It’s the start of a new year and once again, I set goals for the year. These are different than “resolutions” as I fully intend on meeting them. Some of these goals are the same from year to year: get in better shape, spend more time with my family, work smarter (not necessarily harder), decrease expenses, increase revenue, be the change I want to see in the world, end world hunger, get a super power... and this year I added a new goal to the list. I will walk 1,000 miles in 2011. Instead of approaching this goal rationally, like I’m prone to do for any project, I wanted to apply the ideas in the book Sway: The Irresistible Pull of Irrational Behavior, by Ori and Rom Brafum. If I behave irrationally naturally, as the authors point out, I may as well behave irrationally in a way that helps achieve my objectives.
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?