In supply chain management (SCM), many companies substitute electronic data interchange for printing, mailing, and faxing paper documents, such as purchase orders, invoices, and shipping notices.
Step-by-step explanation:
A centralised management process that controls the flow of goods and services that includes all the process starting from raw materials and transforming it into finished goods refers to supply chain management. This helps in the reduction of unnecessary costs and the correct deliver of products to the customers.
Electronic data interchange is very essential for the success of the SCM. The business information can be transformed between the partners involved in trading process in a standard format. Some of the information includes shipment details, purchase orders, invoices, etc.