DMSi Customers Eliminate Document Communication Issues with EDI
Omaha, NE – With the right technology tools, doing business with a big box and high volume retailers can greatly increase profitability for manufacturers and distributors. But without the right communication tools, it can bring frustration and marginal profitability. DMSi’s Electronic Data Interchange (EDI) solutions electronically eliminate the costly time and errors associated with manually exchanging transactional information with trading partners. It allows businesses to increase efficiency and profitability with every transactional document exchange.
One company seeing the benefits of EDI is Capital Forest Products, who uses the software to ship products to stores like Home Depot and Southern States. “In the busy season, it really saves a lot of time,” said Mike Moore, Capital Forest’s CFO. “On the accounting side, our invoices are automatically created, eliminating the paper based method.”
The user-friendly software allows for transactions to be processed immediately, eliminating the need for personnel to key in the data. “Home Depot has taken the EDI several steps further with the advance ship notice, which ensures that what is delivered to the stores is in fact what is on the truck,” Moore explains. “It significantly reduces the discrepancies and short payments, allowing stores to receive products much quicker.”
Once a customer has the basic EDI infrastructure in place, they have the ability to add modules and partners as needed. Capital Forest uses five customized modules to enhance trading with Home Depot. “To make things easier, Home Depot remits payments through EDI and sends money electronically,” Moore adds. “It applies the remittance advice automatically. If it can’t find the invoice number, it generates a message and allows bookkeeper to manually apply payment.”
In addition to having the ability to add more functionality by adding modules, EDI can also allow for growth while maintaining personnel size. “Rather than eliminating positions, EDI has allowed us to grow and be successful without adding staff,” Moore said. “If Home Depot and Southern States were to want a 10 percent product increase, we wouldn’t have to grow our staff.”
Companies choose to implement DMSi’s EDI functionality because it eliminates unnecessary human data entry, errors, delays and omission which translate into better customer service. “EDI really helps us whenever there are issues or questions on invoices,” states John Lewis, Snavely Forest Products eBusiness Manager. “The data is more accurate because that is the nature of EDI. It also allows us to show customers an audit trail, if asked.” Lewis adds “We can now accurately handle as many orders as our customers can send us and because of that, it has improved our relationship with and provided a distinguishing benefit.”
DMSi’s EDI is a great solution for companies looking to increase efficiency when dealing with trading partners. Along with the numerous time and money-saving benefits, it allows companies to make a positive impact on the environment by using fewer resources to manually process orders, invoices, shipping notices and other business documents. With EDI, customers no longer have to go through the hassles of copying and printing documents. It is specifically designed to deliver intelligent communication solutions for higher levels of performance and more control over business.