A company seeking to maximize supply chain efficiency and to streamline order processing should first:
A company seeking to maximize supply chain efficiency and to streamline order processing should first:
To maximize supply chain efficiency and streamline order processing, the first step a company should take is to implement electronic data interchange (EDI). EDI allows for the automated and standardized exchange of business documents, reducing manual data entry, errors, and processing time. By facilitating faster and more accurate communication between trading partners, EDI provides a strong foundation for improving supply chain operations. Implementing other measures such as vendor-managed inventory or utilizing supplier portals can further enhance efficiency but should come after establishing the robust communication infrastructure that EDI offers.
I think the answer should be B. Having VMI without EDI would be difficult
B. Implement electronic data interchange (EDI). To maximize supply chain efficiency and streamline order processing, a company should first implement EDI. EDI is a standardized electronic communication system that enables the exchange of business documents, such as purchase orders and invoices, between trading partners. By automating and simplifying these transactions, EDI reduces manual data entry, errors, and processing time, leading to increased efficiency and cost savings. The other options may also contribute to supply chain efficiency, but implementing EDI is a fundamental first step.