EDI: a boon for retailers and wholesalers

oH{T#'fi:";:i$:H.:

Interchange, which can whittle a retai ler' s orderin g process down to a few simple procedures, is not in wider use.

Only large retail operations are c ufren tl y using EDI to send purchase orders to wholesalers and receive invoices fron their primary wholesale suppliers,

Without EDI

customer service and costs that hold the line.

Grand Rapids Sash and Door, Grand Rapids, Mi. His company's direct, per transaction costs of EDI versus fonns, postage and handling are a wash. "Basically we break even on EDI," he observes. The cost of EDI is no more than the cost of paper billing, so the benefits of reduced data entry and customer service are a bonus.

In addition to reducing inventory and cutting overhead by shortening the delivery cycle, EDI can benefit a retailer's cash management by eliminating paperwork. Retailers receive invoices directly into their computers, remit via wire transfer and send renittance reports back for cash posting. The wholesaler also benefits with no invoices to handle and no check to get "lost in the mail."

Despite the advantages, a retailer who wants to transact with its although the system can help a retailer to improve inventory management and eliminate unneressary paperwork

Story at a Glance

Ways rstailers and wholesal€rs can benefit f rom Electonic Data Interchange better Inventory management, improved cash management, elimination of paperwork and redundant data entry. and redundant data entry. However, as a study of the flow charts accompanying this article will show, the system could work for most retailers.

While the retailer benefits the most from EDI, the wholesaler also gains. In the long run, the wholesaler retums these gains to the retailer with better

"An order that took two hours for us to process now takes 10 minutes," says Alan Kirk, OrePac Building Products, Wilsonville, Or. He feels the faster order entry and proces sing help to reduce the overall cost of servicing a large Lccount.

"We had to implement EDI for one customer, but we'd like to do it for more," says Don Klein,

Receives 7.O., fransmtts lnvoice and Receives Remitance Advice. vendors via EDI may need to force the supplier to provide it. One Southeast distributor says, "We'll go to EDI when the retailers we sell require it."

Clearly EDI is coming. As the building products disribution channel changes and is forced into more efficient operation to offset tightening margins, there is no doubt technologies like EDI will become necessary.

D$trWSBR[trtrS

Builders Square, which is building a relocation store in Pasadena, Tf., with a May I opening targeted, will sponsor the New Year's Eve Alamo Bowl in the Alamodome, San Antonio, Tlr., for the next two years Ktnart Corp., Builders Sqmre parent co., has proposed selling a 25% stake inthechain...

HomeQuarteru opened a new Jackson, Ms., store ... Pelican Building Centers, Conway, S.C., acquired an Aberdeen, N.C., location from Sand Hill Building Supplics end a Rocking[am, N.C., unit ftom Carter Ltmthr ...

Joyner L{trnber Co., Lakeland, Fl., opened a Home Design Center, Tracy Romp, interiordesigner/director Lowe's opened a Jacksonville, N.C., unit, had a grand opening celebration at a Huntsville, Al., superstore and rclocated a Rock Hill, S.C., operation to a new supentore facility

Meeks Building Centers, Sp,ringfield, Mo., acquired land in Bentonville, Ar., to build a 35,000 sq. ft. store due to open in late t994 ...

Home Depot, after estimating its headquarters staff will triple by the end of the decade with stores rcaching 645 during 1997, is shop ping for larger ofrices Lincoln Gardens and Carver City homeowners are objecting to a Homc Depot being relocated to their Thmpa, Fl., neighborhmd ...

Frank Schmidbauer has acquired Grayson Lumber Co., Grayson, Al. ... Smith County Hardware, Taylorsville, Ms., is now owned by Charles R. Connell, Jr., and renamed Smith County Hardware & Supply, Inc. ... T. H. Rogers Lumber Co., Oklalpma City, Ok., broke ground for new corporate Hq.in Edmon{ ok...

.1. W Porter Innber Co., hrc., DeWitt, Ar., has closed ... Roper Brotlwrs btmber Co., Petersburg, Va., plans to sue the city over a rezoning that keeps them fton rebuilding two Pocahontas Island structures <bsroyed by an August tornado

Builders Warehouse Association Inc., which acquired Heber Springs and Arkadelphia, Ar., stores this year, hopes to acquire four stores next year despite a $1.28 million fiscal 1993loss

Anniversaries: Benjamin Obdylrc Inc., l25th; Delta wocd.working tools, 75th; Dean ltrnber Co., Gilmer, Tir.,55th; Whit Dais Lumber Plzs, Jacksonville, Ar., 40th...

Woodford Plywood, Albany, Ga., flans to open a lVin&r, Gi, distribution oent€r next month Walker-Williams Lumber Co., Harchechubee, Al., began prodrc- tion last month at its new Weswille In., treating plant ...

Georgia-Pacfc acquired majority ownership of G-P Flakeboard Ltd., a company formed with Flalccboard Co.Ird. to purchase assets of CombiBdard Limited P artner ship, B ancroft , Ontario, Canada, production to begin in the spring LouisianaPacific's southern div. will build an OSB plant in Carthage, Tx., next year

BulHlng fanplc-Irilord &rc., Diboll, TL, had &ird quarter eunings of 210, per share ... U,SG3 Unitcd Snns Gypsum Co. b tblrd querter net sales rose 12.4% md its L&W Supply Corp.'s, t4.4.h GAF Building Materials Corp. herd $15.1 million third qumer oeersing income ... Universal Forcst Prducu maor- a prblic oftdng of 5,m0,000 shfles

Norbord Industies broke ground for an $80 million OSB plant in Tbpelo, Ms. ... Tli-State hmber Co., hrlbn, Ms., installed a new 90 CCA presswe treafing cylinder and an L-M bundle cutting saw at &eir reman facility ...

Southern Sales lh, Marttting Group, Inc., moved to a new Atlanta" Ga., locadon Mcyer U&{, Riviera Beacb, Fl., qeood a branch of Meyer Laninatcs Georyia Inc. in Birminglam, Al., and acquired Deebo Products, Jacksonville, Fl. ...

Knape & Vogt MfS. Co. acquired The Hirsh Co. Arrrrsttar,g, Heritage, Wwaty afr Wilsonart have formed an intcrcompany consortium cdled the Home Tbam to promde oordnatedprodrcts...

ABT BuiWing Pdncts Cor?. e)pects b acquire sbscadally dl the assets of Canadian Prcific Forcst Pduca limited's fur&d Hadbutd Ddy., East Rivcr, ttrovl Scoda, by tbe end of the yeu ...

Hardware Wholesalers Inc., unveiled a new Do-it Express retail design Program unitcd Cmthgs,Inc., was narcd t 193 Vendor of the Year by Moorck Lumber & Building Supplies, nmtoke, Va...

Hortshg st{rlr rcse 2l% b n annually adJusted rete of 1,396,(X)0 in Oct. Catest ffgs.), highest since Feb. 1990 ... stngle family sttrts climbed S.t%i nul'ds Orcpped Wh permits edgprl rp 2.8% ... starts in the South climbed 2.8% ... Davld Sefdcrs, National Association of llomc B_uilders, said, "TIe healthy October gain suggests tb eommy will experience surprisingly good fourth-quarter growttr rates."