IDW EDI Managed Solutions

One Connection.

Brighter Possibilities.© Copyright 2016. All Rights Reserved.

IDX EDI Managed Services

Why do it, when does it make sense

One Connection.


• 96% of companies indicated EDI Managed Services increased the value of their EDI program.

• For 47% of the participants, the increased value was combined with a decrease in costs.

• 78% of those using managed services for 5 years or more strongly agreed or agreed that managed services improved efficiency of onboarding new customers.

• 74% strongly agreed or agreed that the ability to replace capital expenditure with an on-going monthly subscription fee was of value to them.

• 63% strongly agreed or agreed that B2B Managed Services allowed them to improve planning for B2B budget and resources.

• 59% were able to reduce costs related to B2B integration (developing maps, onboarding business partners, etc.).

• 46% were able to redeploy some of their IT staff to other projects/roles

What are the benefits of EDI Managed Services

Stats by the Stanford Group

One Connection.


• Cost reductions

• Customer integration

• Business Centralization & Consolidation

• Business modernization

• Workforce optimization

• Business Divestiture & Acquisitions

Why Use EDI Managed Services

One Connection.


Companies report average cost savings up to 40% annually compared with providing EDI services in-house.

Where do these impressive savings come from?

Cost Reductions

One Connection.


This is mostly achieved by identifying inefficiencies and unproductive practices and taking action to reduce or eliminate any negative impact on your business.

EDI managed service solutions have the potential to do more. While increasing productivity, these solutions provide the opportunity to:

1) extend your business network

2) Introduce new cost-saving practices

3) Adding valuable B2B capabilities.

Cost Reductions

One Connection.


The Business Challenge is Two Fold:

1) Most likely your B2B solutions will start small with a single process – such as invoicing or Purchase orders—and then extend into different processes and document types

2) At the same time, versions change, technologies change and industry demands requiring increased document usage continue

3) The result is that your trading partners all use different document types, industry standards, communications protocols and technology infrastructures that you must seamlessly accommodate into your business network

Cost Reductions

One Connection.


This requires increased Manpower

One Connection.


• Do you have access to all the latest technology and communications?

• How much would you have to invest to ensure you are always up to date?

• Are you planning to expand your B2B capabilities into other business areas?

• Do you have the skills internally to make this happen?

• Do you have the budget available to make this happen?

• How much does it cost to maintain your current B2B solutions?

• What would the maintenance costs be if your transaction rate increased by 10% a year?

• What is the cost to your business of an outage with your B2B solution?

Issues to Consider

One Connection.


• Chargebacks can account for as much as 5% of Cost Of Goods Sold (COGS). How can closer integration with your customer help you move to a demand-driven supply chain that improves customer satisfaction and gets you paid more quickly?

• All businesses wish to increase customer satisfaction and loyalty. It is essential to increase sales and enhance the profitability of each sale.

• Implementing B2B solutions allows an organization to be responsive to customers, and eliminating errors that detract from the services it provides.

• More than this, integrating with customer systems can help cement the customer relationship.

Customer Integration

One Connection.


• Does the technical integration overhead stop you doing business with some customers?

• Can you trade electronically with customers anywhere in the world?

• Are errors and problems within your B2B systems adding to your cost of sale?

• Are delayed or inaccurate shipments affecting your customer satisfaction?

• Do you have visibility across your extended supply chain?

• Do you have real-time B2B data available to make informed business decisions?

• Could your supply chain support a demand-driven business strategy?

Issues to Consider

One Connection.


Using B2B Managed Services helps you reduce and control the cost and complexity of integrating with your customer’s business processes.

The real benefit is that outsourcing this element can let you concentrate on the customer relationship rather than the underpinning technology.

As you look to increase customer satisfaction or move to a demand-driven approach, you can concentrate on the business strategy with the knowledge that you have access to a global network of trading partners—manufacturers, suppliers, logistics providers, financial institutions—that allows you to quickly onboard new customers and gain end-to-end visibility to the supply chain that will support them.

The role of EDI Managed Services

One Connection.


Centralization and consolidation of back-office functions can bring impressive efficiency and cost savings. But things are never that simple. How can you gain control and visibility into fragmented B2B networks and infrastructure?

Most medium and large organizations will have developed piecemeal EDI solutions over time. This is very often on a national or business unit level. The result is a trading community supported by a number of different solutions from a number of different suppliers on a number of different platforms. Merger and acquisition adds further to the challenge by introducing the necessity to consolidate an entire new set of B2B systems.

Business Centralization and Consolidation

One Connection.


• How many B2B networks are there within your organization?

• In how many countries do you have trading partners?

• How are your trading partners currently supported?

• How many VANs does your organization currently use?

• Are you getting the best price for your B2B transactions?

• Do you have complete view of your global supply chain?

Issues to Consider

One Connection.


Properly consolidating operations gives you the opportunity to start fresh.

You have the alternative of integrating all your disparate B2B networks, trading partners and supplier contracts into a centralized operation.

Or selecting a third party with global reach that can quickly onboard your internal systems and trading partners onto their infrastructure.

Often, the costs associated with the second option are significantly less than maintaining the EDI systems in-house, while giving access to the advantages a Managed Service provider delivers in terms of future-proofing and disaster recovery.


One Connection.


60% of banks think combining data—remittance, EDI, electronic invoicing, payment processing—is an important trend. Only 47% are pursuing this approach.

Being able to implement the latest technologies will ensure you future-proof your business in order to adapt, scale and withstand an intense competitive and global business landscape. Realizing this doesn’t always mean that you can do it…alone.

Business Modernization

One Connection.


• How long have your EDI systems been in place?

• What platform are they hosted upon?

• Where—and in what format—is the data stored?

• Can you populate your ERP systems with this data?

• What other B2B standards and protocols do you also support?

• Do you have the correct skills to support an expanding B2B infrastructure?

Issues to consider

One Connection.


Given the difficulties outlined, it’s no surprise that many companies have turned to EDI Managed Services for a solution.

They see that they can make legacy support and integration a controllable cost by passing it off to a resource that has in-depth experience of working with the entire range of EDI technologies.

The key area to consider is whether the supplier has the skills and solutions to automate the mapping and translation processes.


One Connection.


30% of companies state that a lack of skilled resources is having a negative impact on their EDI projects.

At a time when head count is carefully controlled, can you afford to dedicate resources to a perceived “non-core” activity? What’s the business cost if you don’t?

What’s the business cost if you do?

Workforce Optimization

One Connection.


What’s involved in doing it yourself


One Connection.


Program Management


One Connection.


• How often do your B2B systems change?

• Are you using the latest B2B technologies?

• Do you have plans to implement B2B technology advances?

• Do you have the correct skills?

• Can you support trading partners wherever they are located?

• Does a lack of B2B skills affect your ability to conduct business?

• What happens when your EDI staff move on or retire?

Issues to Consider

One Connection.


Research from the Stanford Group shows that many companies begin to investigate EDI Managed Services as they could no longer justify the cost of managing EDI solutions in-house in terms of the direct costs of retaining and training the staff.

An EDI Managed Services provider gives you immediate access to all the skills required while removing the concerns over global support and compliance issues. However, it is always essential that you retain key management positions—such as a Program Manager—so you always maintain customer facing control of the strategic direction of your EDI investments and trading partner relationships.

The Role of EDI Managed Services

One Connection.


The sale of a company or business unit raises major issues in terms of customer and community management and IT services for both the seller and the purchaser.

The current economic environment will continue to see a high degree of divestment activity as some organizations look to grow and others to focus on core competencies. Divestitures impact all areas of a company. The goal has to be achieving effective business continuity while transitioning business processes, data, people and IT systems.

Divestitures & Acquisitions

One Connection.


• How integrated are your current systems and processes with the parent organization?

• How long do you have to complete the divestiture transition process?

• How will you protect your customer and trading partner relationships during the transition?

• Will you have a new EDI infrastructure following the divestiture?

• How will you ensure the data quality and integrity of your EDI systems during the transition?

• Will you have the correct level of EDI skills available after the divestiture?

Issues to consider

One Connection.


Within divestitures, EDI Managed Services can play two key roles.

• First, it is an interim solution through the transition period to ensure business continuity. For example, providing electronic invoicing services with partners that ensures any transition of supply chain, financial or ERP systems remain invisible to your trading community.

• Secondly, companies increasingly regard IT and supply chain as non-core activities so divestiture not only acts as a catalyst to focus on core competencies it is an opportunity to upgrade to the latest B2B infrastructure and systems without significant investment or increasing internal headcount. It also ensures that the divested organization can quickly accommodate the trading network of its new owner should that be appropriate.


One Connection.


The most important business drivers affecting companies’ original decision to use B2B Managed Services were (in order of importance):

1. The desire to improve customer experience2. Improve business process efficiency3. Reduce IT costs

Business Drivers

One Connection.


• Custom mapping

• On-Net Translation services

• Hosted Connection

• TP testing and setup

• Consultative Services

• Be your outsourced EDI coordinator

IDX’s EDI Managed Service

One Connection.


Thank you

IDW EDI Managed Solutions

Education

Transcript of IDW EDI Managed Solutions