Scribd Logo
Upload

Welcome to Scribd!

  • 159 views

    Electronic Data Interchange: Deepti Khanna

    Uploaded by

    Vanshika Pandey
    This document provides an overview of electronic data interchange (EDI). EDI allows organizations to exchange structured business documents like purchase orders and invoices electronically. It was introduced in North America in 1970 and first implemented in the transportation sector. EDI provides benefits like faster and more accurate information exchange compared to traditional methods. The document discusses EDI standards, software, communication networks and costs. It also outlines the EDI implementation process and applications in business.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Electronic Data Interchange: Deepti Khanna

    Uploaded by

    Vanshika Pandey
    159 views21 pages
    This document provides an overview of electronic data interchange (EDI). EDI allows organizations to exchange structured business documents like purchase orders and invoices electronically. It was introduced in North America in 1970 and first implemented in the transportation sector. EDI provides benefits like faster and more accurate information exchange compared to traditional methods. The document discusses EDI standards, software, communication networks and costs. It also outlines the EDI implementation process and applications in business.

    Original Title

    EDI

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an overview of electronic data interchange (EDI). EDI allows organizations to exchange structured business documents like purchase orders and invoices electronically. It was introduced in North America in 1970 and first implemented in the transportation sector. EDI provides benefits like faster and more accurate information exchange compared to traditional methods. The document discusses EDI standards, software, communication networks and costs. It also outlines the EDI implementation process and applications in business.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    159 views21 pages

    Electronic Data Interchange: Deepti Khanna

    Uploaded by

    Vanshika Pandey
    This document provides an overview of electronic data interchange (EDI). EDI allows organizations to exchange structured business documents like purchase orders and invoices electronically. It was introduced in North America in 1970 and first implemented in the transportation sector. EDI provides benefits like faster and more accurate information exchange compared to traditional methods. The document discusses EDI standards, software, communication networks and costs. It also outlines the EDI implementation process and applications in business.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    ELECTRONIC DATA

    INTERCHANGE

    DEEPTI KHANNA
    ELECTRONIC DATA INTERCHANGE
     EDI is the automated exchange of structured business
    documents, such as purchase orders or invoices, between
    an organization and its trading partners.
     Introduced in North America in 1970
     Implemented first in transportation sector
     Faster, efficient and accurate.
    EXAMPLE
     Buying company  Selling company
    1.Scan inventory. 6. Electronically retrieves PO & SO is
    2.Scan vendor file. automatically generated.
    3.Contact vendor. 7. Notifies warehouse to pull goods or
    4. select vendors generate back order notice.
    5- place order. 8.Records shipping date & quantities.
    10.Receive invoice. 9.Sends electronic invoice to customer.
    11-verify amount charge 13. Receives electronic notification of
    12.ETF. funds transferred & remittance advia.
    PROBLEMS IN TRADITIONAL
    INFORMATION INTERCHANGE
     Increase in processing time
     Low accuracy

     High labor cost

     Increased uncertainty
    HOW EDI SOLVES PROBLEMS
     Reduce delays
     Reduce time required for human to

    re-enter data
     Chances of error are reduced

     Labor costs reduced

     More certainty
    DEFINITIONS
     “EDI is the transaction ,in a standard syntax of
    unambiguous information of business or strategic
    significance between computer of independent
    organization”
    -ANSI
    CONT….
     “The transfer of structured data , by agreed
    message standards, from one computer system to
    another by electronic means”
    -IDEA
     Elements of EDI system

    1) Structured data
    2) Agreed message standards
    3) From one computer to another
    4) By electronic means
    THERE ARE THREE COMPONENTS OF
    EDI:
     EDI standards
     EDI software

     Third party networks for communication


    EDI STANDARDS
    EDI standards are basically data standards in the sense that
    they lay down the syntax and semantics of the data being
    exchanged.
    Ex: UN/EDI fact
    This is an interchange functional groups of messages.
    EDI SOFTWARE
    EDI software consists of computer instructions that
    translate the information from unstructured ,company-
    specific format to the structured EDI format.
    Ex :EDI translators
    These perform the function of translating business data.
    DIFFERENT LAYERS OF EDI SOFTWARE
     EDI business application layer
     EDI translation layer

     EDI communication layer


    FULLY THIRD PARTY SERVICES
    These provide more than just communication between two
    or more parties.
    Ex: Electronic mailboxes
    BENEFITS OF EDI
     Shortened ordering time.
     Cost cutting.

     Elimination of errors.

     Fast responses.

     Accurate invoicing.

     EDI payment.
    EDI OPERATIONS
     Starts with agreement between you and trading
    partner
     Information can be sent through direct
    connection, or through van
     Use edi translation software to convert to agreed
    upon format
     Trading partners modem calls the network and
    retrieves everything in the mailbox
     There is a risk of unavailability of data to partner
    if data is edi is attempted without translation
    COSTS OF EDI
    It may vary from free to several thousands
    depending upon
     Expected volume of electronic documents

     Amplitude of edi translation software

     Implementation time

     Maintenance fee

     VAN charges

     Mailbox costs
    PREPARATION OF ELECTRONIC
    DOCUMENTS
     Outbound translation
     Communication

     Inbound translation

     Processing the electronic documents


    IMPLEMENTATION OF EDI
     Define a strategy
     Seek objectives of mutual benefit

     Planning and testing carefully

     Cost estimation

     User training
    EDI APPLICATIONS IN BUSINESS
     Directadvantages
    1. save money
    2. end repetition
    3. save time
    4. elimination of errors
    5. accurate invoicing
    6. EDI payment
    7. improve customer service
    8. expand your customer base
     Indirect advantages
    1. Reduced stock holding
    2. Cash flow
    3. Business opportunities
    4. Customer lock in
    DRAWBACKS OF EDI
     Too many standards.
     Changing standards.

     EDI is too expensive.

     Limiting your trading partners


    METHODS OF EDI
    COMMUNICATION
     Point –to-point or Direct EDI.
     Value-added-network

     Internet

    You might also like