Key Benefits

New To EDI?

EDI, or Electronic Data Interchange, is not just a system, it is a whole new way of doing business. It isn't just some software that will send electronic invoices; it is an entire suite of products that enable you to communicate with your customers instantaneously. All of the major retailers require it of their suppliers. Even if the buyers really like your product, they will not be able to purchase it if you do not meet the retailers' EDI requirements. In order to do this there are many levels of implementations that need to be accomplished.

Required Elements

First you need to have a VAN, or Value Added Network. This is basically an EDI mailbox. Your VAN must be able to interconnect, or communicate, with your retailers' VANs. This is a cost you must bear and it is up to you to maintain your VAN and archive your data from it.

Next you need an Online UPC Catalog for your buyers to purchase from. This is where your UPC's are kept with all of your product information and where your buyers create the purchase orders they send you. There are very strict guidelines behind how these catalogs must be maintained and presented to the buyer. Failure to meet these guidelines usually results in major incident charges. Some as high as $250.00 every time a buyer uses your catalog and something isn't right. It is absolutely critical that your catalog be maintained perfectly.

Then you will need an EDI translator. This is how your EDI transactions are translated into documents you can read. This is also how your invoices and ship notices are turned into EDI documents that your retailer will accept. This type of software does not work out of the box. It takes EDI expertise to "map" (see the EDI Info pages for more on these topics) each document for each retailer so they are in compliance with the applicable guidelines. Translators range in price anywhere from $5,000 on up to hundreds of thousands of dollars depending on the options you select.

Next you will need your EDI derived data to be fed into your accounting and manufacturing systems. Also you need a way of feeding your outgoing data into the EDI translator to be sent. Translators usually provide a means of entering and extracting data, but this is something that needs to be configured carefully. Even after you have created a file to extract data into your systems need to be able to read it. Usually you need some software that takes your translated EDI data and either transforms it into a format that your accounting and manufacturing software can read or turns it around into the EDI documents you need to send.

Business Processes

You will need to be able to print UCC-128 container labels that meet the specific retailer's guidelines. Also you will probably need some way to transform the UPC numbers that come in on the EDI purchase orders to your style numbers, that often times do not come in with the EDI. 

Without some type of data transformation and integration, you may have to hire an army of data entry clerks to pass your data between your various systems. Data entry can be time consuming, riddled with errors, and costly to your operation. Accuracy is critical in the EDI world. The data is already digitally on your system, so why would you want to pay someone to re-enter it, possibly incorrectly?

There are many different business models supplier have with their retailers. Some take simple purchase orders and create invoices. Some require Advanced Ship Notices, or ASNs, with integrated UCC-128 carton labels. Some suppliers are Vendor Managed and must create their own orders out of a pool of numbers supplied by the retailer using sell through information. Some suppliers are on Quick Replenishment programs with their retailer and must automatically ship certain quantities by certain dates. The typical supplier is a mix of methods required by each of it's individual retailers. Your EDI system must be flexible enough to meet your specific needs now and into the future.

Once you have your system in place, you have to test with each retailer to prove you are compliant with their way of doing business. You also must be able to maintain it and immediately implement any new versions or requirements that your retailers come up with. If you fall short on any part of your EDI requirements, you could be subject to huge charge backs or you could lose the business of your retailers altogether. 

Solutions

There are numerous solutions available to help you implement your process and you must decide what is right for you. You need an expert's advice on which solutions are appropriate for you. Without it you may end up with a costly system that is impossible for you to manage or you may end up with a system that just does not meet your EDI needs. Hiring an EDI expert can be very expensive and they are hard to find. Hiring a consultant is probably the most cost effective way to implement your program. You need to be careful, however, because the wrong consultant can spell disaster for your company. There are very few real EDI experts in the country who are not already working for large corporations.  

At DBM Consulting Services we offer actual proven expertise in the area of EDI solutions. We will look at the various ways you have of doing business with each of your retailers and look at your specific operational requirements and find solutions that allow you to meet all of your requirements in a cost effective manner. EDI implementation is not cheap so there is no need to waste money doing it wrong. 

Get it right the first time by hiring DBM Consulting Services. We offer the lowest hourly rates in the business, we operate with customer satisfaction as our highest priority, and we have the most experience in the field. Contact us immediately for a free consultation and become one of our satisfied customers.

Send mail to dbm-cons@dbm-consulting.com with questions or comments about this web site.
Copyright © 2004 DBM Consulting Services
Last modified: December 07, 2005