Information Technology Support for SCM

Electronic Data Interchange (EDI)

Electronic data interchange (EDI), is a standard means of communication, which enables the business partner for mutual exchange of documents, such as purchasing orders, electronically. Here are some benefits of EDI:

  • Minimize errors in data entry.
  • Shorten the length of a message.
  • Message becomes more secure.
  • Reduce cycle time Increasing productivity
  • Improve customer service
  • Minimize the use of paper and storage.


However, there are disadvantages in the use of EDI, which are:

  • Often business processes should be restructured to fit the needs of EDI.
  • EDI has some standards, so that a company should have some of these standards in order to be able to communicate with various business partners.
Comparison between EDI with no EDI



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