FIGURE 3.11 The X.12 format
• Reduction of paper. The use of electronic envelopes and documents drastically reduces the paper forms in the system.
• Postage. Mailed document are replaced with much cheaper data transmissions.
• Automated procedures. EDI automates manual activities associated with purchasing, sales order processing, cash disbursements, and cash receipts.
• Inventory reduction. By ordering directly as needed from vendors, EDI reduces the leg time that promoted inventory accumulation.