Electronic Data Interchange (EDI)
Friday, December 10, 2010|
adminElectronic Data Interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system.
Electronic Data Interchange (EDI) Consists of direct computer-to-computer transmissions among multiple firms of data in a machine-readable, structured format
1. Typical linkages
- Supply side
- Customer side
- Transaction set
2. Vendor stock replenishment (VSR)
3. Electronic Funds Transfer (EFT)
Degree of EDI Implementation
1. Level-one users
- One or two transmission sets sent to limited trading partners
2. Level-two users
- Many transaction sets transmitted to large number of trading partners
3. Level-three users
- Many transaction sets transmitted to large number of trading partners and firm’s computer applications are tailored to EDI approach
Electronic Data Interchange (EDI) Adoption Influences
- Competitive pressure, this is reactive
- Exercised power, this is proactive
- Internal need, this is proactive
- Top management support, this is both proactive and reactive
Electronic Data Interchange (EDI) Benefits
1. Direct
- Reduced errors
- Reduced costs
- Increased operational efficiency
2. Indirect
- Increased ability to compete
- Improved relationships with trading partners
- Improved customer service
Challenge to Electronic Data Interchange (EDI)
- Extensible markup language (XML)
- Extension of HTML
- Provides file formatting structure and means for describing data
- Allows Web pages to perform many EDI functions
Posted in
Management Information System
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