Wednesday, October 01, 2014

 

EDI Compliance

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Lowering Costs with High Transaction Volume

This U.S. based manufacturer of arts and crafts products wanted to have control of their business, yet minimize overhead costs when processing EDI purchase orders.  Everything is produced and shipped from their US manufacturing facility.

PROBLEM: Manufacturing locally means receiving, shipping, and invoicing EVERY day.  Instead of shipping container loads as the goods come in from overseas, this manufacturer needed to ship a little bit every day (as they produce the goods).  This resulted in a very high EDI transaction count, but low revenue per order.  Their EDI provider was charging industry acceptable rates, but with such a high transaction count the total cost was astronomical.  Even worse was the fact that with some of the smaller orders, EDI costs could exceed the profit on the order.

SOLUTION: Switching to eSpring Web EDI helped make this manufacturer's business into a profitable one.  The unique pricing model automatically adapts to changing business situations.  By printing all UCC-128 labels online, the manufacturer saves on postage and shipping charges.  Best of all, there are no per-label or per-trading-partner fees!

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