Sunday, 23 March 2014

EDI system

Bismillahirrahmanirahim….

Assalamualaikum w.b.t

        Have a great day today, How you feel today ??  In this era of Globalisation, many things to be done quickly and easily. The emergence of the cyber world has been transfigured. This causes all the things that were previously difficult now been simplified. In business are also using technology that hass been created. Today, I will explain a new technology system that facilitates a business to get information from company@customer. In purchase,the system may be able to facilitate customers to communicate with the seller and usually used for the electronic transmission of orders, invoices, and payment betwwen buyer and seller. It is “EDI” system. Do you know what is EDI system ? most of the company are using this system in the present.

What is EDI ?

       EDI or Electronic Data/Document Interchange is the direct computer transmission of orders and other transaction  information. The main elements of an EDI system are computer hardware, software, computer compability between the sender and receiver, and subscription to a common network.
What the benefit of using EDI system ?
  There are many benefit to using EDI. For a smaller company, EDI may help keep a valued trading partner or customer or even gain. New ones, For larger firm, the main benefit is generally the cost savings, or to be known as a leading-edge company.

What the risk of using EDI system ?

   There are also have some risk when using EDI system that should be  considered. EDI is not inexpensive. The machine and training cost will add up to a large amount and cutting corners may cost a company more thanit saves. Security is also an issue. Procedural safeguards have not kept up with technology in this area. The problem is exposure to outside users, which opens up a doorways to false messages. These messages may come in the format a person who is not a supplier sending data or the data being interrupted and/or altered. Operational procedures need to have safeguards in place in order to avoid such situation. Buyers and sellers must interactively communicate, especially if a questionable transaction is received. An obvious risk is that current trading partners may refuse to use EDI. This is a situation that must be addressed by company policy. A decision must be made whether to trade singularly through EDI or use both EDI and traditional methods.

      If any constructive ideas can be added in the spaces comment below.That all.


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