Electronic Data Interchange: Does It Change the Purchasing Process?

Abstract

Applications of electronic data interchange (EDI) are found today with increasing frequency in the purchasing community. As its use increases, EDI exerts a noticeable influence on purchasing activities. The use of EDI appears to improve vendor relationships and to increase purchasing productivity without changing the basic nature of the purchasing process. A widespread foundation for the implementation of EDI now exists in a number of industries; hence, the use of EDI is expected to grow significantly. Both purchasing and supplier management should be prepared to become familiar with EDI concepts and to explore potential applications of EDI in their own organizations.