VAN/benefitsof - EDI - Pptx/vijetha Bhat
VAN/benefitsof - EDI - Pptx/vijetha Bhat
VAN/benefitsof - EDI - Pptx/vijetha Bhat
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Value added networks(VANs) are third-party
communication network established for exchanging
EDI traffic amongst partners.
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Value Added Network (VAN)
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Document conversion from one standard to another
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The sender may follow certain conventions that are different from the
receiver.
VANs can also provide translation from a sender's conventions of a
standard document to the receiver's conventions; i.e.,
Example, the sender's bill of lading (BOL) number can be stored in the
account and upon receipt of the BOL acknowledgment (997), an
acknowledgment message including the BOL number can the created
andtransmitted to the sender.
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. The VAN provider's computers also store data such as customer profiles,
repetitive waybill codes, etc. which can be used for filling up the EDI
transaction document with the help of the customer profile code.
. The VAN can alert the subscriber (receiver) that there is data in their
mailbox to be picked up:
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9.The VAN can capture the specified data from transactions which,
in turn, can be used for generating customer-specified reports.
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Benefits of EDI
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1. Reduces Lead Time
in the EDI environment, the exchange of documents among trading
partners happens electronically through interconnected computers.
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2. Improves Coordination with Suppliers
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3. Reduces Redundancy
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4. Expand the Market Reach
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Also, with the growth of electronic commerce and further integration of EDI
with electronic commerce, the creation of an electronic marketplace by
large manufacturers who buy supplies from many large and small
suppliers, has become a reality.
The efficiency brought about by EDI reduces the total transaction friction by
eliminating paperwork and related errors that ensure.
The reduced transaction friction saves money and the supplier is in a better
position to offer the items at cheaper costs, leading to improved revenue
realizations and sales.
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Applications of EDI
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The ability to exchange business documents electronically has been found
to facilitate coordination between the partners, reduce the lead-time and
thus reduce inventory.
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End of presentation
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