The direct goal of electronic data interchange is to reduce
A) channel conflict through an improved dialogue among all channel members.
B) costs through use of lower cost shipping modes.
C) inventory levels for a manufacturer and its resellers through mass customization.
D) inventory levels for a manufacturer and its resellers through improved communication.

Question

Quizplus · Accepted Answer

The direct goal of electronic data interchange (EDI) is to enhance the efficiency of business transactions, which includes improving communication between a manufacturer and its resellers. This improved communication can lead to more accurate demand forecasting and order processing, thereby reducing inventory levels. EDI allows for the electronic exchange of business documents in a standardized format, streamlining processes and reducing the need for manual handling, which in turn can lead to lower inventory levels due to more efficient supply chain management.

The Direct Goal of Electronic Data Interchange Is to Reduce