I. Advantages of using EDI 1. Reduce the consumption of paper. According to a survey organized by the United Nations, an import and export trade, the two sides need to exchange nearly 200 documents and forms, paper, lines, printing and errors may cause the total expenditure of about 7% of the price of goods. According to statistics, the United States General Motors after the use of EDI, each production of a car can save costs of 250 U.S. dollars, according to the annual generation of 5 million units, can produce 1.25 billion U.S. dollars in economic benefits. 2. Reduces a lot of duplication of labor, improve work efficiency. If there is no EDI system, even highly computerized company, but also need to often re-enter the external information into the company's computer. The survey shows that from a computer output information as much as 70% of the data need to be re-entered into other computers, both time-consuming and error-prone. 3. EDI enables both sides of the trade in a more rapid and effective way to trade, greatly simplifying the process of ordering or inventory, so that both sides can make full use of their respective human and material resources in a timely manner. The United States DEC company after the application of EDI, so that the inventory period by 5 days shortened to 3 days, the cost of each order from 125 U.S. dollars down to 32 U.S. dollars. Singapore after the use of EDI trade network, so that trade customs procedures from the original 3 to 4 days shortened to 10 to 15 minutes. 4. Through EDI can improve the relationship between the two sides of the trade, manufacturers can accurately estimate the amount of goods to seek later, freight forwarders can simplify a large number of export paperwork, merchants can improve the efficiency of inventory, greatly improving their competitiveness. EDI technology is the natural development of electronic mail technology, the application and development of electronic mail has greatly improved the efficiency of people's offices, the desire to apply it to business affairs to promote the development of EDI technology. There are both links and differences between EDI and electronic mail. From the perspective of communication, EDI and electronic mail are similar, but they also have more obvious differences. For example, electronic mail is through the exchange network will be linked to people, so that people and people can exchange information quickly and accurately through the exchange network, while EDI is through the exchange network will be linked to the two computer systems, such as clothing import and export company's computer system and the customs computer system, in order to simplify the customs declaration procedures. Therefore, EDI is the transmission of business information between computers through an exchange network. In addition, another major difference between electronic mail and EDI is that electronic mail stores and transmits information between users (people), this information as long as the person can read and understand, does not require a certain format (of course, you use electronic mail, it is best to give the letter with the front of the address and the back of the benediction, or else the other party may have a problem with it). EDI communication is not the same, EDI communication between the two sides is a computer, to say the essence of a little, is the software on the computer. Software can no one so smart, what format can be read, communication between the software needs to format the content of the information, moreover, EDI communication content is mainly trade in documents and reports, so that the formatting of information becomes possible, which is another difference between EDI and electronic mail. To give an example, the electronic mailbox delivery is an ordinary letter, EDI delivery is a document, form, but no matter what content of the information delivered to these to be delivered into the envelope, write the recipient's address, affixed enough stamps, thrown into the mailbox. In other words the process of communication is the same. EDI is not a simple data exchange system between users, EDI users need to send messages in accordance with the international common message format, the receiver also needs to be in accordance with the international unified provisions of the grammatical rules of the message processing, and cause the other relevant systems of EDI integrated processing, the whole process is completed automatically, without the intervention of manpower to reduce errors and improve efficiency. For example, there is a factory using the EDI system, which receives through the computer communication network from the user of an EDI order form, the factory's EDI system then check whether the order form is in line with the requirements and whether the factory receives the order, and then send back to the user to confirm the information. The EDI system of the factory checks the inventory according to the requirements of the order form, and sends EDI order form to the related parts and auxiliary equipment manufacturers if necessary; books vehicles, cabins and containers with the railroads, shipping, aviation and other departments; contacts with the insurance company and the customs office by EDI, applies for insurance formalities and handles the export formalities; opens an EDI invoice to the user; and settles the accounts with the bank by EDI, and so on. All the processes from ordering, inventory checking and parts ordering, handling related formalities and issuing invoices, etc. are automatically completed by the computer, which is both fast and accurate