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Enumerate five benefits of using electronic data interchange in an enterprise.

      

Enumerate five benefits of using electronic data interchange in an enterprise.

  

Answers


Martin
Benefits of using electronic data interchange

i. Remove document re-keying

By removing the manual keying of Key business documents such as orders, invoices acknowledgments and dispatch notes your company can benefit significantly by:

- Reduced labour costs
- Elimination of human keying errors
- Faster document processing
- Instant' document retrieval
- Remove reliance on the postal service

ii. Eliminate Paper
Paper-based trading relationships have some inherent disadvantages when compared with their electronic trading equivalents'/which include:

- Stationery and printer consumable costs
-Document storage costs.
- Lost documents
- Postage costs

iii. Reduce lead times and stock holding

- Electronic trading documents can be delivered far more quickly than their paper counterparts, thus the turnaround time from order to delivery can be reduced
- By using EDI for forecasting and planning, companies are able to get forward, warning of likely orders and to plan their production and stock levels accordingly.
- Companies receiving advanced shipping notes or acknowledgments know in advance what is actually going to be delivered, and are made aware of shortages so alternate supplies can be sourced.
- Integrating electronic documents means they can be processed much faster, again reducing lead times and speeding up payments.

iv. Increase quality of the trading relationship

- Electronic trading documents when printed are much easier to .read than copies, faxed or generated on multi-part stationery by impact printers.
- Accurate documents help ensure accurate supplies.
marto answered the question on February 5, 2019 at 08:43


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