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 iSeries Gentran EDI Consulting

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Outsource your EDI
EDI OutsourcingSave 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, while processing an EDI PO cost 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 re-key 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.  And there are "hidden benefits" to EDI.

Playtex Products is a stunning example of a supplier that implemented a Customer Replenishment Program (CRP). With CRP, the warehouse sends replenishment stock as their EDI system reports it.  This facilitates automatic re-order and billing. It has 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.

 

EDI Outsourcing

Seven Steps to EDI Document Trading  

1 Obtain and study trading partner's specifications.  This critical task should include receiving and studying all of the documents that your trading partner is offering.  Certainly, their trading partner data such as ISA and GS Communications IDs, element and segment terminators, and their name and contact numbers.  Also, it helps to understand your trading partner's "philosophy of EDI", for lack of a better term.  Some companies are near-military with rules  and some are as loose as a 1969 hippie.  Before the show, "know your audience". 

2 Assure trading partner data is in place. May have to help them "tie up" any loose ends on their part. 

3 Make sure your Applications will support their specifications.  After you analyze what they require, make sure it's all available in a timely fashion. 

4 Map transaction per their requirements, if you have them. 

5 Test map,  making notes of test results.   

6 Obtain approvals from trading partner and your staff.  Don't leave anybody out.  

7 Place in production and monitor.  Even the best systems go awry.  It's always a good idea to have a "Reciprocal Agreement" for data systems.  

 

EDI OutsourcingProduction Support

Most trading partners will require a periodic change and everybody "upgrades" their systems eventually.  Also, refer to step 7 above.

You will need on-going internal audits, controls and reports. 

Transactions get lost, mis-placed, sent twice or more - you name it.  Customers "lose things" all the time.  Please remember Murphy, "If it CAN happen it WILL".  And he was an optimist.  You will most likely need to retain an "EDI Watchdog" (employee, consultant, service house, Aunt Betty).

EDI is a "lights out" system most of the time for many companies.  It depends largely on your trading partner's demands, trading volume and how extensively you and your customers depend on the documents.