EDI Tips, Trends and Industry News
Walmart comes down hard on trading partners for early, late and incomplete deliveries.
Brace yourselves, Walmart suppliers – the leash is about to get much shorter.
Scrapping its previous Supply Chain Reliability Program, the retail giant is increasing pressure on trading partners. Walmart’s new “On Time In Full” (OTIF) program, which goes into effect in August, will automatically fine trading partners that fall outside an even tighter threshold for early, late or incomplete deliveries – no excuses.
Under Walmart’s previous rules, suppliers were expected to achieve a 90-percent fill rate and were held to delivery windows of four days for general items and one day for perishables and other fast-turning items. Furthermore, chargeback disputes often resulted in a waived fine.
Enterprise Ordering Consolidation
JCPenney has released new EDI updates and is consolidating the ordering processes for all of their stores and eCommerce channels. The changes are part of a larger initiative designed to provide a suite of tools and processes that support an Omni Channel business. The planned enhancements will drive and require changes in the systems and processes that JCPenney and its suppliers use to partner in support of the business. These changes do not impact Factory Ship Customer Orders. Here are the specific call outs of this EDI update:
How to detect and solve out of balance invoices.
One of the most common issues we find when analyzing client’s EDI data is a simple mistake that often flies under the radar, costing companies small dollars that can quickly add up to significant costs. This issue is easily detectable with the right tools, can be easily corrected and is a quick win for any accounting department.
The issue is the dreaded “Invoice Out of Balance,” a curse for any accounting department who prides themselves on balancing every document and ledger. And often times the issue occurs completely unnoticed.
Facing a migration from your legacy EDI solution?
We know it can be overwhelming, so we’ve developed a visibility solution that will not only reduce the pain, but also smooth out a once bumpy (and painful) transition.
We’ve literally seen every migration scenario possible over the three decades we’ve been focused solely on helping companies perform solid EDI.
Every day we talk to companies stuck with an EDI solution that has either been sunset or they’ve outgrown and are desperately seeking a solution that will not only keep their B2B exchanges efficient and error free, but also be affordable and sustainable. Let’s face it…it’s a daunting task and not for the faint of heart.
If you want to do business with the big box retail guys, you’re going to have to do business like them, too.
Retailers are desperately looking to you to help manage their supply chain—getting the right product to the right place at the right time, and most importantly, with the right documentation.
This is a huge responsibility. Not only do they slap you with chargebacks when you’re not in compliance, bad EDI can ultimately be damaging to the overall business relationship.
The solution, get good at EDI.
Some days it’s hard to know the difference. If you want less firefighting and more time to focus on value added projects to move your business forward, here are four ways our innovative visibility and analytics platform, intelligentXchange, will change your life.
Do you dream of an empty email box, fewer emergencies and, best of all, a day off? How about tackling some of those strategic priorities that are always being shoved to the back burner?
Sound too good to be true? It’s not—it’s called intelligentXchange (IX) and it’s like a virtual personal assistant for the EDI coordinator who, from what we hear, is constantly being pulled in all directions.
Studies indicate that chargebacks can add up to almost 2 percent of revenue. Ask these three questions to learn whether or not chargebacks are out of control in your organization.
Usually retailers have good reasons for implementing chargebacks. Yes, chargebacks can be painful, but the retailer believes that the momentary financial pain will drive suppliers to better comply with policies and eliminate costly inefficiencies in the overall supply chain.
However, when the supplier lacks visibility into the actual reasons for those chargebacks and are unable to fix the systematic problems, they usually resign to the fact that chargebacks are simply a ‘cost of doing business.’
Many CPG suppliers implement deduction thresholds when applying cash from a retailer. These thresholds are designed to speed the process by allowing minor deductions (i.e. under $75) to be ignored while larger deductions are scrutinized.
We see it almost every day—accounting teams working to streamline operations implement deduction (or chargeback) thresholds to reduce the amount of research time spent on issues that are considered ‘too small to worry about. These thresholds are the result of large retailers issuing chargebacks and fines for a variety of issues.
Often companies see EDI as a burden placed on them by trading partners. But even if you aren’t required to conduct business via EDI, it may actually be a good idea since using EDI can provide a number of tangible benefits for your business—and bottom line.
Companies are usually forced to take on EDI by a trading partner. But, hey, it’s a small price to pay for growth. But before you start, ask yourself these questions to optimize success.
So, you’ve decided to make the jump into EDI.
You may not know much about trading partner compliance or EDI technology because a client has forced the issue, a business process has become too cumbersome, or there is an internal push for lowering costs that has led you to the Internet in search of the best EDI providers.
Four ways to hope for the best, but plan for the worst when it comes to your EDI.
EDI connects you to your largest customers and suppliers. So, what happens if it just stops working? Disaster, right?
You know that disasters go well beyond hurricanes and fires to include power outages, viruses, malware attacks, or even human error. And since it’s well documented that it’s tough for businesses to rebound from a disaster, planning is your best bet—not only for disaster recovery, but also business continuity.
Dear Dillard’s Supplier,
We have placed the latest update of the Dillard’s Vendor Information and Implementation Guide on our Ebiz site. Please note the following:
Sears and Kmart update the compliance policy effecting purchase order On Time Delivery, and EDI 856 Ship Notice/Manifest (ASN)
As part of the continuing harmonization process of Sears and Kmart systems, procedures and requirements, we are making changes in our vendor compliance policies for purchase order On Time Delivery and the EDI 856 Ship Notice/Manifest (ASN) effective with shipments received beginning on July 15th, 2008.