<img height="1" width="1" src="https://www.facebook.com/tr?id=202594434012359&amp;ev=PageView &amp;noscript=1">

Supplier-Side EDI Creates Profitable Opportunities and Improves Supply Chain Execution

Glenn_McPeak

By Glenn McPeak, EDI and ERP Expert

When most small and medium sized companies talk about implementing EDI with suppliers, the first reaction is “No one is forcing us to do that so why would we want to?” The simple answer is the same reason large enterprises mandate their suppliers to do EDI: it saves money, which goes straight to the bottom line. If you think about EDI as a requirement, something your company must implement if you want to do business with larger organizations, consider the monolithic, error-prone way data gets into your ERP solution – typically via keyboard.

Of course you may be doing business with smaller organizations that may not have EDI capabilities. Did you know that they can be EDI-enabled at a low cost to them and zero cost to you? They can provide you will all of the information needed to integrate common business transactions into your system without data entry personnel on your end. At the same time you can improve communication between you and your suppliers by receiving detailed order confirmations and shipment notifications so you know when goods have left their facility and in transit to yours.

Not only can your company improve the accuracy and speed of communication with suppliers, but look at what some other companies are doing, such as USA Discounters and Swisher. They are leveraging EDI outside of any requirements because it affords them the opportunity to push their own supply chain costs back downstream. By passing these costs along to their suppliers, they reap the benefits on their bottom lines.

Like these companies, you can minimize error-related costs by opting to transact electronically with suppliers, carriers and/or public warehouses, eliminating unnecessary labor and paperwork. Take for example ASN management and integration: vendors can send you an ASN at the time of shipment that is integrated into your purchasing, inventory and billing applications. When the goods arrive, a single barcode scan can receive the entire shipment, including serial number and lot number registration – fully-automated integration with no manual intervention.

ASNs are one example, but combined with purchase orders and invoice documents, you can see a measurable cost savings across your supply chain. And while the common belief is that you need to be forced into EDI, EDI is gaining momentum in becoming a non-mandated technology option that delivers significant ROI, both on the customer and supplier side. One investment in the right EDI technology can satisfy your customers’ requirements and open the door of opportunity for you to implement more accurate and cost-saving processes.

Data Masons makes EDI Simple for companies of all sizes. Learn more in our brief:

Download the "EDI Made Simple -  A New Approach to EDI" Brief

EDI Expert Insights, Dynamics AX EDI, Dynamics GP EDI, Dynamics NAV EDI, Dynamics ERP Integration, Dynamics AX EDI Customers, Vendor EDI, Supply Chain EDI

Glenn McPeak

Posted By: Glenn McPeak

Glenn is a supply chain expert and has over 25 Years of EDI/ERP solution consulting and ERP/EDI software product design and management. Glenn’s has managed and executed over 200 successful ERP and EDI related projects in a wide array of manufacturing and distribution oriented industries. Glenn is knowledgeable in the following ERP platforms – Microsoft Dynamics AX, Microsoft Dynamics NAV and Microsoft Dynamics GP.

Glenn holds a Bachelor of Science degree with highest honors from Babson College and numerous Microsoft Certifications, including Microsoft Certified Professional.

EDI Made Simple

EDI Made Simple: A New Approach to EDI

If you're about to bring EDI into your processes, this brief will help you avoid the potential pitfalls often encountered. If you’ve attempted to implement EDI already, you’ll likely recognize at least some of the problems we describe, and gain from our explanations on how to avoid them.This paper will present a clear, simple path to successful implementation of a highly productive and profitable EDI initiative in your company.

Download the Paper

Choosing an EDI Solution

Choosing an EDI Solution: Build or Buy?

Choosing an EDI software solution for your company is a serious undertaking. The right choice results in a smooth and painless process with strong positive ROI. The wrong choice can have detrimental effects for years with poor ROI and ongoing operational and support issues. One key question we often hear is “Should we build it or buy it?”.

Download the Executive Brief

Top 10 Mistakes to Avoid

Top 10 Mistakes to Avoid When Selecting an EDI eCommerce Solution

Don’t be caught unprepared with your upcoming EDI project. From the provider and solution, to your business needs post-implementation, a company can prevent costly headaches by being as thorough as possible in their pre-implementation research.

Download the White Paper

Integration Without Customization

Integration Without Customization: 3 Keys to Automated Integration for ERP and EDI

This paper will present the key components of a successful automated integration solution for ERP and EDI without customizations. After reading this paper you'll learn: - how to gain a competitive advantage with this approach to EDI and ERP integration - and how purchasing tools which force customizations to your ERP system can leave you responsible for costly and time consuming modifications to the systems. Following this best practice approach to integration can help you on your way to experience integration success.

Download the Executive Brief