Electronic commerce can cut purchasing costs
Electronic commerce could be the most important strategy exercised by utilities involved in transmission and distribution in the next five to ten years. One key element of electronic commerce is electronic data interchange (EDI). EDI is the direct, standardized computer-to-computer exchange of business documents, such as purchase orders, invoices, payments and inventory analysis between trading partners. EDI enables business documents delivery in seconds instead of days. Inventory has been a big expense for utilities, especially in the transmission and distribution area. In order to provide and restore electrical service to customers, utilities have been required to stock high levels of many different items. At times, warehouse personnel have had difficulty determining the minimum quantity needed for a particular part so items are stocked just-in-case.Electronic commerce will allow utilities to more accurately determine minimum stocking requirements and reduce inventory without sacrificing customer service.
- OSTI ID:
- 98828
- Journal Information:
- Electric Light and Power, Vol. 73, Issue 6; Other Information: PBD: Jun 1995
- Country of Publication:
- United States
- Language:
- English
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