Embracing The ROI of EDI


Electronic trading is rapidly replacing human trading all over the world. Many large organizations such as high tech, automotive and retail companies already recognize the significance of Electronic Data Interchange (EDI) in their supply chain process. By replacing manual processes, they are able to manufacture high volumes of products without increasing labor costs.

What should drive businesses from investing in EDI and achieving better B2B integration? There are various reasons on why businesses need to invest in EDI. The most pressure comes from customers. Other reasons include regulatory compliance, pressure from competitors, suppliers and 3PL. Although large businesses require electronic trading with its suppliers, consumers and partners, the meaning and benefits of EDI is not clear to them. The need for higher ROI only comes second.

So, how does EDI adoption impact the ROI? By automating trade with EDI, businesses can minimize manual work and reduce labor costs. Suppliers can increase the speed of order to cash process and reduce errors in order handling. Buyers can also benefit from less money tied to stock. There are also indirect benefits noted from the use of EDI, such as faster delivery times, more secure trading relationship, and more sales when used with a specific customer.

Despite the many direct and indirect benefits of EDI to companies, only a small percentage of businesses are trading with their consumers and suppliers electronically. They fail to recognize the important implications of electronic trading, including reduced cost of transactions, greater liquidity, greater competition, and increased transparency. Aside from decreased transactions costs, the ease and convenience

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Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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