Reaping EDI benefits through a pro-active approach

Abstract

EDI are emerging as a popular means for organizations to exchange trade documents that accomplish business transactions. This study examines the impact of Tradenet, a well-known system in Singapore, on the effectiveness and efficiency of its participants. Organizational effectiveness was measured in terms of international competitiveness, inventory control, and customer quantity. Organizational efficiency was gauged using preparation cost, exchange cost, and document flow. A survey was carried out on Tradenet participants. The results show that all, irrespective of organizational characteristics, attained enhanced organizational efficiency by participating. Furthermore, participants that planned ahead, participated in Tradenet early, or integrated Tradenet with their internal MIS, benefited more in terms of increased organizational effectiveness. The results suggest that organizations can reap greater benefits from their involvement in EDI by taking a proactive approach. © 1995.