Author Question: In about 100 words, explain how using EDI can lead to supply chain ... (Read 103 times)

lilldybug07 · **on:** Jul 7, 2018

In about 100 words, explain how using EDI can lead to supply chain efficiencies.

Question 2

In two paragraphs, explain how the challenges facing smaller companies that wanted to participate in electronic data interchange (EDI) were changed by widespread use of the Internet.

swimkari · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Many companies are using Internet and Web technologies to manage supply chains in ways that yield increases in efficiency throughout the chain. These companies have found ways to increase process speed, reduce costs, and increase manufacturing flexibility so that they can respond to changes in the quantity and nature of ultimate consumer demand.

For example, Boeing, the largest producer of commercial aircraft in the world, faces a huge task in keeping its production on schedule. Each airplane requires more than one million individual parts and assemblies, and each airplane is custom configured to meet the purchasing airlines exact specifications. These parts and assemblies must be completed and delivered on schedule or the production process comes to a halt. Using EDI and Internet links, Boeing works with suppliers so that they can provide exactly the right part or assembly at exactly the right time.

Answer to Question 2

EDI, the first example of electronic commerce, was first developed by freight companies to reduce the paperwork burden of processing repetitive transactions. The spread of EDI to virtually all large companies has led smaller businesses to seek an affordable way to participate in EDI. The Internet is now providing the inexpensive communications channel that EDI lacked for so many years and is allowing smaller companies to participate in Internet EDI.