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Electronic Data Exchange and Fund Transfers

Electronic Data Exchange (EDI) and Electronic Funds Exchange (EFT) have been active in larger firms for more than ten years. These tools have allowed firms to greatly improve the speed of business activities and provide greater efficiency to operations. It has reduced costs and provided effective supply side management in the distribution chain.

Discuss examples from your research and knowledge where the above tools have greatly improved business efficiency.

Solution Preview

Collaborative commerce had its beginnings in the 1980s with both electronic data interchange (EDI) and Procter & Gamble and Wal-Mart's 'collaborative replenishment' project. This was when Duane Weeks, a Procter & Gamble brand manager, led a team that prototyped 'continuous replenishment'. What this meant was that Proctor & Gamble would automatically ship Pampers to the warehouses of Schnucks, without the grocer needing to place orders. The prototype was broadened by P&G vice president of customer services, when after rejected by K-Mart, approached Wal-Mart the concept in 1988. Today, P&G software and process design is the industry standard (May, 2003).
By implementing this system it eliminated time-consuming and it improved service, reduced inventory and both sides formed a ...

Solution Summary

This solution discusses EDI and EFT and how they improve efficiency. The solution is approximately 450 words and has one citation.

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