Demerits Of EDI

Trading Partners Involvement - Highly dependence on the participation of trading

partners.
It is extremely difficult to get a high level of supplier compliance. EDI will be a
meaningless
if your trading partner didn't get involve using EDI system effectively.

Costly for smaller companies - Many small companies are facing resources problems
in getting starter
with the initial implementation of EDI system. It is beyond the resources these
companies to invest
tens or hundreds of thousands of dollars in setting and implementation costs, as
well as weeks of
personnel training, to get an EDI system running.

Difficult to agreed on standard used - Even though there are widely-accepted and
widely-used standards,
there are no ways to force trading partners to accept these standards. Cooperation
between trading partners
is needed in order to develop a common rules to avoid differ in interpretation.

Although there are risks associated with the use of EDI, the benefits greatly
outweigh these risks.
EDI will lead to improvement in a company�s overall performance.