A decision to invest in an electronic data interchange

Question

Quizplus · Accepted Answer

A decision to invest in an electronic data interchange (EDI) is a real decision that businesses face when they want to improve their supply chain management and eliminate manual data entry errors. EDI is a computer-to-computer exchange of business documents in a standard electronic format. Businesses can use EDI to transfer orders, invoices, shipping notices, and payment information with their trading partners, reducing processing time, and increasing accuracy. However, investing in EDI requires upfront costs for hardware, software, and training, as well as ongoing maintenance and support expenses. Therefore, businesses must weigh the benefits and costs of implementing EDI carefully.

A Decision to Invest in an Electronic Data Interchange