Implementing Electronic Data Interchange

Electronic data interchange (EDI) is the direct electronic transmission, computer to computer, of standard business forms between two organizations. In the purchasing environment, documents are transmitted “over the wire,” eliminating the need to generate hard copies and to distribute them manually. By utilizing EDI in purchasing, a buyer and a supplier are operating in a near ‘real‐time’ environment, which can reduce incoming material delays by shortening procurement lead times. This article is the second of two reports that present the results of a nuQor research project, funded by the Computer Information Systems and Technology Group of the National Assodation of Purchasing Management and Michigan State University, that focused on the implementation of electronic data interchange in a purchasing environment. The article presents a framework that can help managers find patterns and trends in the EDI system design and instaUation process in order to develop a useful model for EDI implementation in their firms.