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Data Masons Software

When Does ‘Less Equal More’ Apply to EDI?

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If you've seen AT&T’s commercials as part of the company’s "It's not complicated" campaign, you understand the idea: Bigger. Faster. More.

But that’s not so when it comes to EDI. In choosing a Dynamics EDI technology partner, a two-party approach is not better than one. Engaging multiple partners can cripple your business processes, while trying figure out who is responsible for broken mission-critical transaction flows or coordinating the addition of key processes.

The accelerating speed of business execution affords no time for finger pointing and researching the source of the latest breakdown. Beyond PO/Invoice processing, today’s interconnected supply chain requires real-time inventory, coordinating with transportation, such as request for routing, reading of POS details for the latest sales trends, and full connection with suppliers, especially in a drop ship operation.

Studies have shown that single technology partner models deliver better end-to-end EDI e-commerce solutions versus a multi-step, multi-provider model. Specifically, technology models where the translation partner operates independently from the integration partner create a larger number of points of failure versus a single provider/technology model. Furthermore, the critical path for implementation is longer and results in higher risk.

A new trend in integrated e-Commerce solutions is the audit and reconciliations of transactions from partner to ERP and then back to the partner. Luckily, EDI provides the checks and balances that a strong solution can leverage to make sure that no transactions fall through the cracks or violate Service Level Agreements (SLA’s) between suppliers and customers.

With a tightly-integrated, end-to-end solution from a single Dynamics EDI partner, companies can avoid these pitfalls by proactively receiving alerts at certain milestones or thresholds in the transaction cycle. These alerts can help avoid penalties or loss of business in many relationships.

When evaluating an integrated EDI e-Commerce solution, make sure that your provider is able to deliver an easily-managed solution and is willing to take ownership of the full transaction flow, including any breakdowns. If you can find a provider that takes it a step further and can deliver proactive exception management technology, then you've likely found the right partner to deliver bigger, faster, more to your business.

by Data Masons Software

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