15/02/2022

EDI Glossary

EDI has a lot of jargon and it can be hard to understand. We’ve put together some of the key words to help make it easier for you.

Advance Shipping Notice (ASN)

This message tells a buyer when the goods will be shipped, how they’ve been packed and the estimated arrival date. This can also referred to as a Delivery Notice or Despatch Advice.

EDIFACT

This stands for Electronic Data Interchange For Administration, Commerce and Transport. It’s an international EDI standard that was developed by the United Nations. Types of EDIFACT messages include 96A and D01B. They’re commonly used in the retail industry here in Australia.

Translation

The conversion from one file format to another.

ERP system

Also known as an Enterprise Resource Planning system. This software is used by companies to manage much of their business activity – they’re like an accounting package on steroids. Examples of ERP systems include SAP, Oracle, Pronto, JD Edwards and Sage.

Gateway

A Gateway is the central point that enables the exchange of messages between systems (often provided by a value added network, or a VAN). It mediates the differences between your software and those of your trading partners. If you think of a hub and spoke model, the Gateway is the hub, and you and your trading partners are the spokes. Through MessageXchange, Gateways can be configured per customer to have specific business rules, mappings, error handling and more.

GLN

A Global Location Number (GLN) is a unique number that is assigned to locations to enable them to be identified worldwide. These global location numbers can be used to identify any legal, physical and functional locations. They’re issued by the standards body GS1. GLNs are also used in the EDI to identify a business to exchange messages with.

GS1

GS1 is a worldwide not-for-profit that encourages the use of standards in business to create efficiency in supply chains and overall business. GS1 develops and publishes standards for barcodes, product data and EDI. They’re the organisation that issue GLNs and GTINs.

GTIN

This stands for Global Trade Item Number. It’s a unique identifier for each product. If you look at a barcode, they’re often GTINs. Here in Australia, they’re issued starting with a 93 or 94.

iDoc

iDoc stands for intermediate document. It’s a data structure for electronic data interchange between application programs written for the popular SAP business system or between an SAP application and an external program.

Mapping

Mapping refers to translating, or converting, one file format to another. For example, if your software outputs a CSV file and your trading partner requires an EDIFACT file, your EDI VAN would ‘map’ the CSV file to EDIFACT.

Message type

An structured set of data covering the requirements for a specified type of transaction, for example, an invoice or purchase order.

MIG

A MIG, or message implementation guide, details the file structure that your trading partner requires. A MIG is usually written for each message type required by that trading partner. You can see examples of MIGs on our website: home.messagexchange.com/resources/migs/

Network service provider

A company that maintains an EDI network on behalf of businesses, also known as a value added network. They offer its services and capabilities to others for a fee.

SFTP

Secure file transfer protocol. A network protocol that provides file transfer over the web securely using authentication and encryption.

SSCC (serial shipping container code)

An 18-digit number that is used to identify logistics units. It allows whoever it is receiving the goods to track them throughout the journey, and gives them more insight into what’s inside a shipping unit.

SSCC label

The label is linked to the ASN. The label has one or more barcodes on it, which includes the SSCC number. Often in retail, these are scanned when receiving the goods to mark them as received in the retailer’s software and to identify exactly what’s in the package.

Transmission protocol

Transmission protocol refers to how your messages will get from your software to your VAN. Some examples include sFTP or AS2. Choosing your transmission protocol largely depends on the level of security required as well as the need for timely, real-time information.

VAN

VAN is the acronym for Value Added Network; they’re the company that provides an EDI service. VANs enable your EDI capability to be scalable because they sit at the core of your trading network and enable the routing of messages, which reduces the impact of change. At MessageXchange we combine the VAN capability with Gateway capability so message routing can be combined with message mapping, business rules business intelligence reporting, custom error handling, notifications and the top level of security.

Web-based EDI

A method of EDI that allows users to send and receive EDI from an internet browser portal. It does involve manual inputting of information.

XML

The abbreviation for extensible markup language – it is a file format commonly used by software to export and/or import data. If you want to learn more about EDI for your business, request a call back from our EDI experts below.

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EDIRetailersSuppliers

04/11/2021

eInvoicing Glossary

If you’re just getting started, eInvoicing jargon can be hard to understand. So we’ve put together some of the key words to help make it easier for you.

ABN

This stands for Australian business number. It’s a unique number that identifies a business in Australia. It helps identify your business to others when ordering and invoicing. And in the eInvoicing world, it’s a number you can send and/or receive eInvoices from/to.

Access Point

eInvoicing is done through a four-corner model. You can think of it like a phone network, where your network service provider, and the service provider of the person you’re trying to call, are the Access Points. Access Point are the service providers that connect to each other.

API

This stands for application programming interface. It’s a messaging protocol. An API is a way for others to push information to you, or retrieve information from you. And by you, I mean your software.

AS4

This stands for applicability statement 4. It’s a messaging protocol. AS4 can exchange messages in near-real time and supports the ability to send back delivery notifications, so the sender knows their message has been received. It’s considered highly secure and has high availability, meaning it’s always active to be used.

B2G

Stands for business-to-government. it refers to business that’s conducted between a business and government Business level response (BLR) A business level response can be sent from a company to their supplier once they receive an invoice. It can give the supplier an update on the invoice, like whether it’s been accepted, rejected, paid, queried, or something else.

CSV

This stands for comma separated values. It’s a file format. Think of it like very simple Excel spreadsheet. In fact, you can open these files in Excel.

Electronic data interchange (EDI)

Electronic Data Interchange (EDI) refers to the structured transmission of data between organisations electronically. It’s used to transfer documents electronically from one system to another i.e. from one trading partner to another trading partner.

eInvoicing

It’s the exchange of eInvoices in a structured, electronic format. It’s not be confused with sending a PDF invoice. PDFs aren’t machine-readable. eInvoices are sent directly from one software package to another.

ERP system

This stands for enterprise resource planning system. In simple terms, it’s what most businesses use to manage their accounts payable and receivables. Generally, ERP systems are a little more complex than your typical accounting package. Think of SAP, Oracle, Pronto and more.

File format

This refers to the way information in a document is stored and organised. PDF, JPG and PNG are all file formats. When it comes to eInvoicing, file formats are relevant because your software will export and import a certain type of file format. You might also see the acronym UBL used a bit. That’s the file format, or standard, used for eInvoices when they’re sent between Access Points. It’s not an issue if your software doesn’t export and import a UBL file – a well-rounded eInvoicing provider will be able to map your file format to and from the UBL format for you.

Four corner model

eInvoicing happens through a four-corner model, where corners one and four are the supplier and customer, and corners two and three are Access Points. Access Points connect to each other to exchange eInvoices.

Gateway

Our customers will generally have their own ‘gateway’ on the MessageXchange service. All of your business’ requirements are setup in your gateway, like mappings, reports and more. Your software connects to your gateway, and your gateway connects to the outside world. All eInvoices you send or receive will go through your gateway.

GLN

This stands for global location number. They’re a unique number given to a location, usually a business address, to identify it. They’re heavily used in electronic data interchange (or EDI) trade. GLNs are issued by your local GS1 organisation.

Interoperability

The ability of diverse systems and companies to work together.

Mapping

Mapping refers to translating, or converting, one file format to another. For example, if your software outputs a file format that isn’t the Peppol standard, UBL, your eInvoicing service provider may be able to ‘map’ the file so it conforms.

Message level response (MLR)

Whereas a business level response (BLR) is issued once a business receives the invoice and is, or is about to process it, a message level response is often issued before it can even get to the recipient. The Peppol standard has certain requirements, and if these aren’t met, an invoice may be rejected. A message level response lets the sender of an eInvoice know if the message has been rejected because of an error within the message. One example is that the syntax is incorrect.

MessageXchange

MessageXchange is an eInvoicing service provider. Find out more at messagexchange.com

Messaging protocol

In simple terms, a messaging protocol is a way to get files, or messages, from A to B; from software to software. Think of it like transport. If you wanted to get from Sydney to Melbourne, you can fly, drive, take a bus or a train. Each have their pros and cons. Just like each messaging protocol have their benefits. Some examples of messaging protocols are sFTP, API and AS4. The messaging protocol a company chooses to use will largely depend on what their software is capable of using, how much the company would like to invest in it, what level of security they need and the features they need, for example whether they need to exchange messages in near-real time or not.

NZBN

This stands for New Zealand business number. It’s a unique number that identifies a business in New Zealand. And in the eInvoicing world, it’s a number you can send and/or receive eInvoices from/to. An NZBN is in fact the same as a GLN.

Order-to-pay

The combined end-to-end trade process from the buyer’s perspective (order, delivery, invoice and payment).

Peppol

Peppol stands for Pan-European Public Procurement On-Line. It’s a standard of e-procurement, which we use in Australia and New Zealand to exchange eInvoices. When we say ‘standard’, it stipulates how Access Points should connect with each other, the file format invoices should be sent in and more. Having one standard makes it easier for businesses to trade with multiple organisations, because they can connect once and exchange eInvoices with anyone else in the Peppol network.

Purchase order

Document sent by a buyer to a supplier to inform them that they wish to purchase goods, services or works.

Service provider

A service provider that connects to a supplier and buyer directly. The supplier connects to the service provider which enables them to connect to multiple buyers and/or suppliers. Think of it like a phone service provider like Telstra or Optus, but this service provider is for eInvoicing.

sFTP

This stands for SSH (or secure) file transfer protocol. It’s a messaging protocol. You can think of it like a mail box; files are dropped into an sFTP folder (think of a folder on your desktop), often in batches, and they’re picked up by whoever is receiving the files. All of this is usually done automatically by having a process run periodically in the background. As you can probably tell, sFTP transfer is doesn’t support real-time messaging. But, it is one of the cheapest and easiest messaging protocols to use.

SML

This stands for service metadata lookup. Sounds complicated, I know. But think of it like a phone book of sorts. Access Points use the SML when they receive an eInvoice, to look up where it should go. The SML lists ABNs, NZBNs, GLNs that have registered for eInvoicing, as well as the Access Point provider that company uses. Have a look at the diagram on page 3 to see how it fits in.

SMP

This stands for service metadata publisher. Once an Access Point gets the information needed from the SML, it then asks the relevant SMP what documents that company can receive. If the company has registered to receive that type of document, the Access Point will send it on. Have a look at the diagram on page 3 to see how it fits in.

Syntax

Syntax refers to the rules that define the structure of the code of a message. Without going into too much detail, some of you might have seen basic code like text here. This tells the software where the element begins, the value of an element, and where that element ends. For example, on an invoice it might look like Cupcakes. Access Points will expect a message structured in a certain way, that is, using the correct syntax. In the eInvoicing world, if the syntax is incorrect, the Access Point receiving the message should send back a message level response (MLR).

UBL

This stands for universal business language. You probably won’t need to worry too much about this if you’re not in an IT role. It’s a file format. Just like you might use a JPG, PNG or GIF image file format.

XML

This stands for extensible markup language. It’s a file format. It looks like code to us, but holds all the information in a structured, machine-readable format. If you want to learn more about eInvoicing, sign up to our newsletter to get the latest information and useful resources.

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E-invoicinggovernmentRetailersSuppliers

12/08/2021

The reasons for not being left behind in eInvoicing

eInvoicing is taking off. Businesses are realising the benefits and starting to reap the rewards. Here are some reasons to get ready sooner rather than later and not risk getting left behind.

Start seeing the benefits now

If you’re a supplier to a government agency that’s eInvoicing enabled, and have a contract less than $1 million, you have the benefit of getting paid in 5 days. Government suppliers are already enabling eInvoicing to help their cash flow through faster payment. So how much do you stand to save from implementing eInvoicing now? Sources show a paper invoice or PDF invoice costs around $30.87 and $27.67 respectively to process, and an eInvoice costs only $9.18. Say you send or receive 10 eInvoices a week, that’s a weekly saving of $184 to $217.

Be in a position to say yes to eInvoicing customers straight away

If you’re asked to issue eInvoices, you can do so straight away. You won’t need to spend time finding a solution. If you’re a supplier to a government agency, that’s eInvoicing enabled, and have a contract less than $1 million, you also have the benefit of getting paid in 5 days. Government suppliers are already enabling eInvoicing to help their cash flow through faster payment.

Get enabled before the rush

With an eInvoicing mandate set for all federal government agencies, and possibly other groups soon after, a lot of organisations will be looking to sign up. This will inevitably lead to a rush in demand and possible delays in implementation. This will also lead to suppliers getting involved in the rush. Now is a good time to get enabled if you happen to be a supplier to a government agency or a supplier to an agency.

Being prepared for the possible mandate

You might have heard about a potential eInvoicing mandate for businesses in Australia. The mandate is currently being reviewed by business leaders and industry experts. However, it’s likely to happen in some form, so getting in early will help you avoid any delays and reap the benefits sooner.

How do you get started?

eInvoicing doesn’t need to be complicated:
  1. Find out if your existing software is eInvoicing-capable
  2. If not, talk to an eInvoicing service provider like MessageXchange
    • Fill in a form with your business details and work out which products works best for you
    • Get connected to MessageXchange
    • Start exchanging eInvoices
And don’t forget, eInvoicing helps businesses:
  • 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 want to learn more about implementing eInvoicing in your business, get in touch with our team.

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E-invoicinggovernmentRetailersSuppliers

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.

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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

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.

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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

[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.

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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.

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EDIRetailersSuppliers

03/02/2021

Traditional invoicing vs eInvoicing: An infographic

This isn’t sending a PDF and or sending an email, eInvoicing is software to software and 100% automated. By comparing traditional invoicing and eInvoicing we can see just how efficient e-invoicing can be for both buyers and sellers.

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E-invoicingRetailersSuppliers

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.

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EDIRetailersSuppliers