Electronic Data Interchange in International Trade

Standardization and simplification of trade procedures constitute an urgent need to line up the document flow with the goods flow in international trade. Electronic data interchange (EDI) is a co‐operative inter‐organizational information system providing electronic exchange of messages agreed between trade partners. Outlines a possible implementation procedure for EDI. A first part consists of a six‐step feasibility study. If this study ends with a positive recommendation the implementation procedure can start. Discussions of this process concern several requirements: completely understand about EDI; agree on standards with business partners; modify existing systems; translate data: prepare communications; and management and audit of the whole process. Concerning the cost‐benefit analysis for the EDI application– a step which is mandatory in the feasibility study – gives further details on different types of cost (recurring and non‐recurring,direct and indirect) and on both quantifiable and non‐quantifiable benefits.