I watched a PBS special on Walmart once that talked about how close to the bone they forced their suppliers to cut. It sounded like $300 might be enough to sour the deal completely, although it doesn't seem like it. Each company would have to decide for themselves. I know of one supplier to one of the "big 3" who told me they weren't going to do EDI (even though there was no charge for testing and VAN charges were picked up by the OEM) because "we're the only ones who can make this part and we don't want to". Things may have changed, but this supplier was quietly dropped from the "required to test" list.
Leah ________________________________ From: Retail Edi <[email protected]> To: [email protected] Sent: Fri, July 16, 2010 10:20:09 AM Subject: [EDI-L] Question on Testing & Economics Hello and happy Friday everyone. I was talking with an EDI salesperson yesterday and heard that Costco has outsourced their testing. The fee is $300.00. That sounds like right around the typical price $200-$500, right? My question is how often do companies choose not to do business with the retailer because of testing and why they would make that choice? I asked the salesperson if she was able to keep her account in light of the "Switch and we won't charge you for testing" policy and she said it became moot, because her client chose not to work with Costco. Does anyone have a notion of what the "normal" % of sales is attributed to EDI/SC expenses. Are the margins typically so tight that a testing fee can break the deal? I have heard about this happening with a few other vendor/retailer relationships and want to get some feedback. Thanks, Jim Cantrell RetailEDI.com [email protected] [Non-text portions of this message have been removed] [Non-text portions of this message have been removed] ------------------------------------ ... Please use the following Message Identifiers as your subject prefix: <SALES>, <JOBS>, <LIST>, <TECH>, <MISC>, <EVENT>, <OFF-TOPIC> Job postings are welcome, but for job postings or requests for work: <JOBS> IS REQUIRED in the subject line as a prefix.Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/EDI-L/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/EDI-L/join (Yahoo! ID required) <*> To change settings via email: [email protected] [email protected] <*> 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/
