Electronic data intercharge: from its birth to its new role in logistics information systems

Abstract

The introduction of internet applications in e-commerce made many adopters think that EDI would soon disappear. But the trend in logistics towards closer collaboration in supply chains made on the other hand the impact of EDI larger. A resultant of those forces will probably lead to a new type of EDI, which integrates with other technologies. Early studies on EDI were promoting its use because of savings in administrative work. But due to intra-corporation management model changes, today’s savings should be looked for rather in lower inventory holding, fewer obsolete materials, and lower premium freight. The traditional potential of EDI reduces cost and error, but cannot cover its comparatively huge investment and maintenance cost at all, especially for small players.