Electronic Data Interchange (EDI) systems are commonly used in which of the following buying classes?

Question

Quizplus · Accepted Answer

Straight re-buying refers to the routine purchase of goods and services that a company regularly needs. These purchases are often standardized and involve a recurring transaction between the buyer and the seller. EDI systems are ideal for this type of buying class because they allow for the automated transfer of purchase orders, invoices, and other transaction documents between the buyer's and seller's computer systems, streamlining the procurement process and reducing the need for manual intervention.
EDI is less commonly used for:
a. Modified re-buying, which involves some change to the regular purchase in terms of specifications, price, or supplier.
c. New-task buying, which is associated with a purchase decision that an organization makes for the very first time, and thus requires extensive research and evaluation.
d. Impulse buying, which is a spontaneous, unplanned decision to buy, typically made by individual consumers rather than in a business-to-business (B2B) context where EDI is used.
Therefore, EDI systems are best suited for straight re-buying, where the efficiency and consistency of transactions can be greatly improved through automation.

Electronic Data Interchange (EDI) Systems Are Commonly Used in Which