what kind of changes are you seeing in the EDI world?

Smith: Our world is pretty specific to distribution supply chain, but we are seeing demand across the SMB segment. Suppliers recognize that they need to integrate with key customers or risk being made obsolete due to demands for 3 way match and AP automation. We are also seeing a strong uptick in activity outside the US, which is hardly surprising as most of my career was spent conducting business globally. GCommerce = Global ecommerce. Finally, we are seeing resellers mandate that all suppliers become compliant with requests for EDI integration or risk losing their business.

What kind of transactions are making up the bulk of the activity?

Smith: 75% is the standard 850-855-856-810 document flow, but we are seeing increased activity around 860/865’s etc. A lot of our transactional volume revolves around special/drop ship orders.

How are the types of transactions changing?

Smith: We are seeing a clear demand for more granular information flow. This means change order requests, remittances and 3PL related documents down the road. Since special order/drop ship is a big hairy audacious issue in many of our markets, we see requests for real time queries for 846 type information.

How are you working with your customers to help them?

Smith: Mapping and integration. As a SaaS/managed services provider, our strength is our mapping engine that we have built around LEAN concepts. We can create massive scale around mapping, which has created efficiencies for both small and large companies. Our pull based LEAN flow model that we have built around mapping has worked well for customers on both sides of the trading partner connection. Buyers and suppliers win equally and have seen efficiency gains.

What about integration with existing applications?

Smith: It depends on what you call integration. We work with primarily IMS systems providers who work with the buyers such as wholesalers and warehouse distributors. We have an integrated process, but we do not deploy software locally in the classic sense. We give them a super spec to work from and educate them on the LEAN flow model to create operational efficiencies. Our process allows suppliers to consolidate their code base and mapping libraries significantly, resulting in huge overhead and process savings, especially when new connections are rolled out.

How do you see the current economic conditions affecting your business?

Smith: We have been very, very fortunate. Some of our key verticals are counter cyclical to the main economy, so it has allowed us to enjoy robust sales, especially for new accounts. Second, a lot of existing suppliers and buyers are looking to drive greater efficiencies, so this has also increased demand for EDI/ecom requests.

What would you say to companies looking to change or expand their EDI situation?

Smith: This is about process and not about technology. We lead with domain experience and process. We get everyone to understand and embrace the rules of the road, especially around our LEAN flow model and mapping engine. Once they are on board with the process, we can scale and get efficiencies very, very quickly. Clear evidence of that is the Supply Chain Innovation Award we just received from AMR Research. It is a great time to expand EDI processes and at much lower costs.