Every new client who turns to EDI (Electronic Data Interchange), does that having a specific reason in mind. They are already set on improving one aspect of their business and by implementing EDI they get to benefit from the entire package of benefits. For example, some of them choose to implement EDI in order to improve their accuracy or to reduce overhead costs.
If you are on the fence and are not certain that EDI can improve your business, we suggest taking the time to analyze the list below. It describes a few things that typically occur, which need to be interpreted as a sign sooner, rather than later.
Your stock levels always seem to be off
Since no two months are alike when it comes to your company’s sales, it can be difficult and downright a hassle to accurately forecast for the following months, since fluctuations can really throw you off track. It is cumbersome work and it does not even guarantee extremely successful outcomes. What is more, you also need to key in the financial aspect and budget everything accordingly.
The most efficient path to accurate forecasting is when you actually have access to real-time data into you order system. What’s more, the data is there at all times, centralized safely, and does not require any effort from your part.
There is restlessness among your trading partners
Companies often come to a point where they need to assess their own internal procedures and come to terms with the fact that the time has come for a change. Something needs to be improved or streamlined. On top of that, they may not be the only ones to notice this: their business partners can grow restless with the pace at which internal procedures change.
There are many cases in which it’s actually your trading partners who urge you to change something for the better and it can also happen that they eventually choose to go with a different company simply because trading with them is easier.
You may feel that your company does not yet have the appropriate size or proportion, but this is actually a misconception. EDI saves you time, money and helps you streamline your processes, resulting in exponential growth in the long run.
Your overhead costs are going through the roof
An issue with which many companies confront themselves at one point is the out-of-whack stock levels that can represent a serious roadblock in their development. With EDI, you can say goodbye to scenarios in which you are often unable to deliver as promised or you have excessive stock levels that impair your cashflow and keep you all tied up. Warehousing resources can be costly – the better you manage them, the better off you will be financially.
You are unable to deliver in a timely manner
Has it happened to you to not be able to deliver a product when the client needed it? Then you must also know how it is when a client chooses someone else over you, since you couldn’t fulfill the order in their desired time. And this is simply happened because your internal processes did not allow for a shorter period of time to be feasible. This is basically the definition of being inefficient – this is how your profitability drops because you didn’t streamline important processes.
In the end, it’s all about getting things done fast with minimal costs, so as to maintain a good cash flow and your trading partners happy. Automation holds the key to progress!
You deal with more and more inaccurate data
The problem with data is that the effects of a single error tend to snowball and encompass greater and greater segments of your work. And such errors are bound to happen, since we are talking about human beings processing this data and not robots – this is applicable when you don’t have EDI. Add to this the pressure that a work environment can bring and you’ll find yourself in a blunder bigger than you can handle.
Wasted time on correcting these errors translates eventually into wasted money, since the employees will get tied up to these tasks instead of focusing on other greater-value ones. Of course, the effects ripple even to the customers, which results in even greater profit loss.
If you feel like now the fog has cleared and you understand why and how EDI implementation would benefit your company, we’d be happy to hear from you and collaborate to find the business arrangement that best suits your needs.