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Describe how Electronic Data Interchange (EDI) has helped transform Business to Business (B2B) operations.
Business to business (B2B) operations refers to the way in which buyers and sellers trade with one another in a supply chain without dealing with the ultimate consumer. It thus includes manufacturers, wholesalers and retailers but not end customers.
B2B operations have been transformed by technology and information systems containing Electronic Data Interchange (EDI). EDI is the structured transmission of data among organisations by electronic means. The technology permits a transfer of electronic documents or business data from single system to another and hence from single trading partner to another.
The adoption of EDI has led to the use of consistent documentation and a faster exchange of paperwork when transacting business like purchase orders and invoices so saving time.
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