Benefits Downstream

  June 18, 2012       By Ray Atia
In finance, a succession of investments can be made with an expectation of forthcoming returns. These series of returns typically transpire after the initial investments and are referred to as downstream benefits. The financial goal is to have downstream benefits be greater than the downstream costs. Likewise, downstream effects can be unforeseen and set off inadvertent expenses and consequences. Over the years the traditional way of using downstream benefits has drastically changed. Instead, newer innovative methods are implemented such as enterprise systems. An enterprise system generally offers a superior quality service that supports large organizations and high volumes of data. There are various types of enterprise systems that allow the exchange of data across organizations and throughout the supply chain. There are invaluable enterprise systems that had an advanced structure like electronic data interchange (EDI) and enterprise resource planning (ERP). With this pioneering system many administrators have come to the realization that processes are interrelated which provides a timely acquisition of sales information. This adventitious feature helps eliminate inefficiency in the supply chain and therefore saves on overhead. Today it is commonly recognized by professionals that some organizations at department levels communicate through EDI in order to remove ineffective paper documentations like quotation requests and purchase orders. Furthermore, integration among departments in an organization results in the beneficial downstream of sharing documents such as accounts payable, bill of lading, procurement and inventory management departments. In addition, the most efficient and greatest streamlined process is attained through successful integration on an inter-organizational level. Utilizing EDI between organizations is the utmost advantageous system for electronic data interchange. Moreover, collaboration between affiliate organizations delivers not only opportunities for advance planning but offers nearly real-time forecasting.