It’s fairly well documented that EDI and automated B2B processes can save money over manual, paper-based transactions. But just how much money are buyers and suppliers paying per EDI transaction, and are there ways to cut costs?
In every EDI application, knowledge of the business needs and functions is of paramount importance. If you don't understand a "purchase order" or a "load tender" or a "health care claim or encounter" you'll never be able to map the ANSI or EDIFACT EDI data format for these transactions. In my experience, logistics is the toughest because of the many, many unrelated (by ownership) parties who need to be in the loop.
There continues to be confusion around who pays the price for EDI. There are three answers to this based on the definition of the question.
In reviewing the business elements of a company that interfaces with EDI, I am certain the most difficult to understand is the “Supply Chain”. The most common mistake is thinking that “Supply Chain Management” (SCM) is just another name for “Logistics”.
"Both sides would get what they wanted; that has always been our mantra." That sounds like a worthy goal in any relationship. How successful in real-world practice, though, is cultivation of the retailer-supplier pairing?