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    Electronic Data Interchange (EDI)

    Uploaded by

    Pallavi Ingale
    Electronic data interchange (EDI) allows businesses to exchange structured documents electronically. It is used to transfer purchase orders, invoices, and other documents between companies in a standardized digital format. EDI provides benefits like expedited transmission, automated data entry, receipt verification, faster processing, and lower costs compared to paper-based documentation. However, initial setup can be time-consuming and expensive, and systems require security protections from threats. Major companies like FedEx use EDI to improve supply chain efficiency and communicate electronically with business partners.

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    Electronic Data Interchange (EDI)

    Uploaded by

    Pallavi Ingale
    277 views15 pages
    Electronic data interchange (EDI) allows businesses to exchange structured documents electronically. It is used to transfer purchase orders, invoices, and other documents between companies in a standardized digital format. EDI provides benefits like expedited transmission, automated data entry, receipt verification, faster processing, and lower costs compared to paper-based documentation. However, initial setup can be time-consuming and expensive, and systems require security protections from threats. Major companies like FedEx use EDI to improve supply chain efficiency and communicate electronically with business partners.

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    Electronic data interchange (EDI) allows businesses to exchange structured documents electronically. It is used to transfer purchase orders, invoices, and other documents between companies in a standardized digital format. EDI provides benefits like expedited transmission, automated data entry, receipt verification, faster processing, and lower costs compared to paper-based documentation. However, initial setup can be time-consuming and expensive, and systems require security protections from threats. Major companies like FedEx use EDI to improve supply chain efficiency and communicate electronically with business partners.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    277 views15 pages

    Electronic Data Interchange (EDI)

    Uploaded by

    Pallavi Ingale
    Electronic data interchange (EDI) allows businesses to exchange structured documents electronically. It is used to transfer purchase orders, invoices, and other documents between companies in a standardized digital format. EDI provides benefits like expedited transmission, automated data entry, receipt verification, faster processing, and lower costs compared to paper-based documentation. However, initial setup can be time-consuming and expensive, and systems require security protections from threats. Major companies like FedEx use EDI to improve supply chain efficiency and communicate electronically with business partners.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Electronic data

    Interchange (EDI)

    Dr. Pallavi Ingale


    What is Electronic data Interchange?

    Where you use Electronic data Interchange?

    What is use of Electronic data Interchange in industry/


    Company?
    Introduction to EDI

    • Electronic Data Interchange (EDI) is invented in the early


    70s.
    • EDI technique is used to transfer specific format
    of document at desired digital space.
    • A substantial cost-savings for businesses, as well as enhance
    business-to-business communication. 
    Types of EDI
    • Direct EDI/Point-to-Point- Direct EDI, also known as point-to-point EDI is the
    oldest and most traditional form of EDI. It’s often deployed on-premise and
    delivers a direct line of communication between two businesses through an EDI
    software package that utilises agreed-upon protocols, including AS2, OFTP or
    SFTP. 
    • establishes a single connection between two business partners. It offers control
    for the business partners and is most commonly used between larger customers
    and suppliers with a lot of daily transactions.
    • EDI via VAN or EDI Network Services Provider- Value Added Networks (VAN).
    is a cloud-hosted solution that deploys private networks provided by EDI
    specialists (or VAN providers) to connect you and your trading partners. The VAN
    provider manages the network and provides organisations with ‘mailboxes’ where
    you can send and receive EDI documents, such as purchase orders and invoices.
    • EDI via AS2- AS2 is an Internet communications protocol that enables data to be
    transmitted securely over the Internet. EDI via AS2 delivers the functionality of EDI
    with the ubiquity of Internet access
    Types of EDI
    • EDI via FTP/VPN,- Virtual Private network.
    • Web EDI - The install-and-go nature of web tools make them a great choice
    for businesses working with less tech-savvy partners or those in
    countries/regions where EDI and other IT skills are in short supply. 
    • Organizations use different online forms to exchange information with
    business partners. Web EDI makes EDI easy and affordable for small- and
    medium-sized organizations and companies that have only occasional need
    to utilize such a service. 
    • Mobile EDI- Mobile EDI has had limited adoption, in part due to security
    concerns with mobile devices across an EDI infrastructure, but mainly due to
    restrictions with the mobile devices available. 
    • EDI Outsourcing- EDI Outsourcing (also referred to as B2B Managed
    Services and B2B Outsourcing) is a fast-growing option that enables
    companies to use external specialist resources to manage their EDI
    environment on a day-to-day basis. This is in part driven by companies
    wanting to integrate to back office business systems such as Enterprise
    Resource Planning (ERP) platforms. 
    EDI helps in efficiency improvement of
    business
    • Improve the processing speed and accuracy of
    document movement. 
    • Utilizing EDI allows your business access to working
    with a variety of other businesses.
    • Partnering with an EDI expert is best for smooth,
    successful EDI integration.
    Benefits of EDI
    • Expedite transmission
    • Automated Data entry
    •  Receipt verification
    • Data Validation
    • Availability of free software
    • Low cost Lower administrative, resource and maintenance cost.

    •  Faster processing
    • Building long-term relationships
     relationships with trading partners 
    • Reduction in error
    Drawbacks of EDI
    • Expensive Setup and maintenance of some of the formats of EDI is expensive.
    • Initial setup is time consuming
    • EDI standard changes
    If any of the standard format changes then the business process has to be change
    accordingly.

    • System electronic protection system needs electronic protection from viruses,


    hacking, malware and other frauds.

    • Staff training cost


    •  Proper backup 
    Wal-Mart prefers to do business only with those
    • Limit your trading partners organization which uses EDI.
    • FedEx Corporation, formerly
    Federal Express Corporation.
    • It is an American multinational
    conglomerate holding company
    focused on transportation, e-
    commerce etc.
    • International shipping solutions 

    https://www.fedex.com/en-in/shipping.html#

    https://www.fedex.com/en-us/about/policy/technology-innovation.html
    Assignment no. 2
    • Write as per you how Filpcart is using EDI in the process?
    • At least explain Three processes that you find using EDI in the Flipcart
    domain and link security working with EDI.
    • Submit the assignment in handwritten form.
    • Submission date is 25-4-2022

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