Introduction
Electronic Data/Document Interchange (EDI) has always threatened
to bury paper usage as obsolete. However, it has yet to happen.
Though with the increased merger of telecommunications, phones,
computers and information processes it will eventually cause
massive changes in the work flow between companies.
Benefits of EDI
Companies need a clear understanding of the benefits of EDI and a
clear understanding of their own role in this technology.
Companies who understand the advantages of EDI, and tie EDI to
their business strategy will achieve the maximum benefits over
competitors. Such an advantage can lead to a large competitive
advantage as it relates to responding to a changing marketplace.
EDI offers both direct and indirect benefits. The most immediate
direct savings is regarding the elimination of manual paper
processing. Indirect savings will take longer to realize but can
turn into major benefits, such as: performance improvements,
reduced lead times, and the benefits of having more information
stored electronically.
Next Step
Interchanging data with other companies requires more than just
implementing EDI capability. Existing systems need to be setup for
EDI implementation prior to implementing an EDI approach.
Companies should and need to take steps today in their systems
development process to prepare for EDI implementation whether or
not they feel they will be including EDI in their strategic
systems in the near future.
