Let’s have some fun with math. What EDI translator does your company use? For that matter, what ERP, 3PL, or other service is on your short list? Next, how many trading partners do you have? And finally, what EDI, ERP, and other electronic systems do they use? It doesn’t really matter whether you have the answers to these questions. What you would get even if you use the smallest estimates available is a very large number of permutations. How is it possible then to maintain compatibility and also keep up with the accelerated pace of today’s supply chain?
In many ways, EDI standardized formats have simplified supply chain logistics for retailers, and put them in the driver’s seat in their relationships with suppliers. In short, if suppliers don’t comply, they don’t get the benefit of incentives, and may suffer the consequences of penalties. Suppliers who are often out of compliance will also suffer from a lack of repeat business.
In today’s technologically advanced world, businesses enjoy great benefits from implementing Enterprise Resource Planning (ERP). ERP solutions offer the ability to manage an entity’s various operations such as finances, supply chain and inventory, for example.
Any company involved in supplying products through the retail channel already has two things — communication with their trading partners and a way to manage their finances and inventory. These are typically known by their acronyms, EDI and ERP. But what many of the companies using these systems do not ahve is an integrated connection between them.
Supply Chain Management's biggest contribution to the corporaton's bottom line is to improve the order to cash process. It is so important that order to cash improvement should be the first line in SCM's mission statement.