Five EDI Pitfalls to Avoid
Photo appears courtesy of Justin Beck. Being in the trenches every day and speaking to so many different people, I get to hear a lot about the EDI...
1 min read
Supplier enablement is one of those phrases that typically has the small business owner shaking in his boots. It normally goes like this...you get an email from your customer that you will be contacted soon by an EDI provider who will "help" you become EDI compliant. Once you speak to the EDI provider, you find out that you have to use this provider or you will have to pay them, the EDI provider that is, not the customer, a hefty testing fee. WHAT?
More and more large retailers are opting to have their EDI testing and their entire supplier enablement program handled by an EDI provider. I can think of three off the top of my head that have adopted this practice. Why do they do this you might be asking? Well, it's a win for the retailer AND the EDI provider. The retailer no longer has to deal with EDI testing. And the EDI provider gets paid whether you use their solution or not. You may not like it, but you cannot deny that it's smart.
This is the old way. There is a new method of EDI onboarding that is starting to gain momentum. This new method involves respecting your supplier community by offering them choices, understanding that not every supplier is a good candidate for EDI and recognizing that a one-size-fits-all approach just doesn't make sense. Andy Davies, formerly of Davies/Woerner Group writes in their blog that the 5 best practices in an effective supplier enablement program are:
1. Recognize that every supplier is an independent business
2. Offer a range of non-exclusive technologies
3. Develop two channels of communication – internal and external
4. Utilize a phased rollout approach
5. Keep the program going – it's a journey
Obviously, this is very different than the status quo. I have had clients drop their customers because they didn't like the status quo (nor did they want to pay the $500 testing fee). Adopting a more modern approach to supplier enablement means everyone wins and you will be left with stronger trading partner relationships.
Aurora Technologies/EDI Support, Inc specializes in EDI implementation and data integration solutions. For more information, please contact Shandra Locken, at shandra@edisupport.com or 800-404-9182 x25.
Photo appears courtesy of Don O'Brien.
1 min read
How Deeply Entrenched is EDI in the Supply Chain?
Photo appears courtesy of Mark Skipper. What is EDI's role and how important is EDI in the supply chain? In my opinion, the supply chain would come...
Does EDI Outsourcing Make Sense for My Business?
In the almost 6 years that I have been in this industry, I have seen outsourcing become trendy and then fall out of fashion. Lately, I have had some...