Page 9 - Supply Chain Magazine

EDI can have significant bearing on customer service. EDI provides a faster, more

accurate, and less costly method of communication with customers compared to other

methods, such as mail, telephone, and personal delivery. EDI, with its global connectivity

capabilities, also extends a company’s reach to a broader network of trading partners.

And as more companies adopt this technology, their access to an ever-growing supply

chain will skyrocket.

How does Electronic Data Interchange (EDI) affect the supply
chain?

Electronic Data Interchange (EDI) was created in 1968 by the transportation

data coordination, they created it for shipping companies that operated ocean

vessels, railroads, airlines and trucks to exchange electronic messages. EDI is

sending and receiving documents using telematic means, in order to enable its

automatic treatment.

Benefits:
1. Cost savings from paper disposal
2. Increased productivity of staff
3. more efficient data
4. simplification of operation

5. Decrease in treatment and transmission costs of a commercial

transaction
6. reduce the payment cycle

EDI is very important in companies because it provides the necessary

standards to make it simple, fast and effective. It's main purpose is to eliminate

duplicate data entry and improve the speed and precision of information flow
between companies.

It has been evolving over the years. The accredited standards committee

uses EDI for the entire U.S supply chain:
● Healthcare
● Insurance
● Government
● Transportation
● ONU

In Europe, they use EDI for: