EDI and Electronic Commerce
When we talk about electronic commerce we refer to any type of commercial transaction that is carried out through electronic means and using the various telecommunications networks available to us.
EDI is a standardized way of doing Electronic Commerce by integrating it directly into administrative systems. Electronic commerce has become an indispensable form of buying/selling in today's Information Society.
What is EDI?
The EDI system (Electronic Data Interchange) allows the automatic and structured exchange of data between computer systems through a discretionary communications network, without any manual intervention, allowing processes to be registered in the management system in a minimum time and documents to be exchanged electronically.
EDI Components
Translator and Mapper Software
It's function is to interpret the different electronic documents that we are going to exchange with the different EDI standards that we receive or send. This software allows us to automatically integrate with any ERP.
Standard Documento Format
The EDI standard tells us the information of the fields that are sent or received and we can implement our mapping for integration with our applications.
Communication Software
EDI exchanges require secure communications systems adapted to the specificities of this type of transactions. There are different options among which are Internet communication using AS2 or Value Added Networks such as IBM SCBN. It is a private communication network with high levels of security, control and monitoring to guarantee the correct sending and reception of different messages.
Operational and Strategic Advantages
The use of EDI gives the following advantages:
Reduces paper usage
Improved processing of information.
Reduction of errors
Improvement of customer service.
Shortening of the collection cycle.
Benefits
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Cost
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Time
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Efficiency
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Productivity
Reduction in inventory costs
Reduction in administrative costs.
Reduction in transportation costs..
Reduction in office costs.
Reduction in operating costs.
Direct reduction throughout business cycle.
Exchange of information at any time.
Less time for clarifications.
Reduction of time in the process to register information in administrative systems.
Less time spent on reconciliation of differences/errors.
Reduction of administrative time.
Reduction of inventory and missing levels.
Better planning for reception.
Better use of warehouse space.
More accurate projection of inventories.
Reduction of errors in messages and the resulting corrective actions.
Information automation
Increase in the level of service to customers and suppliers.
Minor situations of pending orders and returns.
Buyer's better decisions.
Time for the sellers to "sell".
Less time to resolve order/invoice discrepancies.
Better information on status documents.
More opportunity in alternative purchases.
Increase in staff productivity.
Success Cases
Food Distributions
EDI/B2B Processes
Product: B2bBi / EDI Visualizer
Country: Puerto Rico
Drugstore
EDI/B2B Processes
Product: B2bBi / EDI Visualizer
Country: Puerto Rico
Logistics Operator
EDI/B2B Processes
Product: IBM B2Bi / EDI Visualizer
Country: Puerto Rico
Logistics Operator
EDI/B2B ProcessesB
Product: IBM B2Bi / EDI Visualizer
Country: Puerto Rico
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