1. Electronic Data Interchange (EDI) September 9, 2015

2. What is EDI?  Early form of eBusiness created in the 1970s  Electronic communication systems used for exchanging business document such as orders, invoices, shipping notices, etc.)  Uses specific EDI documents standard formats  Business partners should install required software on their computer systems  For communication between their computer systems, partners cans use any of the following:  Peer-to-peer network where the vendor, typically maintains a modem-pool dial-up connections  Value-added networks: communications networks supplied and managed by third-party companies that facilitate electronic data interchange  The Internet 2

3. Retailer A Retailer C Retailer B Retailer D Wholesaler A Wholesaler B Wholesaler C Wholesaler D EDI Contract A binding contract sets a good/competitive price for the Retailers (buyers) and make the supplier an exclusive vendor for the term of the contract.

4. Retailer A Retailer C Retailer B Retailer D Wholesaler A Wholesaler B Wholesaler C Wholesaler D Typical EDI Model Retailers don’t have the freedom of buying from any supplier of their choosing. They must order supplies from the suppliers they have sign contract with

5. EDI technology 5