ampbell, 28).Disadvantages of using EDIDespite all of the benefits of EDI there are still some disadvantages that have caused much criticism. First and foremost is the cost, the only companies that can really afford to utilize EDI to its fullest potential are the Fortune 1,000 and Global 2,000 firms (Millman, 83). "Traditional EDI works fine in the larger enterprises because they have IS professionals to maintain the system," says Dennis Freeman, director of product marketing at Harbinger, an EDI software and services supplier in Atlanta. "Those companies exchange business documents with their trading partners and save themselves a huge amount of money by not using paper," Freeman continues. "For smaller companies, that process becomes much more daunting. They don't want - nor can they afford to own a full-blown EDI server. For them, Internet-based EDI is a low-cost answer" (Millman, 38).Another disadvantage of EDI is there could be communication problems with trading partners who use different EDI software. Internet EDI has solved this problem but at the cost of decreased security which is a major issue right now not to mention that network capacity may be unsatisfactory."EDI in the Federal Government. Under the Federal Acquisition Act (FASA), as of June 1, 1998 any organization that wanted to do business with the Department of Defense was required to register with the Centralized Contractor Registration (CCR) to receive government contracts. Companies with existing contracts did not have to register initially but the DOD will institute a system-wide electronic funds transfer payment system by January 1, 1999. By that time every contractor that wants to get paid must enter it's register" (Campbell, 29).Resistance to The Adoption of EDIThe resistance behavior of some firms towards the adoption of EDI is still very evident today. "Recently EDI has received much attention in the transportation and logistics literature, particul...
