Benefits and Limitations of Electronic Data Interchange (EDI)

Benefits of Electronic Data Interchange (EDI):

Faster processing
Better relationship with trading partners
Lower operating costs
Improve business cycle speeds
Reduce human error and improve record accuracy
Increase business efficiency
Enhance transaction security
Paperless and environmentally friendly

Limitations of Electronic Data Interchange (EDI):

High upfront cost
Expensive setup and maintenance
Time-consuming initial setup
EDI standards keep on changing after some amount of time
Investing in system protection
Heavy maintenance and frequent data backup required

First Published on EDI-FACTS