How Can Combining Manufacturing ERP Software With EDI Increase Customer Satisfaction?

Posted in Operations Improvement on August 6, 2013


More manufacturers are collaborating with their suppliers, distributors, customers and regulators; in fact, best-in-class manufacturers are 2.5 times as likely as others to share data with their whole enterprise.

A post on the Aberdeen Group blog says collaborating with supply chain partners is “essential for predicting demand, compliance, scheduling shipments and servicing customers.” Best-in-class manufacturers are doing this by combining electronic data interchange (EDI) translators with their manufacturing ERP software. They’re 67 percent more likely than others to use the two for data exchange.

The use of EDI along with an ERP system is essential to meet and exceed client satisfaction these days. Technologies are capable of facilitating this out of the box. Combined with cloud-based ERP technologies, EDI is a game-changer when implemented properly.

The exchange of pertinent information with all participants in the supply chain is the key to increased ROI once EDI is implemented in a company. That’s what will set manufacturers apart from their competition.

Organizations that connect EDI and their manufacturing ERP software can do the following:

  • Increase customer satisfaction
  • Boost their bottom line
  • Plan for forecast demand
  • Give full visibility into their supply chain
  • Ensure no holding costs are incurred
  • Guarantee that opportunities are not missed
  • Enable agility to help maintain shipping schedules

With increasingly global manufacturing business models, EDI ties companies together in a seamless fashion to improve fulfillment rates and times, which means faster end items to clients and lower levels of inventory. It’s a win-win for both the manufacturer and its clients.

Improved performance metrics is a big impact to the EDI/manufacturing ERP software technology model.

Manufacturers that use EDI add value and can do the following:

  • Decrease time from order taking to shipment by 61 hours
  • Increase inventory accuracy by 3 percent
  • Increase on-time delivery by 4 percent
  • Increase profit margins over the past two years by 1 percent

Source: Aberdeen Group, July 2013

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