EDI Is Wonderful, But So Is ‘Yes, We Can!’
There was a time when the naysayers claimed the days of EDI were numbered, soon to be replaced by web-based XML transactions. The fact is, EDI is well entrenched in the supply chain, and EDI transactions of warehouse orders, ASNs and routing documents continue to grow, especially among larger shippers. While EDI implementation can be intimidating, a deployment that follows clear mapping is certainly obtainable and offers a considerable and well-justified return on investment.
In a study conducted by Aberdeen Group, companies cited reduction in manual processing and administration as a key (71%) benefit of collaborative customer IT integration. Cost savings relative to order processing with suppliers was also key, as expected. For example, on average the cost savings from automating a manually processed purchase order is $9.89, for an invoice is $11.58 and a remittance is $12.96. Multiply that by the number of shipments, and you quickly see the ROI. The automation and streamlining of business processes, together with stability and reliability of the EDI transaction, is a best-of-class way of working.
EDI use among our food processor customers is on track to increase 17% in 2015. And as you might expect, customers using EDI do so with a near 100% of orders. Still, we work in an industry and live in a world of on-demand change. While national retailers and wholesalers do make well-planned and executed purchases, there are exceptions to every rule. So when we receive last minute addendums to the day’s EDI batch, we are all about: “Yes We Can!”