Asher is a consultant giving a presentation about the use of an electronic data interchange as a tool in supply chain management. He says that EDI allows business partners along a supply chain to exchange routine documents which are formatted to an agreed$-$upon standard and then transmitted via a translator over the Internet. He claims that because a computer reviews each entry, EDI will minimize data entry errors. EDI will reduce cycle time, increase productivity, enhance customer service, and also minimize paper usage and storage when compared to manual delivery systems. Asher also says that EDI requirements are easily customizable among different businesses and each requirement is easily translated to other businesses. He concludes by saying that EDI offers the ability to reduce the size of e$-$commerce messages when compared to traditional XML$-$based Web services. Is Asher$$s presentation correct?

Select answer from the options below

Asher is completely correct about all of the uses and benefits of an EDI in support of their SCM systems.

Asher is correct about much of the function of an EDI. However, extranets make it easy to customize and translate among businesses. Also, corporate portals reduce the size of e$-$commerce messages when compared to XML$-$based services.

Asher is correct about much of the function of an EDI. However, EDI requirements are static, and the business must sometimes restructure its processes to fit the requirements. There are many EDI standards in use today, so one company would likely have to use multiple EDI standards to communicate with multiple business partners. Finally, the difference in size between XML$-$based services and EDI is negligible, so this would not be considered a benefit of using an EDI.

Asher is correct about much of the function of an EDI. However, corporate portals make it easy to customize and translate among businesses. Also, extranets are what reduce the size of e$-$commerce messages when compared to XML$-$based services.