• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19

The purpose of this assignment is to research about Electronic data interchange and needs to discuss about development, advantages and disadvantages and future of EDI (electronic data interchange)

Extracts from this document...


1.0 Introduction The purpose of this assignment is to research about Electronic data interchange and needs to discuss about development, advantages and disadvantages and future of EDI (electronic data interchange) Electronic data interchange refers to exchange of business information between computer systems by network such as Internet etc. In modern days increasingly competitive, fast-paced business environment, electronic supply chain management is an area of intense focus, as leading companies everywhere strive to work more efficiently with their suppliers. Although traditional electronic data interchange (EDI) is well established in certain industries, in many sectors it has been extremely difficult to get a high level of supplier compliance, because of the expense and problems associated with EDI implementation (1) As I see today's business environment, I would like to say electronic data interchange is crucial components because business environment requires organisations to participate in the drive towards electronic business. (1) Electronic data interchange is a component, which exchanges structured data, sent in a form that allows for automatic processing with no manual intervention between two computers or two companies (1) The use of translation software means that EDI can take place with no restrictions on the hardware and software and it enables firms to be linked with one another in the most cost effective way (1) Electronic data interchange works by providing a collection of standard message formats and element dictionary in a simple way for businesses to exchange data via any electronic messaging service. (2) EDI: Electronic Data Interchange is the computer-to-computer exchange of business documents in a standardized format. Standard formats ensure that different companies can exchange business data without having to modify their computer systems. For pure EDI, "computer-to-computer" means "original-application-program to processing-application-program". (3) It is a kind of technique to exchange commercially oriented data in a structured electronic format. (4) An example of EDI, Company 1 buys widgets from company 2. In a non-IDE environment, company 1s purchasing system prints a purchase order, which is posted or faxed to company 2. ...read more.


(16) To allow different trading partners to work together it is necessary to define a consistent format for the data that is to be moved, and allow that format to be used by everyone without regard to the type of business they undertake (whether they are bankers, insurance agents, manufacturers, retailers etc.). (16) The most important development to-date has been the creation of EDIFACT (Electronic Data interchange for Administration, Commerce and Transportation - or Trade). This single standard has emerged as being the only true multi-industry/multi-national standard that is being embraced throughout the world reducing and simplifying paper based trading, advancing the use of information technology throughout the trading cycle and developing and promoting paperless trading or, EDI as it is more commonly known. (16) 9.0 Types of EDI processing EDI processing messages are generally divided into three main categories which are batch, fast batch, and interactive. Each one has differentiated processing by their expected turnaround times, which is the time between a request transaction and its corresponding reply transaction. (17) * Batch processing is measured in days * Fast batch processing in minutes * Interactive processing in seconds (17) Each processing type can also be differentiated based on the number of transactions in the message or file such as a follows (17) * Batch processing having the most transactions * Fast batch processing having an intermediate number * Interactive processing having one or only a few transactions (17) As I understand, batch and fast batch processing have easy managing because the batches are run in sequence. Interactive processing has more difficult managing because transactions must be processed at the same time, as soon as they arrive. (17) The communications used for transmitting batch and fast batch files usually consists of file transfer capabilities over facilities with significant delays, such as asynchronous dial-up connections or store-and-forward VANs. (170 Interactive messages cannot use these methods because the delays introduced are excessive. Typically, interactive processing uses TCP/IP socket communications, sometimes over leased lines or the Internet. ...read more.


for example Save Money The cost of paper and paper processing is incredibly high compared to a properly implemented EDI program. Processing a paper purchase order costs the company would be a lot of money. Processing an EDI purchase order reduces the cost to not as much as paper End Repetition If your trading partner wants a copy of a document, instead of calling you they simply check their mailbox. This results in a great timesaving from not having to copy and fax/mail copies of business documents. Save Time EDI also saves time over paper processing since the transfer of information from computer to computer is automatic. Improve Customer Service The quick transfer of business documents and marked decrease in errors allow you to do business faster and more efficient. The disadvantages of EDI are too many standards, changing standards, EDI is too expensive and limit your trading partners Too Many Standards There are too many standards bodies developing standard documents formats for EDI. For example the company may be following the X12 standard format, while your trading partner follows the EDIFACT standard format. Changing Standards Each year, most standards bodies publish revisions to the standards. This poses a problem to EDI users. You may be using one version of the standard while your trading partners are still using older versions. EDI is Too Expensive Some companies are only doing business with others who use EDI. If a company wants to do business with these organizations, they have to implement an EDI program. This expense may be very costly for small companies. Limit Your Trading Partners Some large companies tend to stop doing business with companies who don't obey with EDI. Electronic data interchange covers so many parts, which are as follows * Planning * Purchasing * Acknowledgment * Pricing * Order status * Scheduling * Test results, * Shipping and receiving * Invoices * Payments * Financial reporting * Education information In addition standards cover interchange of data relating to security, administrative data, trading partner information, specifications, contracts, production data and distribution and sales activities. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Computer Science section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Computer Science essays

  1. Marked by a teacher

    UK Copyright and File Sharing

    5 star(s)

    It simply will not work to the desired level. If their aim is to continually spread awareness about how file sharing infringes copyright legislation through sustained advertising to the public, then I shall support them wholeheartedly. Appendices Appendix I: Interview with University of Warwick Student (who wishes to remain anonymous)

  2. Marked by a teacher

    Cisc v risc. To begin this assignment , I will outline the definition ...

    A processors instruction set can be a major factor in its architecture. Theses instruction sets are hardwired into the electronic processor. The main types of instruction sets in processors are Cisc and Risc . vendors and manufactures vary in which type of instruction set architecture they want to implement into the design of there processor.

  1. Design a web based online Appointment System for vehicle service centres in town to ...

    The middle ware of the system will do the following VATS-FLOW CHART ASSUMPTIONS As this is an academic project, there are few assumptions considered. * Every service at the service centre will take equal duration which is one whole day.

  2. State two advantages and two disadvantages of a layered operating system.

    Give an argument in favour of manual deadlock recovery b. State a possible problem with roll-back c. Why must a Java programmer be always on guard for possible deadlocks 4). a. You can perform a manual deadlock recovery by completing either one task that is running using "force quit" operation or reboot the system.

  1. Traffic Light Simulation and Machine Code Program.

    tenth as much in program development as a low-level language where each line of code represents only a single machine instruction. In addition to the distinction between high-level and low-level languages, there is a further distinction between compiler languages and interpreter languages. Let's take a look at the various levels.

  2. The OSI Reference Model, in its simplest terms is a seven layered design designed ...

    Layer Device Protocol Application Gateways HTTP, HTTPS,FTP, SMTP, Tenet Presentation EBCIDIC, ASCII, JPEG, MIDI, MPEG Session NFS, SQL, RPC Transport TCP, UDP, SPX, NetBEUI Network Routers, ATM Switches IP, IPX, RIP, ICMP, ARP, RARP, DecNET Data Link NICs, Bridges Switches HDLC, LCC, SLIP, PPP Physical Hubs, Repeaters, Network Medium 802.3, 802.5, Ethernet, FDDI The Xerox Network System (XNS)

  1. What are the advantages and disadvantages of using an internal consultant as opposed to ...

    The best way of reducing this region is to ask for feedback. Ironically, it takes a long time for Quadrant II to reduce in size, because usually there are "good" psychological reasons, Client purposely blind themselves to the things they feel or do.

  2. This report will discuss the benefits and constraints of network systems and topologies.

    that automatically obtain correct network limitations in other to access network and Internet resources such as IP Address, Default Gateway, Domain Name, DNS Servers and more Router- This device forwards data packets along networks.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work