07/09/2021

Retailers: Here’s why you should add eInvoicing to your arsenal

eInvoicing has brought about a new way to send invoices electronically. Like EDI, eInvoicing uses a network model, where each business either connects to the network themselves or uses a service provider. Unlike EDI though, eInvoicing uses a true standard file format exchanged between Access Points, or service providers. You might be thinking EDI also uses standard, and you’re somewhat right. There are standards like EDIFACT in use, but the reality is that retailers generally have their own unique business rules for suppliers to adhere to. Having one true standard to exchange brings a lot of benefits. Here’s why you, as a retailer, should consider using eInvoicing:

It’s easily accessible by your suppliers

Many accounting software packages such as Xero and MYOB offer eInvoicing solutions to their customers today. The solutions are largely integrated with their software making it simple for their customers to exchange eInvoices. Xero and MYOB account for 90% of the small business market, which means a majority of your SME customers could be able to issue you eInvoices today!

It’s low cost or even free for many of your suppliers!

Cost is a big constraint for suppliers complying with EDI requirements. The major players in the accounting software space are proving eInvoicing as part of their product or for a low add-on cost. There are also eInvoicing solutions, like Colladium, that allow suppliers to send eInvoices for free. What better way to onboard suppliers than a free web portal!

Your suppliers only need to connect to the network once to connect with many

eInvoicing through the Peppol network uses a standardised file format. Unlike EDI, it means your suppliers only need to connect to the network once, then they can exchange eInvoices with anyone else on the network. This makes compliance for your suppliers so much easier. Plus, if any of your suppliers are already using Peppol eInvoicing, they can start issuing you eInvoices today!

The network is set to grow

Right now, Peppol eInvoicing supports the exchange of electronic invoices, but that’s expected to change. The purchase order (PO) is currently being reviewed to be added as another message type and more are being looked at. Eventually we could see all supply chain messages being added to the Peppol network. Plus, the Australian and New Zealand Governments have offered incentives for their suppliers to issue eInvoices, so as more businesses get onboard, the more of your suppliers will be ready to exchange eInvoices.

Ready to add eInvoicing to your arsenal? Here’s how…

Adding eInvoicing to your arsenal only takes a few steps:
  1. Contact an eInvoicing service provider Here at MessageXchange, we offer both EDI and eInvoicing services. We’ll translate your software’s native file format messages to the Peppol UBL file. All you’ll need to do is a bit of testing.
  2. Connect to the Peppol network No need to worry, we’ll do the work for you.
  3. Go live! Start sending and receiving eInvoices!
If you’re interested in learning more about adding eInvoicing to your electronic messaging, get in touch with our team.

Newsletter

Sign up to get the latest eInvoicing updates

Stay up-to-date with industry news, useful blogs and whitepapers, expert tips and more.

E-invoicingEDIRetailers

06/08/2021

EDI in the retail industry

Major players in the retail industry have taken advantage of the benefits of electronic data interchange (EDI) over the last 30 years. But there are still some companies that use paper-based procurement. This shows EDI still has potential to deliver even more benefits and savings to the industry. EDI in the retail industry allows companies to electronically exchange documents like purchase orders, despatch advices, invoices and other documents with suppliers. It replaces the manual process of sending these documents via email, fax and other ways of communication. Businesses in the retail industry generally issue a high volume of orders and EDI helps to improve operational efficiency and reduce the turnaround time to process purchase orders and invoices. It also has added benefits like providing more visibility and better customer service.

How is EDI used in the retail industry?

EDI is extensively used in the retail industry. This sector uses EDI for procurement, shipping as well as invoicing. In the procurement process, two basic EDI documents are used: purchase order and purchase order response. The buyer sends the purchase order to the supplier and the supplier then sends the purchase order response back to the buyer. This tells the buyer what can be fulfilled. In the second stage, shipping, the main EDI document used is the advance shipping notice. The supplier sends the ASN to the retailer to notify them about the shipment. It tells the buyer things like what’s being sent in each package, when it’ll be sent, by whom and more. In the final stage, the supplier issues an EDI invoice and sends it to the retailer. The retailer’s accounts payable team can generate an EDI remittance advice and send it to the supplier to confirm payment.

Why is EDI important in the retail industry?

Customer demands for good quality products, competitive deals and low prices have grown enormously, but the expectation for fast delivery has increased more than ever. Retailers today struggle to keep up with the high delivery frequency and keep count of stock (SKUs). EDI helps in automating this process. EDI purchase orders enable retailers to specify store destination with quantities of each product in a single document, the supplier, on the other hand, processes these purchase orders, ships products directly to the stores and sends advance shipping notice with details of products and quantities being shipped. It is because of this EDI process that retailers are able to fast track the delivery process, have visibility of SKUs and reduce human errors and turnaround time. There are also benefits when it comes to receiving invoices. For retailers who receive thousands of invoices a month, the time it takes to enter each invoice into their accounting software can really add up. Not to mention it opens the floodgates to mistakes being made. It’s easy to do a quick calculation of what this might cost a business by multiplying the number of invoices by the time it takes to enter each one by staff members’ salary. It all adds up. Some retailers use scanning or optical character recognition (OCR) but this is usually error-prone and can chew up time just fixing the errors. These processing figures can be slashed if a retailer uses EDI to receive invoices directly into their software. It’s like magic. EDI gives a competitive advantage to companies in the fast-moving retail sector. The Good Guys approached us with the aim to get their suppliers trade electronically with them. They saw EDI as a strategy to have an edge over their competitors. Learn more on how MessageXchange helped The Good Guys achieve this objective and get tremendous results here.

Benefits of EDI for retailers, suppliers and distributors

It reduces errors and saves costs

Traditional procurement involves a lot of manual processes. There is a potential for expensive errors with every instance of human intervention. EDI eliminates manual work, automates the process and reduces transaction errors by 30 to 40 percent. Retailers and suppliers can save costs and reduce errors with EDI integration. They can save up to 90 percent of invoicing costs with EDI.

Shorter transaction times

EDI messages can be exchanged in minutes in contrast to the paper-based documents which can take days to be delivered. These reduced cycles lead to faster invoice processing and improved cash flow. Retailers receive EDI invoices directly into their software so they can process them quickly and efficiently. Target, an Australian department store that operates more than 300 stores in the country, wanted to achieve visibility and remain current and transparent in the fast-moving retail industry. Read how MessageXchange helped Target achieve their goal here.

It frees up time for staff to spend on more valuable tasks

EDI in the retail industry helps to automate processes and lets employees focus more on higher value tasks. Instead of spending time data entry, your staff can spend time on more strategic work to help your business grow. EDI helps both retailers and suppliers to streamline their business process and use their resources mindfully.

EDI documents used in the retail industry

[vc_column width="1/4" css=".vc_custom_1618271818355{padding-right: 10px !important;}"]

Message Types

Purchase Order

Purchase Order Response

Invoice

Despatch Advice

Remittance Advice

Product Catalog

Functional Acknowledgement

[vc_column width="1/3" css=".vc_custom_1628228479994{padding-right: 10px !important;padding-left: 10px !important;}"]

Description

Sent from buyer to supplier to order goods or services

Sent from the supplier to the buyer to let them know how much of the order can be fulfilled, and any discrepancies from the original order

Sent from the buyer to the supplier for payment of the goods or services

Sent from the supplier to the buyer to let them know when and how the goods will be shipped

Sent from the buyer to the supplier to confirm payment

Sent from the supplier to the buyer with up-to-date product and pricing information

An automated response sent from a receiver of an EDI message to confirm receipt of the message

[vc_column width="1/6" css=".vc_custom_1628228971532{padding-right: 10px !important;padding-left: 10px !important;}"]

ANSI X12

850

855

810

856

820

832

997

[vc_column width="1/6" css=".vc_custom_1628229725830{padding-right: 10px !important;padding-left: 10px !important;}"]

EDIFACT

ORDERS

ORDRSP

INVOIC

DESADV

REMADV

PRICAT

CONTRL

If you want to learn more about how EDI works in the retail industry, have a look at our case studies or request a call back from our EDI experts below.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailersSuppliers

03/08/2021

Capture nonfulfillment earlier in the piece: Enter purchase order responses (PORs)

Businesses often don’t find out if an order can be fulfilled until part of that order arrives, or it never turns up. This is where adding a purchase order response (POR) to your EDI messages can help. A purchase order response is sent by the supplier to let the buyer know if their order can be fulfilled. A POR will often include:
  • the related purchase order number
  • an accept or reject indication
  • the number of products the supplier can fulfill
  • the price per unit
  • scheduled despatch date
  • backorder dates, if applicable.

Benefits of purchase order acknowledgement

Capture nonfulfillment earlier in the piece

The POR makes it clear what can be fulfilled. You won’t have to wait to see what turns up – the supplier should let you know much earlier on. It’s also a good way to keep your own customers in the loop about when their order will be ready.

Say goodbye to pricing surprises

No one likes surprises when it comes to getting an invoice. PORs help keep everyone on the same page because the supplier can let you know how much they’ll be supplying the goods for and if they’ll charge you any shipping costs. By getting this information before the shipment is sent and the invoice is issued, you can settle disputes earlier and avoid delays.

Streamline two- or three-way matching

Matching invoices against an order can be challenging if your suppliers don’t fulfill the orders in full. Adding PORs to your EDI messages makes sure everything up-to-date in your systems, so matching is a breeze, saving your team time and effort.

So to conclude…

Adding a purchase order response to your EDI messages can really improve visibility of your supply chain – it gives you clarity on what suppliers can fulfill. But why is this important?
  • You know what you’re going to receive earlier on in the piece
  • You have more transparency on what they’ll ask you to pay before getting the final invoice
  • You’ll reduce the amount of manual data entry, saving time and reducing errors.
If you’re interested in PORs and capturing non-fulfillment earlier, get in touch with our team.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailers

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.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailersSuppliers

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.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailers

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)

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

+

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

printing related costs

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

+

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

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

[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;}"]

time it takes to rectify the incorrect entries

[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

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

[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 invoices

[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

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

[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

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

[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 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;}"]

÷

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

(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.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

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

[vc_column width="1/2" css=".vc_custom_1618271827363{padding-left: 10px !important;}"]

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

[vc_column width="1/2" css=".vc_custom_1618271827363{padding-left: 10px !important;}"]

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.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailersSuppliers

23/02/2021

Data driven decisions with EDI

The key to effective decision-making is having relevant and accurate data at your fingertips. This is where electronic data interchange (EDI) can help. EDI reduces errors, which significantly improves data accuracy. EDI can capture data such as:
  • the number of purchase orders and invoices exchanged
  • the number of invoices waiting to be issued
  • how long the delivery of goods take from the time they’re ordered
  • the orders, or the percentage of them, that are fulfilled in a certain period
  • and more.
Let’s have a look at how best to use this data.

See your top suppliers by volume and value

Seeing who your top suppliers are, either by the volume or orders you raise, or the value of them, is useful for any retailer to know. It’ll let you know what your key relationships are, because after all, the old 80/20 rule applies here – around 80% of your stock is likely to come from 20% of your suppliers. EDI gives you easy access to this information.

Improve stock management

Whether you’re a retailer or a supplier, having data on buying patterns can help optimise your stock management. EDI captures what’s being ordered, how much of it and when, which can help you identify trends. This will help you better predict demand, and help with just-in-time ordering to reduce the risk of overstocking or understocking.

Monitor suppliers’ delivery performance

With a purchase order and an advanced shipping notice, it’s easy to capture data on how long goods are taken to despatch after being ordered, how long they’re taking to arrive after being despatched, and how accurate the delivery time on the advanced shipping notice is. With this data, retailers can add KPIs around delivery and use the information from the EDI messaged to monitor it. You can use this to identify the suppliers that aren’t meeting requirements and might need some attention.

Identify your slow-paying customers

It’s important for retailers to maintain good relationships with suppliers. For them, a big issue can be slow-paying customers. Cash flow is key for any business, particularly for suppliers where margins are generally thin. That’s why it’s important for retailers to monitor their outstanding invoices. EDI data on the invoice captures due dates and a remittance advice tracks when it’s been paid. It’s easy to create report to see, at a glance, which invoices are outstanding. This helps retailers prioritise payments and ensure you don’t miss any payments.

Failed orders per supplier

Keeping track of failed messages, but particularly orders, is key to maintaining a well-oiled supply chain. After all, if an order doesn’t reach a supplier, you can be sure the stock won’t reach you or your customer. By monitoring failed orders, you can identify the orders that need troubleshooting. It could be a one-off issue, but if not, it also allows you to recognise consistently troublesome suppliers and reach out to them. If you’re interested in learning more about how EDI helps with decision making, request a call from our EDI team below.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailersSuppliers

12/02/2021

Creating an EDI compliance program for onboarding suppliers

When you implement EDI for the first time, comprehensive testing is undertaken. This testing is on the mapping from your software’s format to that of the standard you’re using, like EDIFACT D01B or D96A, is correct and working as expected. But what about when you onboard suppliers? Compliance testing with suppliers is often overlooked, but if you’re onboarding large volumes of suppliers, it’s something that can bring huge payoffs in the end. It makes sure your suppliers can correctly process the EDI messages you send them, and checks that the messages they send back to you match what you’re expecting. Imagine onboarding suppliers, sending out hundreds of orders in those first weeks and having them fail. Not only will your stock not arrive, but your team will have to spend time troubleshooting the issues and getting the orders to your suppliers again. This is all when your stores are expecting stock to arrive.

What is an EDI compliance program?

In short, the process checks the EDI messages your supplier will send you. The checks are done early on in the process, so you don’t run into issues like the one above, where you’re scrambling to get things corrected. The compliance program can be administered manually, or you can choose an automated program like we offer on Colladium.

What does an EDI compliance program check for?

You can design the compliance program to be as simple or as complex as you need. What you choose will depend on your business. It can check things like:
  • File format Like making sure they’re sending an EDIFACT D01B message rather than a CSV file.
  • Syntax Like making sure the elements are in the correct spots.
  • Business rules within a message Like making sure the invoice number doesn’t have any special characters.
  • Business rules within the procurement conversation Like making sure the invoice date is after the ASN date. Or making sure your supplier can send the correct messages to ship goods in one despatch as well as multiple.
  • and more.

Why use an EDI compliance program?

Basically, it helps you find any issues before you move to EDI in production with your suppliers. Just look at the example above – the last thing you want is to have sent out a whole bunch of orders, which your stores are waiting for, only to find out they’ve failed somewhere along the way. Without it:
  • stock could be delayed arriving
  • stores will expect stock that won’t arrive
  • your team will need to scramble to troubleshoot the issues
  • customers might not receive the stock they ordered when they expected.

What do I need to do to prepare for the EDI compliance program?

First, decide and document the workflow you want to check

For example:
  1. Send your supplier a test purchase order.
  2. Ask your supplier to confirm they can process it successfully.
  3. Ask your supplier to send you a test purchase order response, fully accepting the order you sent them in step 1.
  4. Confirm the message you received is as expected. If not, start again from step 3.
  5. Ask your supplier to send you a test purchase order response, rejecting the order you sent them in step 1.
  6. Confirm the message you received is as expected. If not, start again from step 5.
  7. Ask your supplier to send you an advanced shipping notice for the order response they send you in step 3.
  8. Confirm the message you received is as expected. If not, start again from step 7.
  9. Ask your supplier to send you the SSCC labels they generated from the ASN they sent you in step 7.
  10. Scan the labels at your end and ensure they meet your requirements. If not, start again from step 9.
  11. Ask your supplier to send you an invoice relating to the ASN they sent you in step 9.
  12. Confirm the message you received is as expected. If not, start again from step 11.

Then decide and document business rules you want to check

This could be:
  • The date formats you require
  • Dates must be in the future
  • Whether prices on the invoice and order must match
  • Whether quantities on the invoice must match or total those on the order
  • A vendor number is present on all messages
  • Invoices must be received within seven days of shipment
  • Order response must be issued within a day of the order
  • One invoice is issued per ASN.

What are my options for an EDI compliance program?

As we’ve mentioned above, you can choose to do this manually or choose an automated program.

A manual EDI compliance program

You could probably start using this today. You can generate a test order and email it to your supplier, they’ll ingest it into their software, generate the next message and send it back to you. The really time-consuming part comes in when you need to check the file manually to make sure it meets all the criteria you documented in the workflow section above. Let your supplier know the issues you find and what you’re expecting instead. Continue this for each step. The obvious downside to this method is the amount of manual labour involved. If you’re onboarding even a couple of suppliers a week, this could easily take up days of work. Not to mention, you may be dictated by when you and your supplier are both ready to test.

An automated EDI compliance program

An automated EDI compliance program requires far less manual work for you. If you chose to use Colladium, for example, we’d spend a bit of time configuring your requirements, like workflow and business rules. Then all you need to do is invite your suppliers. They’ll be prompted to download an order (this will be generated automatically), then confirm that it was successfully processed, all from within the portal. When they upload messages, like an order response, the portal validates everything in the message against your business requirements. It displays all of the errors on the screen for your customer to see. The good thing is, that they can continue to upload their files as many times as they like, and have it validated there and then. There’s no waiting for your staff. And you have full visibility of everything – where your supplier is at in the workflow, what’s been successful and more.

What are the benefits of an automated EDI compliance program?

  • there’s no need to be on the phone or sending emails to suppliers constantly to fix errors
  • it’ll cost you less
  • there’s no need for additional labour
  • your team can spend more time on other tasks.
If you’re interested in learning more about EDI compliance programs, request a call below.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailers

27/01/2021

EDI: Debunking the myths

Electronic data interchange (EDI) automates procurement, eliminating a lot of manual processes. But there are some myths that make some businesses think twice about implementing it. Here are some of those myths busted.

EDI is costly

There’s an assumption that EDI is too costly and not worth the investment. This myth is often based on outdated technologies. Technology has advanced ignorantly in the last couple of decades though, and EDI service providers can provide a range of cost-effective options for businesses. For businesses looking to comply with retailer requirements, a good option is to use a simple EDI web portal, where you send and receive EDI messages. This can cost the same as a monthly phone plan and many see EDI as a small price to pay to maintain their retailers’ business. EDI integration can work out to be extremely cost-effective too. EDI integration involves the exchange of business information directly between business software. This method can be more expensive than a web portal, but the benefits can definitely justify the investment. EDI integration automates manual processes and sends documents electronically, which creates significant cost savings. Some sources calculate the cost of processing an order manually to be around $38 compared to just $1.35 using EDI.

EDI is complicated to implement

There’s a perception that EDI is complicated to implement, with some believing EDI is difficult to understand and needs expert skills. EDI messages are just another coding language, sometimes even XML or CSV. Once you understand how they’re constructed and what each element means, it’s as easy as pie. There are now even EDI standards, which have simplified this even further. In the end, EDI will make your processes more streamlined and improve your business communications. Plus, if you partner with an experienced EDI provider, they can often hold your hand through the process.

EDI creates errors

Some believe EDI can cause bugs and errors. There are a few reasons why this is wrong. These days there are a range of tests and approvals before a company goes live with EDI. For example, here at MessageXchange, we perform testing between you and us, the EDI provider, as well as end-to-end testing with your trading partners. It’s only once these tests are completed and passed that EDI is moved to production.

EDI slows down business processes

Many worry that moving to EDI will be disruptive to their businesses. It is believed that EDI interferes with business processes which slows down workflows. Overall, EDI can be quick to implement, depending on your goals and solution. If you stage your EDI implementation correctly, and gear your implementation to achieve your biggest objective first, it’s can really improve speed and productivity. This gives staff more time to work on other tasks. It also reduces the risk of errors and therefore the time needed to correct them. Studies show paper orders can take upwards of 10 days to fulfill, while EDI orders can take less than a day.

EDI is used less and less

You might’ve seen comments about EDI’s declining use and its possible replacement by other technology like APIs. APIs are actually used by most current EDI service providers. They shouldn’t be thought of as an opponent to EDI, but as just another connection protocol for EDI, like sFTP or AS2. After all, APIs don’t follow a generic standard, whereas EDI does. That means it’s faster and easier to onboard new trading partners. EDI use is in fact growing around the world. Over 60% of businesses across the United States already use EDI in their daily operations. If you want to learn more about EDI and how it can help your business, request a call back from one of our team.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDIRetailersSuppliers

21/01/2021

What’s the difference between EDI and eInvoicing?

Some of the main issues businesses face include too many manual processes, high supply chain costs and errors in supply chain documents. Electronic data interchange (EDI) has helped a lot of businesses overcome these issues through process automation. But now a new technology called eInvoicing is gaining popularity. We’ve compare the two and show when each should be used.

Comparing eInvoicing and EDI

[vc_column_inner width="1/3"][vc_column_inner width="1/3" css=".vc_custom_1565315132956{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #1b75bb !important;}"]

eInvoicing

[vc_column_inner width="1/3" css=".vc_custom_1611113508563{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #00b7f1 !important;}"]

Electronic Data Interchange

[vc_column_inner width="1/3" css=".vc_custom_1611114167707{padding-top: 0px !important;background-color: #eeeeee !important;}"]

Message Types

[vc_column_inner width="1/3" css=".vc_custom_1610680779980{padding-top: 0px !important;padding-right: 0px !important;padding-left: 0px !important;background-color: #eeeeee !important;}"]
  • Invoices
[vc_column_inner width="1/3" css=".vc_custom_1611113810824{padding-top: 0px !important;padding-right: 15px !important;padding-bottom: 0px !important;padding-left: 0px !important;background-color: #eeeeee !important;}"]
  • Invoices
  • Purchase Order (PO)
  • Purchases Order Response (PORs)
  • Purchase Order Acknowledgement (POAs)
  • Advance Shipping Notice (ASNs)
  • And more
[vc_column_inner width="1/3" css=".vc_custom_1611114308583{padding-top: 0px !important;background-color: #eeeeee !important;}"]

Governance

[vc_column_inner width="1/3" css=".vc_custom_1610681251599{padding-top: 0px !important;padding-right: 15px !important;padding-left: 15px !important;background-color: #eeeeee !important;}"]Four corner model using Access Points It uses a standardised framework, Peppol[vc_column_inner width="1/3" css=".vc_custom_1611113989632{padding-top: 0px !important;padding-right: 20px !important;padding-bottom: 0px !important;padding-left: 15px !important;background-color: #eeeeee !important;}"]Value Added Network (VAN)
  • Separate network providers that send EDI messages in the correct format to recipient.
Multiple standards
  • Common standards include EDIFACT, XML ANSI X12, EANCOM
[vc_column_inner width="1/3" css=".vc_custom_1611114318654{padding-top: 0px !important;background-color: #eeeeee !important;}"]

Security

[vc_column_inner width="1/3" css=".vc_custom_1610681542175{padding-top: 0px !important;padding-right: 0px !important;padding-left: 0px !important;background-color: #eeeeee !important;}"]
  • This is set by the Peppol authority
  • Access Points must comply with security requirements or can have access revoked.
[vc_column_inner width="1/3" css=".vc_custom_1611113789320{padding-top: 0px !important;padding-right: 15px !important;padding-bottom: 0px !important;padding-left: 0px !important;background-color: #eeeeee !important;}"]
  • Security is set according to EDI standard used and each company and VAN’s security requirements.
[vc_column_inner width="1/3" css=".vc_custom_1611114337209{padding-top: 0px !important;background-color: #eeeeee !important;}"]

Connection protocols/message file format

[vc_column_inner width="1/3" css=".vc_custom_1610681542175{padding-top: 0px !important;padding-right: 0px !important;padding-left: 0px !important;background-color: #eeeeee !important;}"]
  • Any connection protocol and file format can be used between you and your Access Point
  • Universal Business Language (UBL) and AS4 is used between Access Points
[vc_column_inner width="1/3" css=".vc_custom_1611113798714{padding-top: 0px !important;padding-right: 15px !important;padding-bottom: 0px !important;padding-left: 0px !important;background-color: #eeeeee !important;}"]
  • Any connection protocol and file format – often determined by one party

Which is better for you

EDI

This technology has been around for a long time. As a result, it has become the norm in a few different industries. Some of the main industries include retail, groceries and logistics. Businesses that operate in an industry that EDI is commonly used, should consider using EDI. EDI can send more message types compared to eInvoicing. For businesses looking to take their digital technology further and automate their entire supply chain, EDI could also be the choice for you.

eInvoicing

eInvoicing is great for businesses looking for a quick way to automate their invoicing processes. If you send and receive a lot of invoices, and aren’t really concerned about other data in the procurement chain, eInvoicing could be the right choice for you. eInvoicing is also useful for businesses that work with government agencies. As more government agencies move to eInvoicing it’s likely they’ll onboard their suppliers too. You can also benefit from 5 day payments for contracts less than $1 million from government agencies that are eInvoicing enabled.Want to learn more about these two technologies? Request a call with one of our eInvoicing or EDI experts today.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

E-invoicingEDI

10/01/2021

Four signs you’re outgrowing your EDI solution

Electronic data interchange (EDI) is used in several industries to automate ordering . There are a couple of types of EDI to choose from: EDI webforms (where you do everything from a portal) and integrated EDI (which uses your existing software). It’s not uncommon for businesses to start by using a web portal because all you need is an internet connection (no additional software) and it’s usually pretty affordable. However, as you more orders start to flow in, the more labour it involves. So, what are the signs that it’s time to make a change?

1. More customers are moving to EDI

You’ll start to notice more requests to use EDI when more customers make the move. This can be a sign that it’s time to move to an integrated solution. Manual processing of orders is likely to increase so switching to integrated EDI solution will reduce your team’s manual handling, giving them more time to work on other tasks.

2. You’re getting an increased number of orders

If you’re growing your customer base, introducing new products or just seeing more sales (good on you!), the number of orders you receive is going to increase. As your orders increase though, so will your manual processes. The increased workload can get overwhelming for your team. So how can you tell when your order numbers are getting too high for your current EDI solution? A common sign is having to hire casual staff to help process the orders you’re receiving. This obviously increases costs and resources, without making processes more efficient. Integrated EDI can help to automate manual inputting and reduce the need for more staff as your orders increase. As a rough guide, if you are processing 30 orders a week, you’re likely to benefit more from an integrated EDI solution.

3. Your customers are asking you to send them more information

You can start with very few messages when trading with customers using EDI. It could be as simple as just receiving a purchase order and sending back an invoice. If you’re using a web portal, this might not seem like much work at all. But what if your customers start asking for additional message types? Retailers introduce more message types for a number of reasons – to get more visibility of what can be fulfilled, so get a more accurate picture of when and how stock will arrive, and to have more accurate, real-time information at their fingertips. As they add more EDI documents, like purchase order responses or advanced shipping notices, your workload will increase. This can be a good time to switch to integrated EDI. It removes double-handing and allows the information to be sent automatically.

4. You’re struggling with too much manual processing

Are you struggling to cope with the amount of manual processing required when you receive an order? It might be time to switch to an integrated EDI solution. Integrated EDI significantly reduces the amount of work that your team needs to do. You won’t need to double-handle things – you enter it once and it’s automatically sent to your customer.

How to switch

Before switching to an integrated EDI solution, there are a few things you can do in preparation.

Check your software

You’ll need to find out what your software is capable of. This includes things like:
  • The documents your software supports. For example, if your customer requires an advanced shipping notice and SSCC labels, does your software support that?
  • The file formats it can import and export, like XML or CSV.
  • The connection protocols it’s able to use, like sFTP or API.

Our process

We try to make our process as simple as possible for businesses to switch to integrated EDI:[vc_column width="1/4"]

Let us know what you want to achieve and we'll suggest the best solution

[vc_column width="1/4"]

Start our partnership

[vc_column width="1/4"]

Connect to MessageXchange and test connectivity and messaging

[vc_column width="1/4"]

Go live!

If you’re interested in implementing integrated EDI for your business, request a call back below.

Request a call

Chat with one of our experts

Just fill out your details below and we'll be in touch within one business day.

EDISuppliers