Skip to main content

EDI

HISTORY  OF EDI


¢  It was not until the 1970’s, when work began for national EDI standards.

¢  Both client and vendors input their requirements to create a set of standard data formats that

—  were hardware independent;

—  were unambiguous and could be used by all trading partners;

—  reduced labor-intensive tasks such as data-entry;

—  allowed the sender of data to control the exchange including receipt confirmation of by the other party


EDI implies  the computer-to-computer exchange of business data in a standard,  machine-processable format.  The information is generally patterned after a conventional paper document, such as a purchase order or invoice. It is a “paperless trading”


Components of EDI



¢  Trading Partner

A trading partner is any company, government department, or commercial or non-commercial entity with whom an organization regularly exchanges documents of formatted data (not just letters or memos




¢  Trading Partner Agreement

—  A signed document between trading partners outlining all the conditions that will allow electronic communication.  The agreement states that the parties intend to be legally bound in the same manner as though they were exchanging paper documents.  The signature on the agreement serves as a substitute for signatures on paper documents.

¢  Mapping

—  The process of taking data from a company-specific format and fitting it into the EDI standard electronic format (as defined by a particular transaction set).

¢  Transaction Set

—  An EDI standard electronic format for a business document.

Benefit of EDI

¢  Transactions speed :With EDI Transactions speed has greatly increased. It has reduced the problem of transaction speed drastically by sending transactions electronically where they can be sent and received almost simultaneously.

¢  Reduces the risk of lost data: Reducing the risk of loss of data as physically /on paper data can be lost.
Labels:

Comments

Post a Comment

Popular posts from this blog

Advantages and Disadvantages of EIS Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data
1 comment
Read more

Inter-Organizational Value Chain

The value chain of   a company is part of over all value chain. The over all competitive advantage of an organization is not just dependent on the quality and efficiency of the company and quality of products but also upon the that of its suppliers and wholesalers and retailers it may use. The analysis of overall supply chain is called the value system. Different parts of the value chain 1.  Supplier     2.  Firm       3.   Channel 4 .   Buyer
Post a Comment
Read more

Big-M Method and Two-Phase Method

Big-M Method The Big-M method of handling instances with artificial  variables is the “commonsense approach”. Essentially, the notion is to make the artificial variables, through their coefficients in the objective function, so costly or unprofitable that any feasible solution to the real problem would be preferred, unless the original instance possessed no feasible solutions at all. But this means that we need to assign, in the objective function, coefficients to the artificial variables that are either very small (maximization problem) or very large (minimization problem); whatever this value,let us call it Big M . In fact, this notion is an old trick in optimization in general; we  simply associate a penalty value with variables that we do not want to be part of an ultimate solution(unless such an outcome is unavoidable). Indeed, the penalty is so costly that unless any of the  respective variables' inclusion is warranted algorithmically, such variables will never be p
Post a Comment
Read more