Electronic Data Interchange
explanatory Essay
1231 words
Definition Electronic Data Interchange (EDI) can be formally defined as 'The transfer of structured data, by agreed message standards, from one computer system to another without human intervention'(Wikipedia, 2007). It represents the application of computer and communications technology to traditional paper-based business processes, supporting innovative changes in those processes. It involves the exchange and transmittal of business documents, such as invoices, purchase orders and shipping notices, in a standard, machine-processable format (CISA, 2008). EDI is not a new technology. It was first used in transportation and shipping industries in 1970s. However, EDI use has grown significantly in a many business sectors in the past decade. It is not limited to simply sending and receiving various messages but has allowed trading partners to access to each other’s internal records such as sales and inventory information. The use has come into prominence because EDI could provide the following benefits: • Less paperwork, reduced cost • Fewer errors during the exchange of information • Increased speed in information exchange and processing • Improved trading partner relationships • Improved intracompany flow of information Threats On the other hand, although EDI has created a number of changes in the way commerce is conducted and has offered significant opportunities, it also has attracted new threats and potential exposures and increased the seriousness of some existing problems. Some examples of these are described below. ... ... middle of paper ... ... and an on-line browser, businesses can link into secure EDI networks for a minimal investment. By engaging in EDI through the Internet, small and medium-sized firms can compete for business on a level playing field with large organizations; expand their market globally; and improve relationships with their current trading partners (ASCX12, 2007). Reference Wiki, 2007, “Electronic Data Interchange” http://en.wikipedia.org/wiki/Electronic_Data_Interchange Stanley Weiner, 1995, “BUSINESS RISK, INTERNAL CONTROL, AND AUDIT IMPLICATIONS OF EDI” http://www.nysscpa.org/cpajournal/1995/NOV95/Aud1195.htm CISA Review Manual, 2008 Ian Walden, 1993, “EDI audit and Control” David Moore, “Audit Implications of EDI” http://www.cica.ca/1/0/5/0/index1.shtml ASCX12, 2007, “ELECTRONIC COMMERCE ON THE INTERNET: THE FUTURE OF EDI” http://www.x12.org/x12org/about/edifuture.htm
In this essay, the author
- Explains that edi has created a number of changes in the way commerce is conducted and has offered significant opportunities, but it also has attracted new threats and potential exposures.
- Opines that the absence of humans from the process removes a degree of protection, since computers are incapable of applying curiosity or common sense to instructions.
- Explains that paperless trading carries its own advantages, and corresponding security problems. the absence of hard copy evidence in support of business transactions has serious implications both from a legal standpoint and from an auditor’s perspective.
- Explains that edi reduces the segregation of duties and limits the number of personnel involved with individual transactions. control of internal systems and procedures may be limited to a few people.
- Explains that proprietary information, such as customer lists, price lists and manufacturing schedules, could fall into a competitor's possession.
- Explains that edi is becoming a crucial part of everyday business activities. trading partners are offering discounts to their customers if they convert.
- Defines electronic data exchange (edi) as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention.
- Explains that if any part of the system fails, management would face problems related to transactions that have to be completed by set due dates.
- Opines that proper controls should be placed to protect edi transmissions. transaction authorization is a major concern.
- Explains that edi can be a culture shock for auditors, since it increases the dependence of organizations on computer-based information systems for essential operations.
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- Describes the range of perfumes available, based on brands, price, flavours, and features.
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1223 wordsRead More - Lego Supply Chain Management Essayexplanatory essay...ng the application of information technology is essential. For example, the implementation of shared POS system, EOS systems, database systems, and the promotion of EDI and VMI supply chain management applications
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- Explains that without knowing the customer demand, the most serious consequence is caused by a large number of product waste.
- Argues that the supply chain should adopt the "pull system" which regards customer as center and market demand as the driving force.
- Explains that group 4 passed to the known needs of other departments, group 1 was responsible for providing the material and group 2 put the materials classified by color.
- Explains that quick response is used when companies are facing many varieties of market demand, not reserving the "product", but to prepare a variety of "elements".
- Explains that information is mainly backed by modern competition. modern technology approach in supply chain management makes information transfer more quickly and accurately via optimal distribution channels.
- Explains that the group initially intended to build a house by two people, one to complete steps 1 to 4, another to make steps 5 to 8 at the same time, then integrate these two parts.
- Opines that everyone should identify the objectives and complete them by themselves, while constantly receiving new demands, the partners should rapid exchange, cooperate and transform objectives in accordance with pre-conditions, increasing the total output.
- Explains that supply chain system is directly linked with production, reproduction, production and consumption. it requires user-centric and provides the best services.
- Explains that saving is an important rule in the economic field. in the supply chain, company should try to shorten the completion time and close to the real-time production needs.
- Opines that modern information technology and information sharing are the basis for supply chain management, thus promoting the application of information technologies is essential.
- Explains how to design, implement, revise and continuously improve workflow, physical processes, information flow, and capital flow.
- Explains that supply chain management (scm) is a management approach, aiming to make the whole supply chain system cost to be minimal so as to effectively manufacture, transport, distribution and sale under the certain customer service and demand conditions.
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- Explains that supply chain management should be an efficient process, including planning, coordination, operation, control and optimization of the entire supply-chain system.
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In this essay, the author
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- Cites young, s. j., "make the most of every channel." catalog age, 18(3), 61.
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In this essay, the author
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- Explains e-mail, electronic publishing, bulletin boards, fund transfers, image processing shared databases, and electronic data exchange.
- Explains that bar code scanners are most visible in the check out counter of retail super markets. data warehouse is a consolidated data maintained different from an organization production system database.
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In this essay, the author
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- Explains that the amount of mistakes made with customers and suppliers is much more visible in electronic markets.
- Explains porter's five forces model to understand the influence of an organisation’s environment on a company by recognizing the possible impact of e-business on each of these forces.
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- Explains that e-business enables direct links across various levels in the supply chain.
- Explains that the effects mentioned above for the ‘power of buyers’ can be replicated to describe the power of suppliers.
- Explains that the increased transparency of markets makes it easier for organisations to develop substitutes for other markets. market data can be collected and analysed by applying new internet technologies.
- Explains that e-business permits companies from other industries or various countries to enter into new industries. this gives rise to more players in the same market and eventually increases competition.
- Analyzes the focus of the write-up on e-business, and the differences between, advantages and disadvantages of both.
- Defines e-business as a wider concept that takes into account all the aspects of use of information technology in business.
- Explains that e-business and e-commerce are terms that are sometimes used interchangeably, and sometimes to differentiate one vendor’s product from another.
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In this essay, the author
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- Explains hinton's definition of information management, which is the conscious process of gathering information.
- Explains the importance of data management in the decision-making process, which is an essential part of management activities.
- Explains that the decision-making process is a vital part of an organizations success and is heavily dependent on an information quality aspect.
- Explains that supply chain management is based on effective information sharing between a company and its suppliers, sub-suppliers, distributors, marketing channels, and inside departments.
- Explains that poor quality data costs companies between 20% to 35% of their operating revenue and up to 40% for information intensive organizations.
- Explains that 1 to 10 % of data stored in an organisation's database is inaccurate and over 60% of companies are facing the problem of information quality.
- Explains the importance of accurate, timely, and relevant information in an organization's activities. good quality data contributes in overall throughput and productivity of an enterprise.
- Explains dougherty, d., and murthy. what service customers really want.
- Explains russo, e., and showmaker, p. winning decisions : how to make the right decision the first time.
- Explains that organizations pay significant attention to the quality of information they deal with. lack of accurate up-to-date information leads to inadequate decisions.
- Cites citroen, c. l., and dieter, i.
- Cites ferguson, m, ge, and markus, h. (2013) impact of information quality on supply chain decisions.
- Explains that hüner, schierning, otto, and sterle, h. (2011) product data quality in supply chains: the case of beiersdorf.
- Cites rahman, z., and t. c. redman. the impact of poor data quality on the typical enterprise.
- Explains setia, p., and stair, r. m. on how information quality leads to localized capabilities and customer service performance.
- Introduces wang, r. y., pierce, e. m. and madnick, s.
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- Explains that the world leader in e-supply chain development compliments their philosophy of being a role model for corporate responsibility.
- Opines that flow manufacturing is essential to competitive supply chain management, by r. michael donovan.
- Describes eastman chemical company in kingsport, tennessee as a world leader in the e-business.
- Explains how eastman's e-business model helped its customers view products, check status of orders, access certificates of analysis, material safety data sheets, etc.
- Analyzes how eastman's e-supply chain strategy was an integral part of their corporate/competitive strategy.
- Explains how rdfw, durastar, embrace & provista, and sinopec qilu petrochemical co. exploited opportunities because of their broad product line.
- Explains that sales have increased over 50 percent while it takes 30 percent less engineers to support manufacturing facilities than a decade ago.
- Explains that ariel research corporation is expanding beyond the core business of chemicals and plastics manufacturing to develop less capital-intensive service businesses that allow it to take advantage of its long-term customer relationships and operational skills.
- Explains that eastman is rich in chemical and information technologies and other functional capabilities. nagase & company, ltd. of japan is a major distributor.
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2457 wordsRead More