Monthly Archives: February 2023

28/02/2023

EDI adoption barriers and how to overcome them

EDI is pretty enticing when you look at its host of benefits:
  • cost savings
  • shortened procure-to-pay cycle
  • better data accuracy
  • less manual handling
  • better visibility into your supply chain
  • better customer service.
But as with any innovation, there are barriers that can get in the way of a business choosing to implement EDI. Here are some of those and how to overcome them.

Not understanding EDI and how it works

Simply put, EDI (electronic data interchange) is the exchange of business information directly between business software. Think of a purchase order being created in one company’s accounting package, and it ‘magically’ appears in the supplier’s software; no email, no PDF, no manual data entry. Well, it’s not magic, it’s EDI! Check out our whitepaper to learn all the basics. EDI can be pretty technical so this often makes it a little daunting for businesses. There’s also a sense of if you don’t have expertise you’ll have trouble implementing. The fact is, EDI providers, like MessageXchange, will always be there to clarify a lot about how it works and work with the relevant internal teams to make the process seamless.

Having unrealistic expectations

EDI requires clear expectations in terms of costs, timelines, internal operations and of suppliers. Rome wasn’t built in a day! When it comes to EDI, planning at the beginning is everything. This will give a clear direction for implementation and help assess how things are tracking compared to your targets. Keep these clear with your provider and hold them to it. The planning stage should also set clear expectations of who is responsible for what when EDI is implementation. Something else you can do is to get a clear understanding of price from your provider. All providers have different pricing models, make sure you find the one that suits your business most.

The capability of your supply chain

Your supply chain is critical to any EDI project. It can often make or break a project. So it can seem like a big barrier if you have difficulty getting suppliers onboard. But there are definitely ways around this. The number one thing to do when looking at onboarding suppliers is to segment them into groups and use this to stage your onboarding process. There’s no right or wrong way to segment your suppliers. It can be according to their readiness for EDI, maybe their size, whatever you like. As you’re onboard each segment it will give you an understanding of your progress. Another great way to get around suppliers not onboarding is by giving them options. If they’re already using EDI they can just integrate with your EDI solution. If they’re not using EDI, you can offer them a web portal solution, like Colladium. It makes it easier for suppliers, particularly smaller ones, to send and receive EDI messages all from a web browser.

Lack of resources

EDI is often linked with being costly and time intensive to set up but that’s changed a lot. These days businesses with no previous EDI experience are getting set up easily and quickly. EDI providers, like MessageXchange often step businesses through the whole process and even take care of critical parts. MessageXchange can create automated compliance testing solutions that test the EDI messages of suppliers on a portal to make sure it adheres to all EDI requirements. This saves you time and also saves your staff from having to contact suppliers one by one to organise testing. Need more help getting ready for EDI? Ask our experts by getting in touch below.

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24/02/2023

Five automated checks in MessageXchange to get the invoices you need the first time around

Many large organisations have processes setup in their accounts payables systems to review invoices and approve them for payment. Often the rules are quite complex and can rely on certain information being present on the invoice for the process to run effectively. Introducing eInvoicing can appear to throw a spanner in the works here, but with MessageXchange, it can make it even easier in automating the presence and validity of the data. Have a look at these tips to help you get the invoice you need the first time around.

1. Ensure a purchase order number is present

If your invoice matching requires a purchase order number to be present, MessageXchange can check that it’s there before sending the invoice onto your software. If it’s not, MessageXchange can automatically reject the invoice and send feedback to the supplier with information as to why it was rejected. Another alternative is to still receive the eInvoice in your software but send a notification to the supplier to ask them to include the order number on their future eInvoices.

2. Ensure the purchase order number is correct

This can be done in a couple of ways – you can check that the order number has the same format of those you issue, like always 10 digits, or starting with certain numbers, or you can even share (automatically, of course) a list of your order numbers from your software, and MessageXchange will check that it matches, before sending the invoice onto you. We can even go one step further and check that the purchase order number and ABN combination are correct.

3. Only receive eInvoices from ABNs you know

Our customers can provide a list of their suppliers’ ABNs. When an eInvoice for the customer comes in, MessageXchange can check the sender ABN against this list. Again, if it matches, we’ll send it onto you. And if not, we can reject it and notify the supplier, or continue to send it onto you while notifying the supplier.

4. Check the BSB and account number

Some invoice approval processes check the BSB and account numbers on the invoice. You can check for correct formatting, or even ensure they match those you have on file. When an eInvoice comes through, MessageXchange can check for these to make sure you get only the eInvoices that you’ll be able to process.

5. Mandate attachments from certain suppliers

If you use an outsourced HR company, for example, and expect timesheets with your invoices, MessageXchange can check that eInvoices from certain ABNs always have an attachment. We can even go one further to specify that the attachment must always be an Excel sheet, for example.All of these checks, and more, can be implemented in your eInvoicing Gateway. These are just some examples, but the only real limitation is your imagination. Have a chat to our team today about how to make sure you get the invoices you want the first time around.

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