1.

Options Ace Audio has for developing a system to connect with Car Sound Industries’ purchasing
system are to upgrade it accounting system/ERP (Enterprise Resource Planning) so that in facilitates
and integrates EDI (Electronic Data Interchange). EDI method Ace Audio can use include:
 Outsourcing the EDI
 Using the Web EDI
 Using the EDI via Value Added Networks (VAN)
 Point-to-point / Direct EDI

2. Terms or concepts describing the proposed computer-to-computer relationship between Ace Audio
and Car Sound Industries
In order to achieve compliance with EDI:
 Ace Audio needs to set up the infrastructure for the EDI
 Ace Audio needs to align their EDI setup with Car Sound Industries’ EDI system
 Both Ace Audio and Car Sound Industries have to adhere to common standards certifiably

When this compliance is achieved then in order to perform the data interchange there is need for

 Preparing the documents (e.g., purchase orders, delivery notes, invoices)

 Translating the documents to EDI format
 Transmitting the EDI formatted documents to a partner

3. Ace Audio’s proposed system is a transaction processing system. Implementing the EDI would allow
it to act as a system to process transaction that are related to logistics. EDI eases management and
transaction information flow as it allows partners who are trading (Ace Audio and Car Sound
Industries) automated sending or receiving of documents that are based ordinarily on business
course.

4. Ace Audio has to consider ERP system before making a final decision. In this case implementing EDI
would require to make sure it offers integration to the ERP and other functionalities which result in
fast order to cycles of cash, overhead that is reduced, compliance with providers of financial
services, and much tight grip to financial transactions. The upgrade of ERP must be considered with
integration of EDI in mind. Integration of EDI is a part that is crucial for an ERP strategy blending on-
premise and cloud solutions of ERP which will give flexibility to the business needed for better
management of digital ecosystem members, from partners in trade to customers.
4 It should offer ERP (Enterprise Resource Planning such as Microsoft Dynamics 365) integration and
other capabilities that result in faster order to cash cycles, reduced overhead, a tighter grip on financial
transactions, and compliance with financial service providers.

It’s important however, that before we’re able to integrate a customer’s ERP with an eCommerce
webstore(s), EDI Trading Partner(s) or CRM application, they have to have an ERP system implemented.

transmit the purchase order automatically to the supplier with EDI. The supplier’s EDI system recognizes
the purchase order, checks inventory, and sends back an invoice to the retailer. The retailer’s EDI system
is programmed to process the invoice and then send back the customer notice that the item has been
purchased and provides real-time shipping information. No matter what step of the ordering process,
the retailer, supplier, and customer are all informed in real-time.

1. EDI Outsourcing

EDI Outsourcing (also referred to as Managed Services) is a fast-growing option that enables companies
to use external resources to manage their EDI environment on a day-to-day basis. This is in part driven
by companies wanting to integrate to back office business systems such as Enterprise Resource Planning
(ERP) platforms. Many companies do not have the internal resources to undertake this type of work so
they outsource it instead.

Web EDI

Unlike EDI via AS2, Web EDI conducts EDI using a standard Internet browser. Organisations use different
online forms to exchange information with business partners. Web EDI makes EDI easy and affordable
for small- and medium-sized organisations and companies that have only occasional need to utilise such
a service.

EDI via VAN

Value Added Networks (VANs) are private networks where electronic business documents are
exchanged between partners. The VAN provider manages the network and provides companies with
mailboxes where they can send and receive EDI documents.

Direct EDI/Point-to-point

Brought to prominence by Walmart, direct EDI, sometimes called point-to-point EDI, establishes a single
connection between two business partners. In this approach, you connect with each business partner
individually. It offers control for the business partners and is most commonly used between larger
customers and suppliers with a lot of daily transactions.

2. Achieving EDI compliance ultimately means three things:

Setting up your EDI infrastructure

Aligning your EDI setup with your trading partners' EDI systems

Certifiably adhering to common standards

EDI requires three steps:

Prepare the documents.

Translate them to an EDI format.

Transmit them to a partner.

3. EDI is an example of a logistics-related transaction processing system.

Electronic Data Interchange was created to ease the management and flow of transaction information.
Before EDI, all transactions were completed manually and exchanged via fax or mail. This would lead to
a long, drawn-out process that could take days.

Potential benefits to EDI include reductions in: document preparation and processing time; inventory
carrying costs; personnel costs; information float; shipping errors; returned goods; lead times; order
cycle times; and ordering costs. In addition, EDI may lead to increases in: cash flow; billing accuracy;
productivity; and customer satisfaction.

EDI allows trading partners to automate the sending and receiving of documents based on the ordinary
course of business. For example, a customer purchases an item from a retailer. That retailer than