Supply Irregularities in IT finance term paper

The Company is using ERP (Enterprise resource planning) for transactions and other processes in the company. Similarly, the internal ordering process of the company such as the communication of documents, communication of orders within the company, flow of official documents, are all managed by faxes and in this regard, the company is not taking advantage of ERP. Though fax is a strong system for communicating electronically, however, it is not digital. It is a paper-based system and that is why it is being replaced by EDI. The major problem of handling internal ordering with fax is that the sender and the receiver both have to use papers for communication (Blomqvist & Wygler 2006). The sender sends a paper at his end and the receiver receives the order/message on a paper. This involves a lot of paper work, which could be problematic in the future. The solution for this is the use of EDI. EDI stands for Electronic data interchange. It is very helpful for companies that have a regular and repeating exchange of information from one department to another. SAZ is also operating in such a way that all its departments need to exchange official documents very frequently. EDI is particularly helpful for exchanging large information and works well with ERP. ERP systems can even send faxes to the fax machines of people or departments that do not have ERP and have to rely on faxing for transaction of official documents.

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