EDI

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SUMMARY

This report will focus on EDI (Electronic Data Interchange), its uses, and its users. In an attempt to learn why EDI is used. I will discuss how EDI works and its components. Because EDI is an integral part of any ERP system, I intend to do a short analysis about an ERP vendor and in conclusion compare two ERP vendors to CMS.

WHAT IS EDI?

Electronic Data Interchange electronic is the exchange of business information between organizations in a standardized structured format. EDI is an integral part of ERP systems. It eliminates the need to re-enter data at either end and does not require human intervention in order to work properly.

Since its introduction, many companies that utilize EDI have benefited from improved productivity. Like most technological advances, EDI was developed to meet a need; the need for faster yet more accurate business information, an essential in today's "Just in Time" production schedules. The Accredited Standards Committee(ASC), United Nations (UN) Economic Commission for Europe Committee for Facilitation of International Trade Procedures and the American National Standards Institute (ANSI); were all integral in maintaining and developing EDI. Most of the Technical input/development was done in the United States.

COMPARISON OF THREE VENDORS

VENDORS COMPARISON

CMS PeopleSoft Compiere

Application Integration Yes Yes Yes

Barcode labelling Yes No No

E-BUSINES Yes Yes Yes

Financials Yes Yes Yes

Human Capital Management (HR) Yes Yes Yes

Inventory Control Yes Yes Yes

Product Configuration Yes Yes No

Production Control Yes Yes Yes

Production Scheduling Yes Yes No

Project Management Yes Yes Yes

Purchasing Control Yes Yes Yes

Quality Control Yes Yes No

Service Automation Yes Yes Yes

Supplier Relationship Management Yes Yes Yes

Supply Chain Management Yes Yes Yes

The chart above shows CMS, PeopleSoft and Compiere software vendors. Although the similarities between the vendors are expected, however PeopleSoft and CMS offer very similar modules. Compiere does not have as many modules but can be tailored to suit your business thanks to the nature of open source software.

CONCLUSION

The variety of ERP vendors offers ERP users a real choice. Determining which vendor is right for you company will take some research but will be well worth the effort. In order to choose the right vendor, make sure it has all the functionality you require and that it installs as seamlessly as possible with your current systems. Electronic Data Interchange has more powerful uses than simply data transfer, it can save you time, physical space, problems resulting from human error and most importantly, EDI's can save you money.

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