EDI
EDI stands for Electronic Data Interchange. EDI is an exchange of data or business documents between two or more businesses using a standardized electronic format, without human intervention. It is mostly used by large businesses to carry out their business process over a secured network with accuracy and in less time.
ADVANTAGES
Save Money
The cost of paper and paper processing is incredibly high compared to a properly implemented EDI program. RJR Nabisco estimates that processing a paper purchase order costs the company $70. Processing an EDI purchase order reduces the cost to a mere 93 cents.
End Repetition
If your trading partner wants a copy of a document, instead of calling you they simply check their mailbox. This results in a great time savings from not having to copy and fax/mail copies of business documents.
Save Time
EDI also saves time over paper processing since the transfer of information from computer to computer is automatic. There is no need to rekey information with EDI. And the chance for error drops to near zero, with no data entry.
Improve Customer Service
The quick transfer of business documents and marked decrease in errors allow you to do business faster and more efficient. Mart is an example of a retailer that implements a Vendor Stock Replenishment (VSR) program. With VSR, the Mart warehouse sends stock as their EDI system reports it and automatically bills the client. It can cut weeks from the order fulfillment cycle and ensures that product is always on the shelf.
Expand Your Customer Base
Thus with improved customer service, you can ultimately expand your customer base. Many large manufacturers and retailers are ordering their suppliers to institute an EDI program. So, when evaluating a new product to carry or a new supplier to use, the ability to do EDI is a big plus.
Disadvantages of EDI
Too Many Standards
There are too many standards bodies developing standard documents formats for EDI. For example your company may be following the X12 standard format, while your trading partner follows the EDIFACT standard format.
Changing Standards
Each year, most standards bodies publish revisions to the standards. This poses a problem to EDI users. You may be using one version of the standard while your trading partners are still using older versions.
EDI is Too Expensive
Some companies are only doing business with others who use EDI. If a company wants to do business with these organizations, they have to implement an EDI program. This expense may be very costly for small companies.
Limit Your Trading Partners
Some large companies tend to stop doing business with companies who don't comply with EDI. For example Wal Mart is only doing business with other companies that use EDI. The result of this is a limited group of people you can do business with.
Telecommuting
Defined as“the practice of working from home for a business and communicating through the use of a personal computer equipped with modem and communications software”, telecommuting is a process used by more and more businesses and employees.
Wider Global Reach: When a business is looking for someone with a particular skill set, interest or even personality, it can be hard to find exactly what you are looking for in a small area. Telecommuting gives businesses the opportunity to look for specific people and make them a part of their country, regardless of previously insurmountable barriers such as location or language.
Stronger Talent Retention: For some businesses, offering telecommuting opportunities to their staff allows them to retain the services of talented individuals who know and love the brand but may need to move to more flexible hours or relocate for personal reasons. Prior to telecommuting, organisations had to let good staff go. Now, businesses can keep talented staff onboard for longer thanks to more flexibility.
Cost Efficiency: There is plenty of money to be saved in allowing telecommuting opportunities to employees. A report in 2013 showed that businesses can save as much as $11,000 per employee – and this money can then be spent on other costs, such as product research or content development.
For employees, the benefits are slightly different but equally appealing.
Focus: Majority of employees feel more efficient and effective when they are away from ringing phones, distracting colleagues or other minimal interruptions. Telecommuting allows many employees to work within their own focused situation, responding to emergency situations when required.
Flexibility: Telecommuting will largely mean that it is not entirely necessary for employees to maintain a standard 9 to 5 workday like many office-based roles. For employees with life commitments, such as family or study, the flexibility of telecommuting is a major added bonus to a role – one that’s likely to make them more loyal to a company or organisation.
Time Saving: Employees can spend an hour getting ready every morning, and sometimes as much as an hour commuting into the office – that’s 2 hours gone before the work day has even begun. Telecommuting allows workers to start their day immediately, which can help productivity and reduce stress from time pressures.
Disadvantages:
As there are advantages to telecommuting for both businesses and employees, there are also disadvantages for both parties. Some of the negatives that businesses may notice when implementing a telecommuting policy include:
Supervision: The major issue that businesses have with telecommuting is the lack of supervision that executives and managers can offer over staff they have working from another location. There are very few ways to guarantee that employees are working the hours that they are required to, which is a risk for some businesses. A lack of supervision can also lead to a drop in work quality.
Cultural Hit: Culture is a big part of what makes employers great – the way in which they treat their employees, reward effort and so forth. When you don’t have employees in one site, on one timezone, it makes it difficult for your staff to feel included or feel like part of a team. This can be detrimental to both their work ethic and commitment to your product or cause.
Communication Difficulties: Even with modern technology such as phones, video programs and instant messaging software, it can be easy for messages to get lost in translation between managers and remote employees. Some businesses may find that relying on technology to communicate with their employees does not suit their purposes.
For employees working remotely, there are a couple of major challenges that may cause issues or uncertainty when it comes to telecommuting.
Vulnerability: If, as a remote employee, you have technological issues and can’t connect into a crucial meeting or submit a key document, there is no back-up. This can make some employees feel uncomfortable – a lack of support and a high level of accountability can be a daunting prospect for someone with little access to advice or assistance from their superiors.
Work-Life Balance: Generally, people believe that working flexible hours will make for a better work-life balance. For some remote employees, however, they find the opposite is true – working from home can ruin a balance because the temptation is always there to look at one more issue, or check your emails one more time. Workaholics are likely to struggle to pull themselves away – and that can lead to several health issues.
Knowledge: Employees who work within an office environment are able to access a variety of resources and insights from other employees when dealing with a problem or situation. When working remotely, it may be harder to make contact with someone or acquire the knowledge needed. This can lead to errors or additional pressure for employees.