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Advantages of EDI
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Operation
Lowering Operating Cost - EDI replaces paper transactions with electronic transmissions, saving time and reduced cost of business transaction
and enabling the automatic processing of documents.
Reduced Error and Increases Business Information Accuracy -
With the implementation of EDI, there is no need for
re-entering data, thus, reducing
the risk for human error. Each re-entry of data is a potential source of error.
Increase Productivity -
Making
personnel more efficient
and it improves business capabilities by speeding up throughput.
Increase Security -
Data security and control are maintained through out the transmission process
using passwords, user identification and encryption.
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Tactical
Inventory Control - EDI can directly
and indirectly helps organisations improve their inventory control. Fact and
accurate permits better managing on stock balance, stock in-and-out, stock
handling.....etc.
Distribution - Improving delivery of services and goods by reducing
order and delivery time and increase the reliability of meeting targets.
Accounting - EDI facilitated financial processes
and potential in providing faster reconciliation or elimination of tasks,
auditing, checking and improving cash flow.
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Strategic
Faster Trading Cycle - EDI allows
faster and streamlining trading cycle
between organisations leading to improved relationships
between trading partners.
Marketing Competitiveness - With the use of EDI, buyer and customer can
easily search for product description, specification, prices and availability.
The use of computers to obtains information is replacing the use of telephone
and catalogues. Companies with EDI will certainly have an edge.
Better Quality Control - Quality control has becoming a key thrust for
progressive organisations. Many large, corporate buyers are now insisting
their suppliers to conform to company performance criteria. With EDI, customer
have more accurate information on the progress of their orders. Suppliers are
given more specification, inventories are better managed, wastage being
minimized. Fast and accurate communications permits better management.
Improve Corporate Trading Relationship - Business units, departments
and regional offices are co-ordinate together. This strengthen inter-company
relationship, making the entry of new competitors more difficult and gaining
more new business opportunity.
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