Maximizing Profitability through Streamlined Processes


Added on  2019-09-16

12 Pages2666 Words481 Views
Maximizing Profitability through Streamlined Processes_1

1Acknowledgement The great efforts have been made in the project. It might not be possible without the help and the support of various people and the organizations. We would like to thank each one of them for their kind support.We are highly obliged to Mr. Roger for the constant support, supervision and the guidance at every step to complete the project effectively and the required information is being provided whenever needed. Thus, helped in completing our project.A righteous mention is for friends for their continuous support and the understanding on us in order to complete the project. Therefore, without the help of such great people we would have faced various challenges while completing the project.Team Members LecturerLeo Chandran Desmond Mr. Roger LeeTan Huey YiFoo Chuan KeongJerry QuekLiew Win NeyTan Sie Chie
Maximizing Profitability through Streamlined Processes_2

2IntroductionThe report helps in getting the deep understanding of electronic data interchange how it is being implemented in an organization in order to achieve the sustainable competitive advantage by maximizing the profitability. Further, the report will discuss about the systems of EDI in the management of supply chain and the procurement along with the process of implementation. Then, the benefits of electronic data interchange will be discussed along with its impactful technology which helps organizations leading to success. Furthermore, the JIT will be discussed with the EDI and how it leads to competitive advantage. Also, the examples of Amazon, Wal-Mart and DHL has been taken for the better understanding of EDI.4. Benefits of EDI The electronic data interchange is being developed in order to resolve the issues inherent in the processing of transaction which is paper-based and also in the various other types of the electronic communication. Further, the electronic data interchange acts as a tool which encourages the organizations in order to re-engineer the flow of information and the processes ofthe businesses. Furthermore, the benefits of EDI are given in procurement, payment and invoicing and in receiving (Ellram et al., 2013).4.1Benefits of EDI in ProcurementReduced status of inquiry It is very difficult to plan the activities of marketing, deliveries to customers without the particular acknowledgment of the acceptance and the receipt of the order. Further, it is time-
Maximizing Profitability through Streamlined Processes_3

3consuming to keep track of the status of confirmation and the receipts all the time. But, by using electronic data interchange acknowledgment of the purchase order, functional and the changes inthe purchase order into the process of business, the buyers can eradicate the queries of the status. Furthermore, they get notified automatically when the supplier receives, rejects or confirms the order and even the changes which will be made in the order.Automated Replenishment The purchase orders along with the documents of the follow-up like acknowledgments of the purchase order, changes in the purchase order, will be generated automatically by the system of ERP depending on the thresholds of the inventory and further will be directly sent to the suppliers without any interventions of the human. Furthermore, by the supplier’s receipt the order is uploaded to the system of order management of the supplier. Also, this helps in reducingthe cost of inventory. The payments are received much earlier, and as a result, the positive relation is built among the supplier and the consumer.Integrated changes in purchase order According to the research, around 40 percent of the orders of the purchases are being automated among the supplier and the buyer. This further gives rise to the discrepancies among both the parties and inconsistency and inaccuracy occurs in the transaction process of the supply chain like invoice and the notice of shipment ("OpenText Business Network –," 2015). Furthermore, implementing the electronic data interchange changes in purchase order improvises the accuracy by enabling the better understanding among the partners of trading and also eradicating the issue of commitment towards the purchases.
Maximizing Profitability through Streamlined Processes_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Minimizing Expedites through EDI Technology

Walton's Success: A Retail Giant in the Making