The Benefits of EDI

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    The Benets of EDI

    A GXS White Paper for the Active Business

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    Electroic Dt Iterchge (EDI)the compter-to-compter echge of stdrd

    bsiess docmets i electroic formt betwee two compieshs bee i

    se sice the lte 1960s d the beets hve cosistetly prove to be drmtic.

    Frthermore, the beets of EDI cotie to grow s it forms the fodtio tht

    ebles compies to beet from flly tomted bsiess processes sch s

    e-procremet, e-ivoicig, tomted receivig d e-pymet.

    Most lrge compies hve implemeted EDI progrm. Yet oly few hve flly

    eploited the bsiess beets to be gied by B2B e-commerce techologies.

    My compies implemeted EDI with sbset of trdig prters or bsiess

    processes. I recet yers there hs bee spie i iterest mog compies tht

    re cosiderig reewed ivestmet i EDI progrms. Spply chi mgers d IT

    professiols re sig:

    Wht re the beets of coectig to the 50% of my trdig prters tht re

    ot sig EDI tody?

    Is it fesible to EDI-eble ll of my trdig prters, regrdless of size or

    techology cpbility?

    C EDI be tilized effectively brod i emergig mrets or developed

    tios?

    Give I hve lredy ivested i EDI, c I mimize this ivestmet by eted-

    ig my se of EDI to ew bsiess processes/bsiess eeds?

    Wht is the ROI from digitizig ot oly prchse orders d ship otices, bt

    lso ivoices d remittce dvice docmets s well?

    Fdmetlly, EDI ebles orgiztios to remove cost d iefciecy from

    trsctio-bsed processes. By tomtig the echge of dt betwee pplic-

    tios cross spply chi, EDI c esre tht bsiess-criticl dt is set o-

    time, every time; is secre d set to or received from trsted trdig prters; cbe trced i rel-time; d c be dited fter the evet.

    Reserch lysts hve pblished the reslts of l bechmr stdies codcted

    over my yers, repetedly demostrtig tht EDI:

    Lowersrasaciocossbaleas35%becse pper docmets re

    replced by EDI trsctios, epeses ssocited with pper, pritig,

    reprodctio, storge, lig, postge d docmet retrievl re ll redced

    or elimited.

    Improesdaaali,delierialeasa30%40%redcioirasacios

    wierrorsEDI elimites errors resltig from illegible hdwritig, lostfes/mil d eyig d re-eyig errors.

    Speedspbsiesscclesb61%EDI trsctios re echged i mites

    isted of the dys or wees ssocited with postl mil. Frthermore, sigi-

    ct time is sved from the elimitio of dt re-eyig d its high error rte

    tht reslts i time-cosmig corrective ctios.

    2 The Benets of EDA GXS White Pape

    Firstly, efcient B2B integra-

    tion translates directly intocustomer satisfaction levels

    and leads to better relations

    with customers. Secondly,

    B2B allows us to optimize

    certain very important inter-

    nal business processes

    for example, by removing the

    possibility of manual errors

    in such processes. Thirdly,

    B2B lets us harmonize key

    processes across the world,

    independent of geographic

    region. This means that the

    customer will enjoy consis-

    tency, no matter where they

    are located, which is very

    signicant for a global brand

    such as Inneon.

    DR. DIMITRI BORTnIk,

    HEaD OF B2B, InFInEOn

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    Beyod the direct cost d time-svig beets of EDI described bove, EDI provides

    the fodtiol techology tht, whe combied with other collbortive com-

    merce cpbilities vilble tody, ebles drmtic strtegic beets. For emple,

    i todys fst-pced bsiess eviromet, electroic trsctios eble rel-time

    visibility ito trsctio stts. This, i tr, ebles fster decisio-mig d

    improved resposiveess to chgig cstomer d mret demds.

    This pper will review the iefciecies of ml d semi-tomted processes

    d highlight the tcticl d strtegic beets tht EDI hs bee eblig for the

    pst 40+ yers d is cotiig to eble withi the procremet, receivig d

    ivoicig processes.

    The Benets of EDI 3A GXS White Paper

    EDIBEnEfItS:

    Lowers trsctio costs by t

    lest 35%

    Improves dt qlity, deliver-

    ig t lest 30%40%

    redctio i trsctios

    with errors

    Speeds p bsiess cyclesby 61%

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    BeesoEDIiProcreme

    In an on-going eort to reduce costs, realize a shorter buying cycle, increase accuracy and

    improve productivity, companies have traditionally rst ocused on the low-hanging ruit

    o automating the procurement process. EDI has helped companies achieve these signi-

    cant benets over the past 40 years with automated purchase orders (POs). See Figure 1

    or a comparison o the steps in a typical manual/semi-automated purchase order creation

    process to one that is EDI-based. Note that a 4-step process is reduced to two steps.

    fire1:Maals.EDI-BasedPrcaseOrderCreaio

    According to Aberdeen Group research, 84% o best-in-class companies send electronic

    purchase orders, this being one o the key contributors to having lower requisition-to-order

    costs o $9/order and shorter requisition-to-order cycles o 2.6 days/order.

    Many benets o EDI are in the procurement process:

    AomaedPOExcaeSignicant cost savings can be achieved simply through

    the digital transmission o an EDI purchase order rom buyer to supplier. First, elec-

    tronic delivery avoids the need or the buyer to either phone or print and send thepurchase order via ax, email or postal mail. Thus, cost savings are realized rom the

    elimination o postage, paper, and the personnel time to copy, store, stu and mail

    envelopes or eed the ax machine. Also, errors due to illegible axes, lost orders or

    incorrectly taken phone orders are eliminated, saving personnel rom rework activi-

    ties, disputes resulting rom inconsistent data and compliance checks. Furthermore,

    because suppliers receive electronic orders in less time, they can ulll them aster.

    RedcedSasIiriesWithout specic acknowledgement o order receipt and

    acceptance, personnel involved in merchandising, manuacturing and sales cannot

    eectively plan marketing activities, production schedules or customer deliveries.

    This oten results in numerous time-consuming ollow-up phone calls to suppliersor receipt and conrmation status. By incorporating EDI unctional acknowledge-

    ments (FAs), purchase order acknowledgments (POAs), and purchase order changes

    (POCs) into your business process, buyers can eliminate most or all order status

    inquiries. They are automatically notied that suppliers have indeed received the

    orders and that the orders have been conrmed, rejected or changed.

    4 The Benets of EDA GXS White Pape

    Manual/Semi-Automated PO Creation

    1 Eter iformtio ito ERP/procremet system

    to geerte prchse order

    2 Prit prchse order

    3 F, e-mil or mil prchse order to spplier

    4 Cll spplier to esre receipt of prchse order

    1 Eter iformtio ito ERP to geerte pr-

    chse order

    2 Sed EDI prchse order to spplier

    n/a

    n/a atomticlly receive fctiol cowledg-

    met cormig receipt or, if sig vle-

    dded etwor (Van) service, chec receipt

    dte d timestmp o the portl

    Automated PO Creation with EDI

    AvERAgEPAPER

    REquISItIOn-tO-ORDER

    COStS:

    north americ, $37.45

    EMEa, $42.90

    aPaC, $23.90

    EDIREquISItIOn-tO-ORDERCOStS:north americ, $23.83

    EMEa, $34.05

    aPaC, $14.78

    Sorce: a Compriso of Spplier

    Eblemet rod the World,

    aberdee Grop, april 2008

    gXSCuStOMERSREPORt

    BEnEfItS

    3Com clcltes cost of

    processig order mlly

    t $38 compred to $1.35 to

    process sig EDI.

    Dimler-Chrysler redced ey

    cycle time by 97% 30-dy

    process ws redced to 24

    hors.

    Mjor retiler redced order

    cycle time by 75% from 24

    dys to 6.

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    IeraedPrcaseOrderCaes Industry research indicates the average pur-

    chase order is changed 4.4 times; however, only about 40% o purchase order chang-

    es are automated between buyer and supplier. This leads to discrepancies between

    parties and inaccuracy in subsequent supply chain transactions such as the shipment

    notice and invoice. Implementing the EDI purchase order changes improves accu-

    racy by ensuring a common understanding between trading partners and eliminating

    conusion about the buyers conrmed commitment to purchase.

    AomaedRepleismePurchase orders (POs), and their ollow-on documentssuch as purchase order acknowledgements and purchase order changes, can be

    automatically generated by the ERP system based on inventory thresholds and then

    automatically sent directly to suppliers without human intervention. Upon receipt

    by the supplier, these orders can be automatically uploaded into the suppliers order

    management system (OMS) or processing and ulllment. Customers can thus

    receive goods sooner; and because o aster and more accurate processing, they can

    reduce inventory carrying costs. Because orders can be ullled much aster, suppliers

    oten receive earlier payment and improve cash fow, resulting in better relationships

    between customer and supplier. Furthermore, buyers who pay on time or early can

    qualiy or negotiated discounts.

    EacedtradiParerRelaiosipsAutomating the exchange o purchase

    order documents ensures the synchronization o expectations between the buyer and

    the supplier. Ambiguity between parties is reduced, and higher levels o customer

    satisaction can be achieved through electronic communication that is ecient,

    timely and accurate. In addition, EDI purchase orders set the threshold or down-

    stream accountability in the shipping and settlement processes.

    See Figure 2 or the typical EDI document fow in support o the procurement process.

    fire2:DocmeflowiaEDI-BasedPrcasiProcess

    The pressure to maximize procurement perormance is increasing. And EDI continues to

    be a core component o todays strategic procurement initiatives.

    The Benets of EDI 5A GXS White Paper

    BUYEROrder Purchase Order

    Purchase Order Change

    Order Acknowledgement Order Change Ac knowledgement

    SUPPLIERAcknowledge

    We have been able to au-

    tomate with no re-keying

    required. The main benet

    to the business is that we

    have been able to shorten the

    order processing cycle, which

    has helped us to react more

    quickly to customer require-

    ments and become a more

    agile business as a result.

    ROBERT HaMILTOn,

    InFRaSTRuCTuRE ManaGER,

    POuPaRT

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    BeesoEDIiReceii

    The exchange o the electronic Advance Ship Notice (ASN) is critical to enabling compa-

    nies to streamline the receiving process. According to the GS1 2010 research in the UK,

    companies that receive EDI ASNs prior to receipt o goods save approximately 12 per

    order. These results highlight the criticality o ASN adoption to all industries globally.

    The ASN is an EDI document (ANSI X12 856 or 857) that lists the details o a ship-

    ment o goods due to arrive rom a supplier, 3rd party logistics provider (3PL) or ulll-ment agent to a customer. Typically, the ASN includes much o the inormation that was

    contained in the customers original purchase order. It also includes carton identications,

    transport unit descriptions and transportation details.

    The ASN works together with the barcoded shipping label that suppliers ax to the car-

    ton/pallet/transport unit being shipped. The serialized barcode is a unique number associ-

    ated with each transport unit that is also included in the ASN document.

    See Figure 3 or a comparison o a typical manual/semi-automated receiving process to an

    EDI-based receiving process. Note that a three-step process is reduced to only one step.

    fire3:Maals.EDI-BasedReceiiProcess

    Examples o the many benets o an ASN in the receiving process:

    AdaceplaiBy processing ASNs prior to the actual delivery o goods, a

    buyer can improve warehouse operations. Dock scheduling allows a company to

    manage capacity and maximize the fow o goods into and through the receiving

    location. In-transit product can be included in stock level evaluations to determine

    the appropriate timing or replenishment purchases to be made in order to avoid

    out-o-stock situations. Personnel can be staed or various unctions in the ware-

    house or distribution center based upon expected deliveries and the corresponding

    actions required or each.

    AomaireceiiSuppliers can send to their buyers EDI ASNs that provide

    details on the timing, contents and packaging o orthcoming deliveries. These ASNs

    are uploaded into the buyers warehouse management system. When a shipment ar-

    rives, receiving personnel scan the barcodes axed to the transport units containing

    items to be received. Each barcode provides a unique shipment identier that can be

    6 The Benets of EDA GXS White Pape

    Manual/Semi-Automated Receiving Process

    1 Ope boes d d pcig slips

    2 Compre goods received to pcig slip

    3 updte the TMS/ERP/WMS with receipt stts

    1 Sc the br code lbels fed to the crtos/

    pllets/boes. The TMS/ERP/WMS re pdted

    with shipmet cotets

    n/a The shipmet cotets re tomticlly

    mtched p with the items i the aSn s

    reslt of the scig

    n/a The TMS/ERP/WMS re tomticlly pdted.

    Automated Receiving Process with EDI

    REALWORLDEXAMPLES

    fROMgXSCuStOMERS

    SpecialuSReailerEDI Processes: Receives aSns

    from sppliers, receives stts

    pdtes from trcers

    Process Improvements: Improved

    visibility of ibod shipmets,

    better plig for receivig,

    tomted clcltio of ETa o-

    tices, chged from direct store

    delivery to cross-docig process

    Additional Benets: Provide cs-

    tomers with ccrte d timely

    resposes to stts iqiries

    LeadiAppliaceMaacrerEDI Processes: Receives shipmet

    stts pdtes from ll crriers

    Process Improvements: Iform-

    tio tomticlly fed ito TMS

    d qeried by employees

    Additional Benets: Improved

    cstomer stisfctio; fster,

    more ccrte delivery stts

    iformtio

    JapaeseMoorccleMaacrerEDI Processes: Shipmet stts

    pdtes bot spre prts deliv-

    ery to mfctrers delers

    Process Improvements: Rel-time,

    ccrte delivery iformtio is

    vilble

    Additional Benets: Fll mesre-

    met of crriers bsed o ey

    performce idictors (kPIs),

    lower costs from optimized

    crrier sge

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    correlated with the records in the warehouse management system. As a result, receiv-

    ing personnel can instantly identiy the shipments supplier, associated purchase

    order(s), expected contents and its next destination. Compared to manual inspection

    and receiving processes, EDI technology can signicantly reduce receiving time or

    inbound deliveries to retail stores, distribution centers or manuacturing plants.

    Cross-dockipallesThe majority o goods received into distribution centers

    are not destined to stay there or very long. Oten, shipments are to be relayed onto

    another location such as a nearby manuacturing plant, retail store or customerlocation. Armed with knowledge rom the automated ASN o which shipments are

    to arrive in the coming days as well as the details o their contents and next destina-

    tion, warehouse personnel can arrange in advance or outbound transportation

    or each incoming load. The ideal case is or inbound shipments to be received,

    inspected, re-congured and then quickly loaded onto trucks or routing to their

    nal destination. This cross-docking process can signicantly reduce inventory across

    the supply chain.

    RedciexpediesThe advent o lean manuacturing and just-in-time supply

    chain models have resulted in businesses carrying lower saety stocks. As a result,supply chains are more dependent than ever on goods arriving within expected

    time rames. Without visibility into shipment locations and expected arrival dates,

    merchandising, manuacturing and sales personnel cannot eectively plan marketing

    activities, production schedules or customer deliveries. EDI documents such as

    EDI waybills rom air and rail carriers, EDI status updates rom LTL and TL truck-

    ers and bills o lading rom ocean carriers can enable companies to have a complete

    picture o their supply chains to determine i and when expedited shipments may

    be required.

    See Figure 4 or the typical EDI document fow in support o the shipping process.

    fire4:DocmeflowiaEDI-BasedSipmeProcess

    The Benets of EDI 7A GXS White Paper

    BUYER - Receives Advance Ship Notice

    Goods Received Note

    Booking Confirmation Advance Ship Notice Shipment Status Updates Customs Clearance Status

    SUPPLIER - Ships

    CARRIER - Ships

    According to September 2010

    GS1 UK research, companies

    that receive EDI ASNs prior to

    receipt of goods save approxi-

    mately 12 per order.

    Sorce: EDI Cost Svigs Report,

    September 2010

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    BeesoEDIiIoici&Pame

    Companies are beginning to ocus on streamlining the accounts payable (AP) department

    to obtain urther cost eciencies and to improve visibility into nancial perormance.

    Eliminating the mountains o paper invoices and replacing them with electronic invoices is

    clearly a rst logical step to achieve these benets. Many countries are enacting legislation

    that now permits an electronic invoice to serve as the legal invoice to prove compliance

    or serve as tax originals, urther obviating the need to retain paper. Some governments in

    Europe (e.g., Denmark, Sweden, Finland) and around the world are now mandating or areabout to demand the use o e-invoicing or government agencies. Furthermore, compliance

    with complex, country-specic regulationssuch as VAT, electronic signatures, archiving,

    etc.can be perormed transparently or companies using electronic invoicing solutions.

    The combination o these actors, plus the numerous benchmark and case studies attest-

    ing to the benets and the availability o easy-to-use e-invoicing solutions, are signicantly

    increasing the adoption o electronic invoicing.

    EDI is one o the key technologies used by best-in-class companies to completely remove

    paper and eliminate error-prone manual processes. See Figure 5 or a comparison o a typi-

    cal manual/semi-automated invoicing process to an EDI-based invoice process.

    fire5:Maals.EDI-BasedIoici&PameProcess

    Note that a three-step process can be totally automated. O course, exception scenarios

    will still occurapproximately 5-10% o invoices require manual intervention due to

    errorsand will need to be dealt with. However, with an automated process, accounts pay-

    able personnel can ocus on resolving issues and collaborating with suppliers rather than

    perorming manual, error-prone data entry and paper-based tasks.

    Gartner highlights the huge cost savings potential o e-invoicing. They urther note that

    companies need to automate only 40-50% o their invoices in order to obtain a good

    return-on-investment:

    The cost savings and benets o adopting e-invoicing are attractive, and include potential

    reductions in invoicing costs o between 70% to 90% per invoice, coupled with adminis-

    trative sta savings (Gartner Inc., Top Guidelines or Successully Leveraging Supplier

    E-Invoicing Networks 23 June 2010).

    8 The Benets of EDA GXS White Pape

    Manual/Semi-Automated Invoicing Process

    1 Receive ivoice from the spplier vi mil, f or

    emil

    2 Obti stts from TMS/WMS/ERP; compre the

    receipt iformtio to both the prchse order

    d the ivoice to esre tht the price d

    qtity re ccrte i ll plces (3-wy mtch).

    3 Sed pymet to the spplier vi pper chec.

    n/a The EDI ivoice is electroiclly trsmitted to

    the tomted ccots pyble system

    n/a The ccots pyble system tomticlly

    performs the 3-wy mtch d forwrds

    throgh to pymet.

    n/a Pymet is tomticlly mde vi aCH d

    EDI remittce dvice is tomticlly set

    to the spplier.

    Automated Invoicing Process with EDI

    It [EDI] signicantly speeds

    up the invoicing process,

    and compared to a manually

    intensive process such as

    faxing through orders, EDI

    offers signicant performance

    improvements and efciency

    benets. Above all, it meansyou are 100 percent guaran-

    teed your message will arrive.

    These benets translate into

    better service for our custom-

    ers across Europe.

    DaVID WEBB,

    SYSTEMS SuPERVISOR, WD-40

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    Gartner has surveyed several large organizations that ound that getting 40% to 50%

    o invoices submitted electronically represented critical mass in terms o their business

    cases (Gartner Inc., Top Guidelines or Successully Leveraging Supplier E-Invoicing

    Networks 23 June 2010).

    Likewise, according to Aberdeen Group, electronic invoice processing costs are 33%-37%

    lower than manual costs. See Figure 6 or a comparison o the average cost to process in-

    voices or electronic and manual methods.

    fire6:AeraeIoiceReceip-o-PameScedledCos

    Aberdeen also notes that [b]est-in-class enterprises, on average, display 83% lower pro-

    cessing costs than all other enterprises. It costs them an average o $1.66 to process an in-

    voice versus $12.62 and over $40 or Industry Average and Laggard companies respectully.Best-in-class companies realize 92% lower invoice cycle times, requiring 2.9 days to process

    an invoice as compared to 14.6 and 32.9 days needed by Average and Laggard companies

    (Aberdeen Group, 2009).

    Below are examples o how EDI enables companies to achieve these benets:

    IoicecapreSignicant cost savings can be achieved simply through the digital

    transmission o an EDI invoice rom the supplier to the buyer. First, electronic deliv-

    ery avoids the need to pay postage. Furthermore, it obviates the need to open, sort,

    scan and route the paper invoices once received. With EDI invoicing, all the neces-

    sary details fow straight through into the accounts payable system. There is no need

    or A/P clerks to perorm time-consuming and error-prone re-keying o the invoice

    data into the payables system.

    RemiacedeailsReconciliation is one o the biggest challenges in the settlement

    process or buyer-supplier relationships with high transaction volumes. Typically, a

    buyer will consolidate multiple invoices into a single payment to reduce banking ees

    and simpliy approval processes. Buyers also are prone to debiting invoices or penal-

    ties due to lack o compliance with contract terms, non-perormance against estab-

    lished service level commitments or credits outstanding rom other transactions.

    Payments made through electronic unds transer oten lack much detail about the

    associated invoices. A bank will notiy their customer through a daily statement thata credit was received to their account in a specied amount rom a particular cus-

    tomer. The A/R department at the supplier must then attempt to determine which

    invoices were associated with the payment transaction and what discounts were

    applied. A solution to the reconciliation problem involves the use o EDI remit-

    tance advices. These documents provide the associated invoice and deduction details

    necessary to perorm reconciliation in the suppliers accounts receivable system.

    The Benets of EDI 9A GXS White Paper

    Invoice Type

    PO-bsed ivoices

    no-PO-bsed ivoices

    Other ivoices

    $12.60

    $14.00

    $12.40

    $20.30

    $21.10

    $21.30

    Electronic Manual

    Sorce: aberdee Grop, Mrch 2008

    The reliability of EDI is

    important to us... Now were

    looking at adding more

    business documents, such as

    invoices, to further improve

    our efciency.

    ManDY GaFFnEY, DIRECTOR,

    GaFFnEY OF TIPTREE

    BESt-In-CLASSCOMPAnIES

    EnJOy:

    83% lower ivoice processig

    costs

    92% lower ivoice cycle times

    Sorce: aberdee Grop, 2009

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    tradediscosMany suppliers are willing to oer a discount against their receiv-

    ables in exchange or aster payment. Discounts average 1.5% or payments made

    30 days or more in advance o the due date. Without an electronic invoicing process

    it is oten challenging or A/P departments to capitalize on these early payment dis-

    counts. The mailing, sorting and re-keying o paper-based invoices add several days

    to the process. The need to collect additional details, to validate charges and to route

    approvals in a paper-based process add time to the invoice-approval cycle as well.

    EDI invoices can be transmitted within seconds, validated quickly and approved

    within days, enabling buyers to realize early payment discounts. For large buyerswith billions o dollars in annual spend, negotiating early payment terms with key

    suppliers can result in millions o dollars o annual savings.

    Elimiaieioice In order to entirely eliminate the burden o handling in-

    voices rom high-volume, trusted direct materials suppliers, many companies in the

    manuacturing industry have implemented the Evaluated Receipt Settlement (ERS)

    process. In a typical ERS scenario the buyer sends an EDI purchase order, includ-

    ing the price or each item. The supplier ships the goods and sends an EDI Advance

    Ship Notice (ASN). The buyer receives the goods, calculates the amount due based

    on goods actually received and the price provided in the purchase order, and pays orthe shipment. With ERS there is no invoice and there is just a 2-way match. This

    saves the buyer the time and cost associated with the traditional 3-way match in

    which an invoice is also matched against the purchase order and goods received

    and the processing o any invoices at all.

    See Figure 7 or the typical EDI document fow in support o the invoicing and payment

    process.

    fire7:DocmeflowiaEDI-BasedIoiciProcess

    10 The Benets of EDA GXS White Pape

    BUYERPayment Invoice

    Credit Note

    Debit Note Remittance Advice

    SUPPLIERInvoice

    PaymentInstruction

    [W]e were handling 90,000

    invoices per annum for

    merchandise. This year, well

    handle 700,000 [invoices],

    maintaining the same

    headcount in the accounts

    payable group... Its only

    been through EDI and an

    automatic matching processon the back-end that weve

    been able to handle that

    amount of business.

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    BeesAreAailableoAlltradiParers

    All companies are now able to trade electronically with 100% o their trading partners.

    Easy-to-use options are available that eliminate earlier barriers to ull participation by small

    and medium-size trading partners. These options include customized web-based orms and

    direct integration with Excel or other accounting sotware. All companies big and small can

    now realize the benets o using EDI as a core technology component in streamlining their

    procurement, receiving, invoicing and payment processes.

    Moreover, these Internet-based options are available worldwide. Thereore, companies that

    want to leverage emerging markets can now utilize EDI to communicate electronically

    everywhere in the world, despite the complexities o dierent time zones, regulations and

    languages.

    Coclsio

    The data continues to clearly demonstrate that as companies automate more processes in

    the order-to-cash cycle, the business benetslower cost, improved data quality and aster

    business cyclesmultiply quickly. Furthermore, businesses can now leverage the electronic

    data to obtain the real-time visibility into their supply chains (e.g., obtain order, delivery

    or payment status; monitor supplier perormance; perorm supplier scorecarding) to make

    real-time business decisions. Consequently, smart companies are now making EDI a condi-

    tion o doing business.

    Resources

    Are you new to EDI? I you would like to learn more, please visit the EDI Basics website at

    www.edi.gxs.com. The site explains the types o EDI, the benets that can be expected, and

    how to implement an EDI project.

    Have you already implemented EDI with your top suppliers? I you would like to expandyour program to include your small and medium-size suppliers as well, we can help you

    determine your return-on-investment (ROI). Please visit www.gxs.com/edi-roi-modelto

    answer ten basic questions about your current purchasing and/or invoicing processes and

    receive an ROI analysis.

    The Benets of EDI 11A GXS White Paper

    BEnEfItSEDIAnDB2B

    BRIngtOthEBuSInESS

    The rst benet is to do

    with productivity since EDI

    enhances the movement and

    ow of information between

    Hutchinson and its partners.

    The company exchanges

    3000 messages each day.

    Secondly, EDI has converted

    what was formerly a largely

    manual process into an IT

    one and thereby brought

    with it improvements in the

    quality of data, reducing

    manual errors and improving

    data integrity. Another vitally

    important benet is speed.

    Business agility has been key

    to Hutchinsons continuedsuccess, and EDI has allowed

    the company to adapt swiftly

    and efciently to emerging

    requirements.

    DIDIER CaRn

    IT CORPORaTE DIRECTOR,

    HuTCHInSOn

  • 7/28/2019 The Benefits of EDI

    12/12

    About GXS

    GXS is a leading provider of B2B e-commerce solutions and operates the worlds largest and most expansive network of integrated business communities.

    The companys software and services simplify and enhance businesses process integration and collaboration among networks of trading partners.

    Organisations worldwide, including more than 75 percent of the Fortune 500, use GXS solutions to extend their supply ch ain networks, optimise product

    launches, automate warehouse receiving, manage electronic payments and gain supply c hain visibility. Based in Gaithersburg, Maryland, GXS has

    operations and ofces around the world. For more information, see http://www.gxs.co.uk, http://blogs.gxs.com and h ttp://twitter.com/gxs.

    Copyright 2011 GxS, Ic. all Rights Reserved. Jry 2011 a

    nORthAMERICAAnD

    gLOBALhEADquARtERS9711 Washingtonian Blvd.Gaithersburg, MD 20878, US

    +1-800-560-4347 t+1-301-340-4000 t

    +1-301-340-5299 f

    www.gxs.com

    EuROPE,MIDDLE

    EAStAnDAfRICA18 Station Road

    Sunbury-on-Thames

    Middlesex TW16 6SU

    United Kingdom

    +44 (0)1932 776047 t

    +44 (0)1932 776216 f

    www.gxs.eu

    ASIAPACIfICAsia Headquarters

    Hong Kong

    GXS International

    16/F China Resources Building

    26 Harbour Road, Wanchai

    Hong Kong

    +852 2884-6088 t

    +852 2513-0650 f

    http://www.gxs.com.hk