EDI (Electronic Data Interchange) is one of the foremost examples of a standardized business processes that serves to keep all parties on the same page and well informed. At each step in the Order Management Process, there are clearly defined documents required to be exchanged by both the buyer (usually the Trading Partner) and the vendor. With EDI, no one is left hanging, wondering what’s going on. It is worth noting, too, that EDI is mandated by all major retailers. Although there is a huge machine behind EDI – infrastructure, complex code, diverse skills – the users get a delightfully simple, predefined system. From Purchase Order to Invoice there is a predictable flow of information and results.
The image below shows a simplified life cycle of an order.
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