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EDI and Business

Organisation that Uses EDI 
 
1) Wal-Mart: An EDI link between Wal-Mart and one of its suppliers, Seminole Manufacturing Co. cut the delivery time of Seminole slacks by 50%. This resulted in a 31% sales increase of these slacks in the first 9 months after the link was established.
 
2) General Motors: General Motors have integrated EDI Electronic funds transfer at 30% of its assembly plants. Shipping receipts are sent electronically from the GM plant to an Electronic Data System (EDS is subsidiary of GM) computer center where they are matched against electronic invoices and purchase orders.
 
Suppliers group the shipping receipts, and one payment is made. This single payment may represent dozens of different shipments to different plants. These payments are also performed electronically via Electronic Funds Transfers.
 
3) JC Penney: Sales of Stafford suits jumped 59% after JC Penney linked up with their supplier Lanier Clothes. EDI allowed Penney to quickly replenish stock fast enough to meet demand while cutting their overall inventory of suits by 20%.

4) Rockwell: Rockwell, a major automotive supplier received design change notifications directly the Rockwell has been able to react faster to their customer's constant design changes while reducing their inventory of finished goods. Parts now bypass their warehouse and go directly from their production lines to their shipping from automakers via EDI. docks.
 
5) Textile Industry: The Textile industry is beginning to fight back against Asian competition with EDI. While the US textile industry is hard pressed to compete on a cost basis, EDI is helping them provide superior service. Service is making it easier and faster to do business with a US supplier. 
 
6) US Customs: US Customs accepts electronic customs documentation, in advance of goods shipments. This reduces port delay and provides a competitive advantage for those ports of entry that support EDI.
 
7) Market Outlook: The Yankee Group, a Boston based market research group, estimates that 4/5 of all business transactions will be electronic by 2010. The EDI survey, published by Input, found that 70% of Fortune 1000 sized businesses; universities, and Public companies are currently using EDI. An additional 20% are planning EDI implementations.
 
Input also forecasts that the EDI service market will grow to $28.2 billion by 2010. That's an annual 25% per year growth rate from the 2000 market size of $3 billion.

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