Question- Discuss EDI

Ans.

Electronic Data Interchange (EDI)

Electronic Data Interchange, is the computer application-to-computer application transmission of business documents in a pre-determined, standard format, electronic commerce is targeted for global trading and is suited to anyone interested in online commerce. EDI is computer-to-computer communication using a standard data format to exchange business information electronically between independent organisation.

Electronic Data Interchange is the transmission, in a standard syntax of unambiguous information of business or strategic significance between computers of independent organizations. The users of it do not have to change their internal data bases. However, users must translate their information to or from their own computer system formats. EDI is suited for a selected group of trading partners. Any organization that sends or receives large volumes of paper transactions, needs to reduce inventory costs. distribute products using repetitive procedures, wants to handle documents more expeditiously, deals with many trading partners, has to manage long delays in the purchasing cycle and conducts business with mostly the same companies can make optimum use of the EDI.

EDI make bulk updates of catalogues and parts listings. One can provide updates of data files, such as catalogues to customers or part listings to franchisees.

EDI reduce letters and memos. Letters and memos do not follow rigid rules for formatting. They can be handled by an electronic mail system.

EDI Decreases Enquiries. Customers or suppliers can make direct online enquiries on product availability or other non-sensitive information instead of consuming the staff's precious time.

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