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Electronic Data Interchange

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Electronic Data Interchange within the Food Retail Industry Report assessing the impacts of EDI on a company operating within the food retail industry. By Joanne Boerman. 1 Introduction to EDI Electronic Data Interchange can be defined as: "The transfer of electronic data from one organisations computer system to another's, the data being structured in a commonly agreed format..." (Curtis and Cobham 2007) The purpose of EDI is to enable a company to directly exchange business documents, such as purchase orders and invoices, with its suppliers and/or customers. The data is transmitted between computers over a leased line or a Value Added Network (VAN). The receiving trading partner's EDI system then translates the standardized document so data can be directly input into its business systems. (McGahee 1999) In order to use Traditional Electronic Data Interchange there are a number of requirements: 1) Communications Standards: Both computers must speak the same computer language. 2) Legal agreement to trade electronically: Due to...

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