THE IMPACT OF ELECTRONIC DATA INTERCHANGE ON THE PURCHASING PROCESS

Electronic Data Interchange (EDI) is the intercorporate transfer of documentation and standard business forms via computer in machine readable format. In recent years EDI has been applied to the transfer of purchasing documents between buyer and vendor, and its use in purchasing is expected to grow significantly over the next five years. The use of EDI is expected to have an impact on the purchasing process, however the nature and extent of that impact is not known.;Specifically, the research addressed two major issues: (1) what is the nature and extent of the impact of EDI, and (2) what guidelines should be followed in the implementation of EDI.;Three major variables were studied in this research: level of vendor intensiveness, stage of EDI implementation, and impact on the purchasing process. For this research purchasing process was defined to include purchasing procedures, purchasing workload, vendor relationships, and buyer attitudes.;A case analysis approach was taken in this research. A judgmental sample of fifteen organizations, representing a cross section of industry, was selected. In-depth personal interviews were conducted with 47 purchasing personnel and others involved in the EDI implementation effort.;It was the purpose of this research to assess the impact which EDI has on the purchasing process.;The results of the research indicate that EDI has only limited impact on the purchasing process in terms of purchasing procedures and workload. However, EDI appears to improve vendor relationships and to encourage the trend toward a reduction in the vendor base. Other major findings indicate that the use of EDI is likely to become the norm in the purchasing community in the relatively near future and that third party network services will play an important role in the continued growth of EDI.