ELECTRONIC Data Interchange (EDI): A Technique for Recycling Business Data, 1992 Finishing and Converting Conference Proceedings

Electronic Data Interchange (EDI) is a technique for recycling business data from one company to another, information contained on business documents such as purchase orders and invoices is now being directly laced in computers without the traditional steps of printing documents, mailing them to the customer/supplier and typing the information into the computer.

Two facilities make this possible. One is the use of value-added networks, which are commercially available data communications services used to achieve the link between different makes and models of computer hardware. The second technique involves use of computer software called transition software. This is used to restructure and change the format of the information so that it can be easily recycled by the recipient’s computer. Because of the speed at which business information can now be transmitted from one company to another, and due to the direct data recycling being employed in lieu of traditional data entry, EDI delivers benefits to both the originator and the receiver of the business document.

By way of example, applying EDI processes to an outgoing purchase order allows the purchaser to reduce their phone-in order effort, replenishment lead time for basic off-the-shelf items, and hence safety/buffer inventory for such items. For the supplier, receipt of the EDI purchase order results in decrease of phone-in order handling labor, part number cross-reference work and order pricing calcuiation effort. The supplier now has the opportunity to recycle the purchase order data directly into their customer order processing applicatlon.

In summary, avaliable technologies in telecommunications and data translation now enable modern business to recycle standard document information amongst trading partners.