Data Interchange Improved Supply Chain Management

847 Words4 Pages
Case 3 QUESTION 1: How has EDI (Electronic Data Interchange) improved supply chain management (SCM)? Use Sears, Dell and Costco as examples. EDI is a system that some small firms use in order to share business documents with each other. Those business documents can be purchase orders, shipping bills, invoices, SKUs (product stocking numbers), and so on. Also, many large companies and industries have this system. EDI system is important because it can support the relationship among partners. By using EDI system, manufacturers can send information about customers and products to their suppliers directly and very fast. This process can be done in the supply chain online. This can reduce the time spent on sending information and ease the…show more content…
When the inventory arrives such level, the buyer’s EDI system will create and send the PO idiomatically. And the vendor’s system will receive it within several minutes. But if they use paper-based process, it will take several days to finish all the steps. QUESTION 4: Describe the four elements when considering the e-commerce relationship of geographic and legal boundaries as they pertain to the environment of e-Commerce, in particular, the legal, ethical, and tax issues. When considering the e-commerce relationship of geographic and legal boundaries, there are four elements, power, effects, legitimacy, and notice. First of all, power is used to control over people and objects in a physical space. The government has this kind of power and must use it to manage the space. What is more, laws are used to judge the behaviors of people. For example, two business cannot have the same name in the same city. But if they are in different cities, that is not the problem. Then, legitimacy is the idea when the government puts the subject in-laws. This government can be formed by people and do things for people. Finally, if there are some changes in rules, people have to receive the notice of them. Also, when people cross the international borders, the rules have to be changed with no any excuse on ignorance. Therefore, the government wants to use laws to control over people and others and manage the e-commerce space. QUESTION 5: What are the advantages and
Get Access