The Risks and Disadvantages involving in the use Of
EDI
Trading Partners Involvement
- Highly dependence on the participation of trading partners. It is
extremely difficult to get a high level of supplier compliance. EDI will be a
meaningless if your trading partner didn't get involve using EDI system
effectively.
Costly for smaller companies - Many small companies are facing resources
problems in getting starter with the initial implementation of EDI system. It is
beyond the resources these companies to invest tens or hundreds of thousands of
dollars in setting and implementation costs, as well as weeks of personnel
training, to get an EDI system running.
Difficult to agreed on standard used - Even though there are
widely-accepted and widely-used standards, there are no ways to force trading
partners to accept these standards. Cooperation between trading partners is
needed in order to develop a common rules to avoid differ in interpretation.
Although there are risks associated with the use of EDI, the benefits
greatly outweigh these risks. EDI will lead to improvement in a company’s overall performance.
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