Measuring the ROI of EDI Investments in Supply Chain: A Case Study

Abstract

In recent years, integrating Electronic Data Interchange (EDI) systems within supply chains has become increasingly vital for enhancing operational efficiency and reducing costs. This case study explores the return on investment (ROI) of EDI implementations, focusing on a specific organization that transitioned from traditional paper-based methods to a fully integrated electronic system. By analyzing data from before the EDI adoption, we reveal key metrics that highlight the tangible benefits of this transition. The study examines several critical areas: order accuracy, processing time, and overall supply chain agility. Through qualitative interviews with stakeholders and quantitative analysis of operational performance, we demonstrate how EDI has streamlined communication between suppliers and distributors, resulting in faster response times and improved inventory management.