Electronic Data Interchange: Does Its Adoption Change Purchasing Policies and Procedures?

Anecdotal evidence suggests that electronic data interchange (EDI) is being used increasingly by companies, particularly to facilitate purchasing transactions. As this trend continues, one of the issues facing managers is understanding what effect adoption of the new technology will have on the organization as a whole, and on the purchasing department in particular. The results of this study, based on a survey of 122 purchasing managers, indicate that the impact of EDI is moderated by the volume of transactions using EDI. Its adoption requires somewhat different skills and training for buyers, and it also changes some aspects of a firm's relationship with its suppliers. The implications of these findings for purchasing executives are discussed.