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Electronic Data Interchange Analysis

tion rules among four thencurrent sets of industry-specific standards. The American National Standards Institute (ANSI) eventually developed its X12 standards which gradually extended and replaced those of the TDCC (Clarke, 2001).

There are several key benefits to EDI: paperwork is minimized, so transactions proceed faster; since documents are not rekeyed at subsequent steps of the process, the opportunities for errors being introduced into the system are reduced; because invoices and purchase orders travel electronically, the purchasing cycle is shortened, which enhances the ability of organizations to introduce techniques such as just-in-time inventory management (JIT) and similar processes to reduce costs.

The reduction in paperwork means that fewer employees are needed to prepare, route and manage the paperwork. Data flow is enhanced since paperwork does not have to physically travel from one location to another--either within the organization, or from one organization to another. Just

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Electronic Data Interchange Analysis. (1969, December 31). In LotsofEssays.com. Retrieved 03:31, May 17, 2024, from https://www.lotsofessays.com/viewpaper/1693410.html