EDI can be transferred with any methodology agreed upon by both the sender and the recipient, but as more and more trading partners have begun to use the Internet for transmission, standardized protocols have been established. The main obstacle to successful EDI implementation is the perception of many companies of the nature of EDI. Many people see EDI from a technical point of view that EDI is a data format; It would be more accurate to defend the commercial view that EDI is a system for exchanging commercial documents with external entities and integrating data from those documents into the company`s internal systems. Successful EDI implementations take into account the impact of externally generated information on their internal systems and validate the business information received. For example, if a supplier is able to update a retailer`s credit accounting system without proper controls and balance sheets, the business would be exposed to significant risk. Companies that are not yet familiar with EDI implementation should understand the underlying business process and apply appropriate judgment. Many of these standards first appeared in the early stages until the mid-1980s. The standards impose the formats, character sets and data elements used for the exchange of commercial documents and forms. The complete X12 document list contains all important business documents, including orders and invoices. EDI and other similar technologies save the company money by offering an alternative or substitute for information flows that require a lot of human interaction and paper documents. Even if paper documents are maintained in parallel with EDI exchange, for example. B printed shipping manifests, electronic exchange and the use of data from this exchange reduce processing costs for sorting, distributing, organizing and searching paper documents.
EDI and other similar technologies allow a company to reap the benefits of electronic data storage and handling without the cost of manual entry. Another advantage of EDI is the ability to reduce or eliminate manual data entry errors, such as shipping and billing errors, since EDI eliminates the need for a new document decision on the target page….