Savings can be achieved from the following improvement:

(i)    Reduced Paper-Based System: EDI can impact the effort and expense a company devotes to maintain records, paper-related supplies, filing cabinets or other storage systems and to the other personnel required to maintain all of these systems. Electronic transactions take over most of the functions of paper forms and through automation drastically reduce the time spent to process them.

(ii)    Improved Problem Resolution and Customer Service: EDI can minimize the time companies spend to identify and resolve interbusiness problems. Many such problems come from data entry errors somewhere along the way and EDI can eliminate many of them.

(iii)    Expanded Customer/Supplier Base: Many large manufacturers and retailers with the necessary clout are ordering their suppliers to institute an EDI program. However, these are isolated island of productivity because they are unable to build bridges to other companies. With the advent of electronic commerce, the bridge is now available.

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