Electronic data interchange (EDI) is the electronic exchange of formatted business transactions between one organization's computer and another's. This report considers where the Department of Defense (DOD) should focus its limited resources to implement this powerful new capability in ways that will enhance its effectiveness, and discusses how logistics functions must change to take full advantage of EDI. It focuses on the use of EDI for logistics functions that could increase the readiness and sustainability of U.S. defense forces; suggests ways in which statutes and regulations might need to change to accommodate EDI's potential benefits; and offers approaches that DOD might take to develop a software and hardware infrastructure to support EDI.
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