Check out the new USENIX Web site.
Contents Previous section Top of current sections Bottom of current sections Next section

6. Business Associations Taking Part in the EDI Strategy

In general, the business associations assess that it is first and foremost order and invoice messages that are exchanged in EDIFACT-format. At present, small companies have great expectations to current development projects that focus on EDI solutions by means of the Internet technology, the so-called form-based EDI solutions. Several VANS-operators are involved in the work. It is characteristic for companies that have implemented EDI that their interchange involves relatively few partners and a relatively small number of messages.

6.1 Insurance and Banking

The banking sector has a long tradition for EDI application, but less than 2% of all EDI transactions are EDIFACT-based. They are especially used in transactions between banks and large customers. EDIFACT-standards have been prepared for all important financial transactions between banks and their customers.

The mortgage credit sector is facing a big commitment when they launch their mortgage credit network in 1999, an EDIFACT-based Intranet solutionEDIFACT-messages are transported by means of TCP/IP in a new closed Intra-/extra-net. that will combine all parties within mortgage banking: the seven mortgage credit institutions, legal advisers and intermediary lenders. However, the customer will not be linked to the system, as it will be up to the individual mortgage institutions and intermediary lenders to make their own image in relation to customers via open Internet solutions.

6.2 Industry and Commerce

Within the Danish Chamber of Commerce, which numbers approximately 2,000 member companies, less than a handful of companies make transactions via VANS at present. The only companies that apply EDI are found within the food industry and the pharmaceutical area with MedCom, which corresponds to less than 0.1% of the Chamber of Commerce members.

Contrary to this, all large and medium-sized insurance companies participate in the EDI exchange of the two EDIFACT-documents that are in production within the insurance sector. The interchange comprises approximately 80% of all transactions. The remaining 20% derive from small insurance companies that until now have found an EDIFACT-solution too expensive on account of the price of EDIFACT-converters. The insurance industry plans a data-entry based solution by means of the Internet technology, which can convert messages to/from EDIFACT-format. Apart from the EDIFACT exchange, the insurance industry – like the banking sector – has applied EDI in many years, both internally in the industry and in exchange with other sectors, such as the banking community.

Within the agricultural sector there is a substantial EDI application in relation to the veterinary authorities and the consultative institutions that need accounts data. This development is especially due to the large efforts made by LEC. At present, LEC is working on developing EDI application within e.g. the export restitution area. The Agricultural Council in Denmark has also indicated that the industry association cannot push their members too much to make them use EDI.

6.3 Transportation

In a similar way, the Shipowners’ Association and the Danish Provisions Suppliers’ Association (DLF) point out that they do not play a very active role; but wait for the largest players to take action. There is no need for special initiatives in this area.

DLF is involved in the technical part of the EDI application due to their members’ interests in EDI and their membership of EAN Denmark. DLF represents the producer link (approximately 150 members), and consequently the association is very involved with VANS-operators. As an industry association for such companies as MD Foods, Carlsberg and Danisco DLF plays a central role in relation to EDI application in the supply chain and the business relations. The problems that are taken up involve primarily the physical transport of goods. There is a need for coordination within logistics, distribution, marketing and sales.

The data communication between DLF’s members and the provisions trade has grown substantially. Due to the many products that are transported daily, there is a large need for data. It is the producers in cooperation with the provisions trade that have made the EDI trade standards. DLF has appointed a EDI committee that is taking care of members’ interests in relation to pace and direction of EDI application. Since 1995, the number of members that apply EDIFACT has increased by approximately 20%. Approximately 75% of the users apply invoice and order documents. There are 15% more trading partners who apply EDI in 1997 compared with 1995.
Contents Previous section Top of current sections Bottom of current sections Next section
@ Juul, Andersen & Bjørn-Andersen: Electronic Commerce in Denmark, Proceedings of the 3rd USENIX Workshop on Electronic Commerce, Boston, September 1998. els (counties, municipalities)

<1