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.
The Challenge
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.
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.
Grow Your Business | 10,000+ Trading Partner Connections
Spring Systems has provided EDI services and expertise since 1996, giving the wholesale industry an effective, automated way of doing business with major retailers.
Solution
Switching to Spring 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!
Results
The results are faster speed to market, no delays in reworking shipments and no miscommunications.
Ex: Accuracy has greatly improved and the vendor has gained up to 3 days in their already tight shipping window. Even better, the warehouse doesn't have to worry about changing retailer ASN rules. This is left up to Spring Systems, the EDI experts. The results are faster speed to market, no delays in reworking shipments and no miscommunications.
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