1. EDI Electronic Data Interchange

2. Group X What is EDI? Application to Application transfer of business documents between computers Means of speeding up cycle times and enhancing working relationships Two way information exchange that is fast, accurate, and completely paperless. Utilizes computers to effectively advance your ability to both keep in line with and stay ahead of your competition.

3. Group X General Uses of EDI Send: Purchase orders Invoices Shipping notices Eliminate Paper-Intensive Business Processes Reduces errors and frees clerks for value- added activities such as telemarketing

4. Group X General Benefits of EDI EDI transmissions go from order desks to shop floors in minutes, the foundation of just- in-time manufacturing Lets firms respond to product shortfalls without warehousing large inventories. Integration with other computerized operations such as accounting allows payment and instant inventory tracking. Result: lower overheads, higher sales

5. Group X EDI History In use since mid-1960’s Addressed the inefficiencies of inter- corporate document movement Started with Railroad Companies, Sears, K-Mart, and GM Early Problems –Company specific systems i.e. no standards

6. Group X EDI History Cont. In 1970’s shared EDI systems were sponsored by industries to temporarily solve standards issue. –IBM IVANS, ORDERNET Same problems with need to communicate with other industries

7. Group X EDI History Cont. In 1975 the TDCC (Transportation Data Coordinating Committee) moved towards the development of a standard for EDI between companies Today there are two main standards

8. Group X Benefits of EDI Saves Time Saves Money Improves Data Integrity Improves Data Security Expands Your Customer Base

9. Group X Drawbacks of EDI Increased Advantage for Larger Companies Your Trading Partners Must Use EDI (and use it effectively) –Example: K-Mart Case Study Difficult to Agree on Standards

10. Group X Development of Standards Early electronic interchanges were based on exclusive formats agreed upon between two trading partners. 1960s - cooperative industrial attempt at common data formats 1970s - ANSI began developing EDI standards. Today: ANSI X12 and EDIFACT (EDI for Administration, Commerce, and Transport)

11. Group X Establishing Standards Trading Partners Must: –identify unique codes to be used for various items. –agree on the meaning of the codes –determine the sequence in which data will be sent –Example: UPC Codes

12. Group X EDI OVERVIEW Oracle Applications 810 850 EDI Gateway EDI Translator Data Value Added Network Trading Partner Trading Partner Trading Partner Internet

13. Questions?