Supplier Enablement

EDI and XML - parallel lessons?

As I have written before EDI and XML are going to co-exist for a long time albeit it is recognised that EDI will remain the preserve of large business and their national supply chain. For everybody else, that is 95% of businesses, you are going to rely on XML because that is what others will implement to support their B2B eCommerce.

Quick refresh on B2B eCommerce and some differences.

If you are a major retailer with a 24x7 operation with fast moving inventory and much of it perishable you need a system that connects you whole supply chain so that your shelves remain stocked with your customers' favourite products.

Now contrast with a major financial services business that has no inventory per se and is a Monday to Friday business and you have a totally different set of requirements as you will not be totally dependant on any particular suppliers for most of things you need for your business.

In the former case EDI prevails and in the latter XML. Both do the same job in that they support the objectives of the business to manage their transactions with their suppliers in a timely fashion and at the smallest cost to buyer and suppliers.

EDI has been established for a long time and I am always looking to see what parallels exist so that we can learn from those that have been using B2B eCommerce (EDI) longest.

From an interesting article published in Line56.com I extract:

Who can do it better, cheaper and quicker?

Companies using SaaS (Software as a Service) for supply chain report they typically can get the system operational in under 3 months and achieve ROI in less than a year -- many times faster than with ordinary "license and install" software or homegrown projects.

Paper transactions prevail over use of EDI and XML

Overall, paper, fax and email still predominate. There is alot to do!

How can vendors help?

SaaS vendors that provide supplier enablement assistance and preconnections to suppliers or logistics partners are helping reduce this barrier.

How important is this?

Ask your Finance Director as it is all about cash at the end of the day. What you are spending against budgets and what cash you have to keep available to balance receiveables and payables.

Click here for the Line56.com article.

Click here for more information about SaaS, supplier enablement and how to get B2B eCommerce working for your business.

posted by FrankB @ Tuesday, August 22, 2006