This document discusses Electronic Data Interchange (EDI), including what it is, how it works, its components, advantages over paper-based systems, and cost benefits. EDI involves the electronic transfer of structured business documents between organizations using a standard format. It eliminates paper-based processes by providing an electronic link between trading partners. Key advantages of EDI include reduced data entry and improved business cycle times, as well as lower costs from things like fewer errors and expedited transactions. EDI systems typically involve three main components: business applications, translation services, and communication services to transfer data between partners.

1. BY JENIFA TANG
MBA 1ST SEMESTER

2. INTRODUCTION
WHAT IS EDI
WHY USED EDI
HOW EDI WORKS
EDI IN ITS WORKING ENVIRONMENT
EDI COMPONENTS
FILE TYPES
COST BENEFIT OF EDI
ADVANTAGES OF EDI OVER PAPER BASED DOCUMENT
CONCLUSION

3. Everybody uses business connection of one sort or
another to get orders, send bills make collections
Modern style a company has already installed a
computer to help run business operations
Technology continually offers new and innovative
techniques that affect companies and individuals
1. cordless telephone
2.Fax machine
3.Notebook computer
4. Electronic mail (email)
we are in the midst of the e-communication era

4. EDI is computer to computer
communication using a standard data
format to exchange business information
between companies
EDI eliminates the need for a paper-based
system by providing an electronic link
between companies
EDI reduces data entry tasks and improves
business cycle times
EDI the electronic transfer of structured
business documents in an organization-
internally among groups of departments or
externally with its suppliers, customers and
subsidiaries.

5. Fig . Electronic Data Interchange

6. Using EDI implies three things

7. Supplier
Supplier
Supplier
Manufacturer
Manufacturer
Manufacturer
Supplier
Supplier
Supplier

9. Three main components in a EDI system
business
application
Application
service
Translation
service
Communication
service
Trading
partner

10. EDI creates the following files as a document passes through
the system:
Internal Format
File (IFF)
External Format
File (EFF)
Transmission File

11. REDUCTION IN PURCHASE AN
PAYMENT AND IMPROVE BUSINESS
RELATIONSHIP WITH TRADING
PATNERS
TIME SAVING
TRANSACTIONS SPEED
EDI PROVIDES MANY SIGNIFICANT
BUSINESS BENEFITS, INCLUDING:
1. Marketing competitiveness
2.Administrative cost savings
3. Better quality control
4. Improved corporate trading
relationships

12. IN A PAPER-BASED SYSTEM IN AN EDI SYSTEM
A software application generates a
paper document on a form.
The application program generates a
file which contains the processed
document
Copies of the document are made.
copies are sent to the trading partner
through the postal service
The document is converted to an
agreed standard format. The file is sent
electronically over the network. This
network links the originating company
and its trading partner
The trading partner receives the
document and retypes the information
on the form into their computer.
The file containing the document
arrives at the trading partner. It is
translated into the correct format and
transferred to the recipients
application
The trading partner generates a paper
acknowledgement and sent to the
originating company
A receipt is automatically generated
and sent over the network to the
originating company

13. India being pioneer most countries to adopt
EDI, EDI is revolutionizing the way corporations
are doing business with their trading with their
trading partners around the worlds. Companies
like Apple, Honda, Ford motor co ltd and some
other more are only few companies who are
reaping the full benefits of EDI technology.

14. SURESH K BASANDRA(2005) COMPUTERS
TODAY ,NEW DELHI,SUNEEL GALGOTIA
PUBLICATION PVT LTD.