A Special Series from north American Wholesale Lumber Association
EDI Quick Facts
More and more companies are trending toward using an Electronic Data Interchange (EDI) solution to improve productivity, increase profitability and position themselves as a more viable partner when working with big box retailers. Here’s a snapshot of some EDI basics, if you’re exploring implementing this technology soon: • EDI can replace the mail prep process, as well as the sharing of information via fax and email. • It can save on costs in the following areas and more: data entry by staff and the correction of human error, mailroom sorting, transportation/ freight expenses, printing, distributing and storing documents, as well as postage for mailing. • There are a number of business documents that can be transferred electronically using EDI, but the most common ones are invoices and purchase orders. With most EDI software, you can customize to tailor to your company’s needs. • Having an EDI technology solution can also help in improving relationships with customers because order information is readily available and accurate. • Plan in advance when thinking about implementing an EDI solution. While this may seem like a three or four month process, it could take up to a year for implementation, depending on the complexity of the system. • Ensure you have a network of professionals or friends you can reach out to in order to troubleshoot any issues that arise with the EDI solution. • While EDI creates ease of document management and communication, there can be some complexities that come along with it. Having a thorough understanding of the technology will be very helpful throughout the process.
How do you want to use it? Do you want a custom solution? Will you use an outside vendor? How complex in your tracking do you need to you get? No matter the specifics in how you’ll use it, there are two main things you need to consider: implementation time and your troubleshooting network. If you’re planning to do a major EDI implementation with a customer or supplier, it could take between nine to 12 months. Yet
Building-Products.com
don’t let the timeframe scare you away. If EDI is something you need to do in the next two years, start planning now. The more you are ahead of the game, the better off you’ll be. It’s also important to make sure you have people in your distribution network who have gone through the implementation process. Though EDI is beneficial to an organization in many ways, it does come with its challenges. There are some complexities when implementing a solution and though the technology is simple, in theory—it’s taking data from one system and putting it into another—the templates, forms and testing process can get pretty complicated. Having people you can troubleshoot with—people who have possibly experienced the same issues—can make a difference in easing the overall process. Capital Lumber uses a third-party company for its EDI solution for this reason—it’s helpful to have EDI specialists to reach out to as a resource when something goes wrong.
Our Perspective
For us, using EDI has given us access to new opportunities with big box retailers. In the past, you’d have to call on someone and remind them that you have a particular item. Now, since your whole price book is available electronically, it’s easy for them to see, and if they want to find something, they can. We’ve started to sell different products and different opportunities to customers that had never been considered before. EDI is giving companies the chance to not only increase efficiency and save money, but to differentiate themselves in order to gain more opportunities and improve relationships with partners. – Bethany Doss is business manager for Capital Lumber, Healdsburg, Ca., and a member of the North American Wholesale Lumber Association’s board of directors. Anthony Luongo is a business systems analyst at Capital’s headquarters in Phoenix, Az.
About NAWLA
NAWLA (North American Wholesale Lumber Association) is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.
August 2015
Building Products Digest
27