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© 2008 Prentice-Hall, Inc.

Slide 27

Tomorrow’s Technology and You 8/e Chapter 12 Systems and Organizations

Supply Chain Management and Outsourcing

Electronic data interchange (EDI)

The direct, computer-to-computer exchange of standardized, common business transaction documents—such as purchase orders and invoices—between business partners, suppliers, and customers

Uses international standards for data formatting

Enables companies to exchange large amounts of information in real time around the world

Business alliances

Cooperative arrangements between two or more businesses with complementary capabilities

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