123 School Work

Electronic Data Interchange

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  What is Electronic Data Interchange?
  Introduction
  
  In today's business environment an enormous amount of time is spent communicating between companies. When you think about all of the meetings, phone calls and letters that go into business relationships, it isn't always apparent what really binds companies together: information. Once the agreements have been made, it is the information that flows between companies on quotes, purchase orders, order confirmations, shipping schedules, invoices and other routine documents that truly define the relationships between business partners. Electronic Data Interchange (EDI) replaces the routine paper-based information exchange by means of electronic communications. EDI puts all the routine business information to work for companies across the supply chain; business strategies and information technologies are becoming inseparable. A firm's ability to provide quality products and service is tightly linked with the quality of information associated with those products or services. The real power of
  EDI is not in its ability to replace paper, but in it's capacity to help us utilize information in entirely new ways. It allows companies to manage business relationships, not paper flows. 1
  EDI Defined
       "Electronic Data Interchange is the movement of business data electronically between or within firms (including their agents or intermediaries) in a structured, computer-processable data format that permits data to be transferred without rekeying from a computer-supported business application in one location to a computer-supported business application in another location...