EDI is probably one of the few IT related areas that can show a clear
ROI which is so difficult to prove in other cases.  I distinctly
remember a director looking me straight in the eye and telling me that
we were only an expense to the company.  Imagine his surprise when we
showed the savings...

Charlotte Sigmann
EDI Administrator
Hi-Tech Pharmacal Co., Inc
369 Bayview Avenue
Amityville, NY  11701
631-789-8228 ext 4144
 

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-----Original Message-----
From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf Of
Michael Mattias
Sent: Tuesday, May 16, 2006 1:52 PM
To: [email protected]
Subject: Re: [EDI-L] PLEASE HELP AS EARLY AS POSSSIBLE.

>I have been in the situation where EDI got it own budget and was
expected to
>make a profit.  Lost money, so to speak, the first three months then
decided
>to bill all of the departments for "services", and it went through.  
 
>When they are learned about all the profit EDI was making they wanted
EDI
>under their umbrella.

6/16/06

About once a year I get a chance to re-post this "Golden Oldie"  ...this
looks like as good a place as any...

So with all original typos still intact and unedited...we bring you this
true story.

MCM

===BEGIN ANCIENT HISTORY====

6/21/01

As anyone who has been around ANSI EDI setups knows, there is a
significant time
and money investment required to put together a really good system with
full
integration into an applications system.

The last couple of days I was working at one of my clients, a major
manufacturer
in Wisconsin. This customer is reasonably new to ANSI EDI, only doing
recently
doing any of their own work on it. (For about a year, they had been
accepting
ANSI orders from only one customer, using a Mercator application built
by an
outside firm).

Over the last couple of months they had invested a lot of time and money
to get
ANSI X.12 running with a number of other customers who had requested it
over the
past couple of years, but still no one had seen any tangible benefits;
it seemed
EDI support was a "cost of sales" rather than an "aid to order
processing."

The sales department of this firm was successful in landing a new
account; but,
they had to commit to being able to accept ANSI X.12 orders and provide
ANSI
X.12 invoices.  The IT department dutifully (though not without some
grousing,
but you expect that) set up the translation and mapping and integration,
went
through the testing, and on Monday the new customer sent in his first
batch of
orders: 324 PO's with 66,215 line items.

The orders were picked up from the VAN at 3:00 AM. By 4:00 AM, all
orders were
entered into the user's sales order system.

The next morning, the IT people did a little math: they figured it would
have
taken three (3) man-weeks to hand-key all those orders. The IT people
were
amazed; and they usually don't get all that excited about productivity
improvements in "the other building" (the sales/service departments).

The next day, the customer sent in another 36 PO's with 8000+ line
items. More
savings.

As someone who has been a long time "true believer" in the productivity
improvements available using EDI, I just love it when a "real user" can
finally
and clearly see his investment pay off, so I thought I'd share.

== END ANCIENT HISTORY===





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