Although dozens of pilot electronic commerce projects have been launched since the executive order was issued three years ago, few have been converted to permanent programs. They also were unprepared for the numerous hardware and software problems that have plagued transactions. And recent technological developments have forced some agencies to reexamine their electronic commerce strategies and even abandon initial projects. Inventories can be updated automatically, material releases can be issued against open purchase orders, customers can be invoiced, suppliers can be paid and concerned parties can be advised on shipping. The Defense Personnel Support Center in Philadelphia, for instance, has used the technology to lower operating costs, boost productivity and deliver supplies to DoD mess halls, commissaries and hospitals within 72 hours instead of the average 60 days under the old system.
EFT enables funds to be transferred quickly via a nationwide automated clearinghouse network.
Vouchers now are paid within five days instead of an average of 57 days under the paper system. The Veterans Affairs Department uses EDI to pay invoices at 170 hospitals. But despite these success stories and those at private sector organizations such as Eastman Kodak, General Motors and Wal-Mart, EDI still has not found its way into the mainstream. Agencies find the technology difficult and expensive to implement. X12 EDI standard.