{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Bull whip effect 3

For example edi only handles rigid text formats this

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: er and invoice, and hence it has some severe limitations for information sharing. For example, EDI only handles rigid text formats. This may be sufficient in standard transaction processing, but would not be adequate to handle other kinds of information sharing, such as database tables, bar codes, images and HTML pages. Fourth, EDI is batch-oriented, working only in operational windows. Finally, small and medium size companies often are discouraged by the high cost of installing EDI. Recently, innovative companies are extending the boundary of EDI and developing mechanisms that directly connect information systems of multiple companies. In addition, service companies now offer EDI on the Internet, thereby lowering the cost of EDI usage. 3.2. Third Party Model The Third-Party Model involves a third party whose main function is to collect information and maintain it in a database for the supply chain. For example, in the Apple-Fritz example, Fritz plays the third party role in information sharing. (Note that Fritz has a role of managing transportation as well as information processing. Thus, if the former role is highlighted, the Apple-Fritz model may be categorized as the Information Transfer Model.) The third party company may also provide services for transactional processes. As an example, consider Instill Corporation (www.instill.com), which serves as an electronic interface between food service operators (e.g., restaurants) and food distributors. A member operator can browse the catalog on the Instill system and issue a purchase order to the Instill system. The purchase order is then forwarded to corresponding distributors. Instill manages the transaction cycle - catalog management, ordering, invoicing and payment. In addition to transactions processing, it offers a variety of information services like accounting, sales analysis, order tracking, rebate tracking and alert of special sales and promotional campaign. Distributors also receive various types of aggregate data that c...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online