Abstract
This chapter discusses Electronic Data Interchange (EDI). EDI provides direct computer-to-computer exchange of business transactions among different companies, even companies with different computer systems. Using EDI, a computer can send purchase orders and invoices directly to the computers of other organizations, and their computers can send a response electronically. Using EDI to eliminate the information float referred to earlier can help: (1) cut paperwork costs, (2) improve cash flow, reduce inventory levels and carrying costs, (3) reduce order lead time, (4) increase business volume without increasing clerical staff, (5) eliminate errors that occur in rekeying, and (6) provide better service to customers. IBM's EDI includes support for the interchange of data conforming to ANSI X12, the data record standard developed by the American National Standards Institute (ANSI). The IBM Information Network offers special EDI support for SNA host computers and the IBM Personal Computer. Available from the IBM Information Network are two ready-to-use EDI interface licensed programs: (1) SNA Host Information Exchange Interface and (2) IBM Personal Computer Information Exchange Interface. These programs enable customers with the appropriate equipment to begin transmitting and receiving data files, including those in ANSI X12 format.
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