EDI for Vendors: Forecasts and P.O. Acknowledgements

As an AIAG member, DCS knows your industry and it’s specific requirements. We bring you the most up-to-date knowledge with our weekly blog post, best paired with our years of experience.

Process Automation Lowers Outs and Inventory

At a time when prices are rising or shortages looming, an opportunity for 100% ROI is created.  Automation of purchasing processes with key vendors can help you improve inventory management and reduce short and late shipments, as well as price surprises.  EDI and other electronic methods enable quick and reliable sending of Forecasts and Purchase Orders (P.O.), beating faxes and spreadsheets.  The confirmation is also quickly returned, which provides more time for seeking a second source. With the help of DCS specialists, information is immediately available through the use of process automation in your EDI system.

Benefits of automation:

  • Send vendors your Forecasts from your existing purchasing system such as SAP or Oracle. This benefits both parties – your company is able to plan better and vendors are alerted earlier.
  • Receive P.O. Acknowledgments within 24 hours. Your material planners then know details are accepted or can quickly seek another resource (this is the “killer document”).
  • For small-to-medium sized vendors, DCS can post a P.O. on your website. The vendor than easily converts the P.O. to a P.O. Acknowledgment.

Work is completed without error while the head count is kept to a minimum. To adapt, you must integrate carefully and economically. Our EDI specialists have experience working with industry leaders such as General Electric and Illinois Tool Works. Integration and development must honor your time-proven process and yet offer cost savings for reliability and economy.

To meet the Automotive AIAG X12 or XML standards, most vendors utilize this process, no matter their size or purpose.

  • For small and non-production vendors: WebForms should be considered for its easy accessibility to vendors. It is free of charge to you.
  • For progressive companies: a combination of automation for high volume documents, such as Sales Orders, and a manual WebForm for low volume documents, such as price changes, is the best solution.

EDI X12 Flow Diagram

Fortunately, your Enterprise Resource Planning (ERP) system has components that save investment and speed delivery of savings. Modules such as the Supply Chain Management Module have e-connection gateways. It’s gateway can be readily configured to the processes of your industry to accommodate the specific of dominant companies. Our specialist’s expertise can quickly, thoroughly, and economically configure the gateway and EDI system.

We know the requirements of your industry’s leaders. We know how and what others have done to gain their success. Learn about DCS EDI consulting services or ask us about our no-cost assessment. There is no obligation!

 

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