Aberdeen Group – Trading community management – the pivotal role of segmentation and recruitment of trading partners. April 2010.What is the problem we are identifying? The lack of adoption of EDI technology by a trading partner community and the problem of having a lack of directive by a large enterprise to encourage its partners to adopt EDI.Lack of integration standard often inhibits the adoption of EDI by the community. It also contributes to the length of time it takes to on-board a partner.
Aberdeen Group – Trading community management – the pivotal role of segmentation and recruitment of trading partners. April 2010.What is the problem we are identifying? The lack of adoption of EDI technology by a trading partner community and the problem of having a lack of directive by a large enterprise to encourage its partners to adopt EDI.Lack of integration standard often inhibits the adoption of EDI by the community. It also contributes to the length of time it takes to on-board a partner.
The effects of a non integrated supply chain.Higher operating costs = through the management of manual processes that require a greater overhead in ITHigher error rates – cause by manual retyping of orders into accounting and ERP systems by supplierFewer orders received… - suppliers that exchange information electronically deliver 25% more of their orders ontime and complete than those that do not.Longer supplier lead times – without automation you are reliant on suppliers manually picking up orders from email or web portals, entering this into their systems and having to wait days for a purchase order response or ASNReduce speed to market and innovation – with a slow supply chain process, new designed and collaboration is less efficient and can result in product delays or the requirement to seek out more efficient suppliers to meet greater demand of the end consumer.Lower customer service – those companies with more suppliers connected electronically have customer service levels 17% percent points higher those who do not.Less competitive – if your competitors have visibility of the flow of product downstream and can react quickly to customer demands they will have a competitive advantage over you in both cost and efficienciesMore expensive on-boarding – without defined on-boading processes, follwing standard communication schemas and protocals, IT departments spend monts not weeks on-boarding trading partners and each project is a one of design and development effort.Limited visibility – not knowing whether your suppliers have received or can meet orders prevents you from providing customers with available to promise delivery dates
The effects of a non integrated supply chain.Higher operating costs = through the management of manual processes that require a greater overhead in ITHigher error rates – cause by manual retyping of orders into accounting and ERP systems by supplierFewer orders received… - suppliers that exchange information electronically deliver 25% more of their orders ontime and complete than those that do not.Longer supplier lead times – without automation you are reliant on suppliers manually picking up orders from email or web portals, entering this into their systems and having to wait days for a purchase order response or ASNReduce speed to market and innovation – with a slow supply chain process, new designed and collaboration is less efficient and can result in product delays or the requirement to seek out more efficient suppliers to meet greater demand of the end consumer.Lower customer service – those companies with more suppliers connected electronically have customer service levels 17% percent points higher those who do not.Less competitive – if your competitors have visibility of the flow of product downstream and can react quickly to customer demands they will have a competitive advantage over you in both cost and efficienciesMore expensive on-boarding – without defined on-boading processes, follwing standard communication schemas and protocals, IT departments spend monts not weeks on-boarding trading partners and each project is a one of design and development effort.Limited visibility – not knowing whether your suppliers have received or can meet orders prevents you from providing customers with available to promise delivery dates
Aberdeen Group – Trading community management – the pivotal role of segmentation and recruitment of trading partners. April 2010.What is the problem we are identifying? The lack of adoption of EDI technology by a trading partner community and the problem of having a lack of directive by a large enterprise to encourage its partners to adopt EDI.Lack of integration standard often inhibits the adoption of EDI by the community. It also contributes to the length of time it takes to on-board a partner.
Hard forceful approach such as SPS Commerce – assumes one size fits all. Costs a supplier $500 to retest interface even if they are already doing EDI and may not be the best solution for that company if they are not doing EDISoft recommendation is done without any background check on the viability of those organization. Often this is done with good intentions by an IT representative. Supplier is still left to make the contact and without being educated on the value of EDI to their core business strategyWeb portal just pass the manual effort and associated problem out to the supplier and should only be considered as a stop gap solution.