HOW TO:PLAN YOUR SUPPLY CHAIN EDI PROJECTBY: ANGELA CARVER

Why Implement EDI?• Implementing EDI in a supply chain operation can be a complex

process as most SCM businesses have many moving pieces.

• Taking a systematic approach to your electronic data interchange implementation will help your team complete an effective, efficient EDI program.

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Analyze Supply Chain Operations• Before beginning any project, you must first understand the purpose

and who will be affected by any changes.

• Analyze your supply chain operations and see which procedures andprocesses will be altered with the implementation of EDI.

• In a typical EDI project IT, operations, management and your external trading partners will be affected.

• Performing this analysis will help provide your team with the data needed to develop a holistic project scope in later steps.

Select EDI Project Manager• To assist your key stakeholders in the following steps it is critical to

select a project manager to assist in the execution of your EDI implementation.

• Your EDI Project Manager can be either an internal resource or consultant, but must be someone who has in-depth knowledge of electronic data interchange.

• This person should be a knowledgeable technical resource, but also someone that can work well with other functional teams and communicate effectively to all parties involved.

Perform a Detailed Cost Benefit Analysis• The purpose of a cost benefit analysis (CBA) is to identify the most

likely applications for EDI deployment and sets priorities for conversion. The report includes how EDI utilization improves each automated application.

• Also consider the overall budget for your transition project and whether the benefits expected in the CBA are sufficient to meet or exceed required corporate ROI standards.

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Determine Benefits of EDI Implementation• Your completed cost benefit analysis report should detail some of the

potential benefits of EDI implementation. Consider searching for other possible areas of improvement by evaluating all functional areas.

• This will help to make the case and ease any concerns of business executives as to why this complex project is critical.

Identify EDI Trading Partners• Before your team can begin any EDI implementation project you

must first identify and investigate any trading partners with which you plan to exchange electronic documents.

• Evaluate your trading partners current capabilities, their current technology and any upgrades needed and see if your EDI vendor has worked with this trading partner previously.

• This will help to eliminate surprises later in your project that could stall EDI utilization.

Define EDI Project Scope• Once these analyses have been completed and all factors havebeen

considered, involve leaders from all affected departments to define a formal project scope which will be the basis for the project implementation plan.

• Items that should be defined in an effective EDI project scope include:• Necessary document sets• Final trading partner count• Document exchange estimate• Transmission method (VAN, in-house, email, FTP, etc.)• And more…

EDI Vendor Selection• Many supply chain operations choose to outsource EDI mapping,

translation and system management due to the high cost of developing and maintaining internal software systems.

• After completing the Project Scope, your team can better evaluatevendors based on your detailed business needs.

Learn More About the EDI Vendor Selection Process Here

EDI System Integration Setup• After a vendor has been selected, your EDI software can now be set

up and integrated into existing warehouse management systems and other supply chain software.

• These integrations will allow a seamless transfer of data between trading partners which can be entered directly into your WMS, eliminating errors that occur through manual processes.

• This makes accurate, reliable data available to all facility staff in real time.

EDI Test System Pilot Program• Before fully implementing your EDI program, set up a pilot program to

test your new solution with a small number of trading partners.

• Trading partners should confirm and record that documents are received successfully and return the testing data for review. If successful, EDI can then be used to transmit real documents. Additional document sets can be added in stages for testing.

• Once your pilot program has been completed, your supply chain operation can implement your new EDI solution across the entire organization.

Conclusion• Implementing EDI requires careful consideration and planning. Before

beginning any project, your team should evaluate what business units are affected, how they will benefit from EDI and the best solution for their needs.

• Follow this step-by-step guide when planning your electronic data interchange project to ensure successful implementation.

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