How Modernizing EDI Eliminates Those Pesky SLA Violations
If you’re an IT manager in 2019, you are more than familiar with just how critical EDI is to your business. Throughout your digital ecosystem, from customers to trading partners, companies must handle the many EDI transactions that move throughout their environment.
Onboarding a new trading partner also means there is a clear understanding of the expectations that an enterprise needs to meet or risk penalties. Companies that are unable to keep up with demand and complete accurate transactions are also going to be faced with violating their SLAs – a costly proposition.
Failure to meet SLAs will have a negative impact on an organization in multiple ways. For starters, it’s going to cost them customers and trading partners who will simply go to a competitor who is able to keep up their end of the deal. Secondly, a company’s reputation will surely take a hit when word gets around that they cannot meet customer and trading partner expectations.
The reality is that companies who insist on relying upon their outdated and legacy systems are the ones who will risk violating SLAs. Those companies who have modernized their EDI solutions are going to rest easy knowing their SLAs will be met and they can continue to scale, and maintain business continuity.
But what about those companies who still have yet to modernize their EDI? Just what kind of risks do they face?
The SLA Violations are Piling Up
When companies for one reason or another fail to upgrade their EDI solutions, they are much more likely to be unable to hit SLAs or meet deadlines for implementing new trading partner requirements, including ASN updates. The impact of these violations makes for a high cost simply to conduct business.
Additionally, as mentioned above, being known as the vendor who consistently fails to fulfill its obligations is going to quickly and negatively affect its reputation. And let’s face it, the last reason a company wants to lose a customer is because of its own doing. A modernized EDI solution offers plenty of benefits, but perhaps the most important is that it is a much more reliable way to conduct business with a digital ecosystem.
Chargebacks occur when a company is unable to meet an SLA, and there are a variety of reasons to cause them. Whether an organization has infrastructure challenges, such as hardware failure, connectivity problems, or manual processes, these are all potential roadblocks. But as far as business processes go, an SLA violation can happen because of an EDI-related miscue, such as missing purchase order data, incorrect bill of laden, or an inaccurate shipping notice.
EDI technology that isn’t reliable or requires a great amount of custom coding will inevitably lead to costly chargebacks. As many as 55% of IT decision-makers say that any deficiencies in integration resources and capabilities contribute to a loss of between 50 and 150 orders annually, resulting in thousands of dollars in SLA fines and lost revenues.
A New Way to Conduct EDI
Companies often view the traditional EDI model as moving data between suppliers and customers, into and out of their ERP systems. But in the modern world, EDI is about much more than simply moving data to and from a location. EDI in 2019 is about enabling your larger ecosystem and growing beyond the exchange of standard electronic data.
Modern EDI solutions brings an increased need in integration application-based workflows into an enterprise’s traditional EDI processes. EDI modernization extends B2B integration and automation capabilities beyond that traditional EDI that companies have grown accustomed to. Quite frankly, legacy EDI cannot deliver the entire B2B process, from the format, transformation, and movement to orchestration and integration that today’s modern enterprise truly requires.
Cleo Integration Cloud elevates your EDI integration processes and streamlines your B2B communications. Cleo Integration Cloud helps automate your EDI processes in order to connect, transform, and route your EDI and non-EDI transactions through your ecosystem without piling on the custom code.