Introduction

Conforming to large company EDI demands is very difficult for printers and packaging companies because very large customers ERP systems are designed to order standardized product. Their goal for the entire purchase to pay cycle is totally lights out. This means a PO is issued, later an invoice arrives, automatic matching occurs, and the an e-payment is sent. Printers and packagers processes are radically different due to the necessity for special charges. When these are not specifically listed on the PO, the invoice will not automatically match, and the payment will be delayed.

Overview

You regard the PO as the mere confirmation of a job already bid and accepted. The large customer regards it as the complete description of the costs they will pay. Since their ERP system is not designed for purchasing printing and packaging, not adaptable for special charges, the PO frequently does not match the accepted bid. This means INbound PO must be suspended for a thorough order check until the match to the bid is complete. The solution then is to automate the match process: alert customer service of discrepancies with ample time to obtain a waiver. Automation allows customer service to focus upon problems instead of doing tedious, time consuming data entry. This means fewer last minute changes, expedited shipments, and later surprise deductions from your invoice.

At the time of invoicing the same challenges occur. The special charges must meet those expected or a satisfactory explanation must be included within the EDI invoice sent. Since there are nationally recognized codes for all special charges, the key to process automation is then to adapt the accounts receivable module so that they are properly embedded. Additionally, training that motivates users to meet the level of detail is needed.

After these basics are solved, other challenges can be met:

• Inventory reporting
• Shipment Notices (ASN, 856)
• Transport Bills of Lading and Invoices (adding the actual freight cost with fuel surcharges to the invoice)
• Knowing if your invoice has been approved for payment

Another effective use of EDI is to automate Accounts Payables.

Conclusion

While this heighten level of integration and process automation does not have an immediate payback; the fact is that they are a competitive necessity. Incremental improvements in process automation have a large bottom line impact in total. The challenge is how to economically make those improvements.

The solutions then to either add staff or work with an experienced EDI specialist. Likely we know your order management and invoicing systems, so our DCS Process™ ensures support will be thorough, quick and economical. The next step is to email us for a Free Assessment.

• DCS helps a paper company reduce cost
• A Success story of a printing company's EDI project.