The supply chain process involves multiple steps taken on the part of both vendors and retailers to ensure products are successfully ordered, shipped, received, and invoiced. A typical supply chain function involves the following: a retail purchasing manager generates a purchase order and faxes it to a vendor, who then keys the order into their system to generate shipping notices and an invoice, which is then mailed back to the retailer to be processed in the accounts payable system.
This chain of actions can take several days and leaves a large margin of error. With different people working on different processing systems at separate locations, the chance for human error at any or all steps of the process is high.
Fortunately SaaS EDI software applications are making it possible for all partners in a supply chain to use one simple system to submit orders, process requests, coordinate shipping and arrange billing. EDI facilitates communication between disparate systems on the retailer side and those on the vendor side to ensure orders are processed quickly and correctly. Having an EDI system also gives both retailers and vendors more visibility into the supply chain process as a whole to help combat any problems that may arise.
SaaS EDI helps to make the supply chain process more efficient and less costly. It allows organizations to outsource business functions, thus eliminating the need for licensing, hardware, and in-house installation associated with implementing new software.
Businesses in all industries are starting to see the benefit of adopting a SaaS EDI system. Boater’s World, the second largest U.S. marine supply retail chain, needed to improve communication with its trading partners and vendors. With more than 300 vendors of varying sophistication levels, Boater’s World was having difficulties establishing an EDI program used across its enterprise.
A SaaS EDI application model provided the solution. Boater’s World chose Saas and EDI outsourcing provider SPS Commerce of Minneapolis. SPS Commerce has helped approximately 37,000 companies to connect to 1,300 retailers, from Costco to Footlocker.
With the SaaS EDI solution provided by SPS Commerce, Boater’s World has expedited its purchasing and shipping process. The outsourced EDI technology model has made modernizing and upgrading technology simple and cost effective. Boater’s World is also able to ensure shipping accuracy by using an Advanced Shipping Notice (ASN) available with SPS’ EDI services.
The quick, accurate and cost-effective supply chain process created by the use of EDI and SaaS applications will most likely benefit consumers as well as retailers and suppliers in the form of more readily-available and competitively priced merchandise.