ASSESSING THE IMPACT OF EDI - A COST ACCOUNTING FRAMEWORK

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. The paper outlines a possible implementation procedure for EDI. The 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 aim to: completely understand about EDI, agree on standards with business partners, modify existing systems, translate data, prepare communications, and manage and audit the whole process. Concerning the cost-benefit analysis for the EDI application-a step which is mandatory in the feasibility study-further details are given on different types of cost (recurring and non-recurring, direct and indirect) and on both quantifiable and non-quantifiable benefits.