EDI Management

EDI Upgrade Assistance

DCS recommends that businesses run the most current version of their EDI and AS2 Software. There are several advantages to maintaining the most current version of an EDI Software Program. First of all, new releases typically have greater functionality such as reporting errors to you immediately via e-mail. Staying current better facilitates upgrading or migrating to a newer system in the future and standards are kept up to date with the upgrades. And lastly, any issues with the software's performance are corrected in the newer release.

Overview

Product upgrades are typically covered under the umbrella of yearly maintenance fees. Most EDI and AS2 Software companies however, do not automatically send out the newest release of the software. DCS is aware of the current releases that are available, and can arrange for the newest release to be sent out. The only cost of doing the upgrade is typically the time necessary to install the software, and any training time involved. The upgrade process is usually one day for a MS Windows^TM system and up to a week for a Unix or Series i^TM system

To learn the effort needed, a Free Assessment is provided. From it, a task list and time estimates are provided. A part of the assessment is learning if the MRP system vendor has released a more robust EDI/EC gateway, supporting more transaction sets, segments, and elements.

Conclusion

Upgrading to the newest release of a program is necessary to maintain the peak efficiency of that program. While performing the upgrade, DCS Elite^TM training service allows the end user to become even more proficient with the software. Upgrading is the most cost efficient way to maximize the efficiency of an EDI system. Having performed numerous upgrades, DCS can help you avoid a flawed upgrade and ensure your EDI is runs smoothly

EDI Backup Planning and Assistance

The percentage of customer orders, Invoices, etc. exchanged by EDI has grown steadily to over half the volume in a typical business. However proper redundancy has commonly been overlooked. Second, businesses should perform regular maintenance on their EDI software to ensure peak performance. Businesses should also routinely archive their EDI data and backup their EDI software in the event data recovery becomes necessary and also to meet the requirements of the Sarbanes-Oxley regulations. Maps, partner profiles, and communication scripts are custom work not included in the software upon installation so it is important to keep these backed up. DCS can assist businesses with both of the tasks through various means.

Overview

DCS can provide onsite maintenance or perform remote maintenance as needed or on a regular basis. During such time, also show you how to archive EDI data for disaster recovery. In addition, software upgrades can be installed, and any changes in Trading Partner (TP) requirements can be made. DCS can also provide training to a businesses EDI user on how to perform maintenance and backups.

Conclusion

A DCS "maintenance tune-up" can keep businesses EDI software running at peak efficiency. Our DCS Prompt^TM remote support service is thorough and quick, due to standardized procedures and our vast experience. The cost is insignificant in comparison to the loss of productivity that would occur in the event of a break in the customer order flow. DCS knows the details needed to keep your EDI system backed up and thoroughly maintained.

Reducing/Eliminating Chargebacks

Chargebacks provide large distributors with a method of reducing errors and recouping the cost for errors, returns, or expired goods by charging the suppliers for them. While individual chargebacks might be small enough to ignore, they are sure to continue without addressing the cause. Often the chargeback itself is incorrect and proper communication with the Trading Partner can clear things up. By addressing the issues that a chargeback brings up, both sides benefit and the business relationship will be more successful.

Overview

Deductions in payments occur and are frequently wrong. They are difficult to challenge because the data inflow is sporadic and poorly organized. Deductions refer to e-mails, faxes, spreadsheets, and phone calls. They then must be organized and compared to contract terms and company records such as shipment data. If a chargeback is incorrect, a claim with supporting documentation must be filed and the sales, shipping, or other department must be notified to prevent further chargebacks.

Rebates face similar problems: poorly organized and sloppily prepared claims. These claims must be compared to quantities shipped as an indicator of accuracy. When distributors re-ship to many providers, end user data is needed.

The role of EDI and Electronic Commerce is to speed up the process and reduce errors by sharply reducing data entry. INbound chargeback messages are delivered into tables. This is why Reason Codes are crucial and must be clearly explained in claims challenges. Also, the same Reason Code is used differently amongst companies. From the INbound tables, reports can be written, data copied to business application tables, and OUTbound messages generated. Implementing cost can be lowered if you write reports, etc. An example is a sort by Reason Code and amount claimed.

The response for challenged chargebacks and rebates can also be automated. OUTbound messages can be EDI documents, automatically generated e-mails, or XML documents to auto fill Web Forms.

Conclusion

Challenging chargebacks is a labor intensive process, which partly can be automated. The 80/20 Rule applies here. An investment in automation can have a quick return and later build outs can yield further savings. DCS knows the chargeback messages and processes of large distributors, HMO's, and providers, so setup is quicker and economical. On-going improvements are also easier when DCS is there to assist as needed.

VAN Cost Analysis and Management

One of the on-going costs associated with doing Electronic Data Interchange (EDI) are the monthly fees charged by Value Added Networks (VAN's), to transmit "electronic data"(a.k.a. Transaction Sets). While these costs cannot be eliminated, an audit of the current pricing schedule in light of monthly volume, and Trading Partner (TP) requirements, can result in substantial savings. An audit is highly recommended for any company whose current pricing schedule was established more than 12 months ago, since business requirements, TP requirements, and pricing schedules change on a regular basis.

Overview

There are a handful of pricing modules that are used by most VAN's to determine what the monthly transmission costs will be. The single most common pricing module is to charge a set "monthly fee", regardless of volume, and to charge a "character fee" based on the volume of data being sent/received. The volume of data is measured by "kilo characters" and typically has price breaks for increased volume. An audit can determine whether the current "monthly fee" and "character" fee's are appropriate based on the actual volume of information being sent/received. Most VAN's will not automatically adjust/offer better rates.

To conduct the audit, DCS, would need a copy of the last six months of VAN invoices (if the business is seasonal, then invoices from the busy period would be needed). Many times the decision of which VAN to use is based on "perceived" TP requirements. For example, if a major TP (TPOne) is using VAN XYZ, an inexperienced user might be compelled to use the same VAN even though it may not be the best business fit. The problem may be further compounded if an additional TP is added (TP Two), who uses a different VAN. The inexperienced user may again be compelled to also use the second VAN, rather than using the first VAN and transmitting via an "interconnect". The use of more than one VAN result's in two or more monthly flat fees, along with the loss of the "volume" price breaks associated with increased kilo character transmissions.

An audit would determine if the current VAN being used, is the best fit for the business model. In the event multiple VAN's were being utilized, an audit would also determine if a consolidation to a single VAN would be feasible, and if so, the VAN which should be used. To keep the operating cost minimized, secure internet transmission (AS2) should be considered for high volume customers. See our AS2 page for further information.

Conclusion

Substantial on-going cost savings can be obtained through conducting an audit of current VAN contracts. In addition to finding discrepancies in the pricing models, and inappropriate VAN usage, DCS will assist in negotiating the best possible rates available. DCS can help you balance the usage of a VAN and internet transmission so the optimum level of VAN discounts are achieved. As an independent consulting firm, DCS does not represent any VAN or software company, which allows an unbiased audit to be rendered