EDI Remains the Workhorse of the Supply Chain according to new study

edi workhorse of supply chain 150x150 EDI Remains the Workhorse of the Supply Chain according to new studyGXS today announced a new survey report created together from Supply Chain Insights titled, “EDI: Workhorse of the Value Chain.” The survey examines the relationship between supply chain efficiencies and the automation of purchasing, fulfillment and warehouse activities with EDI and XML.

One of the focus areas of the study was the benefits to order fulfillment achieved through the use of EDI/XML. The study found that EDI/XML improves cycle times, enabling faster order delivery for increased customer satisfaction.

  • More than 80% of study participants stated that the use of EDI and XML had increased the reliability of their order management processes and visibility within their supply chain.
  • Cited by 85% of study participants, the top benefit of using EDI and XML in the supply chain, was improved relationships with their business partners, a key enabler to growth and competitiveness.
  • For 70% of the suppliers surveyed, the lack of automation for PO changes leads to more imperfect orders.
  • Suppliers stated that only 60% of changes to POs were processed via EDI
  • 33% of buyers and suppliers face a greater challenge reconciling invoices and receipts with orders.
  • When comparing a fully automated EDI/XML approach for orders to one with minimal manual intervention, the time from order receipt to shipment is halved from seven to three days.

Lora Cecere, founder of Supply Chain Insights:

  • “Electronic Data Interchange (EDI) is now four decades old. Technologies like portals, trading exchanges, and business networks have evolved, making many believe that EDI is obsolete,”
  • “Nothing could be further from the truth. EDI continues to be the workhorse of the extended supply chain.”

Steve Keifer, vice president of marketing for GXS:

  • “Although EDI/XML has established itself as the workhorse of the supply chain, there still remains a significant opportunity for additional operational efficiencies and competitive advantage to be gained through further adoption,”
  •  “This new study from Supply Chain Insights provides some much needed quantifiable data that retailers, manufacturers and distributors can use to build a business case for further investment in 2014 and beyond.”

The full report is available for download here.

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