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Supply Chain Automation Advocate or Foe

2010 is now behind us; many had a good holiday season while others, no so much. Regardless, it’s a new calendar year and time to start working on those 2011 projects. For some of you these projects will include the items that I’ve written on over the last 12 months such as –

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  • Adding a new method of distribution like Ecommerce, Cross dock or VMI, changing existing EDI transactions that are supported.
  • Adding new systems of automation like Logistics, Inventory Availability or Finance related; this means new EDI transactions like the 846, 852, 830 or 753/754 documents
  • Adding more trading partners to your existing supply chain automation

If you have projects for the above, “kudos” to you; for those that don’t, the battle for resources may be facing you for some of these, however, now is the time to shine in front of your peers and management.

In working with many different companies that have an EDI department, there is reluctance to do more than the minimum, or a lack of desire to grow your EDI program. I’ve heard excuses like –

  • If I add more trading partners or EDI transactions, my VAN bill will go up
  • I don’t have the resources to test new transactions with existing partners or add new partners
  • Adding more partners mean more partners to support in production
  • I don’t have the IT resources to add a new transaction
  • I don’t have management support for new initiatives
  • I don’t want the price my suppliers charge me to go up

If some of the above are reasons that are running through your minds, it’s time to step it up. Every area of a company’s processes has some type of return on investment that will more than offset the cost of implementation and support. Start doing your homework, talk with others and investigate how they overcame budget constraints etc. Build your business case to justify the added expense by showing the ROI that can be obtained.

Adding new partners or new transactions will increase your VAN costs, perhaps negotiate a different rate with your provider. Perhaps start exchanging data directly with your larger partners through FTP or AS2.

To support new transactions and testing them with your partners may result is a spike of resource needs, but remember that I shared in several articles in 2010, there are companies that can provide those temporary resources to handle the increased activity at a nominal cost. Having more traffic can add burden to an already stretched staff, however I think that may be a misconception. Certainly there may be a spike of issues that arise with new partners, but once the bugs are worked out, the on-going production support ends up being minimal. Thus the returns are there.

Getting IT resources for mapping to applications can be frustrating. However, showing a quick return can get projects moved up in priority. Don’t forget that not all EDI has to be done in-house. I’ve worked with companies that have the core business processes handled with in-house staff but have outsourced other pieces. For example, maybe PO’s, ASN’s and Invoices are direct through your translator but Logistic documents like Freight Bills, Status Messages, routing requests etc. can be managed by another company.

Are you going to be the “Hero” of your organization and be an advocate for change and push toward for increased efficiencies or are you an “Obstacle” within your own company?

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