INFLUENCE OF EDI APPROACH FOR COMPLEXITY OF INFORMATION FLOW IN GLOBAL SUPPLY CHAINS

Abstract

The information flow in the supply chain is one of the key elements for logistics process efficiency. Supply chain information integration is a current issue in terms of both literature and business practice. This is often due to the use of different IT systems supporting management by business partners in the supply chain. One of the ways of integrating IT systems in the supply chain is the EDI implementation, which supports the exchange of electronic documents between business partners, while minimising the time of information flow as well as cooperation costs. The EDI implementation also influences the operational efficiency of logistic processes through minimising errors caused by faulty information flow. The article's objective is to show the complexity of information flow in global supply chains and how traditional EDI approach has changed through all these years to face new challenges. The authors try to explain, what are the different alternatives companies have and what is the future of data interchange in supply chains. The presented methodology takes into account both literature analysis and business practice research, based on research projects (domestic and international) carried out at the Institute of Logistics and Warehousing and experience with EDI implementations in companies carried out at Capgemini.

Key words: EDI, integrated supply chain, information flow efficiency