Importance of EDI in Supply Chain and Logistics Industry

1. Enterprise System Solutions Pvt. Ltd. Importance of EDI in Supply Chain and Logistics Industry

2. Importance of EDI in Supply Chain and Logistics Industry • Electronic Data Interchange (EDI) format had been used since the 1960s between industries to exchange information. Prior to this format business computers were used by the companies to store and process data electronically.  • But companies needed an expedient method to communicate data from one company to another. Therefore telecommunication was adopted as a medium to transmit data which as a result improved response time, reduced paperwork, and reduced the possibilities for transcription errors. However, it solved only certain part of the problem.

3. Earlier electronic interchanges were based on proprietary formats agreed between the two trading entities. There was a need for a standard format for data exchange, therefore in the 1960’s a collective effort between industry types made the initial attempt at these common data formats.  By the late 1970s, both users and vendors had put up the requirements to form a set of standard data formats that: Were not hardware constrained Were unambiguous; so that they could be used by all trading companies Reducing the workforce-intensive jobs of exchanging data and  Allowed the sender of the data to control the exchange, also knowing if and when the receiver received the transaction. 

4. EDI is crucial for the respondents, but on the other hand, it has many challenges associated with its implementation, using and maintaining the technological format. The biggest challenges companies had been facing with EDI. The most common challenges included:  Problems in finding appropriate employees to manage EDI systems Time is another issue which companies had pointed out as particularly with regards to time taken to set up with new EDI partners Cost for implementation and maintaining of it is also an issue for EDI supply chain management

5. EDI helps companies to meet a wide range of goals set up under the supply chain management. EDI had been affecting the companies in a productive way as: reduces the processing time. Therefore this improves the productivity of an organization. Also, the number of errors are been reduced due to the usage of standardized interchanging data format. EDI has Improved inventory and warehouse management too. Which as a result streamlines the supply chain.  With the EDI format, the relationship between the trading partners has improved. Now higher volumes of data can be managed and interchanged among the partners.  EDI remains critical in any companies’ supply chain management strategies. Though Electronic Data Interchange has some of the challenges along with it, but EDI continues to provide companies a way to better manage their supply chain processes, and reduce the number of human errors. 

6. Enterprise System Solutions Pvt. Ltd. UNITED STATES Address: 1 City Place Drive, Ste. 282, St. Louis, MO 63141 Phone: +1-323-652-4500 ------------------------------- UNITED KINGDOM Address: First National House, 79 College Road, Harrow, Middlesex, HA1 1BD, United Kingdom Phone: +44(0) 2039661378 Fax: +44 (0) 203 178 2371 ------------------------------- DELHI Address: C2, Sector – 1, Noida – 201301, Uttar Pradesh, India Phone: +91-674-7106000 Fax: +91-674-7106050 ------------------------------- BHUBANESWAR Address: InfoCity, Bhubaneswar, Odisha – 751024, India Phone: +91-674-7106000 Fax: +91-674-7106050 Email: sales@esspl.com Website: https://www.esspl.com

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