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11. implementation of EDI SYSTEM.

Added on - 16 Sep 2019

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1AcknowledgementThe great efforts have been made in the project. It might not be possible without the help and thesupport of various people and the organizations. We would like to thank each one of them fortheir kind support.We are highly obliged to Mr. Roger for the constant support, supervision and the guidance atevery step to complete the project effectively and the required information is being providedwhenever needed. Thus, helped in completing our project.A righteous mention is for friends for their continuous support and the understanding on us inorder to complete the project. Therefore, without the help of such great people we would havefaced various challenges while completing the project.Team Members LecturerLeo Chandran DesmondMr. Roger LeeTan Huey YiFoo Chuan KeongJerry QuekLiew Win NeyTan Sie Chie
2IntroductionThe report helps in getting the deep understanding of electronic data interchange how it is beingimplemented in an organization in order to achieve the sustainable competitive advantage bymaximizing the profitability. Further, the report will discuss about the systems of EDI in themanagement 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 impactfultechnology which helps organizations leading to success. Furthermore, the JIT will be discussedwith 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 EDIThe electronic data interchange is being developed in order to resolve the issues inherent in theprocessing of transaction which is paper-based and also in the various other types of theelectronic communication. Further, the electronic data interchange acts as a tool whichencourages 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 andinvoicing and in receiving (Ellram et al., 2013).4.1Benefits of EDI in ProcurementReduced status of inquiryIt is very difficult to plan the activities of marketing, deliveries to customers without theparticular acknowledgment of the acceptance and the receipt of the order. Further, it is time-
3consuming to keep track of the status of confirmation and the receipts all the time. But, by usingelectronic 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 theorder and even the changes which will be made in the order.Automated ReplenishmentThe purchase orders along with the documents of the follow-up like acknowledgments of thepurchase order, changes in the purchase order, will be generated automatically by the system ofERP depending on the thresholds of the inventory and further will be directly sent to thesuppliers without any interventions of the human. Furthermore, by the supplier’s receipt theorder 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 positiverelation is built among the supplier and the consumer.Integrated changes in purchase orderAccording to the research, around 40 percent of the orders of the purchases are being automatedamong the supplier and the buyer. This further gives rise to the discrepancies among both theparties and inconsistency and inaccuracy occurs in the transaction process of the supply chainlike invoice and the notice of shipment("OpenText Business Network –," 2015). Furthermore,implementing the electronic data interchange changes in purchase order improvises the accuracyby enabling the better understanding among the partners of trading and also eradicating the issueof commitment towards the purchases.
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