Do you use Sage 300 ERP for your accounting? Do you have vendors that support EDI? Not sure? It may be time to find out. Integrating with your vendor to send purchase orders, receive shipment information and invoices electronically can result in significant time savings. In our experience, such projects have a very high ROI and can typically recoup investment costs in the first 6 months of going live.
So, what is EDI? EDI stands for Electronic Data Interchange. A global standard that has been around for a very long time. In fact, this method of data interchange is the preferred method of some of the largest retailers such as Walmart. So how is this relevant?
How EDI Can Help:
In a typical purchasing process, the customer creates a purchase order and sends it via mail (electronic or otherwise) to the vendor. The vendor team then enters the information about what you want to purchase into their system. When the goods are shipped, they can send you a shipment notice. Finally, when shipment is received, the vendor typically generates an invoice and sends it to the customer for payment. While the process sounds fairly straight forward, there are quite a few problems that can occur. Below are a few:
- The vendor team may make an error during data entry resulting in the wrong item, wrong quantity or type of item being sent.
- Shipment may be sent to the wrong address if vendor data entry team makes a mistake
- Your team may make a mistake in shipment reception.
- Vendor may send an invoice that does not match in quantity or price that you ordered or have negotiated with the vendor.
In addition to all the data issues, this entire process requires a untold hours of data entry time that doesn’t scale easily as your business grows or shrinks. EDI integration can assist in such scenarios. Here is how it can help:
- Send purchase order information electronically when posting the PO in Sage 300.
- Receive purchase order confirmation, shipment advise and vendor invoices electronically directly into Sage 300.
- Match vendor price and quantity to original PO and receipts and flag items that do not match.
We have created a proprietary platform that ties directly into Sage 300 and allows you to communicate with your vendors via EDI. Our solution makes this almost plug and play. If you are looking to integrate your Sage 300 environment via EDI, talk to us today. We can help!