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the manufacturing plant use the EDI system to buy supplies, track

shipments, and keep an accurate inventory count.

This process is done through a standardized transfer of electronic

documentation that verifies each party in a transaction, records the terms,

conditions of the transaction, and processes the order.

Although EDI systems improve efficiency and promote better

accounting practices, they can be costly to operate. Another issue is

integration with business partners. Many suppliers and distributors are

small businesses, which do not have the technology to link themselves

into a traditional EDI system. If a supplier standardizes its information

systems with a single manufacturer, it may become more difficult to do

business with other, manufacturers who have incompatible systems.

The Internet is improving EDI standards by making it more

accessible to a broader group of manufacturers, distributors and retailers.

Since the transfer of data is conducted through a common system (the

Web), compatibility is less of an issue. XML (eXtensible Markup

Language) can now be used to improve compatibility between disparate

systems, creating new market opportunities.

Bell Helicopter (bellhelicopter.com) offers several EDI options

(Traditional EDI and Internet-based EDI) to its suppliers as part of its E-

commerce initiative. Internet-based EDI option requires the suppliers to

have an Internet connection and a web browser. The supplier can then

enter electronic transaction information via the web for transmission to

Bell Helcopter. Dal-Tile International (daltile.com), implemented an

Internet-based EDI system in 2001 to accommodate its major supply-

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