EDI Used to Be the Only Game in Town – New Procure to Pay Processes
Electronic Data Interchange (EDI), the exchange of business documents, such as purchase orders and invoices between business partners in a common format, was invented in 1968. It was and still is used by many types of companies in many industries, such as automotive, aerospace, retail and others.
But there is a new game in town.
Why? Because EDI software is expensive and it takes months to make, configure and deploy a partner. If you have multiple partners you do business with, that will add to the time and expense.
Because of this most companies will only connect the 20% of their suppliers that do 80% of the volume. However, today, companies are reaching out to connect the long-tail of the supply chain to gain more revenues. But EDI is so expensive to deploy is it worth is to connect suppliers that only submit two or three purchase orders a month?
Portals are an option, but if a supplier has to connect to twenty different portals to receive orders from customers, this can be a huge drain on resources. Today some companies use email or fax to send purchase orders. These have to be hand-keyed into the ERP, which can introduce errors if admin enters wrong numbers. Plus, with emails/fax, companies will receive hundreds to thousands of emails per day confirming receipt of the email, sending the email, acceptance of the order, scheduling of the order, and on and on.
There is a better way – Elemica QuickLink Email (QLE) and Digital Supply Network.
The Elemica Digital Supply Network allows businesses to easily buy and sell from each other via automated processes. QLE helps buyers and suppliers to conduct business over the network quickly and easily. Buyers get visibility from their ERP system and no longer have to deal with the thousands of emails from their suppliers confirming or changing orders. Plus, admin does not have to re-key anything into their ERP system.
Remember it takes weeks and lots of money to onboard one supplier via EDI? With QLE, suppliers are onboarded quickly, easily and cost effectively.
Here is how it works:
- The buyer sends a purchase order automatically from their ERP system to the supplier.
- The purchase order is first captured by the Elemica network where it is transformed into a transactional email to the supplier.
- The supplier receives the transformed email in their inbox and it contains processing logic to confirm the PO, change the quantity and dates, or accept the order. Note, it is not an image or PDF but actual logic within the email.
- The transformed email response is sent back to the Elemica network where it is converted back into the buyers’ format to be integrated and updated in their ERP system.
QLE onboards the supplier to the Elemica network without requiring any integration software. You can transact business through this connection more quickly, more efficiently and cost effectively! With the ability to onboard thousands of suppliers, customers and logistics providers, companies are able to digitally transform and grow much quicker.