EDI / Operations Integration
Introduction
The use of EDI is no longer optional if you are, or want to
be a vendor to one of the major retailers.
There are a growing number of small, multi-store regional retailers
that require their vendors to provide or accept some, or all, of the
retail related EDI documents. And
many small retailers now have access to checkout systems that, at minimum,
require vendor UPC numbers be either on a national catalog service or
provided via 832’s.
IIn order to meet these requirements, many companies have started
to use stand-alone EDI software packages. Most of these packages are quite good, but because they are stand-alone,
they often “stand-alone” and apart from a company’s core operating procedures.
For example, EDI data may have to be re-entered into a company’s
normal operating software for order processing, distribution, billing
and inventory control. Order data and shipping information may have
to be printed out and then re-entered in order to produce EDI advanced
ship notices (ASN’s), UCC-128 carton labels and EDI Invoices.
In addition, lack of operational / EDI integration obscures
information that is needed in order to insure compliance with retailer
logistics. This leads to “violation”
charge backs from the retailer’s warehouse profit center. To add insult to injury, lack of integration
also causes information needed to apply for charge back reversal to
be lost.
The service package described on this page is designed to
help companies integrate EDI into their core operations in order to
achieve increased efficiency and profitability.
Why
Integrate?
Full integration of EDI into a company’s operating environment
will yield the following benefits:
-
Improved Efficiency -
-
Reduced Errors -
-
Reduced Opportunity For Errors -
-
Reduced Retailer Compliance Charge Backs -
-
Increased Ability To Fight “Bull Shit” Retailer Compliance
Charge Backs -
-
Increased Ability To Meet Tight Shipping Windows -
All of which should:
-
Increase Profitability
-
In
addition, a “side effect” of fully integrated EDI is the data that is
produced easily feeds into a company’s database enhancing their ability
to improve merchandising.
Method
We work jointly with our client’s management, IT people and
internal or outside consultants to address some of the following areas:
·
EDI Invoicing
·
EDI Order Processing
·
Reverse EDI Order Processing
·
Advance Ship Notices
·
UCC-128 Labels
·
UCC Compliant UPC catalog
·
Customer Service, Warehouse and Shipping
In order to achieve the following milestones:
·
We will help a client
company develop a plan to integrate its operating software and procedures
with its EDI software and procedures.
·
Once software and
procedures have been integrated, we will work with a client company
to revise all related operating procedures in order to fully integrate
EDI into the company’s operations.
·
This integration will:
o
Increase Efficiency
o
Reduce Errors
o
Increase Recovery Rate of Erroneous Charge Back Amounts
o
Reduce Operational Stress
o
Increase Profitability
Why
You May Benefit From Full EDI / Operations Integration
·
Has
the amount and frequency of retailer compliance charge backs increased?
·
Are
some of these charge backs, as painful as they are, valid (due to
internal errors)?
·
Do
you have orders cancelled because you missed the shipping window?
·
Do
you suspect that the retailer “charge back of the month” has occasionally
victimized your company?
·
Are
your people re-entering data into separate systems?
·
Does
the EDI selling information you receive not automatically match up
with your product information?
If you answered yes
to any of these questions you will benefit from our services.
In
general, careful integration of your operating software and your EDI
software and the resulting procedural integration is one of the most
effective ways to solve the problems implied by these questions.