reduces postage costs and the expenses and space considerations involved in paper-based record storage. Some companies have seen dramatic improvements in their business processes, such as the shortening of delivery times from days to hours. However, other EDI users have continued to experience snags. In Planet IT, Procter & Gamble, a leading packaged goods manufacturer, reported that it found errors in more than 30 percent of its electronic orders, although these were mainly due to human mistakes.

Although many companies don't view EDI as a strategic weapon, it certainly can be used as one. Having the capability to engage in EDI is a marketing tool, because it makes suppliers attractive to retailers and other companies who buy goods and services. In a situation where several suppliers offer similar products, being EDI-enabled can be an important differential. EDI also can be used to form alliances between companies that provide advantages over competitors in several ways, including the ability to offer the lowest market prices and the best customer service. Such alliances also can lead to newer or more innovative services.

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over 2 years ago

well done

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over 5 years ago

what is electronic data interchange security

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almost 8 years ago

Over conventation method EDI is electronincally accepted format, it is not same as email or printed docuement, it is format by which computer can read this data which is not human readable format