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2008
08
Nov

ROI for EDI

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There are many case studies that demonstrate ROI. The basic argument is that a manual processing of an invocie typically accounts for $60 US per invoice. Let aside the problem, that manual processes are more prone to mistakes than automatic processes and that the manual data entry is tedious amd in lack of a formal agreement on data representation also subject to interpretations. Even if you offshore the data entry the processing costs more than the electronic transmission; and then add the postage for stamps to mail out the paper invoices; in addition the paper invocies need to be scanned for archiving; this all makes a whole lot of costs that do not occur in the virtually free of charge transmission via the internet.

EDI has a reputation of being expensive; but that stems from project misconceptions; EDI needs be be agreed by both partners and requires agility on both ends; if one side defines a format and then leaves the other party alone with implementing it, it soon can become very expensive;

I personally hold the bet that everybody who claims their EDI project was expensive and did not bring the ROI break-even after 3 months has an absurd misconception in setting up the project; to be clear not in technical terms but in terms of pure human project management. EDI means collaboration (btw. like SOA); all expensive EDI projects have a common flaw: they ignore collaboration.
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Last Updated (Monday, 29 November 1999 16:00)