EDI
"EDI" stands for Electronic Data Interchange. It is the application-to-application transfer of business documents between companies. The transfer of files requires that the sender and receiver agree upon a standard document format for the document that is to be transmitted.
Many businesses are looking to EDI as a new, fast, inexpensive, and safe method of sending purchase orders, invoices, shipping notices, receiving advices, and other frequently used business documents. For example, auto manufacturers use EDI to transmit large, complex engineering designs. Multinational firms use EDI to communicate between locations. And universities use EDI to exchange transcripts quickly.
THE ADVANTAGES OF EDI
Why has EDI taken off in the last few years? The answer lies in the benefits it provides its trading partners including:
Save Money
The cost of paper and paper processing is incredibly high compared to a properly implemented EDI program. RJR Nabisco estimates that processing a paper purchase order costs the company $70. Processing an EDI purchase order reduces the cost to a mere 93 cents.
End Repetition
If your trading partner wants a copy of a document, instead of calling you they simply check their mailbox. This results in a great time-savings from not having to copy and fax/mail copies of business documents.
Save Time
EDI also saves time over paper processing since the transfer of information from computer to computer is automatic. There is no need to rekey information with EDI. And the chance for error drops to near zero, with no data entry.
Improve Customer Service
The quick transfer of business documents and marked decrease in errors allow you to do business faster and more efficient. KMart is an example of a retailer that implements a Vendor Stock Replenishment (VSR) program. With VSR, the KMart warehouse sends stock as their EDI system reports it and automatically bills the client. It can cut weeks from the order fulfillment cycle and ensures that product is always on the shelf.
Expand Your Customer Base
Thus with improved customer service, you can ultimately expand your customer base. Many large manufacturers and retailers are ordering their suppliers to institute an EDI program. So, when evaluating a new product to carry or a new supplier to use, the ability to do EDI is a big plus.
The EDI Services of Manage Inc.
Manage Inc. has over 15 years experience in the implementation and integration of EDI. We can implement the entire EDI solution or just help you with parts of it, depending on your needs and comfort level.
Our services include:
- Needs analysis to determine which is your best system
- Complete implementation of a new system
- EDI enabled web sites
- Custom built reports
- Systems integration
- Assistance in adding and migrating to trading partners
- Guidance during "system-down" emergencies
- Troubleshooting
- Data mapping solutions
- User defined functions
- Custom application design
- Professional training to those new to EDI
In particular, we have extensive EDI experience with a variety of transaction sets including transportation, warehousing, invoice/billing, and remittance notices. Given our status as an IBM Premier Business Partner, we have substantial experience translating documents that are native to the AS/400 or iSeries platform, though we have worked with dial-up, PC, and Internet FTP connections.
As you've probably already discovered, good EDI specialists are difficult to hire and keep on staff. EDI demands extreme attention to detail, constant review and supervision, and complete accuracy in order to be successful. One small error could result in hours of troubleshooting or chargebacks - all of which results in time and money being lost.
Do it the right way. Call us today to find out how you can start realizing the many benefits of EDI.
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