A Not-So-Technical Resource For Tackling EDI Exceptions

EDI is the abbreviation for Electronic Data Interchange. As its name infers, EDI is the process by which data is exchanged between businesses in a standard electronic format. Think of it as one company’s computer system “talking” to another company’s computer system and sharing information.

EDI’s positive impact on order processing is unquestionable, but it’s not infallible. Incorrect pricing, invalid material numbers and missing segments are just a handful of errors that can occur when using EDI. Check out the flip book below to learn more!

EDI is the abbreviation for Electronic Data Interchange As its name infers EDI is the process by which data is exchanged between businesses in a standard electronic format Think of it as one companys computer system talking to another companys computer system and sharing information Beep boop beep For over 30 years EDI has been helping enterprises take paper and human involvement out of business document processing with the goal of 1 Reducing bottomline costs 2 Increasing data accuracy 3 Accelerating business cycles 4 Strengthening business relationships 5 Enhancing document security Stands for Internet Accountability Statement 2 AS2 is a popular way of transporting EDI data over the Internet using digital certificates and encryption Otherwise known as an Advanced Ship Notice This is an electronic document that provides detailed information about a pending delivery The EDI 850 is an electronic version of a paper PO This is the method by which EDI data in one format is converted or restructured into a different format In the process of data mapping the map instructions dictate the pattern EDI information is to be arranged Abbreviation for Purchase Order A PO is a document generated by the buyer that authorizes a purchase Commonly used term describing companies that are exchanging EDI documents Acronym for Value Added Network A nonInternet network where EDI data can be securely exchanged between trading partners IN A PERFECT WORLD EDI is used across a wide range of industries and a variety of documents can be made computerreadable As much as wed love to dive head first into the vast EDI ocean for simplicitys sake this handbook sticks to the order processing pool Ideally heres how a day in the life of an EDI order plays out The buyer prepares an order by entering EDI data into its own purchasing system The buyers purchasing system interprets this data and assembles it into an EDI 850 PO Voil Lastly the supplier sends an EDI invoice to bill the buyer Nice doing business with you The buyer is sent an EDI ASN to let them know their product is on its way The EDI 850 PO is then transformed or mapped into a sales order and sent to the supplier via AS2 or through a VAN The sales order is processed through the suppliers business system Bada bing bada boom EDI Workhorse of the Value Chain A Closer Look at B2B Connectivity Benchmarks in the Extended Supply Chain November 20 2013 Supply Chain Insights 1 A closer look EDI data mapping Below is a diagram illustrating the transformation of EDI data from an inbound layout EDI X12 PO to an outbound layout sales order Mapping instructions essentially run the show orchestrating what information goes where and making sure everything is properly formatted and compliant with the EDI standards and trading partners requirements Sure beats doing it by hand ISA01000000000001ABCCO 124405197800 01999999999 1011271719U004000000034380P GSPO44051978009999999992015091017191421X004010VICS ST850000000010 BEG00SAAF3438220150910610385385 DTM00220151010 N1BYAutohaus Franzl GmbH91012 N3Schwarzhauptstrasse 51 N4Muenchen0980939DE N1DPAutohaus Franzl GmbH91012 N3Schwarzhauptstrasse 51 N4Muenchen0980939DE PO111PC300TECB1400400 PO123PC30TECB1400200 CTT240 AMT139000 SE33000000010 GE11421 IEA1000003438 PO PO DATE DUE DATE ADDRESS MATERIAL QUANTITIES TOTAL MAP DEFINITION INBOUND X12 PO SALES ORDER IN AUTOMATION SOLUTION EDIs positive impact on order processing is unquestionable but its not infallible Incorrect pricing invalid material numbers and missing segments are just a handful of errors that can occur when using EDI Why does it matter Because dealing with exceptions negates the very efficiencies EDI was put into place to create Bummer Here are three ways EDI exceptions suck the life out of your workflow Errors can affect up to onethird of all incoming orders Fixing them not only requires manual intervention it relies on a real actual human to decipher bertechnical EDI language which can make for a long expensive and very painful process A specific level of expertise is needed to handle EDI exceptions usually via IT or outsourced services However both carry an impressive price tag and for timestrapped IT professionals fixing EDI errors is not exactly a highvalue activity How many orders are awaiting resolution What info do they contain Good luck getting answers orders with EDI exceptions make forecasting nearly impossible Plus using multiple applications limits your ability to have global vision on orders The gaps in EDI processing can result in significant business value being lost The logical conclusion Fill the gaps One highly effective and established system for doing this is by sending EDI exceptions to an order processing automation platform Before getting into how this works lets review the benefits hope youre comfy theres a lot of em Lower expenses thanks to reduced paper use and greater staff productivity Reduced processing errors due to less human involvement in the process Faster business cycle times as a result of electronic workflow Improved business relationships thanks to better informed suppliers Enhanced document security through the use of passwords user IDs and encryption Reduced costs by allowing CSRs to resolve exceptions instead of paying IT or an EDI team Faster resolutions thanks to EDI orders being presented in humanreadable formats Improved forecasting via customizable dashboards that provide full visibility Greater control thanks to the ability to search and retrieve any order in the EDI workflow Unified workflow since every order is stored in one system regardless of channel or format Increased IT effectiveness by freeing up their time for more highvalue tasks Easier onboarding thanks to an intellilgent and easytouse mapping tool Seamless implementation without altering your existing EDI or ERP infrastructure A closer look order processing automation In the past EDI orders with exceptions would remain stranded in no mans land until a swashbuckling IT professional swung in to save the day Order processing automation provides a much more practical scenario Data is captured off EDI orders and used to create a human readable version Discrepancies are automatically identified and flagged dramatically improving the EDI experience for your CSRs IT staff and trading partners PO AS2 ERP EXCEPTIONS DETECTED EXCEPTION CORRECTED AUTOMATION SOLUTION EDI ORDER CHALLENGES HANDLE EDI EXCEPTIONS Mismatches on prices SKUs etc Manual correction required Resource consuming Nonfriendly interface User friendly interface Same application for all orders Simple and quick Any CSR can do it This illustrates only one example of EDI exceptions There are many different scenarios that can occur 2 EDI Workhorse of the Value Chain A Closer Look at B2B Connectivity Benchmarks in the Extended Supply Chain November 20 2013 Supply Chain Insights Fax and email order processing A secondary yet dynamic benefit of order processing automation is that it can be used to streamline the processing of all orders not just EDI Regardless of how an order is received eg email fax paper web etc bestinclass solutions have the necessary technology in place to instantly capture the documents extract the necessary data route them to the appropriate workflow path and electronically store them Packaged KPIs and dashboards Another key automation advantage is the use of intelligent dashboards which provide instant access into key metrics that matter most to each user 12 1 7 Priority orders to validate Orders to validate 12 Open Issues Orders approved today Search CSRs get insights into How many orders need to be approved How many orders have been approved Every urgentpriority order Rejected orders Open issues HOME Setup Contact us Log Out Help REPORTS TABLES CUSTOMERS ORDERS CUSTOMER ISSUES Sales Order Processing NEW ORDER LOG ISSUE 12 7 1 12 Orders to validate Priority orders to validate Orders approved today Open Issues Sales Order Process Processing time by month minutes Input time by month minutes Orders by reception method Orders by reception method 6 140 120 Fax 1744 5 100 Other 174 Fax 1744 Email 1860 4 Other 174 Email 1860 80 3 60 OCT 2014 NOV 2014 DEC 2014 JAN 2015 FEB 2015 EDI 4506 201408 201409 201410 201411 201412 201501 201502 201503 Number of lines by month Data input time by customer minutes 2014 08 Number of issues by month 70 10 60 9 8 50 201409 40 201410 30 201411 10 0 201503 0 50 100 150 200 250 300 JART Others Compu Team Computer 300 Milton Milton 201502 7 6 5 4 3 2 1 0 Pintown Company 201501 Industrial Suppliers Inc About Esker Trusteskercom 201412 Sunbound Inc FAQ 20 TMC Truck Leasing Whats new Portal 1715 0 MAR 2015 Number of records 0 EDI 4506 1 20 Omega SoftHardware Madrid CSR Managers get insights into Longterm performance forecasts Areas in most need of improvement Capacity to better manage resources Global order processing efficiency over time Staffing needs depending on workload Computer Club Market 2 40 JAN 2015 FEB 2015 MAR 2015 Creation date Carrier Customer Warehouse Back Ofce Portal 1715 Take these industryleading organizations as prime examples of what can be achieved when endtoend efficiency is realized through order processing automation Cut order processing time by onehalf Reduced order processing time by 60 Eliminated its average 3day backlog of orders Reduced order processing time from 3 minutes down to 15 minutes Accelerated order processing time by 50 Facilitated a 40 annual growth rate without increasing headcount Esker is a worldwide leader in cloudbased document process automation software Organizations of all sizes use our solutions to automate order processing accounts payable purchasing accounts receivable and other critical areas of business communication After 30 years of field experience we have helped over 11000 companies around the world in their efforts to Quit Paper and improve operational efficiency Our headquarters are in Lyon France but were located just about everywhere paper

Nick Carpenter

As one of Esker's Sales Development Representatives, Nick Carpenter, listens to savvy executives that want to leverage SaaS. He is currently executing Esker's Accounts Based Marketing strategy and digging deep into net new target accounts.

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