my mis ppt EDI 2

8/8/2019 my mis ppt EDI 2

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LIPIKA BAUG115



Electronic data interchange (EDI) is the structuredtran smissio n of data between organ izat ions by electr onicmean s.

It is used t o tran sf er electr onic document s or busine ss dataf rom one comp uter syste m to an other c omp uter syste m, i.e . f rom one trad ing partner t o an other trad ing partner w ithouthuman intervention .





T he Nat ional Institute of Standard s and Techn ology ina 1996 publicat ion de fine s

electr onic data interchangeas "the c omp uter-t o-comp uter interchange of str ictly formatted message s that re present d ocument s

other than mo netaryinstru ment s.



ED I sof tware c onsists of comp uter instruct ions that tran slate theinformat ion f rom comp any- spec ific format t o the structured ED Iformat , and then c omm un icate s the ED I message .

ED I sof tware al so rece ives the message and tran slate s f rom standard format t o comp any spec ific format . T hus the majorf unct ions of the ED I sof tware are data c onversion, data formatt ingand message c omm un icat ion.







Op eration

TacticalStrategic



L owering Op erating Cost - ED I replace s paper tran sact ions withelectr onic tran smissio ns, saving t ime and reduced c os t of busine ss tran sact ion and enabl ing the aut om at ic processing of document s.

R educed Error and Increases Business Information ccurac -With the imp lementat ion of ED I, there is no need for re-enter ingdata , thu s reduc ing the r isk for human err or.

Increase Productivit - Making person mo re e fficient and itimp roves busine ss capab ilities by speed ing u p thr ough out .

Increase Securit - D ata secur ity and c ontr ol are mainta inedthr ough out the tran smissio n process using passwords, userident ificat ion and encry ption.



Inventor Control - ED I can directly and ind irectly hel ps organ izat ions imp rove the ir invent ory contr ol. act and accuracypermits better manag ing on stock balance , stock in-and- out , stock

handl ing etc .

Distribution - Imp roving del ivery of services and g oods byreduc ing order and del ivery t ime and increa se the rel iab ility of meet ing target s.

A ccounting - ED I f ac ilitated financ ial processes and po tent ial inproviding f aster rec onciliat ion or eliminat ion of ta sks, aud iting , chec king and imp roving ca sh f low.



F aster Trading C cle - ED I allows f aster and strea m lining trad ing cyclebetween organ izat ions lead ing t o imp roved relat ionships betweentrad ing partner s.

M ar eting Com petitiveness - With the u se of ED I, buyer and cu stom ercan ea sily search for product de scription, spec ificat ion, prices andavailab ility. T he u se of comp uter s to obta ins informat ion is replacing theuse of tele phone and catal ogue s.

Better Qualit Control -Qual ity contr ol has bec oming a key thru st forprogre ssive organ izat ions. With ED I, custom er ha ve mo re accurateinformat ion on the progre ss of the ir order s. Supp liers are g iven mo respec ificat ion, invent ories are better managed , wastage be ing minimized .





Difficult to agree on standard used - E ven th ough there arewidely-acce pted and w idely-u sed standard s, there are n o ways to force trad ing partner s to acce pt the se standard s.

oop erat ion between trad ing partner s is needed in order t o de velop a commo n rule s to avoid d iff er in inter pretat ion.

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my mis ppt EDI 2