Which type of system is commonly used by manufacturing and distribution firms to connect with suppliers globally?

EDI systems, or Electronic Data Interchange systems, are widely used by manufacturing and distribution firms to facilitate seamless communication and data transfer with suppliers worldwide. These systems enable companies to exchange documents such as purchase orders, invoices, and shipping notices electronically, replacing traditional paper-based methods. By standardizing data formats, EDI systems improve efficiency, reduce errors, and speed up transactions, allowing organizations to respond quickly to market demands.

Manufacturing and distribution firms rely heavily on timely and accurate information concerning inventory levels, shipping details, and supplier capabilities. EDI systems enhance supply chain management by ensuring that both parties have access to real-time data, fostering better collaboration and decision-making. This connectivity is crucial for maintaining competitive advantages in today's global marketplace.

Other types of systems like TPS (Transaction Processing Systems) and CRM (Customer Relationship Management) systems serve different functions and may not be specifically designed for supplier interactions on a global scale. While TPS systems focus on the processing of transactional data within an organization and CRM systems are designed to manage customer relationships and sales, they do not provide the specialized functionalities and efficiencies that EDI offers for supplier communications. Therefore, the use of EDI systems stands out as the most appropriate choice for the specific needs of manufacturing and distribution firms in connecting with