The Impact of Electronic Data Interchange (EDI) on Competitiveness in Retail Supply Chains

The Economic Intelligence Unit (1988) has grouped the benefits of electronic data interchange (EDI) accruing to business into 3 categories: 1. strategic, 2. operational, and 3. opportunity. A detailed examination of current retail logistical practices was initially carried out with the twin objectives of identifying suitable host participants, while at the same time tracking logistical problems that were specific to Ireland, given its insular and peripheral location relative to mainland Europe. Barriers encountered in the adoption and diffusion of EDI implementations and solutions have been extensively documented. Any strategy to promote the uptake of EDI must focus on negating the impact of certain barriers, such as trading partner negotiations or lack of central warehousing, while simultaneously emphasizing the considerable benefits to users of such a service. Nelson (1990) has suggested a model whereby organizations migrate through a series of evolutionary stages in the course of EDI implementation. Carter and Ragartz (1991) also suggest a 4-stage evolutionary progress as the most typical pattern of EDI adoption.