EDI is only as good as the quality of the data. This appears to be overlooked in a lot of rather simplistic approaches to EIPP. Hence, if the only transaction is an invoice then the accuracy relies on the supplier having first translated the customer's order requirements in to their own ERP system correctly. In turn the accuracy of the purchase order is reliant upon the customers having the correct pricing and product codes in their back office system.
In discussion with a customer the other day they explained how they take the issue of getting the supplier data correct so seriously that they have a department that has sole responsibility for this. They sell over 30,000 different products and this is just about a full time job.
Together with ourselves this is a target for EDI. We are working with the clients and the suppliers to make the adoption of the suppliers products and prices automatic. The savings to the customer are self evident, but the suppliers will benefit by receiving accurate purchase orders, preferably electronically.
This accuracy will benefit all parties. We call the starting point of the accuracy “The Seed”. The closer “The Seed” is to the start of the process, the better the entire process. The more benefit for all.
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