It always strikes Me as being . well, I can't quite put a finger on it . but
there are so many questions and issues around testing and the associated
costs of testing.  And so many (often) seem to be extremely opposed to the
concepts - almost to the point of throwing a (virtual) punch.!  It's almost
as volatile a discussion as the discussions revolving around politics,
religion or that certain state's upcoming law..

 

First, I'm pretty sure that we all agree that TESTING is a necessary part of
enabling EDI.  Or, really, enabling any new or different process, program or
procedure, in the workplace.  It's a given.  Even if you eschew testing and
start sending/receiving data, you will find errors, correct them and have
the data resent - which, by the way, IS a form of testing.  No matter what
you do, however, there IS some kind of testing done.

 

Now, since I'm again sure we all agree that testing is needed, the big
discussion and sticking point often comes down to cost.  So many on this
list bemoan the costs associated with "3rd party testing" services - no
matter how valid or valuable such testing may be to a trading partner.  Of
course, there is also the dilemma of working with somebody OTHER than your
trading partner when testing is done this way.  But still, testing needs to
be done. And somebody has to pay for it - even if it's all done "in-house".

 

We all know that Mr. Mattias is a paid EDI consultant (and obviously a
pretty good one or he'd not still be in business).  So are quite a few other
members of this list (Art, Emmanuel, and many others!).  The reason I bring
these fine people up is because there is a cost associated with their work.
I'm pretty sure that none of the people that consult do it for free,
strictly from the bottom of their heart for the betterment and benefit of
humanity.  Some companies will contract Michael, Art, Emmanuel or ________
to create and enable (or just change, manage or _____) their EDI
program/process.  Other companies hire somebody to work for them to do the
same thing.


Guess what, folks.  There is a COST involved in these options.  These people
don't work for free.

 

Then, there is the "other side" of the EDI coin - what your trading partner
is doing.  Maybe they've contracted with their OWN consultant or hired their
own staff to do EDI for them.  And they have a cost involved, too.  

 

As some of you may remember, I worked for a fairly large retailer, as the
COMPLETE EDI DEPARTMENT.  Just one person with a TP list of about 700 active
TPs and a handful of documents being used.  That company went through a huge
expansion of their EDI program and we did it using a 3rd party testing site
& company.  And our TPs had to pay the fee and complete the testing.  Sure,
the company could have hired more people for the EDI department to handle
the testing.  Or they could have contracted with somebody to do that, too.
But somehow, that EDI testing had to be paid for.  If they had done
something like hiring another person (or people), then it could have
affected the profit picture or the cost of the items sold in the stores or
_____... In other words, SOMEBODY was paying for that testing.

 

As some of you also may remember, I've resorted to the "other" career
experience I have since I was laid off from the company I was working for.
That other experience is RETAIL.  At the STORE level.  I started a retail
store where I live.  Most of it is because there is not a lot of need right
now where I live for experienced EDI folks.  And there is little contract
work out here, as well.  So, I started a retail store.  The reason I mention
this is to kind of drive home the point about the costs of testing - by
using another cost of business - shipping.  It's like EDI testing - it's a
cost and SOMEBODY has to pay for it.  Usually, the receiving party (that's
the store in this case) pays for the items being shipped.  Sometimes the
shipper will pay for it.  And if they do pay for it, usually it's figured
into the cost of the items I'm buying from them.  Instead of charging us a
freight charge of 50 bucks for a shipment, maybe they add 2 cents to the
cost of each item they sell.  Then they can look like the "good guy" and say
"Hey, we pay for freight!" and I'm a happy camper with them.  I can tell you
that there are some companies that we will not buy from in the future
because of the way that they ship things.  I ordered some shopping bags and
gift boxes from one source and paid nearly HALF of the cost of good ordered
in SHIPPING.!  Another supplier of products also had rather high shipping
charges - so I probably won't be buying from them again, either.

 

Another aspect of the "new gig" is the costs of displays.  Think about every
store you've been in and you see those nifty spinners and racks and holders
of the products you may be buying.  Well, like EDI testing - somebody has to
pay for those display racks & spinners.  Most times, it's the buyer - the
retailer - that pays for these racks & displays.  And they're not cheap,
either.  I was at the California Gift Show in LA this past week and bought
some new products and paid for a few displays.  And then I've got some other
vendors that GIVE AWAY the displays.  But of the vendors that charge for the
displays, there's one thing I've noticed.  Some seem to use it as a profit
center - by charging an exorbitant amount for the item - 150 bucks for a
wire rack - and others view it as a cost of doing business and only charge
the actual cost of the tem - maybe $25 instead. Again, though, somebody is
paying for these displays and racks.  When I'm charged an outrageous cost
for the displays, it makes us think twice about the value of the items being
purchased.

 

When it comes to EDI testing - we all agree that there is a cost involved.
But maybe companies need to think of the bigger picture and take the wider
view in before they say "NO" to testing and enablement, all because it's
going to cost them a few extra dollars up front for a truly 

 

Craig Dunham

Bear Necessities Computing

EDI Sherpa

Author/blogger

 <http://www.retailedi.com/> RetailEDI.com

 <http://editalk.com/> EDITalk.com

 


 
<http://groups.yahoo.com/group/EDI-L/message/28626;_ylc=X3oDMTJybjlidDN2BF9T
Azk3MzU5NzE1BGdycElkAzIxMDc2NzYEZ3Jwc3BJZAMxNzA1MDA1NTgyBG1zZ0lkAzI4NjI2BHNl
YwNkbXNnBHNsawN2bXNnBHN0aW1lAzEyNzk1Mjk1MDI-> Re: Question on Testing &
Economics 


Posted by: "Michael Mattias/LS" 


Sun Jul 18, 2010 8:17 am (PDT) 


>Michael, you are one of these people who has been around the block.
> How many clients have you had *roughly* that decided to 'pass' on a 
> relationship because of testing?

I's not always the "testing" specifically.. it's the "total cost" to 
"EDI-enable" a particular customer or vendor.

That said....I only know of two of my clients who have actually used the 
"n-word" ("no") but...

A) One has said no to about half a dozen such requests.
B) I quote my clients a lot more enablements than ever happen.

Unfortunately - for purposes of addressing your particular question - my 
phone does not ring when there is nothing to be done.

Michael C. Mattias
Tal Systems Inc.
Racine WI



[Non-text portions of this message have been removed]



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