The pitfalls of implementing EDI in procurement

If you are in a sales, traffic, or procurement function, you have undoubtedly heard about the potential of implementing EDI in your business. Whether the move to pursue EDI has been stimulated by a customer or a supplier, the benefits of EDI seems to make business sense. And with many companies extolling the benefits of close relationships between buyers and sellers, you probably have been influenced to think that immediate implementation of EDI will result in more business and productivity for your department and company. Many companies, however, are finding that implementation of EDI requires a rethinking or analysis of business processes, both from a information generator and receiver point of view. Often, the initiating company arbitrarily demands that its suppliers implement EDI or lose out of business opportunities. This causes havoc in the company having to implement EDI because they are forced to comply and try to do so without adequate planning, understanding of the EDI procedures, and considering the impact on business practices within the company and its customers. The purpose of this paper and resulting presentation is to point out some of the pitfalls to avoid when implementing EDI in procurement departments in an effort to improve the impact of the EDI system once implemented.<
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