IMPACT OF ELECTRONIC DATA INTERCHANGE (EDI) ON ORDER PROCESSING SYSTE

Abstract

Purpose- The purpose of this study was to find out the impact of implementation and integration of Electronic Data Interchange EDI on Order Processing System OPS. Methodology/Approach- Only Secondary data was used in order carryout this research and analysis. The data was extracted through the Order Management System of organization. Furthermore, Customer portals and shipping service portals were accessed in order to extract data to create linkages. Different queries and reports were run on the software. SPSS analyses of Independent sample T-Test and Chi square test were applied to acquire the differentiating values. Variables under Study were Order Placement Time, Order Processing Time, Order Processing Cost and Error rate. Findings- The results depicts that EDI has a significant and positive impact in enhancing the overall performance of Order Processing System. Usage of EDI results in reduced Order Placement Time, Order Processing Time, Order Processing Cost and Error rate. Practical implications- The finding of this study implicates that EDI is an effective system for multiple industries for order processing purpose. Due to its advantages, it also boosts up the organizational goal achievement by reducing the operations cost, minimizing labor effort and reducing the recurring activities. EDI doesn’t only helps lower managerial work, cost reduction and error free processing but also inculcates string relation with business partners. An improved and free flowing process motivates the business partner increase their business volume as far as it remains hassle free.