Interesting prospect. When we (one of my former employers) first began to send EDI Invoices to our customers the issue of float seemed to come up. The reason is the transit time of the paper invoice from the time the system creates it until it is received Vs the short time for EDI Invoice. In addition, the cost saving to the sender due to removal of printing, postage, and handling, usually is more than the processing savings to the receiver. If you consider the total dollar value of the invoices to a single customer this may have a large impact on their cash flow. The solution was to give the customer a special discount for receiving EDI invoices. The exact discount was determined by analysis of that customers receivables; different discounts for different volumes. The net of this is a float neutral position for the customer. The discount giver was more than offset by the savings in printing, postage, and handling.
In my opinion it is not a totally unreasonable request. That being said, I believe it would be prudent for your company to do some analysis to determine if the discount requested is good for all parties. Ask how they determined the figures they came up with. That way you know what the parameters and are in a better position to negotiate alternatives. James D. Sykes II ARGOLIS, Inc. 1740 Pine St. Martinez, CA 94553 [EMAIL PROTECTED] Cell: 01.510.502.3333 . Please use the following Message Identifiers as your subject prefix: <SALES>, <JOBS>, <LIST>, <TECH>, <MISC>, <EVENT>, <OFF-TOPIC> Access the list online at: http://groups.yahoo.com/group/EDI-L Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/EDI-L/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
