Transportation Operations LINCS Practice Exam

Which method allows the exchange of documents between trading partners without human intervention?

1. Transportation management systems

2. Global Positioning System

3. Electronic data interchange

4. Electronic logging devices

The correct answer is: Electronic data interchange

The method that facilitates the exchange of documents between trading partners without human intervention is Electronic Data Interchange (EDI). EDI automates the transfer of business documents such as invoices, purchase orders, and shipping notices between organizations in a standardized format. This process minimizes the need for manual entry, reducing errors and improving the efficiency of transactions. By using EDI, businesses can streamline their communications, allowing for faster processing times and a more accurate flow of information. This is particularly important in supply chain and transportation operations, where timely information exchange is crucial for maintaining operational efficiency and enhancing collaboration between partners. In contrast, options like transportation management systems, the Global Positioning System, and electronic logging devices, while useful in their respective areas, do not focus on automating the exchange of business documents in the way that EDI does. Thus, EDI stands out as the correct method for this specific function.