b. Electronic Data Interchange
EDI is one of the most effective, time-proven ways to conduct electronic business transactions worldwide. Companies that utilize EDI benefit from lower order processing costs, shorter order cycle times, fewer errors and an electronic audit trail.
EDI uses standardized file formats to transfer data or transactions electronically such as purchase orders and invoices between two trading partners. The file can be passed through a Value Added Network (VAN) or over the Internet. The VAN receives stores and moves the EDI files, acting as an electronic post office. When files are sent and received by a company or trading partner, the files are read and translated. The transactions from the files are then loaded into the trading partner’s core applications.
c. Supply Chain Management
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in- process inventory, and finished goods from point-of- origin to point-of-consumption.
Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end- consumer. As corporations strive to focus on core competencies and become more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. The effect has been to increase the number of companies involved in satisfying consumer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.
d. Online Transaction Processing
Online transaction processing (OLTP), refers to a class of systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing. The term is somewhat ambiguous; some understand a "transaction" in the context of computer or database transactions, while others define it in terms of business or commercial transactions. OLTP has also been used to refer to processing in which the system responds immediately to user requests. An automatic teller machine (ATM) for a bank is an example of a commercial transaction processing application. The technology is used in a number of industries, including banking, airlines, mailorder, supermarkets, and manufacturing. Applications include electronic banking, order processing, employee time clock systems, e-commerce, and e-trading.
Online Transaction Processing has two key benefits; simplicity and efficiency. It reduced paper trails and gives faster and more accurate forecasts for revenues and expenses. It also provides a solid foundation for a stable organization because of the timely updating. Another simplicity factor is that of allowing consumers the choice of how they want to pay, making it that much more appealing to make transactions. OLTP is proven efficient because it vastly broadens the consumer base for an organization, the individual processes are faster, and it’s available 24 hours, 7 days per week.