A disadvantage of electronic data interchange (EDI)is that it ________.
A)increases the time required for a product to reach the end customer
B)fails to build trust among the partners in a supply chain
C)tends to lock partners into their relationship
D)is not always reliable and may result in wastage of goods

Question

Quizplus · Accepted Answer

Electronic data interchange tends to lock partners into their relationship because once a company invests heavily in infrastructure and software to support EDI, switching to another technology becomes difficult and expensive. This reduces the flexibility of the supply chain partners to change partners or adapt to new business models.

A Disadvantage of Electronic Data Interchange (EDI)is That It ________