The Electronic Data Interchange (EDI) process will be implemented within the Riordan group of Companies. What is EDI? EDI is the process by which documents are transferred electronically in a paperless environment between two companies. Such documents include invoices, purchase orders, quotations, et al. The transfer is usually done over a value added network, integrated digital network, bulletin board system, and lastly, a secure web based HTML site. This process is becoming increasingly popular in and amongst organizations, as there is a sense of ease of use and cost saving. The Riordan Company anticipates that the EDI process will eliminate paper transactions, the process of manually reordering materials, manufacturing processes, and warehousing stocking processes. On the other hand, electronic payments are desired and the use of electronic transmissions will be implemented, thus minimizing errors and saving time. Once the respective application and transporter is available, data can be transferred at any given time.
The standard expenses that the Riordan Company incurred, such as, telephone calls, stamp postages, printing, and shipping and handling, will also be dramatically reduced by at least 90%.
History on EDI
It has been over 30 years since the inception of the EDI process. The first attempt was in the mid 60's, when the retail industry tried to go paperless. Although paper was not totally eliminated, it cut back on the amount of time a paper process was completed. Implementing this process reduced errors and increased efficiency. Many organizations have even moved from the paper system to EDI with their customers and suppliers.
The EDI technology is increasingly changing how companies conduct business. Organizations that utilize this technology are usually more responsive to their customers and stakeholders needs. In most, if not all cases the company will be ahead of the competition. A majority of the business...