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EDI And The Internet Allow Businesses To Quantify Sales

Thursday, May 17, 2012, 8:00 AM
EDI, or Electronic Data Interchange, is the exchanging of information between two businesses. That information can be inventory, purchase receipts, and invoices. It can also be used within a single company to properly communicate between departments. It is the most efficient and traceable method of communication. If something is misunderstood or left out, the two parties can go back into their files and have proof of that missing information. When businesses use EDI to communicate with banks, it is often referred to as financial EDI, or FEDI. Overall, the use of EDI with digital currency, magazines, and almost any electronic means of business, EDI is the corner stone. EDI is something thats relatively new to the world, since e-business really didnt get an upsurge until the mid to late 1990s. It was being used to a slight degree in the 1980s but nothing compared to what is experienced today. The key to maintaining a great EDI system is to utilize information linkages to help support business-to-business communications. The linkages that can be used can take almost countless forms, the point and focus of those linkages must be to give quick and reliable information when you need, your vendor, or your customer needs it. The EDI form of communication is the most reliable way to get this done, other links to business partners and vendors can also be done, but the EDI system is the most efficient means. At times, for some companies and industries, using EDI may be to expensive or is just plain unavailable for the area, then utilizing straight-forward internet communication can quantify sales just as well as EDI, but maybe not so fluidly. Both provide 24/7 coverage of sales, production, and even current inventory, making it just as effective as EDI. The good thing about that is that no one is relying on what the market forecast is, but what the real time sales and inventory are. This can save worry, time, and hassle, which save money all around. Creating an internet system that can work as well as an EDI requires that the people involved determine what information needs to be exchanged and how often. Often times, people get caught up in the information and times of communication and forget that the format is just as crucial. If one vendor is working in a different format, the entire system could be thrown off. Making sure the same format is used between every business is crucial. To make information exchange as smooth and cost efficient as possible, adequate finances must be used to make this happen. In the long run, an EDI will save more than it ever costs.

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