Benefits and Limitations of Electronic Data Interchange (EDI)

 Benefits of Electronic Data Interchange (EDI):

• Faster processing
• Better relationship with trading partners
• Lower operating costs
• Improve business cycle speeds
• Reduce human error and improve record accuracy
• Increase business efficiency
• Enhance transaction security
• Paperless and environmentally friendly

Limitations of Electronic Data Interchange (EDI):

• High upfront cost
• Expensive setup and maintenance
• Time-consuming initial setup
• EDI standards keep on changing after some amount of time
• Investing in system protection
• Heavy maintenance and frequent data backup required