Electronic Data Interchange system or EDI system is a well planned system designed for transmission of data between two or more organizations by electronic means. It has been recently adopted by a number of business and non business organizations worldwide due to its high accuracy and almost no data loss during transmission. There is no human intervention in this system which has increased its accuracy to a higher extent.
Traditional vs. EDI order placement
Let us consider a case when a customer wants to place a purchase order with a company. Now there are two conditions possible.
This way the EDI system provides us with higher speed of data transmission and hence higher work efficiency.
Major Benefits of EDI system
EDI system in Indian Customs Department
In December 1992, the National Infomatics Center and the Central Board of Excise and Customs conducted a study at various custom houses across the country. This study proved to be the base for computerization project in the customs department. A further detailed study was conducted in April 1994 at the Delhi Customs House which helped to collect the requirements needed to develop the software for the department.
The pilot project which thought about the computerization of customs department was launched in year 1994-1995. This project which was started at the Delhi Customs House included Electronic Data Interchange as the key element for connecting all the parties involved in the international trade to the customs house. After the tremendous success of Electronic Data Interchange system at the Delhi Customs House, the customs decided to implement the services to all other houses as well.
Scope of improvements in Indian Customs EDI System