EDI Around The World
Wednesday, June 20, 2012, 8:00 AM
International trade faces material, industrial and cultural barriers every day. Companies all over the world have different ways rules and regulations to determine what is customary in international trade.
The value of EDI has been recognized worldwide by companies and governments. Both companies and governments have promoted EDI as a way to improve trade between different countries. EDI allows everyone to speak the same language of business, making it easier and more efficient to do to business trades.
EDI in Europe: Countries in Europe have a goal to have one single European market. Tariffs and quotas have been lifted from goods to help real the goal. Product standards have also been set between countries to help synchronize the market. European markets have also started to allow open bidding between countries for government construction and telecommunications contracts. Europe believes that EDI can aid in the transportation of capital, goods and labor across different countries. EDI allows businesses to swap information promptly and eliminates any kind of misunderstanding due to language or cultural differences. With more advanced communications, than mail or fax, EDI is getting Europe closer to its goal. EDI can increase growth and lower costs of distribution by having more resources to use, such as computers, effective communication and expanded distribution.
An agreement, called Europe 1992, was planned to help create a supportive and synchronized business atmosphere throughout the nation by 1992. The agreement included two EDI initiatives; TRADACOMS and ODETTE. The initiatives focused largely on the automotive industry in Europe because it developed EDI as a way to shrink expenses and to continue to be competitive with Japan. Following the Europe 1992 agreement, other industries, including electronic companies and freight carriers, created their own EDI initiatives. These industries are still using EDI initiatives today. An example of EDI being used occurred in 1988. In 1988, delivery, cargo and export companies in Europe started a project to test the communication of international transportation data via EDI. The effort was named COST-306 and includes UN/EDIFACT-based communications for invoices, bills of lading and condition reports.
EDI In Asian/Pacific Countries: Asian/Pacific countries involved in EDI include: South Korea, Japan, Hong Kong, Singapore, Australia and New Zealand. In these countries, EDI has reduced the geologic isolation they encounter and have given them more technology. With more technology, information barriers have been demolished and communication is made easy. Information barriers that once were common dealt with different languages and character sets, which require advanced coding in computers.
Asian and Pacific countries have not implemented EDI widely, but are slowly incorporating it into more countries. Private parties and government agencies are excited about what EDI can bring to their nation and have funding and promoting it heavily. The people involved in EDI show an enormous amount of interest in EDI because it facilitates the flow of business information. With the flow of business information, trading partners can help bring the Asian/Pacific countries back into the international market.
Asian and Pacific countries have continued to play an important role in the international market even as the world has changed. For instance, many Asian/Pacific countries sell goods to the United States, where many companies are striving to reduce costs. To reduce costs and increase communication, the United States does with business with companies that use EDI. The United States will choose a competitor that uses EDI over one that doesnt every time.
EDI is relatively new in Asian/Pacific countries, so if a company chooses to conduct business with these countries, it may be slow going at first. The United States often buys goods from small companies in the Asian/Pacific region that lack the understanding and importance of EDI. Many of the small companies in these areas lack the funding for technology to improve their EDI system. Buyers that assist small businesses with their EDI education and implementation are able to have EDI-capable trading partners that are outside the United States.
EDI In Other Parts Of The World: Russia has become a key player in business because of EDI. In 1990, transportation companies located in Russia created the Association of Electronic Data Interchange Users (AEDIU). The association raised awareness of EDI and began to educated people. Membership into the association now includes customs agencies.
Eastern European countries have created the Simplification of International Trade Procedures Board (SITPRO). The board provides EDI education and encourages European countries, such as Poland or the Czech Republic, to use EDI. The SITPRO also works with trade/payment procedures and helps develop translation software. It also promotes EDI and provides consulting services.
The Advance Cargo Information Service (ACIS) was developed in Africa in 1991. The service was established to help improve the electronic network. The electronic network exchanges data between ocean carriers and their ports. The ACIS uses proprietary and EDIFACT standards.
EDI has made a difference in every industry and in every functional area. In some industries, EDI has reached vital mass and in others, it has become a matter of survival. EDI has been emphasized in every part of the world, in both private and public sectors. The standards of EDI are still being developed and many governments are now funding EDI education to continue the use of it.