Negative consequences of EDI usage
The use of EDI has been plagued by numerous bad traits that have brought a judgmental view from the society about its use. The following are some of the bad public attentions that it has faced and as a result deteriorated its preference by both limited and unlimited companies.
1. Corruption: EDI improves business transactions and similarly the risks of corruption. A full-sized scandal can damage the investor’s confidence and result in an abrupt closure of the company.
2. Privacy: There have been countless cases of wrong transactions made which have embedded lack of confidence in EDI systems. The unlimited display of corporate information and strategies are available even to competitors. They may use this to their advantage to revitalize their plans in advance before yours can be implemented.
3. Hoaxes and Fraud: The altering of prices by business dealers or company’s employees can be easily made to swindle money from unsuspecting buyers.
4. Time unreliability: it is obvious that it promotes speed, but in complications of clogged networks and abortive software applications then time concerns will vehemently be experienced.
5. Legality and auditing: The fact that there is no tangible evidence like signed sheets makes the process of auditing more complex. Even though there are contracted documents that are agreed upon. There is still the question of their credibility, should a legal proceeding request legitimate documents.
