Taking the cost out of the supply chain [download]

June 29, 2017  |  edi, Publications

EDI (Electronic Data Interchange) has always been seen as a solution for major companies that can support high investment in IT and human resources to gain significant cost and efficiency advantages. Now, however, the availability of EDI as a Cloud-based, pay-as-you-go managed service, has transformed the opportunities for many smaller companies. But where do the true cost savings from EDI lie for such firms?

Firstly, there is massively reduced administrative cost. If data must be extracted manually from a letter, a Fax, or an emailed PDF to input into systems, checked for compliance with information held on several different business systems, and in case of a discrepancy referred to a higher authority, it is easy to see how GS1 and Cranfield have arrived at a range of between £5 and £14 for the administrative cost of order processing. Yet typically, at least 80% of orders, invoices, or other documents are compliant and if presented appropriately could pass through multiple business systems entirely automatically.

That 80% is pessimistic – if data, often itself machine-generated, can pass directly to other systems, the chances of additional errors creeping in through ‘fat finger’ syndrome or otherwise, are reduced to close to zero.

EDI as a managed service now offers companies of all sizes the savings and efficiencies hitherto enjoyed only by the major corporations – so creating a level playing field.

For further information send an e-mail at [email protected] or keep up to date on EDI following their Linkedin profile.


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