A manufacturing enterprise in Nigeria relies on an integrated telecommunications network and Electronic Data Interchange (EDI) to handle automated procurement transactions with key suppliers. What is the correct sequential order of steps in completing this digital transaction workflow from initiation to dispatch?
- 1The buyer's system generates and transmits a standardized digital purchase order over a secure EDI network connection.
- 2The supplier's computer system automatically receives the order, validates stock levels, and transmits an electronic purchase order acknowledgment.
- 3The buyer initiates payment authorization through an integrated Electronic Funds Transfer (EFT) banking gateway.
- 4The supplier issues an automated digital dispatch advice containing shipment tracking details over the network upon releasing the goods.
Answer
The correct sequence begins with the digital transmission of the standardized purchase order via EDI, followed by automatic order validation and acknowledgment by the supplier system, electronic payment processing through an EFT gateway, and finally the issuance of a digital dispatch advice with tracking details.
The logical workflow of a B2B electronic transaction over business telecommunication networks requires an initial request (transmission of the EDI purchase order), verification and agreement (order acknowledgment after checking inventory), settlement (EFT authorization), and completion notification (digital dispatch advice).
Step-by-Step Solution
Key Concept
Electronic Data Interchange (EDI) and Telecommunication Workflows in Commerce