Edi System

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EDI
Electronic Data Interchanges

Electronic Data Interchanges technology is a complicated mixture of three disciplines: business, data processing and data communication. Integrated with logistics practices EDI can be defined as the electronic exchange of business data, such as purchase orders, invoices, and shipping notices, typically between one organization and another. The relationship is usually between a vendor and customer. EDI began in the 1970s and was first developed by the automobile Industry. Today is used in different industries including distribution, finance, health care, manufacturing, purchasing, retail, publishing, and shipping. EDI system is in evolution and is adapting to the current market situation. In fact, EDI is a technology that many companies are using in its logistics practices in international supply chain operations. Many businesses choose EDI as a fast, inexpensive, and safe method of sending all documents used on business. Any business application that implements EDI works in a fast, efficient and paperless environment.
The traditional document flow for purchasing transactions starts with data entry by the purchaser to create a paper document to send by mail to trading partners. Once the trading partners receive the data, they keystroke the information received into a local application and then perform more data entry by entering a response into a local application. The resultant paper document is then mailed to the purchaser. The procedure is both time consuming and labor intensive because data from both trading partners has to be entered twice. EDI data is key in only one time, at the original point of entry. The data is then translated into a standard format electronically and sent to the trading partner electronically. Time for transmission is very fast in comparison to postal mail. Even on a slow modem connection the time is considerably shorter than through the postal service.
EDI Benefits "Removing unnecessary



References: * Bort, R., and Bielfeldt, G. R. Handbook of EDI. Boston, Massachusetts: Warren, Gorham and Lamont. * Canis, R. J., Value-added networks: What to look for now and in the future. Conference Proceedings EDI 2000: EDI, Electronic Commerce, and You; (pp. 141-157). * Kimberley, P. (1991). EDI. New York: McGraw-Hill. * Sawabini, S. (1995). Introduction to EDI. Conference Proceedings EDI 2000: EDI, EC, and You, (pp. 1-36). * Sokol, P. K. (1995). From EDI to EC: A Business Initiative. New York: McGraw-Hill. * Rhonda R. Lummus, The Evolution to Electronic Data Interchange: Benefits in the stages of implementation. Central Missouri State University. Warrensburg, Missouri. * Callahan, Daniel K. "The Impacts of Electronic Integration on Buyers and Suppliers."Master 's Thesis, Sloan School of Management, MIT, Cambridge * "Business Is Turning Data Into A Potent Strategic Weapon," Business Week

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