Electronic Data Interchange

Abstract

This chapter discusses electronic data interchange (EDI) that is the widely accepted practice of electronically transmitting releases to suppliers and receiving releases from customers. Several manual steps via various data screens are involved upon receiving the releases into the company mailbox and translating the releases into the company computer. Usually a set of planning parameters governs release information for each finished part number, since different customers may have different EDI releasing strategies. With facsimile releases, a major issue is determining what is in transit that the customer has not counted in the manual release generated to the plant. The best practice of managing manual releases is to assign line numbers to the releases by date and then assign the line number to the shipments. If there is an agreement that releases can be increased, causing overtime and excessive freight for the plant, the net changes of the EDI releases will prove the point.

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