Maximizing Profitability through Streamlined Processes

The report highlights the importance of Electronic Data Interchange (EDI) technology in achieving sustainable competitive advantage by maximizing profitability. EDI helps organizations streamline order processing, reduce manual work, and improve cash flow, space utilization, and inventory turnover. It also enables efficient supply chain management, procurement, and invoicing. The technology offers cost-effective services, minimizing personnel involvement, and requires minimal technical support. Additionally, EDI technology can be integrated with Enterprise Resource Planning (ERP) systems to ensure seamless operations.

implementation of EDI SYSTEM
[Document subtitle]
Medtronic, Inc.

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Acknowledgement
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 Lecturer
Leo Chandran Desmond Mr. Roger Lee
Tan Huey Yi
Foo Chuan Keong
Jerry Quek
Liew Win Ney
Tan Sie Chie

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Introduction
The 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 of
the businesses. Furthermore, the benefits of EDI are given in procurement, payment and
invoicing and in receiving (Ellram et al., 2013).
4.1 Benefits of EDI in Procurement
 Reduced 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-

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consuming 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 in
the 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 reducing
the 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.

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4.2 Benefits of EDI in Payment and Invoicing
 Remittance details
It has been observed that the reconciliation is one of the greatest challenges in the process of
settlement for the relationship between the buyer and the supplier along with the high volumes of
transaction. So, the buyer consolidates the various invoices to a single payment in order to
minimize the fees of banking along with the simplified process of the approval. Further, the bank
will inform the customer with the help of the regular statement like a credit is being received to
the account in a particular amount from a respective customer. Therefore, the only solution to the
problem of reconciliation is an implementation of remittance detailed advice of EDI. This will
help in providing the accurate details along with the deductions.
 Eradicating the invoice
Further, to eradicate the issue of handling the invoices, various organizations have started using
the settlement receipts process of the evaluation. The purchaser sends the electronic data

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interchange order of purchase including the cost of items, and the supplier delivers the goods
along with the ASN (advance notice for shipment). The buyer gets the goods, and the actual
price is being calculated. Further, along with the ERS, there is no requirement of the invoice, and
this helps in saving the cost and the time in a shipment of goods. Further, the ERS is being
matched with the order of purchases and the goods which are being received along with the
processing of the transactions.
4.3 Benefits of EDI in Receiving
 Automated receiving
The suppliers can easily send ASNs of EDI which will offer details about the content, timing,
and packaging of the upcoming deliverables. Further, these ASNs will be uploaded in the
warehouse system of management of the buyer. This helps in keeping a record of the shipments
which arrives or leaves the warehouse by scanning the barcodes which are fixed to the units of
the transport which will contain the items. As an outcome, this helps in identifying the supplier
of the shipment, associated orders of the purchase and the desired content along with the final
destination. Furthermore, the technology of the electronic data interchange helps in minimizing
the time for deliverables of inbound to the retail stores and the centers of distribution.

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 Minimizing expedites
The advent of the manufacturing and the model of the supply chain have resulted in taking the
stocks of inferior safety. The supply chains rely on the goods which are being arrived within the
desired time period. Even without having the actual visibility to the shipment, the activities of
the marketing cannot be performed effectively, and this requires the documents of EDI-like
waybills from the carriers of rail and air, updates of the statuses along with the bill of lading
from the carriers of the ocean. Therefore, EDI improves the functioning of the organizations by
minimizing expedites.
 Cross-docking pallets
The goods which are being received to the centers of distribution do not stay there for a longer
period of time. Further, the ASNs of electronic data interchange helps in keeping track of the
goods which are to be delivered in the coming days and which are being delivered. Also, this
helps the personnel of the warehouse in arranging the transportation for the outbound logistics
timely. Moreover, the shipment of the inbound logistics is being received, analyzed, configured
and then finally loaded onto the trucks in order to reach the desired destinations. Therefore, the
process of cross-docking helps in minimizing the inventory around the supply chain.

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5. EDI Technology
The business world is changing rapidly along with the policies, boundaries of the geography and
the traditional approach of the business. The new and innovative market wants the great level of
professionalism by the effective delivery and the great performance. The organizations do not
want to miss any opportunity as they are running after in order to maximize the profitability and
to achieve the sustainable competitive edge. Further, the technology of the electronic data
interchange is leading the competitive advantage where the competition is being developed from
the markets of non-traditional. Furthermore, in order to survive in the competitive industry and to
retain the customers, the organizations wants to use new and effective technology and the
technology of electronic data interchange is the best solution. The EDI technology presides the
way in order to merge the desired solutions.
Moreover, in order to achieve the success, an infrastructure of robust should be deployed on the
open framework depending on the standards of the industry. the main focus of the technology of
electronic data interchange is to offer the services of professionalism for the integration of the
network enterprise, solutions of business software along with the technical support and the
information is made available when it is being required, and further it is required in order to take
the critical decisions for the business to achieve success.
Further, the EDI is being defined as the procedure of exchanging the data and the documents of
the business electronically among the organizations. For the better understanding, the technology
of the electronic data interchange is an electronic communication among the systems of the
businesses of the organizations which are being known as the trading partners. Further, the

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technology of EDI ensures that the data which is traded is being standardized and structured for
the smooth conversation among the trading partners.
It is being observed that the technology of EDI has various benefits which result in indirect and
the direct way in order to save money and the time. Firstly, the paper documents are not
transferred anymore, and the information is being delivered at the faster pace. The conversation
is speedy, and the level of satisfaction among the customers is very high which helps in
achieving the competitive edge. Secondly, the errors of human are being eradicated with the
effective management and the exchange of data. Also, the mistakes of purchase orders and the
shipping is being eliminated. Thirdly, the technology of EDI helps in saving the cost as the cost
is quickly added because of the technology and it also saves the time. Lastly, the technology of
the EDI helps in improving the flow of cash, the space of the warehouse is being used more
adequately and the more turnover of inventory takes place which further helps in maximizing the
profitability.
5.1 Visionet’s reliable and the robust EDI technology software services and the solution
It clearly understands the distinct outbound and the inbound transactions of the technology of
EDI which includes the processing of the order, ASN, catalog of the product and the invoicing.
Further, the processing of the order of electronic data interchange is being re-engineered for the
organizations so that they can maximize their efficiency and the effectiveness according to the
dynamic changes in the trends in the infrastructure of the supply chain. The standards of the
electronic data interchange technology also help in understanding the integrators and the
mappers (Harbinger, GEIS) to a great extent ("Visionet Systems - The Strategic Technology
Partner for your business," 2014).

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Furthermore, the systems of the Visionet can encourage in developing the secure foundation of
EDI which is configurable, robust and the manageable. The technology of EDI helps in
minimizing the involvement of the personnel. Moreover, once the EDI solution and the
technology are being set up in the infrastructure of the information technology with ease, the
operations of the electronic data interchange will require no technical but the minimum support.
The technology of the EDI offers cost effective services of the information technology.
5.2 Streamlining the order processing of sales across the business through EDI technology
The companies of the technology wanted to have a consistent pace in order to beat their
competitors and bring new products and services in the market according to the needs of the
customers by maximizing profitability and also achieving the sustainable competitive edge.
Further, the supply chain requires performing effectively in order to avoid the drain of the
resources, bottlenecks, etc. Moreover, the EDI technology offer services 24/7 so that the
functioning of the organization do not get impacted at any point of time ("Welcome to EDI
Technology," 2014). The technology of EDI includes translations which are based on the cloud,
visibility on tracking the complete document, manageable services, ASN and the dashboard in
various distinct languages.
Furthermore, the technology of EDI takes care of almost everything like the protocols of the
custom conversations, different formats of the data, etc. The products which are being created for
sale through the supply chain can also take the benefit of EDI technology's knowledge of
extensiveness. It helps in keeping track of all activities which are being performed in the
transactions of the supply chain. Further, the technology of EDI helps in integrating the data with
the system of enterprise resource planning. The functionality of the EDI can be embedded with
the system of ERP ("EDI Software - Electronic Data Interchange - NetEDI®," 2016). The most

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importantly, the technology of enterprise resource planning helps in synchronizing the data and
the information whether it is about the confirmation of the order, placing the order, processing of
the order, etc. in the most efficient and the effective possible manner. Therefore, the technology
of EDI helps in keeping the check on the functions and the activities along with the effective
system of enterprise resource planning.
Conclusion
The report helped in understanding that the electronic data interchange has become an important
tool for the organizations in order to achieve the sustainable competitive advantage by
maximizing the profitability. Also, the report discussed the role and importance of EDI in all the
significant sectors like supply chain management and procurement. Further, it has been
understood that there are tremendous benefits of EDI in receiving, procurement and invoicing
and receiving as these are the main aspects of an organization. Therefore, EDI helps in keeping
the track of all records by reducing the manual work.

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REFERENCES
EDI Software - Electronic Data Interchange - NetEDI®. (2016). NetEDI Ltd. Retrieved 4
January 2017, from https://www.netedi.co.uk
Ellram, L. M., La Londe, B. J., & Weber, M. M. (2013). Retail logistics. International Journal
of Physical Distribution & Logistics Management.
OpenText Business Network –. (2015). OpenText Business Network. Retrieved 4 January 2017,
from http://www.gxs.co.kr/
Visionet Systems - The Strategic Technology Partner for your business. (2014). Visionet Systems.
Retrieved 4 January 2017, from https://www.visionetsystems.com
Welcome to EDI Technology. (2014). Edi-technology.com. Retrieved 4 January 2017, from
http://www.edi-technology.com/