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Similaire à Cost benefits of implementing a edi system
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Cost benefits of implementing a edi system
- 1. COST BENEFITS OF IMPLEMENTING A EDI SYSTEM Presented by Srini Raja Director Deployment TPSynergy.com Ph No:512 827 7407 Email: marketing@tpsynergy.com
- 2. CUSTOMERS INSISTING ON EDI ▪ If you are a supplier supplying merchandise to larger customers like Walmart,Amazon,Grainger, Coca Cola, you don't have much choice but be EDI ready. ▪ Most of these companies provide a web form of EDI called Web-EDI or Vendor Portal. ▪ You can either login to their portal, note down the order details, update back Invoices etc or send and receive the EDI messages automatically. ▪ Let us compare the cost and benefits of Manual Vs Automated EDI
- 3. MANUAL VS AUTOMATED ORDERS PROCESSING ▪ Let us assume that you are dealing with 3 customers who can do EDI and also provide a portal for manual processing. ▪ So the choice is between manual processing or using a third party EDI System. ▪ Assuming you get 40-50 Orders per month per customer. So it is about 150 orders to be processed in a month.
- 4. EDI VS MANUAL ENTRY – A COMPARISON Descriptio n Manual Time(Hrs) EDI Time(Hrs) Savings/L oss(Hrs) Rate/Hr($ ) Amount($) Note down PO Details from the Vendor Portal or Email 37.5 0 37.5 $20 750 Enter details into a system 37.5 0 37.5 $20 750 Confirm Purchase orders in Vendor Portal 25 1 24 $20 480
- 5. EDI VS MANUAL ENTRY – A COMPARISON Descriptio n Manual Time(Hrs) EDI Time(Hrs) Savings/L oss(Hrs) Rate/Hr($ ) Amount($) Create Routing Request to get carrier assignment 25 1 24 $20 480 Enter data from Routing confirmatio n 25 0 25 $20 500 Print Packing Slips 30 1 29 $20 580
- 6. EDI VS MANUAL ENTRY – A COMPARISON Descriptio n Manual Time(Hrs) EDI Time(Hrs) Savings/L oss(Hrs) Rate/Hr($ ) Amount($) Generate Shipping Labels from Carrier Websites like Fedex/UPS 35 1 34 $20 680 Enter invoices into Accounting system 40 0 39 $20 780 Postage (Invoice mailings) $300 0 300
- 7. EDI VS MANUAL ENTRY – A COMPARISON Descriptio n Manual Time(Hrs) EDI Time(Hrs) Savings/L oss(Hrs) Rate/Hr($ ) Amount($) One Time setup fee $1000 spread over 36 months -27 -27 Monthly EDI Fee -150 -150 Net Monthly Savings 5903
- 8. EDI SYSTEMS ARE AFFORDABLE NOW • As can be seen above, even at a minimum level of operations , there is a considerable monthly savings by implementing a EDI system. • Few years back, implementing a EDI system was beyond reach for small sized suppliers. • The initial investment was huge and it needed dedicated IT resources to maintain the system. • In the last few years, this has changed and many startup companies are providing a cloud based EDI solution that is easy to use and also affordable.
- 9. CLOUD BASED EDI SOLUTIONS ▪ Instead of installing a on premise EDI software and maintaining it, a cloud based third party EDI system cuts down any maintenance cost and makes it possible to run the EDI system with out any IT skills. ▪ TPSynergy is one such system that is easy to use and connects to trading partners easily.For details on it is done, the video here shows the EDI Integration ▪ With these tools available today, there is no reason for anyone to be doing the data processing manually.
- 10. PRESENTED BY Srini Raja TPSynergy.com LLC 512 827 7407 srini@tpsynergy.com