Although, there is much correlative literature on JIT inventory management, there is very little related to merging EDI and JIT inventory management. It is critically important to shorten the supply chain cycle for the electronic industry which has a great concern on the inventory control effectiveness. This paper compares the firm merging EDI with JIT to traditional inventory method in reducing inventory management cost by case study. Two hubs and their suppliers were investigated to reveal the use of electronic commerce in the electronic industry based on the value chain theory.