Electronic Data Interchange (EDI) Speed up business cycles by 61%
Reduce operating costs by at least 35%
Engineering GREAT Solutions
02  Electronic Data Interchange
Contents 03 What is EDI? 04 The benefits 05 Our expertise & experience 06 How EDI works 07 How to work with us
Engineering GREAT solutions through people, products, innovation and service IMI Precision Engineering is a world-leader in fluid and motion control. Building close, collaborative relationships with our customers, we gain a deep understanding of their engineering needs and then mobilise our resources and expertise to deliver distinctive products and solutions. Wherever precision, speed and engineering reliability are essential, our global footprint, problem-solving capability and portfolio of high performance products enables us to deliver GREAT solutions which help customers tackle the world’s most demanding engineering challenges. > Reliability We deliver and support our high quality products through our global service network. > High performance products Calling on a world-class portfolio of fluid and motion control products including IMI Norgren, IMI Buschjost, IMI FAS, IMI Herion and IMI Maxseal. We can supply these singly, or combined in powerful customised solutions to improve performance and productivity. > Partnership & Problem Solving We get closer to our customers to understand their exact challenges.
Electronic Data Interchange  03
Electronic Data Interchange (EDI) Sending Company
File Transfer Server
File Transfer Server
Receiving Company
What is EDI? Electronic data interchange (EDI) is the computer-to-computer exchange of business documents using standardised message formats. These formats enable a computer in one company to communicate directly with a computer in another company without human intervention.
For example, purchase orders go directly from Customer’s purchasing system to Supplier’s sales order entry system. EDI is much more than communication and electronic mail messages, data flows from one business application to another and results in seamless trading. Many documents are exchanged when goods are manufactured, ordered, delivered and received. They include purchase orders, acknowledgments, invoices and despatch advice and these can all be via EDI. EDI is increasingly used across different industry sectors as it enables standardisation, can be applied globally and assists complexity management.
04 Electronic Data Interchange
The benefits Cost savings
Accuracy
EDI lowers operating expenditure by at least 35% by eliminating the costs of paper, printing, reproduction, storage, filing, postage, and document retrieval. It drastically reduces administrative, resource and maintenance costs.
Aside from their inefficiency, manual processes can introduce errors, often resulting from illegible handwriting, keying and re-keying errors, and incorrect document handling.
Industry research conducted at GS1 UK identified: > Average £14/16 Euro per order cost saving gained using EDI compared to manual processes, including phone, fax, post and email, to order stock from suppliers > £8.50/9.50 Euro cost saving per invoice when companies use EDI instead of paper-based invoices > £12/13 Euro per order cost saving if an electronic despatch advice is sent before the order is delivered Source - GS1 UK in conjunction with Cranfield School of Management https://www.gs1uk.org/~/media/documents/ white-papers/edi-cost-savings-report--gs1cranfield.pdf?la=en
Speed EDI speeds up business cycles by 61% because it enables process automations that significantly reduce, if not eliminate, time delays associated with manual processing to enter, file, and compare data. Inventories management is streamlined and more efficient with real-time data updates.
EDI drastically improves data quality and eliminates re-working of orders by delivering at least a 30% to 40% reduction in transaction errors. Business efficiency Because human error is minimised, organisations can benefit from increased levels of efficiency. Rather than focusing on repetitive activities, employees can devote attention to more value-adding tasks. EDI improves trading partner relationships with faster delivery of goods and services. Security EDI enhances the security of transactions by securely sharing data across a wide variety of communications protocols and security standards. Environment-friendly Migration from paper transactions reduces CO2 emissions, promoting corporate social responsibility.
Electronic Data Interchange  05
Our expertise & experience We are currently processing over 200,000 Purchase Order lines per year across Industries with Trading Partners in Europe and the Americas. Most of our EDI messages are fully integrated with our ERP systems meaning a quick response and instant visibility. Inbound messages
Outbound messages
> Purchase Orders / Changes
> Purchase Order Acknowledgments
> Planning and Shipping Schedules
> Despatch Advice / ASN
> Self-Bill Invoices
> Invoices
> Application Advice > Remittance Advice We are able to process messages in any of the published standards and can also develop bespoke solutions to suit your requirements.
06 Electronic Data Interchange
How EDI works EDI business documents use formats based on widely accepted and published electronic standards that have been developed by industry bodies which include; > Automotive Industry Action Group - AIAG > American National Standards Institute - ANSI > United Nations/Electronic Data Interchange for Administration, Commerce and Transport - EDIFACT > Organisation for Data Exchange by Tele Transmission in Europe – ODETTE Each company uses the flexibility allowed by those standards in a unique way to fit their business needs. Every piece of information on a business document – such as Purchase Order number, item, required date and quantity - is set into a specific, labelled field which enables mapping software to read it and convert into your own business software format
> Data security and control are maintained during transmission using passwords, user identification and encryption. In both parties, buyer and supplier, EDI applications check for accuracy and data integrity. Example of an IMI Precision Engineering EDI strategy using Purchase Orders, Acknowledgments, Despatch Advice (ASN) and Invoice. > We receive your Purchase Order within minutes of transmission, a Sales Order is created and an Order Acknowledgment can return within the hour with delivery date and price information > Once the goods are ready for despatch we transmit an ASN, our Customers know exactly what is on the way, packaging information and when it will arrive, they can pre-book the goods into their system.
> A buyer prepares and approves an order in their purchasing system OR their ERP system automatically creates a purchase order based on planning requirements. > The data is extracted directly from the Purchasing database, translated into an EDI order document format and securely transmitted to the supplier
> The supplier’s system receives the order, translates it into their own system format and raises a Sales Order automatically.
> Once shipment arrives on site a bar code scan can complete the booking-in process. > Finally an EDI invoice is transmitted, the data can be integrated directly into the accounting and archiving systems reducing time needed for reconciliation and matching activities as well as enabling fast retrieval.
Sending Company
Receiving Company
Data in Internal Format
Data in Internal Format
EDI Translator
EDI Translator
EDI Data Communications Software
EDI Network Service Provider
Direct, Point-to-Point Communications
EDI Data Communications Software
Electronic Data Interchange  07
How to work with us We provide our Customers with an excellent service and the advantages EDI brings are part of that. We have been successfully using this proven technology since 1996 and see demand growing with the move to lean business and supply chains. Whether you have already implemented EDI solutions or are just starting, we are here to help with all projects, large or small. The information we will exchange for set up of a new EDI trading link is. > Communication Parameters > Trading Partner Configuration > Message mapping specifications Details of the above will be in an Implementation Sheet that we provide. Your EDI / IT Teams or EDI Managed Services will complete this for you.
We will work with your team every step of the way, from initial set up through to test and implementation. Contact your Customer Services Representative who will put you in touch with one of our EDI experts. If you have any questions, or would simply like some information or advice, please do not hesitate to contact us. We look forward to working with you.
IMI Precision Engineering operates four global centres of technical excellence and a sales and service network in 50 countries, as well as manufacturing capability in the USA, Germany, China, UK, Switzerland, Czech Republic, Mexico and Brazil. For information on all IMI Precision Engineering companies visit www.imi-precision.com Supported by distributors worldwide.
Norgren, Buschjost, FAS, Herion and Maxseal are registered trademarks of IMI Precision Engineering companies. Due to our policy of continuous development, IMI Precision Engineering reserve the right to change specifications without prior notice. z8790BR en/08/18 Selected Images used under license from Shutterstock
Engineering GREAT Solutions
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