As the world trade environment is rapidly changing due to the development of information processing technology and data communications, the new custom of trade appropriate for such an environment is required and there is no choice but to adapt ourselv...
As the world trade environment is rapidly changing due to the development of information processing technology and data communications, the new custom of trade appropriate for such an environment is required and there is no choice but to adapt ourselves to the EDI system to realize paperless trade using VAN.
As the result of a survey of trading companies in Cheju, it is shown that they recognize the necessity of the EDI system, yet they do not have much understanding or knowledge about the EDI system. Recently the EDI program is widely used in trade-related organizations and trading partners. The necessity of the EDI system is strongly increasing.
The purpose of this study is to broaden the understanding of EDI system for trade companies in Cheju, and to suggest the introduction of the system to contribute the growth of Cheju trade.
For this purpose, the document research was mainly conducted with documents on the basis of domestic and international books, papers, and periodicals on EDI and a survey questionnaire was performed to examine the present situation of the trading companies in Cheju, their knowledge of EDI, and introduction of EDI.
According to the results of the survey, some problems have arisen in transmitting the trade documents such as; delay, uncertainties about whether or not they can be successfully transmitted, and the errors on re-entry due to the imperfect transmission channel(i. e. fax, mail, person etc.) The survey shows that the bigger the trade companies, the better they understand the needs of EDI System installation because they can shorten the working hour, minimize the errors, and enhance the competitive power against the international companies from the EDI System. The survey also reveals that the most beneficial areas through this system can be customs, trade and foreign exchange markets.
The proper installation plan for the trading companies in Cheju is described the following four ways.
First, prompt information exchange and cooperation should be achieved through closer connection between the trading companies and trade-related organizations (i. e. customs, banks, associations, loss insurance companies and transportation companies.)
Secondly, the EDI training program should be developed by trade-related organizations, academic circles, the EDI service distributor and the EDI software distributor. The EDI provincial training should be provided with more opportunities.
Thirdly, the continuous research and development of the EDI System suitable for small-scale enterprises should be made and the law and the system relating to EDI should be amended.
Finally, Cheju Provincial Office or other related offices should play a leading role expanding the export opportunities by initiating and operating the Trade Promotion Committee with trading companies, academic circles or any Cheju people interested in trade.
EDI, developed for trading effectiveness, becomes an inevitable system, even for the small-scale trading companies in Cheju as trading partners have used this system increasingly. Therefore, administrative organizations, trade-related organizations, and academic circles need to support the trading companies of Cheju by installing this system. As shown from the title, this study deals with installing the EDI System for the size of each trading company. It, however, has its own limitations resulting from the small-scale of trading companies and the lack of trade-related materials.