22/07/2021

Which reigns supreme: on-premise or cloud-based EDI?

In the age of digital transformation, customer demands are constantly evolving. It’s important for businesses to not only keep up with those demands but also invest in upgrading their technology to suit. Electronic data interchange or EDI has been around for decades and it’s still an effective way for supply chains to standardise communication. However, some traditional EDI methods have their limitations that make it difficult for businesses to meet demands in today’s sometimes-turbulent times

On-premise EDI software

On- premise EDI software is owned by the business using it and everything from implementation to running the solution is usually done internally. The software is physically on-site and is operated from an in-house server with a connection to an ERP system. On-premise EDI solutions require the company to have an EDI software license, an in-house server, a network and IT staff to support the software.

Cloud- based SaaS EDI software

With cloud-based SaaS EDI, the software is hosted in the cloud (i.e not on-site) and managed by a third-party service provider. Cloud EDI is web- based and is convenient as companies don’t need to invest in any infrastructure, additional resources or licenses. The cloud EDI service provider maintains the software, networks, servers, security and importantly the maintenance for you.

On-premise vs cloud-based SaaS EDI

On-premise EDI software is a more traditional way of exchanging electronic documents through software that is purchased up-front and you own a license to it. It’s your responsibility to complete all software upgrade and backups. Whereas cloud-based, outsourced EDI is more modern and is slowly overtaking on-premise EDI. It’s usually based on a subscription model where businesses pay their service providers for use and maintenance of their solution.

The key differences in on-premise and cloud EDI are:

Cost:

On-premise EDI: An on-premise software requires a lot of effort and can come with large up-front and on-going costs. The initial investment of buying and implementing the software, servers and network and the on-going maintenance and operating cost makes on-premise EDI can be expensive. It may also require extra resources to manage the service within the business. Cloud- based EDI: On the other hand, a cloud-based EDI service is relatively more cost effective and customers have the added bonus of only paying for what they use. Customers don’t have to worry about the maintenance and operating cost as the cloud service provider takes care of all of that, and it’s included in the subscription cost.

Security:

On-premise EDI: Security is the primary concern of many organisations when it comes to procurement and financial transactions. Even though it is believed by many that on-premise EDI solution is more secure as it is in -house and the potential of the information being leaked is less, there are numerous measures that have to be taken to keep your data secure. Your team need to stay on top of security patches and make sure the software is constantly up-to-date to cater for any vulnerabilities. Cloud- based EDI: With cloud-based EDI software, the service provider should have multiple security protocols to keep your data safe. For example, MessageXchange is ISO27001 certified. We maintain the service to this standard and we're audited for this. We also have a team dedicated to ensuring our software it always up-to-date and not exposed to vulnerabilities.

Scalability:

On-premise EDI: When your business grows and you need to trade more electronic documents, on-premise EDI can require you to purchase additional hardware and make more investments to cater for the growth. It can be difficult to scale up your business seamlessly if you’re using on-premise EDI software. Cloud- based EDI: With cloud-based EDI software, it’s pretty easy to scale up your business if your EDI provider has the right infrastructure. Your service provider takes care of the scalability and you can spend more time on the more important tasks for your business and continue to grow. Here at MessageXchange, we’re constantly monitoring the message volumes going through our service to ensure we have ample room to cater for our customers requirements. If you want to learn more about cloud-based SaaS EDI solutions and understand how we can help your business, request a call back from our EDI experts below.

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EDIRetailersSuppliers

21/07/2021

eInvoicing FAQs

1. What integration options do you offer?

We can integrate with any ERP system but some of the common ones we offer integration with are MYOB AccountRight/New Essentials, TechnologyOne CiAnywhere, Basware, Microsoft Dynamics, Oracle (on premise and cloud), SAP (on premise and cloud), NetSuite and Intuit Quickbooks. We’re continuing to add more cloud software to our eInvoicing products, so keep checking back!

2. What is your pricing?

eInvoicing Connect:

eInvoicing Connect is our simplest product for you to get up and running with eInvoicing quickly, easily and with minimal investment. Here’s how it’s charged:
  • Annual subscription to MessageXchange's eInvoicing Access Point: $50
  • Credits: $50 for 1,000 credits
    • Credits are charged at $50 for 1,000 credits. 1 credit is 10kb, or part thereof, of data.
    • For more information on how billing works, click here.
*Support charges may apply

eInvoicing Gateway:

Our eInvoicing Gateways give you full flexibility on how you implement eInvoicing. You can choose your connection protocol (sFTP, AS2, API or something else) and we can map your software’s native file format (like XML or CSV) to the Peppol UBL. Our pricing depends on your requirements – if we need to do any mapping, and customisations and the volume of eInvoices you exchange. Fill out the request a quote form on our website so we can send you some more accurate pricing.

3. Can I send/receive eInvoices with attachments?

Yes, the Peppol standard supports attachments in eInvoices and our solution supports this too. Attachments can be in formats such as PDF, CSV and xlxs.

4. How long does it take to implement eInvoicing?

The implementation time varies with every solution. For eInvoicing Connect, implementation takes about 1 day in total, which also includes testing. For eInvoicing Gateways, the implementation time varies depending on your requirements and complexities.

5. What is the biggest challenge when it comes to eInvoicing?

On-boarding suppliers can be a challenge. Because eInvoicing is still in its early stages, there can be a lack of awareness of it, as well as reluctance to get onboard. We offer free- and low-cost-solutions to help get suppliers on-boarded. Colladium, a business network for collaboration and trade, allows companies to register for eInvoicing within minutes. It's free to use and is accessible from a web browser for companies to send and receive Peppol-compliant eInvoices. We also offer low-cost eInvoicing integrations to MYOB and TechnologyOne through our eInvoicing Connect product, with plans to this available to other software users in the future.

6. How can I see if my trading partners can send/receive eInvoices?

Anyone can search the Peppol directory to find out if a business can receive eInvoices. We also offer integrated solutions to our customers to easily check if their trading partners are eInvoicing enabled. Have a chat with us to find out more. And if you try to send an eInvoice to someone who can’t receive it, we’ll let you know!

7. I need a purchase order number/bank details/something else to process an invoice in my software. How do I make sure I receive this on eInvoices?

For customers who subscribe to an eInvoicing Gateway, we can configure your own business rules in your Gateway to check that incoming invoices have certain data present, like an order number or bank details. If we find that the eInvoicing doesn’t have these details, we can automatically send a response message (business level response or BLR) back to the sender to let them know that the invoice has been accepted or rejected and notify them of what action they need to take, if any. Have a chat with our team to find out more. Talk to our team about getting started with eInvoicing.

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E-invoicinggovernmentRetailersSuppliers

15/07/2021

eInvoicing for micro and small businesses

Changing processes can be hard for any business, especially small and micro ones. And with more and more businesses embracing eInvoicing, the pressure to join them is growing quickly. Here are a few reasons to get eInvoicing working for you:
  • Your larger business partners are starting to expect it
  • To take advantage of government incentives
  • You’ll get paid faster
  • You’ll be ready for a possible eInvoicing mandate.
The best place to start is to work out if your existing software can handle eInvoicing. Talk to your software provider to see what their eInvoicing options are.

Your best options and how to set them up

The web portal solution

eInvoicing web portals allow quick, easy eInvoicing, you just need web access and a browser. With the simple interface you can create and email eInvoices for free with our partner, Colladium. Benefits
  • no need for additional software
  • sending and receiving is free
  • receive eInvoice responses
  • easy set up.
How to get started with Colladium
  1. join Colladium enable eInvoicing when you sign up
  2. create and send an eInvoice. You’ll be notified if there’s a customer response or status update.
  3. start receiving eInvoices.

The plug and play solution

Some eInvoicing access points have plug and play integrations with major software providers so you can use your software to send and receive eInvoices. MessageXchange offers this for MYOB AccountRight (the web version) and the New Essentials. Benefits
  • integration in minutes
  • Use existing software
  • If your customer provides them, you get alerts when your invoice is being reviewed, paid and more.
Getting started with MYOB eInvoicing through MessageXchange
  1. Connect with your MYOB account and sign up to eInvoicing through MessageXchange
  2. Raise an invoice. You’ll be notified if you get a response back
  3. Login to see your balance, to top up and more
Learn more about our plug and play MYOB eInvoicing solution.

eInvoicing Connect with MessageXchange

We make enabling eInvoicing easy, even with sophisticated software like TechOne Ci Anywhere. Benefits
  • Quick to implement
  • Low cost
  • Uses your existing software
  • If your customer provides them, you get alerts when your invoice is being reviewed, paid and more.
How to get started with eInvoicing connect
  1. Complete this form
  2. Our team will be in touch to complete your setup
  3. Start sending and receiving eInvoices! Too easy…

To sum up...

  • There are lots eInvoicing options for small and micro businesses.
  • eInvoicing doesn’t have to be complicated or impact your existing processes.
Talk to our team about getting started with eInvoicing.

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E-invoicingSuppliers

13/07/2021

Advanced shipping notices: Get more visibility of your orders

So you’re trying to improve visibility of your orders? There is a way – it’s called an advanced shipping notices (ASNs).

What is an ASN?

ASNs are provided by the supplier to let their customer know:
  • what is in the shipment
  • the delivery date and time
  • where the shipment is going
  • the product details
  • how it’s packaged
  • the carrier information.
Suppliers send the ASN to retailers once the shipment has been packed, allowing the retailer to plan to receive the goods.

How does an ASN work?

Retailers send the order through EDI as usual, and the supplier can respond with a purchase order response (POR) or acknowledgement (POA). When the supplier is ready to ship the goods:
  1. The supplier prepares the goods for delivery
  2. The supplier enters all the information on the ASN. This includes what goods are packed into what carton or pallet, if the goods are perishable or have a batch number, these details will go on there too, the supplier will enter the delivery date and more.
  3. The ASN will generate a serial shipping container code (SSCC) and label for each carton or pallet being created. The supplier will then print these labels and attach them to each package.
  4. When the supplier sends the ASN, the retailer receives the advanced shipping notice into their software for planning. It will include all the information the supplier had input in step 2.
  5. When the retailer receives the goods, they can simply scan the SSCC labels, which can be matched against the ASN information they received, to know exactly what’s come in.

The benefits of ASNs

It improves supply chain visibility

ASNs bring you a step closer to supply chain automation. ASNs will give you an understanding of what you’re receiving straight into your business systems. Your warehouse team can use this information to plan for the delivery in advance. They can also allow suppliers to add SSCC labels providing information of individual packing units (pallet, carton, etc). This allows buyers to cross check what has been received with what is in the ASN.

It can reduce warehouse costs

By knowing in advance what you’ll be receiving, your warehouse team can plan ahead. This ensures you can organise staff when you need them saving time and money. Cost savings in goods receiving activity can be as high as 40 to 50% .

It required much less manual data entry

ASNs are received directly into your business systems. No need for manual inputting of data which can produce costly errors.

It improves customer service

Customers want to know when they’ll be receiving their orders. Retailers, especially those using drop shipping, can send some of the delivery data from the ASN to customers. Customers will then be able to keep track of their order. If you’re interested in ASNs and gaining more visibility of your supply chain, get in touch with our team.

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EDIRetailers

29/06/2021

Creating an eInvoicing compliance program to onboard your suppliers

If you’re onboarding a lot of partners, knowing all parties can send and receive eInvoices is very important. But this is where it gets complicated and time consuming, unless you have an eInvoicing compliance program.

What is an eInvoicing compliance program?

It makes sure ensures suppliers learn how eInvoice you complete with the information and format you need. This could be to make sure your two-, three or four-way matching works, or to make sure the data can be input into your software correctly, or even to help with your automated approval processes.

What does a compliance program check for?

Normally they check:
  • each eInvoice features the information you need, like a purchase order number or payment details
  • the invoice only has characters that your software can accept, like no special characters or adherence to character limits
  • all the elements are in the right place.

There are two types of compliance programs…

1. Manual

  1. a supplier sends you an eInvoice
  2. you review it closely to ensure it meets your criteria
  3. you ask your supplier to amend any issues
  4. you manually repeat this via phone/email until they get it right (particularly time consuming if you’re onboarding a lot of suppliers)
As you can see, manual processing takes a lot of time. In fact, you might even need a few temps get you through.

2. Automated

With an automated program like Colladium it’s a lot easier.
  1. You tell us your requirements
  2. we configure the workflow and business rules
  3. you invite your suppliers to register on Colladium
  4. your supplier upload their eInvoice to Colladium, which automatically reviews it and lets suppliers know if there’s any problems
  5. This 100% automated process keeps repeating until everything is perfect. No temps or staff involved. Just maximum productivity and full visibility of each supplier’s progress.

Why an automated program?

  • It’s a lot less hassle, no phoning/emailing to suppliers to fix errors
  • It’s cheaper
  • It’s 100% automated so no extra staff needed
  • Your team’s free to get on with their jobs.

How to work out if you need an automated compliance solution

Ask yourself, do you:
  • have a lot of suppliers to onboard?
  • lack time and resources?
  • have set invoicing rules for suppliers?
  • don’t want valuable staff time wasted running a manual system?
If you answered YES to any of these then the answer is YES! Get in touch with our team today to learn more about eInvoicing compliance programs.

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E-invoicingRetailers

28/06/2021

The benefits of an eInvoicing mandate for software providers

Right now, a lot of software providers are holding back on enabling eInvoicing due to low demand. However, an eInvoicing mandate would completely change this in 3 ways.

1. Demand for eInvoicing enabled software will explode

If there’s a mandate, businesses will be scrambling for eInvoicing solutions. And while existing customers will want to use their current software, businesses without a financial software will want one ASAP.

2. Welcome to your new revenue stream

You could offer eInvoicing as a premium feature for existing customers or as a standalone product for businesses. Lots of options.

3. Your competitive advantage is waiting

Software that allows eInvoicing will be a differentiator. Xero and MYOB are currently offering eInvoicing to their customers.

MessageXchange offers two solutions to help you integrate eInvoicing

eInvoicing Gateway

  1. Choose your protocol and file format and we’ll connect you.
  2. We translate your file into the Peppol eInvoice file format.
  3. When you or a customer sends or receives an eInvoice, we’ll facilitate it through the Peppol network.
  4. We can help you provide additional services for your customers, including:
    • Reporting To allow your customers to get more insights from the eInvoices they receive or even to track the number of eInvoices exchanged.
    • Business process management To allow you customers to add additional checks on eInvoices they receive like dates being in the future or having a PO number on the eInvoice and build escalation processes around them.
    • And more.
  5. There are minimal changes needed on your side.

eInvoicing Connect

Our eInvoicing Connect product makes it easy for your customers to get onboard to eInvoicing. We connect to your cloud-based software so your customers can subscribe to a low cost solution. Contact us to find out more. Get in touch with our team to learn more about how eInvoicing can improve your business.

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E-invoicingRetailers

11/06/2021

Five reasons you should start issuing eInvoices to your government customers

The Australian economy is starting to repair itself after the economic challenges faced from the pandemic. Even before the pandemic hit, the Commonwealth government identified eInvoicing as a key driver to improve the economy and in the latest budget, committed $15.3m to accelerate the adoption of eInvoicing. All federal government agencies will need to have the ability to receive eInvoices by July 1, 2022. State and local government agencies, as well as the business community are also encouraged to follow suit in adopting eInvoicing.While we can see notable benefits for the government, the benefits of eInvoicing for suppliers to government shouldn’t be overlooked.

Here are five reasons you should start issuing eInvoices to your government customers:

Save money

Peppol eInvoicing is completely paperless and suppliers who adopt eInvoicing can reduce processing costs by over one third. The ATO estimates the cost to process a PDF invoice to be $27 and the cost of processing an eInvoice to be less than $10. eInvoicing provides increased accuracy, so suppliers will save costs from reduced errors and requests for re-issues and customer service calls. Your employees can use this time on other important tasks.

Get paid faster

The Commonwealth government has announced a five day payment policy for suppliers who issue peppol eInvoices and have contracts valued under $1m. Government agencies will pay their suppliers within five days or pay interests on late payments.

Fewer Rejected Invoices

An eInvoice is transmitted electronically from the supplier’s software to the buyer’s software, eliminating manual processes and a lot of errors. As a result of the reduced errors, the risk of invoices getting rejected is lowered.

Improve productivity

eInvoicing is almost instant, so suppliers can be confident their customers will receive eInvoices straight away. Suppliers can be kept up-to-date on the status of the invoices through the eInvoice response message to see if their customer has received the eInvoice, whether it’s been approved and submitted for payment, reducing the need for follow up calls and emails. eInvoicing also reduces the number of disputes lodged as a result of its increased accuracy.

Eco- friendly

eInvoicing is environmentally friendly as there is practically no use of paper and energy used in production and transportation of paper invoices is reduced. You also do not have to worry about the physical space used to store the paper invoices or worry about losing them! If you’re a government supplier and are interested in learning more about eInvoicing and it’s benefits for you, request a call from our eInvoicing experts below.

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E-invoicinggovernment

24/05/2021

Reason for State Government agencies to implement eInvoicing

eInvoicing is growing globally with governments all around the world recognizing its benefits and financial incentives. The rising popularity of eInvoicing can be seen in countries like UK, India, Singapore and US. The National Informatics Center reports that in India, more than 49 million eInvoices were exchanged in October 2020 and in the USA, the eInvoicing market is expected to grow by US$ 15.49 billion between 2021 and 2025. Governments are implementing electronic invoicing as a way to digitise trade activities. Australia also boosted electronic invoicing by announcing mandatory adoption for all federal agencies by July 2022. As a part of the digital business plan, the Commonwealth government is promoting digital transformation to create new opportunities and drive productivity on a national level. The 2021 Federal budget commits $15.3m to accelerate adoption of Peppol eInvoicing in Australia. Many state agencies still rely on traditional invoicing processes, which result in barriers to business activities, errors and inefficiency. But with the growing movement around eInvoicing in Australia, state government agencies should start to prepare now for eInvoicing, rather than wait until it’s mandated.

Why should state governments consider adopting Peppol eInvoicing?

Piggy back off the work the Federal Government is doing

The Federal government has mandated adoption of eInvoicing among its agencies by the 1st of July 2022. Piggy back off the hard work they’re doing to get their suppliers on board while eInvoicing is hot. Once the suppliers to federal government get on board, you can capitalise by onboarding those same suppliers to eInvoicing. Invoicing software providers are also getting on board now, getting ready for their supplier to issue invoices to Government agencies. The eInvoicing conversations are happening now, so now is the time to strike.

Save time and costs when processing invoices- helping on the road to post-Covid recovery

Processing paper-based invoices has some disadvantages- its costs more, needs more infrastructure and there are high chances of errors. A paper based or a PDF invoice can cost up to $30 because of the amount of time used to manually process them whereas processing an eInvoice costs less than $10. State governments can save costs immediately by adopting eInvoicing. It can significantly reduce manual processes and help to reduce costs.

Increase security

Paper based or PDF invoices bears the risk of being compromised because they’re either handled manually or is sent via email. An eInvoice is electronically sent from the supplier to the buyer which reduces this risk. Additionally, cyber-attacks are increasing and risks will only grow in the near future. eInvoicing is an effective way to secure your agency’s financial information and also reduce the risk of security breaches. Yes, it’s still digital, but there are strict measures in place, like encryption in transit and at rest, and ATO-certified processes that service providers need to meet. eInvoicing enhances security and reduces the risk of duplicate and fraudulent invoices which costs the state governments millions of dollars every year.

Streamline internal processes

Administrative processes within agencies take significant amount of employee time and effort. eInvoicing helps in automating these processes which results in improved administrative efficiency and cost savings for the government. It also ensures that suppliers get paid faster and makes the process of invoice management transparent. eInvoicing across all levels of government can help agencies to work more efficiently, save costs and maintain service to drive economic growth. The Australian Taxation Office (ATO) has already mandated eInvoicing for all federal agencies. Now is the right time for state government agencies to transition to eInvoicing rather than scrambling to adopt it when the requirement is extended. If you’re interested in learning more about eInvoicing, request a call from our eInvoicing experts below.

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E-invoicinggovernment

20/05/2021

Benefits of an eInvoicing mandate for businesses

The possibility of an eInvoicing mandate for Australian businesses is generating a lot of talk. Right now, the government is seeking feedback on the best way to do this. While mandates can be daunting, this one offers businesses significant benefits.

Direct benefits

  • faster payment
  • automated invoicing processes
  • reduced costs and paper use
  • fewer errors
  • improved security.
Check out our Benefits of eInvoicing for businesses infographic for more.

Businesses will get paid faster

At any given point it’s estimated that unpaid invoices for Australian businesses total $26 billion. According to sources, eInvoicing will reducing payment times and:
  • improve on-time payment by 15%+
  • reduce processing time by up to 65%.

$28b saved over 10 years

Australia exchanges 1.2 billion invoices p.a. eInvoice processing is around 70% cheaper than traditional invoice processing, saving the economy an estimated $28 billion over 10 years.

Business has a reason to get onboard

A mandate will hasten the crucial digitisation of business. More eInvoicing means more businesses on the network making it work better for users, delivering significant benefits for everyone.

The broader digitisation of business and trade

We can all agree digitisation is the future. eInvoicing simplifies trade for many businesses by reducing processes and international trade barriers while improving systems and providing more growth opportunities.

More software will allow eInvoicing

An eInvoicing mandate for business will drive software providers to integrate eInvoicing into their products.

What we’ve seen from other mandates

In Australia Single Touch Payroll (STP) was mandated. It forced employers to disclose payroll and tax information to the ATO after every payday. Without it, businesses would still be using an error prone, paper-based and manual reporting system. Employees would also need a PAYG summary when they do their tax returns.

So, what’s the takeaway of a possible eInvoicing mandate?

An eInvoicing mandate would kick off great things for Australian businesses as they streamline their legacy processes and reduce costs. But adoption is key and an eInvoicing mandate will ensure this. Get in touch with our team to learn more about how eInvoicing can improve your business.

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E-invoicingRetailers

18/05/2021

Three tips to convince senior leadership you need EDI now

Convincing senior management is key to getting a project off the ground. After all, they’re usually the business sponsor. If you’ve identified that EDI is going to benefit your business, here are some tips to convince your senior managers that you need EDI.

Put together a business case

The key thing is to highlight the cost savings of EDI – to show them the impact it’ll have to the bottom line. Here are a few calculations you can use:Orders Calculate the cost of sending a purchase order to your supplier.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

(time it takes to put together email or postage x orders sent x hourly rate)

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+

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printing related costs

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+

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postage costs

The cost of suppliers processing the orders incorrectly.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

number of orders incorrectly processed

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X

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time it takes to rectify the incorrect entries

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X

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hourly rate

Invoices Costs of processing an invoice for payment.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

time it takes to enter invoices into software

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X

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number of invoices

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X

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hourly rate

Costs of fixing incorrect invoice payments.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

Time it takes to fix errors in invoices

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

number of invoice payment errors

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X

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

hourly rate

Warehouse Costs of updating incorrect data[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

Time it takes to update inventory in system

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X

[vc_column_inner width="1/4" css=".vc_custom_1584660670420{padding-right: 0px !important;padding-left: 0px !important;}"]

number of orders with incorrect data

[vc_column_inner width="1/12" css=".vc_custom_1584660587092{padding-right: 10px !important;padding-left: 10px !important;}"]

X

[vc_column_inner width="1/4" css=".vc_custom_1584660687060{padding-right: 0px !important;padding-left: 0px !important;}"]

hourly rate

Once you’ve done that you can use these figures to work out your expected ROI.[vc_column_inner width="1/4" css=".vc_custom_1584660745420{padding-right: 0px !important;}"]

Savings

[vc_column_inner width="1/12" css=".vc_custom_1584660555829{padding-right: 10px !important;padding-left: 10px !important;}"]

÷

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(establishment costs + running costs)

* These calculations are to be used as a guide only

Get buy in from other departments

Having the support of internal departments can be what helps a project over the line. There are a few departments in particular that play a big part in the EDI implementation and ongoing processes.

IT

EDI integrates with your software, so your IT team will help with a lot of the technical aspects. Thinking of ways to make their lives easier will go a long way, so ask them:
  • If they’ll need new hardware or software?
  • If they’ll need additional resources to implement EDI?
  • If your EDI provider adheres to your security policy?

Buying or procurement

The buying or procurement teams will probably be concerned about any impact to their ordering process. EDI uses your existing software and automates the exchange of purchase orders, invoices and other messages. Make sure to show them how EDI will simplify their tasks, such as:
  • Providing them with more information like what can be fulfilled and when the order will arrive.
  • Faster stock fulfilment because suppliers will receive orders almost instantly.

Finance

When convincing your finance team, focus on promoting the benefits of EDI. It reduces the amount of manual inputting required and can automate a lot of their processes, leading to:
  • fewer errors: less time and costs to fix mistakes
  • reduced costs: no need to printing and archive paper invoices.
  • more time, allowing staff to work on higher value tasks
  • more accurate data for decision making.
All of this, in turn, can lead to significant cost savings.

Develop a solid plan

Having a plan will give management confidence that you’re on the road to success. Here are three things to include:

The implementation plan

The most important thing in your plan is to set deadlines for each deliverable. At the end of the day, management will want to know when it’ll be completed so they can ensure a solid return on investment. It’s also worth outlining the team members involved in each stage of the process. This’ll provide transparency for everyone involved.

Staff training

EDI will require some change (a good change!) in your business so a little training will help everyone come along on this journey and make sure they feel equipped to handle the change. The training should cover new processes, such as:
  • how accounts staff will process payments to suppliers?
  • how buying teams raise purchase orders?
  • how warehouse staff process deliveries?
It’s also worth adding back up plans to your training to cover the unlikely scenario of an outage to your EDI service. This is also useful for management to show how operations will continue.

Onboarding suppliers to EDI

The amount of trading partners you onboard is paramount to a good ROI. Having a plan for onboarding suppliers will improve the success and also provide confidence for your management teams. Check out our 10 steps to successful community onboarding to learn more.

So summing up...

Getting buy in from management can be daunting but there are a few things that can help.
  • Show off potential savings from EDI.
  • Show you have buy-in from other departments.
  • Develop a plan with dates of key deliverables.
  • Keep management up-to-date with progress as you go.
If you want to learn more about how EDI can help your business, get in touch with our team.

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EDIRetailersSuppliers

14/04/2021

EDI: To in-house or outsource?

When it comes implementing EDI, you have two options. You can do it in-house, but you’ll need to set up a dedicated EDI team with right software and infrastructure. Or you can outsource it to an EDI service provider, which is generally a lot easier and more cost effective. The 4 things to consider in making your decision are:
  1. how much does your company know about EDI?
  2. how many trading partners will you be linking to?
  3. do you have enough spare time to do it inhouse?
  4. do you have complex or outdated software?
Now, let’s compare both options to understand what you’ll need and what outcomes to expect.

Implementing EDI in-house

Step 1: Put together an expert internal EDI team

An in-house roll out is a serious undertaking and starts with putting together an expert internal EDI team to plan, implement and maintain your EDI system. This expertise will need to be ongoing to keep it operating effectively.

Step 2. Get all internal departments involved

Talk to all the relevant internal departments – procurement, finance, warehouse, IT etc – to work out how each one will be impacted and what’s needed to setup EDI.

Step 3: Buy the right software, hardware and infrastructure

Expect this to be costly, and don’t forget to factor in the ongoing maintenance bills. And you’ll need the internal expertise to get it 100% right the first time.

Step 4: Establish a secure and seamless connection with all partners

If your company isn’t experienced working with suppliers or VANs (value Added Networks) this lengthy, arduous process starts with establishing individual partner connections followed by an often laborious testing process of exchanging messages with their EDI provider to make sure messages are being correctly sent and received. Pros and cons to in-house implementation[vc_column width="1/2" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Pros

No need to wait for your EDI provider to make changes

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Cons

Significantly higher staff investment

Maintenance is your responsibility

Without your own dedicated EDI team implementation will be lengthy, complex and costly

As you can see, if you’re time poor and lack the crucial internal resources and EDI knowledge, in-housing your EDI implementation is probably not your best option.

Outsourcing EDI

Step 1: Find the right EDI supplier

Getting someone else to do all the heavy lifting of an EDI implementation offers significant benefits. But you need the right provider. Here’s your 4-step check list to do just that:
  1. Do they meet your technical requirements? Eg, what services can they provide – onboarding, mapping, training, etc? Are they flexible enough?
  2. Can they tailor a solution to your needs and objectives?
  3. Do they have experience in industries relevant to yours?
  4. Is their support offering and pricing what you need?

Step 2: Connect to your EDI provider to ensure everything works

This includes testing your files and connection. But don’t stress, as your provider will guide you through.

Step 3: Connecting with partners

Again, your EDI provider will do this for you this so no stress at your end and you’re 100% ready to go! Pros and cons to in-house implementation[vc_column width="1/2" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Pros

No worries about updating EDI technology and systems

Your EDI provider manages all trading partner requirements

You don’t need a dedicated internal team of EDI experts

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Cons

Some providers are offshore with differing time zones

The undeniable conclusion is…

  1. If you don’t have expert EDI knowledge and resources you should outsource EDI implementation. It’s also very practical if you’re changing your ERP or other software.
  2. A good EDI provider knows their way around most software which makes all integrations significantly easier.
  3. If you already use EDI but have outdated systems and high maintenance costs, outsourcing is a good idea.
To learn more about how outsourcing EDI will help your business, get in touch with our team today.

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EDIRetailersSuppliers

23/03/2021

Three reasons to act now for eInvoicing

eInvoicing is growing in popularity around the world but particularly in Australia and New Zealand. Now is the time to get started with eInvoicing. Not just because of the benefits eInvoicing brings, but also because of the financial incentives. Many businesses are also looking to improve their reporting and analytics through the use of eInvoicing. So, here are three reasons to act now for eInvoicing.

Faster payments

We’ve seen organisations promote discounts or faster payments for eInvoices. A prime example is the Australian federal government announcing 5 day payments to suppliers who send eInvoices for contracts less than $1 million. For businesses with poor cash flow, particularly small businesses, this can make a huge difference. And even if you’re not able to secure guaranteed discounts or shorter payment terms, the average eInvoice is processed in 5 days (compared with 23 days for a regular invoice).

Real-time insights

Another reason to jump on eInvoicing is that it makes it really easy to get financial data for more accurate decision making. eInvoicing significantly improves the accuracy of your data because of the automation and reduced manual inputting. With eInvoicing, you can generate reports and analytics in an instant. eInvoicing can capture data such as:
  • the number of invoices sent and received
  • the value of invoices sent and received
  • the number of invoices rejected and accepted.
It allows you to monitor everything from the convenience of one platform. And because it’s digital, you can access your financial data from anywhere with internet.

Efficiencies to your business

The benefits eInvoicing brings to both buyers and sellers is also a reason to act now and implement. These include:
  • Cost savings Studies have found that it costs $30.87 to process a paper invoice, $27.67 a PDF invoice, and only $9.18 to process an eInvoice.
  • Easier invoice processing Removes the need for unnecessary data entry - the invoice just appears in your software.
  • Fewer errors Because much of the data entry is removed.
  • Exchange of invoices directly to and from software To reduce the risk of invoices going astray, reduce the time to receive them and reducing data entry errors.
  • Secure Security measures, like encryption at rest and in transit, are implemented throughout the eInvoicing network so your data remains secure along the way.
If you’re interested in learning more about getting your teams ready for eInvoicing, request a call from our eInvoicing experts below.

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E-invoicinggovernment