Although many organizations still use private networks for EDI, they are increasingly Web-enabled because Internet technology provides a much more flexible and low-cost platform for linking to other firms. Business are able to extend digital technology to a wider range of activities and broaden their circle of trading partners.
Figure 9.6
Electronic Data Interchange (EDI)
Companies use EDI to automate transaction for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers.