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The data is transmitted between computers over a leased line or a Value Added Network (VAN). The receiving trading partner's EDI system then translates the standardized document so data can be directly input into its business systems. (McGahee 1999)
In order to use Traditional Electronic Data Interchange there are a number of requirements:
1) Communications Standards: Both computers must speak the same computer language.
2) Legal agreement to trade electronically: Due to inability to obtain signatures, you must have contractual arrangement in place between supplier and buyer.
3) Market specific document standards: To eliminate the need to have documentations for each retailer/supplier UN/EDIFACT produced standards, known as EDIFACT for electronic transmission of data in relation to commerce in goods and services...
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Common topics in this essay:
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