An important aspect of EDI is the security of messages during the exchange. It should be ensured that the interchange of messages is reliable. Further aspects of security are: Controls in the EDI standards:- EDI standards include controls designed to protect against errors in the message and the corruption of message during the interchange. Controls […]
EDI standards implemented:- Before using EDI, the trading partners must set up a trade agreement which will define all the parameters of EDI. Each partner in an EDI trade agreement must independently determine a method to translate internal data to and from EDI formatted messages. Each partner must agree on the communications media and arrange […]
When e-business started, the need for common standards was felt as there were many different types of computer systems and different ways of storing data. Since the sender and receiver in the EDI systems had to exchange business documents that could be interpreted by all parties, it became necessary to develop standards in EDI. Many […]
Disadvantages of EDI:-“Electronic data interchange (EDI) Is the electronic exchange of business documents in standard, computer-processable, universally accepted format between the business partners.” Following are the disadvantages of EDI:- Too many standards:- There are too many standard bodies developing standard documents formats for EDI. For example, one company may be following the x12 standard format, […]
Following are the benefits of EDI:- Speed:- Information moving between computers moves more rapidly and with little or no human intervention. Sending an electronic message across the country takes minutes or less. Improved problem resolution:- EDI responds quickly to business enquiries and transfers of documents with an automatic audit to ensure accuracy and consistency. EDI […]
