Operation of Electronic Data Interchange (EDI) in the Coca-Cola Company
Electronic Data Interchange allows companies to operate commercial and administrative departments effectively. The concept is designed to integrate business operations into the internal management systems using a standard format that computers read, process, and comprehend (Jardini, Amri, & El Kyal, 2016). Sometimes other companies prefer sending documents using their specified standard formats depending on the kind of partner they are dealing with (Jardini, Amri, & El Kyal, 2016). Some of the recommended formats for EDI communication include ANSI, TRADACOMS, and EDIFACT, as well as ebXML, which have their specified versions.
EDI technology assists the Coca-Cola Company in maximizing its profits by reducing the costs that may be incurred if other means, such as mail and fax, are used. The concept enables the Coca-Cola Company to exchange business documents electronically with increased processing speed and reduced errors. Some business documents that this platform exchanged include invoices, purchase orders, and shipping notices (Pfeiffer, 2012). Thus, the concept of computer-to-computer integration has enhanced cooperation and efficiency between Coca-Cola Company and other business partners.
Organizations can improve the use of EDI by creating strong security parameters for all EDI transactions and communication. In fact, to survive in a competitive marketplace, companies need to encrypt their EDI applications to protect their data from being manipulated by a third party (Pfeiffer, 2012). Security ensures that there is an aspect of confidentiality between the parties involved in any transaction or communication.
In essence, EDI and other computer-aided communication methods have helped businesses to reduce operating costs and ensure efficiency. However, the documentation language seems to be EDI’s biggest challenge. Thus, other organizations like Coca-Cola should ensure that their communication devices have applications that help translate any language.
Jardini, B., Amri, M., & El Kyal, M. (2016). Investigations of the electronic data interchange practice: Comparative study of companies operating in the automotive sector in Morocco. International Journal of Research Studies in Computing, 5(2).
Pfeiffer, H. K. (2012). The diffusion of electronic data interchange. Springer Science & Business Media. 1-20.