Custom Systems Corporation

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By enhancing communications with vendors, EDI helps secure the right items at the right time, price, and delivery. As the most efficient form of ordering, EDI can help provide the lowest possible total cost of production. EDI information is transmitted electronically - there's no need to load special forms into the printer, wait for the mail, stand by the fax machine for hours, or hope the supplier can read what they receive on the other end and enter it correctly into their system. EDI eliminates errors and unnecessary delays - there is no re-keying of information on either end; orders and invoices go directly into the computer applications. Pay less for the goods - Electronic payments often result in better prices and terms. Also, fewer obstacles to getting the order into the supplier's hands sooner can eliminate expensive and wasteful expediting. Be more competitive with EDI. Match capabilities and gain the same benefits as the largest and most successful companies in the world, who are already using EDI to their advantage. Compete on lowest total cost not just price. EDI provides many internal (cost and time saving) benefits that increase reliability and competitiveness. Errors are eliminated, information is timely. EDI offers top-line results (sales gains) as well as bottom-line savings. Customers who understand the value of EDI insist on its use. Suppliers who also understand can make it easy for customers to become "locked in" through the electronic commerce infrastructure. As more business is transacted via EDI, cash flow improves (faster, more reliable payments from customers; take advantage of payment discounts with suppliers). Electronic commerce involves more precision and speeds business processes. Spend less time matching documents, searching for errors, and tracing activities - it's all tied together through the electronic exchanges from application to application. And EDI business is typically more predictable; therefore, cash flow can be better planned. Paying vendors electronically (sooner and more reliably) offers leverage for negotiating better terms and prices. EDI and Just-In-Time (JIT) go hand-in-hand. often, the only way to keep up with the more frequent deliveries and smaller quantities that result from JIT efforts is to use EDI planning schedules, purchase orders, and advance ship notices to stay in synch with key suppliers. The same is true if your company is a JIT supplier to one or more customers. Quicker communications with suppliers reduces lead times which can help reduce inventories. EDI-linked suppliers also tend to be more reliable because they are closer (in communications and spirit, if not physically) to their customers, reducing the need for safety stock buffers. The EDI advance shipping notice (ASN) message provides the ability to greatly improve accuracy and speed in processing receipts. By knowing exactly what is coming, and when it will arrive, dock personnel can be prepared and production schedules verified (or changed in the event of a problem) before the goods arrive. Efficient handling of incoming goods is another result of knowing the detail ahead of the actual arrival. ASNs are also useful for planning receiving department manpower and space requirements.

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