The Importance of Integration Planning in B2B EDI Supply Chain Projects – Part 3, Properly Planned Processes

With proper EDI integration planning, the fulfillment process can be substantially streamlined, such that both the retailer and vendor achieve accurate, direct and real-time data within their supply chain systems. This type of integration planning removes, at a minimum, twice the number of redundant processes that are required to have a very responsive and visible fulfillment process.

Once proper integration planning is implemented, the data and information that is exchanged between the two parties at each end removes all  redundant and un-necessary processes resulting in a simplified fulfillment process that follows the following business process;

1. PO sent directly into the vendor’s system.
2. Vendor picks, packs and ships the PO.
3. Vendor sends the order to the retailer systems.
4. Retailer does a match of the PO and the shipment and makes the payment.

The example from our previous post implies that the flow of data and information is occurring between the key data points that are being updated directly without having to go through any in-between processes. This example shows how proper integration planning can streamline an organization’s EDI processes, resulting in substantial improvements both for the retailer and the vendor.

Also note that the example represents a process called an “Evaluated Receipt Settlement” or (ERS). ERS eliminates the need for an invoice and subsequent cheques, and all of the related processes around invoice and payment management.

Other Supply Chain Processes:

You have seen above an outline of a fulfillment process and how it can flow seamlessly with proper integration planning. Similarly, all other supply chain processes can benefit from proper integration planning.

These processes are;

• Manufacturing and Product Lifecycle Management;
• Logistics and Transportation;
• Reverse Logistics;
• Inventory and Warehouse Management;
• Inventory and Store Management;
• Forecasting and Replenishment;
• Business Intelligence and Data Analytics;
• Dashboard / Scorecard for a Business’s Operational Metrics & KPI’s;
• Dashboard /Scorecard for a Business’s Execution Metrics & KPI’s;
• HR Management for Logistics Management.
• HR Management for Warehousing and Distribution Facility Management;
• HR Management for Store Management.

One can see from the above list of key supply chain processes that there are potentially many components within an organization’s supply chain that can be automated. With proper automation and integration planning, each of these components together can work to deliver a BEST-IN-CLASS supply chain operation. This is ideally what an organization strives to achieve.

We’ll conclude this series in our next post by summing up and drawing connections between the key concepts that we have been discussing.

Stay Tuned!