EDI was created to take care of the issues intrinsic in paper-based exchange handling and in different types of electronic correspondence. In taking care of these issues, EDI is an instrument that empowers associations to reengineer data streams and business forms. Issues with the paper-based exchange framework are:
Time delays. Postponements are caused fundamentally by two variables. Paper archives may take days to transport starting with one area then onto the next. Furthermore, manual handling delays are caused by the need to key, document, recover, and look at data.
Work costs. In non-EDI frameworks, manual preparing is required for data keying, archive putting away and recovering, arranging, coordinating, accommodating, envelope stuffing, stamping, marking, and so forth. While computerized gear can help with some of these procedures, most chiefs will concur that work costs for report handling speaks to a critical extent of their overhead for EDI. When all is said in done, work based procedures are substantially more costly than non-work escalated operations including PCs and media communications.
Blunders. Since data is keyed different circumstances and records are transported, put away, and recovered by individuals, non-EDI frameworks have a tendency to be blunder inclined.
Vulnerability exists in two zones. To begin with, paper transportation and other manual preparing postpones imply that the time the archive is gotten is indeterminate. Once an exchange is sent, the sender does not know when the exchange will be gotten nor when it will be prepared. Second, the sender does not know whether the exchange has been gotten at all nor whether the collector concurs with what was sent in the exchange.
High Inventories. Due to time postponements and vulnerabilities in non EDI preparing, inventories are regularly higher than would normally be appropriate. Lead times with paper preparing are long. In an assembling firm, it might be for all intents and purposes difficult to accomplish a without a moment to spare stock framework with the time postpones innate in non-EDI preparing frameworks.
Data Access. EDI licenses client access to a huge measure of point by point exchange data—in a non-EDI condition this is conceivable just with awesome exertion and time delay. Since EDI data is now in PC retrievable shape, it is liable to mechanized preparing and examination. Such data encourages one retailer, for instance, screen offers of toys by model, shading, and client postal division. This empowers the retailer to react rapidly to changes in shopper taste.