Generative AI: The New Panacea

The Generative AI panacea is gaining momentum largely in part due to predecessor cure-alls such as GDSN, RFID and most recently blockchain.  Each over the course of their own hype-cycles insisting on magic bullet status, each contending that the days of linear, one-directional supply chains are behind us, each a new panacea denouncing the previous that somehow fell short. The more recent blockchain arguments have been so pervasive that swaths of humanity have been conditioned to believe supply chain traceability and supply chain traceability solutions based on blockchain will forever change humanity, end pollution, stop global warming, and eliminate mean tweets with believers and devotees evangelizing the blockchain argument far and wide. 

Arguments, quickly laid to rest by simply looking for the blockchain panacea that never arrived or by looking for that consumer who systematically checks the labels of his or her shirts to see exactly where the fibers that make up that shirt come from.  Perhaps we should look for that blockchain sales rep who, at this point, must be driving into the sunset of a spectacular career, perhaps if we look hard enough on the beaches of south Florida, we can find him, and he can help us to see the decades of successful blockchain enablement that we all somehow missed.  Maybe, we slept through the last decade and that blockchain sales rep is not to be found because we’re looking on a beach and not in the desert or a retirement home or maybe the blockchain panacea simply did not happen and maybe we are all looking at the beginning of just another panacea, the generative AI panacea. 

Supply chain traceability nonetheless remains elusive and soon enough the (Artificial Intelligence) arguments will replace all of the blockchain panacea arguments and all will know that the new panacea has arrived. Much like its blockchain predecessor, the Artificial Intelligence Panacea will solve or at least claim to solve all of our issues by providing a remedy for every difficulty including supply chain traceability.  It is entirely possible to imagine that many more activists than even the blockchain could muster will claim the Artificial Intelligence Panacea has arrived while touting the benefits of something they have not experienced in their lives, in their business, or on their phones. 

Even as this article is being compiled, publishing companies that promote crypto awareness – the big money promoters for blockchain investors have been putting forth articles all but debunking their own investigative journalism of days no longer present on blockchain technologies and have begun the inevitable shift to the Generative AI panacea.  One such article insists that AI models will grow massively in 2023 while simultaneously emphasizing the value of smaller, more precise models, which seems to take both sides of an argument.  It appears, even for the uninitiated the shift from blockchain to generative AI is occurring in real time. 

Retrieval-based traceability

If we are to make a business case that businesses must now adopt resilient, transparent, and perhaps circular value chains to stay competitive because of shifts in the landscape then we must also make the case that these organizations must lean on technology to do so which also means, by extension, bringing into view retrieval-based traceability.  Retrieval-based traceability infers a reliance on traceable resources and not on panacea.  Retrieval-based traceability infers incorporation of a localized knowledgebase and incorporation of all of the predecessor cure-all projects including efforts in GDSN, RFID, even Blockchain and AI; an approach that brings operational benefits and resolves the universal search for increased visibility. 

Organizations planning to adopt retrieval-based traceability must thereby rely on supply chain traceability solutions to manage the complexities of supply chain traceability, retrieval-based traceability makes these truths apparent: 

1. Traceability systems are powered by traceability data 
2. Traceability data is generated through execution of a variety of business processes carried out by each organization 
3. When we extend the view of traceability data generated through execution of a variety of business processes carried out by each organization to the full supply chain view, it becomes clear that each organization manages its own set of retrieval-based traceability data with supply chain traceability solutions 

If we concede Point 1 that supply chain traceability systems are powered by retrieval-based traceability data and do not rely solely on the latest tech fad, panacea including blockchains, GDSN, EPCIS, and RFID.  We must then concede that advanced supply chain traceability solutions , solutions that enable businesses to monitor their supply chains in real-time and ensure transparency to make data-driven decisions rely on Point 2; retrieval-based traceability data generated through execution of business processes and we can conclude the generative AI ONLY works when retrieval-based traceability data is present. In short, insights form in the presence of data. 

If we concede Points 1 and 2, then we must also concede that the scope of the retrieval-based traceability process in any industry model begins with the initial interaction between the trading parties which means neither generative AI nor blockchain technologies can help us.  The former being dependent on a collection of data and the latter being dependent on event processing according to experts, it’s no wonder that everyone over the past two decades flocked to the newest tech panacea available. 

Traceability systems are powered by traceability data

If Traceability systems are powered by traceability data, then supply chain traceability systems are powered by retrieval-based traceability data not generative AI and certainly not blockchains.  While both might prove valuable and block chains might prove invaluable for shared data storage, the scope of supply chain traceability models most certainly begin with the initial interaction between trading parties at the very beginning of the trade cycle.  

Companies seeking supply chain traceability for their customer base who have expressed interests in sustainability for example will not be easily satisfied by the promise of a panacea having previously invested in several.  Many will immediately recognize the hype cycle and having been through several will wait for things to pan out. The reality of supply chain traceability is that manufacturing entities generate retrieval-based traceability data through purposeful execution of integrated business processes.  When this view is extended throughout the supply chain it becomes apparent that each entity engaged in supply chain traceability manages its own set of retrieval-based traceability data. 

Initial Contact between the Parties

Manufacturing companies and their suppliers must engage in ‘initial contact’ steps in order to set up an initial business understanding before supply chain traceability can proceed. While initial contact processes may vary, the most efficient path to success is for manufacturing companies to contact all of their active suppliers at once.  Such plans must be carefully executed and extended by a team of experts in data collection and storage as one might find attached to supply chain traceability solutions.  The initial contact process must include precise transactional guidance to ensure that retrieval-based traceability elements are engaged throughout the process so they can be provided and referenced throughout the process that ensues.   

Building a Common Reference

Data alignment between manufacturing companies and their suppliers must include the exchange and storage of succinct item data (catalog) and organizational data through a business process that must include the regular exchange and storage of this data such that it is available for use in latter business processes including manufacturing, procurement, storage, and delivery. Engaging retrieval-based traceability elements such as GLNs and GTINs at the enterprise level and implementing GLNs and GTINs in Order-to-Cash transactions for example is a good way to start thinking about referenceable retrieval-based traceability elements that will be used later in the supply chain traceability solution.  While GLNs and GTINs may be considered by many to be the most efficient data keys; style, color, size and DUNS numbers work just as well in some industries; the point being the path to a systemic understanding of one’s supply chain is dependent on retrieval-based traceability data, which includes the unique identification of items and locations. 

Evaluating and Approving Goods for Procurement

Manufacturing Companies will then have to undertake an internal process for evaluating and approving goods for procurement based on retrieval-based traceability elements at the unique item level, which will extend to a lot and batch level and perhaps serialization in some manufacturing actives in order for supply chain traceability to proceed.  Evaluating and approving goods for procurement in order to be practical will take place in supply chain traceability solutions.  Evaluating and approving goods for procurement must include some measure of business process automation, succinct messaging, and precise transactional guidance to ensure that retrieval-based traceability elements are present and exchanged between manufacturing companies and their suppliers on an ongoing basis. Business process automation that allows for an approval process while linking batch and lots with internal catalog items for use in the manufacturing process such that they can be authorized for requisition and available to procure within the manufacturing entity. 

Price/Sales Catalog Business Messages

Manufacturing Companies must include Price/Sales Catalog messaging where trading partners begin the process of trade by exchanging basic business information related to the goods traded.  Price/Sales Catalog business message sent by the supplier to the buyer of the expected product line, includes trade item details such as unique item identification, product description, introduction, and discontinuation dates.  The key data and retrieval-based traceability elements in this exchange include unique item identification structured as data carriers such as a GTIN, UPC, or in the case for many Textiles & Apparel Manufacturing Companies; a combination of retrieval-based traceability elements, style, color, and size.   

Price/Sales Catalog messages are typically sent from a supplier’s system capable of supply chain traceability to a buyer’s system also capable of storing retrieval-based traceability elements consistent with supply chain traceability in order to provide the buyers with information regarding products and product lines and traceability elements.  Price/Sales Catalog messages are not considered as ‘one-time’ responses to a buyer’s request, rather Price/Sales Catalog messages should be considered as updates to the buyer’s internal catalog of supplier product information, ongoing and regular.  In terms of supply chain traceability Price/Sales Catalog messages may therefore be sent from the supplier to the buyer whenever the supplier’s product line changes.  The Buyer, by maintaining an internal catalog of a supplier’s products containing retrieval-based traceability therefore becomes more adept, knowledgeable, and better at identifying trade ready goods for the manufacturing process. 

Report of Test Results Business Message

The Report of Test Results business message supports supply chain traceability by supporting sellers, distributors, and testing services; the results may be required in support of consumer product safety or as part of a continuous improvement program or a product development process. The Report of Test Results business message relies on retrieval-based traceability elements and is used to transmit the results of independent tests performed to satisfy a business, product, or process requirement and in support of supply chain traceability.  Retrieval-based traceability data contained by Report of Test Results business message include the unique item identification as a data key, a product description, testing information, inspection data, certification data, and in some cases process control and other measurements, which might be required by industry.  Steel manufacturing, underground pipelines, utilities, are among those industries interested in supply chain traceability.  Textiles & apparel manufacturing companies are particularly interested in supply chain traceability for organic cotton and fiber traceability which must include retrieval-based traceability elements to be successful, RFID or EPCIS cannot manage it independently. 

The buyer’s internal catalog, requisition and approval processing

While supply chain traceability processes vary by organization, the exchange of Price/Sales Catalog business messages and the Report of Test Results business message are critical to the procurement process and particularly so in requisition and approval processes.  The procurement process may therefore begin with one or more approval workflows, workflows that rely on retrieval-based traceability elements stored in supply chain traceability solutions.  The approval process might include a requisition process and a Report of Test Results approval process.  Manufacturing companies may choose to purchase products and test them internally by leveraging internal labs or then send them out for independent testing to external labs in order to gather retrieval-based traceability elements.  Manufacturing companies may also require samples be sent by the supplier to independent laboratories at their own expense in order to gather retrieval-based traceability elements for supply chain traceability.  In either scenario, manufacturing companies will have to (1) be prepared to define an internal approval process for the purchase of trade goods and (2) be prepared to define to organize a procurement process to account for and track purchases, shipments and costs related to subsequent transactions in the calculation of total costs in their supply chain traceability solution. 

Ordering, Delivering, and Paying for the Goods

Manufacturing Companies today are likely to embark on a hype cycle endeavor, an endeavor which might include Generative AI, GDSN, RFID, block chain, or something which influencers have been conditioned to believe and promote and that manufacturing companies are likely to engage. 

Manufacturing Companies engaging in trade will most certainly leverage an ‘Order to Cash’ or ‘Procure to Pay’ process in the production of goods for sale.  These manufacturing companies, regardless of industry, should consider the extent to which retrieval-based traceability elements are present, stored, and available.   

Manufacturing companies regardless of industry must consider the extent to which their ‘Order to Cash’ or ‘Procure to Pay’ process includes supply chain traceability.   

If we believe the influencers, if we believe the hype, if we believe the days of a linear, one-direction supply chains are behind us and if we are to do our part as prescribed by these experts, then our supply chain traceability solutions must accommodate ‘Order to Cash’ or ‘Procure to Pay’ processes that include retrieval-based traceability elements. 

Built for industry experts, PartnerLinQ stands out as the premier supply chain platform that redefines supply chain traceability, digital connectivity, end-to-end visibility, and decision intelligence. PartnerLinQ’s innovation empowers real-time decision-making, fosters collaboration with business partners, and enhances predictability within complex multi-enterprise supply chain networks.  PartnerLinQ is where retrieval-based traceability elements are present, stored, and available out of the box, not as an afterthought but as a matter of practice. Harnessing the power of cloud technology, PartnerLinQ ushers in a new era of supply chain efficiency, optimization, and performance that improves your bottom-line, nurtures sustainable growth and includes supply chain traceability.

“Plastics” was the single word of business advice from a guest from an older generation to the young Dustin Hoffman in the movie, ‘The Graduate.’ One word that all at once seemed to describe every bit of the business knowledge the young graduate would need. Clean, tidy, packaged, and delivered with such precision that 55 years later, a faint social memory finds meaning in the attachment to that word.     

Today’s C-Suite executives have much more on their minds, often far-flung from memories of a film, far removed from a dated vision of a sterile, mindless office, a different view of business life that has emerged in the past 50 years. The 1960s view, brought about mainly by the values of a previous generation looking forward to a modern age and boring almost by definition, has emerged in today’s business environment. A far-reaching, multi-geographic, multi-cultural colossus of a business universe. Typically headquartered in a major city or strategically located, these businesses serve thousands of customers or handle millions of product combinations, shipping from multiple fulfillment centers and growing e-commerce brands. An entirely new definition of a business that could never be reduced to a single word of business advice delivered in a one-off conversation at a party delivered in a single word.  

The story of ‘The Graduate,’ instead of a message about business by way of a single word, is about change, systemic change where creating a stable and sustainable business environment in a complex business world is a real daily challenge. The stability we once thought of as an everyday casual occurrence has changed forever. If we have learned anything from the COVID-19 experience, it is this: nothing we held as fact is the fact any longer, no service that we perform, and no product that we buy, sell, ship, or deliver is protected, and nothing should be overlooked as we seek opportunities to gain a foothold or a business advantage in the “New Normal.”  

This brings us back to our current reality in the new world. A world where giants continue to emerge from increased consolidation even in far-flung markets deep in the interior of this and many other countries. Companies that began as simply as a man and his truck are now run by corporate boards and C-Suite executives who find themselves in Multi-Enterprise Supply Chain Business Networks (MESBN) with multiple companies to run and precious resources competing for funds. Where does one begin? Is it better to reduce costs or increase revenue? Which job gets tackled first, which takes precedent, or is there an opportunity for both? Is enterprise consolidation the first order of business, a process that could take years and resources, or is multi-enterprise collaboration the way to go? What about flexibility? Is there a way to tread on more than one path?  

When a business grows through extension, acquisition, and consolidation, outcomes vary, and results are mixed. Rarely does an extension, acquisition, or consolidation mean a ‘plug and play’ migration meaning that a migration path needs to be defined, and that becomes the responsibility of the C-Suite. Navigating the consolidation path, from ‘old’ to ‘new’ or several to one system, means critical thinking, tough decisions, and balance.  

What becomes necessary is a multi-enterprise collaboration networks and integration platform that supports multi-enterprise collaboration and migration at every stage of execution, whether your business has grown through extension, acquisition, or consolidation. The market at large prefers a solution that is popular with the world’s most recognized brands and leading vertically integrated producers, marketers, and distributors; and one that puts them in complete control of their B2B API & EDI (Electronic Data Interchange) supply chains and delivers end-to-end visibility, limitless flexibility, connectivity & control whether single or multiple enterprise environments exist.   

The market will inevitably reach for a platform that can help bridge the gaps during systemic migration and/or consolidation, ERP (Enterprise Resource Planning) to MRP, CRM (Customer Relationship Management) to CMS (Content Management System) makes a little difference. The solution must be compatible with most migration and/or consolidation efforts. The solution must increase supply chain resilience, flexibility, visibility, and control by increasing velocity and improving the ability to respond to gaps or disruption with confidential alerting and insight. The market will seek out a complete solution, sometimes by trial and error, working their way through several solutions over the years, and will seek a solution with extensive B2B API & EDI capabilities that put them in control of their multi-enterprise supply chain business networks. The key to selection is ensuring that the business can continue supporting the existing business while integrating new relationships with multi-enterprise business process enablement and intelligent planning & forecasting.  

The platform selected will use intelligent workflows that provide a robust and cohesive experience and help mitigate supply chain challenges by helping simulate the impact of internal and external drivers, then identify the next best action and help clients adjust the business plan accordingly. The selected platform will support enterprise users by coordinating business processes across multiple enterprises, environments, and solutions already in place.    

The most highly desired platform solutions to bring supply chain resilience will be highly scalable cloud-native multi-tenant multi-geography B2B API & EDI hyper-scalable high-performance SaaS (Software as a Service) platforms that integrate natively with client and partner ecosystems and e-commerce channels for meeting B2B API & EDI challenges. The most highly desired solutions will allow its clients to transform and extend their organization’s supply chain, customer, and partner ecosystem while unifying channels, boosting loyalty, accelerating and advancing collaboration, and turning acquisitions into assets.  

In short, multi-enterprise supply chain business network is essential to create supply chain resilience and connected supply chain ecosystem that can adapt to conditions in flux while continuing to meet customer demand by breaking down traditional silos. PartnerLinQ is committed to ensuring enterprise clients have the tools necessary to embrace collaboration and build supply chain resilience. Contact PartnerLinQ’s supply chain experts and explore how to transform your supply chain ecosystem to be more collaborative and agile.   

As a supply chain leader, you understand the challenges of navigating through disruptions while managing risk and maximizing rewards. Today, it’s more important than ever to stay ahead of the curve and explore the latest trends in the industry. This is where the Gartner Supply Chain Symposium/Xpo™ conference comes in.

This event is a must-attend for Chief Supply Chain Officers (CSCOs) and other supply chain leaders who are looking to predict disruptions, and even use them to their benefit. The world has changed economically, socially, and politically, elevating the importance of supply chains. With the power to leverage their credibility, confidence, and commitment, supply chain leaders can profitably deliver in times of unprecedented stress and volatility.

Let’s take a closer look at what you can expect from this event:

Strategic Supply Chain Direction:

At the Gartner Supply Chain Symposium/Xpo™ conference, you’ll gain insights, strategies, and frameworks that will help you think big and drive real impact within your organization. PartnerLinQ, one of the key sponsors of the symposium, will be available at booth number 139 to have one-on-one interactions with supply chain and technology leaders and business users. They’ll cover the whole nine yards of supply chain transformation themes, including but not limited to:

• Discussing strategic directions of supply chain to bring agility, optimize costs, and improve customer and partner experiences.
• Supply chain planning and visibility initiatives to build a more competitive enterprise in the dynamic economy.
• Developing and managing strategic sourcing planning.
• Strategies for bringing effectiveness and efficiencies in manufacturing, logistics, and distribution functions.

Invest in your Network:

The event isn’t just about gaining knowledge – it’s also about building relationships. Networking is an important part of any industry event, and the Gartner Supply Chain Symposium/Xpo™ conference is no exception. By engaging with PartnerLinQ’s technology, EDI, and supply chain experts, you’ll find opportunities to share your ideas and experiences. We’ll build new relationships, broaden perspectives, and uncover ways to solve problems alongside other supply chain leaders.

PartnerLinQ will also be moderating a roundtable session, moderated by Deepak Das, SVP Digital Transformation at PartnerLinQ, on May 9 at 3pm EST in room Europe 6. Additionally, you’ll hear from PartnerLinQ’s SVP, Head of SaaS Products and Platforms, Ahmed Raza, on the topic “Collaborative Planning for Supply chain Resilience” on May 8 at 6:05 PM EST on Stage 1. In this session, you’ll discover how collaborative planning can benefit businesses in today’s competitive environment.

Meet PartnerLinQ Experts:

Another exciting opportunity at the event is the chance to schedule a one-on-one meeting with PartnerLinQ’s experts. This is your chance to discuss your supply chain priorities and challenges, prioritize what to accelerate, unlock resources for digital investments, make meaningful cultural changes, and so much more. No matter where you are on your digital business acceleration journey, PartnerLinQ is here to help you get to your destination faster – with confidence.

The Gartner Supply Chain Symposium/Xpo™ conference is a must-attend event for any supply chain leader looking to stay ahead of the curve and drive real impact within their organization. By attending, you’ll gain actionable insights that will help you mitigate risks, respond to disruption, pursue digital initiatives, and prioritize technology investments to achieve your business goals. Don’t miss out on this incredible opportunity – register today!

The retail industry has been rapidly evolving, driven by changes in consumer preferences, technological advancements, and intense competition. Customers now strongly influence product trends through their reviews and social media presence and often perform extensive online research before making a purchase. In 2023, total US retail sales will hit $4.7 trillion, of which online sales will top $1.1 trillion. 

As businesses adapt to the new realities of the digital age, supply chain management in retail (SCM) has emerged as a potential competitive edge. SCM refers to the end-to-end management of goods and services, from raw materials to final product delivery. Retailers can differentiate themselves from the competition by providing a reliable supply chain and supporting sustainability goals. To achieve this, they must invest in tailored processes and application portfolios that improve the customer experience. 

Making Supply Chain Management a Competitive Advantage

Supply chain disruptions are not new, but the COVID-19 pandemic has highlighted the vulnerabilities of global supply chains. Such disruptions can have significant financial implications for businesses. However, proactive companies can navigate these disruptions. For example, Nike used technology to track products moving through outsourced manufacturing operations during the early stages of the pandemic. By utilizing predictive-demand analytics, the company minimized the impact of disruptions. The result? Nike’s supply chain management strategy allowed the company to track “1 billion units at 99.9% readability” Nike was able to limit sales declines in the region to just 5 percent, while competitors experienced much more significant drops in sales.  

Agility & Resilience

Agility and resilience are crucial in today’s fast-moving and consumer-centric world. Traditional supply chains are no longer adequate. Supply chain management in retail needs to be much more dynamic, predictive, and responsive to changes in demand and the product and channel mix. Investing in SCM transformation can provide several benefits for retail, distribution and wholesale, and CPG businesses. It can boost revenue and customer service by synchronizing inventory availability with local cross-channel demand, increasing revenue and margin across channels. SCM transformation can also lead to shorter lead times, accelerate inventory turnover, generate one-time working capital savings that can fund the whole program, and reduce inventory carrying costs. 

Improved Carbon Footprint:

As customers become more environmentally conscious, retailers who demonstrate their commitment to sustainability can gain a competitive edge. By investing in the transformation of supply chain management in retail, companies can efficiently place their inventory in the network ahead of anticipated demand and closer to customers, reducing their carbon footprint. This approach not only contributes to environmental sustainability but also enhances customer satisfaction. The Science Based Targets Initiative reported that in 2020, 94 percent of the 239 companies that joined the initiative made commitments to reducing emissions from their customers and suppliers.

The Next Steps:

Supply chain management in retail has always been complex, but recent global events have highlighted the need for increased resilience, agility, and sustainability. However, simply adding these priorities to existing systems won’t cut it anymore. A complete shift in mindset is required to integrate them into supply chain design, organization, and operation. This shift in mindset starts with top-level changes and the incorporation of risk, agility, and sustainability performance indicators. By prioritizing these indicators, retailers can begin to understand the key drivers of their supply chain risk and take proactive steps to mitigate them.

It’s time to take action and make these priorities a reality. To stay ahead of the curve and learn more about these changing trends, take advantage of this on demand webcast. This is an opportunity to gain the latest insights and learn how to integrate resilience, agility, and sustainability into all aspects of supply chain design, organization, and operation.

In today’s rapidly changing retail landscape, the collaboration between retailers and their suppliers has become more critical than ever. This is particularly true for perishables, short product lifecycle merchandise, and a broader range of products. However, these same products also drive traffic, revenue, and margin for retailers, making it imperative for retailers to find a way to offer a wide choice to customers while managing the risks associated with these products.

The COVID crisis forced retailers and CPGs to limit the variety of products to manage supply chain disruptions. As the situation has improved, the race is now to provide customers with a broad selection of products.

This blog outlines everything you need to know about collaborative retail planning and why it’s important for your business growth.

But First, You Need to Know the Cost of Poor Collaboration

The cost of poor collaboration between retailers and their suppliers can be significantly high and manifest in various ways. One of the most significant risks associated with poor collaboration is markdowns or write-offs for perishable items; this can be costly. When retailers and suppliers fail to work together to manage inventory levels, they can end up with excess perishable items they cannot sell before their expiration date. This can result in markdowns, reduced margins, and a negative perception of the brand and product.

Out-of-stock situations can also result from poor collaboration, as retailers and suppliers need to communicate more effectively about inventory levels and demand forecasts. When a product is out of stock, customers may shop elsewhere, resulting in a loss of sales and reduced customer loyalty.

Another challenge associated with poor collaboration is a poor return on inventory investment, which can be especially challenging for retailers during the COVID crisis. Retailers need to track key supply chain metrics like Gross Margin Return on Inventory (GMROI) to understand how well their inventory investments perform. In response to supply chain disruptions, many retailers increased safety stock parameters to ensure that staples like rice and pasta were always available to customers. This has reduced inventory turnover, which can negatively impact the return on capital employed.

Finally, poor collaboration can result in failed promotions, where retailers and suppliers fail to coordinate effectively on promotional pricing, timing, and marketing. This can result in a lack of interest from customers and missed sales opportunities.

So, what is Collaborative Retail Planning?

By definition, “Collaborative retail planning” is a strategic approach that involves retailers and suppliers working together to optimize the entire supply chain. This approach requires significant communication, transparency, and trust between retailers and suppliers. This process allows retailers to make more informed decisions and plan for demand more accurately. It involves sharing critical data between retailers and suppliers, such as sales trends, inventory levels, and marketing strategies. By doing so, both parties can identify areas to improve the supply chain, reduce costs, and increase efficiency.

Collaborative retail planning has been a hot topic in the industry for years, with early conversations dating back to the early 2000s. However, until recently, planning systems have struggled to support meaningful collaboration between retailers and their partners. This has resulted in many legacy systems being unable to meet modern supply chain demands.

Fortunately, advances in supply chain solutions have made it possible for retailers and CPG companies to collaborate effectively and gain end-to-end supply chain visibility. The key to this collaboration is a data-sharing routine that provides real-time visibility into supply and demand signals, allowing both parties to mitigate the bullwhip effect and prevent unexpected changes.

L’Oréal is an excellent example of a company that uses collaborative innovation to its advantage. The annual “Cherry Pack” exhibition offers suppliers a preview of the consumer trends L’Oréal would be working on and asks them to develop packaging solutions in harmony with these trends. The trust-based forum created during the exhibition enabled suppliers to present ideas and products still in development, ultimately accelerating packaging innovation.

Why Should You Care About It?

Effective collaboration between retailers and supply chain partners offers numerous benefits, including the ability to align business objectives, anticipate and prevent potential problems, improve planning accuracy, increase operational efficiency, and reduce inventory throughout the supply chain. According to a McKinsey study, companies that collaborate effectively with their supply chain partners regularly outperform their industry peers, with 2x higher growth and 4.9% more in EBIT.

One of the primary benefits of collaborative retail planning is improved accuracy in demand forecasting. By involving all stakeholders in the planning process, companies can access a wider range of data and insights, leading to more accurate demand forecasting. This can help to reduce overstocking, minimize waste, and increase customer satisfaction. In addition, companies can identify trends and patterns that may not be visible when working in silos, leading to more informed decision-making. 

Another critical advantage of collaborative retail planning is a reduced risk of stockouts. Companies can ensure that products are delivered on time and in the right quantities by working closely with suppliers and logistics providers. This reduces the risk of stockouts, which can negatively impact customer satisfaction and the bottom line. By leveraging collaborative retail planning, companies can have better visibility and control of the entire supply chain ecosystem, from production to delivery, and proactively address any issues. 

Collaborative retail planning helps to increase efficiency by reducing the need for multiple, separate plans. This can increase efficiency, cost savings and improve supplier and retailer relations. When all stakeholders work together towards a common goal, they can identify areas to streamline operations and eliminate redundancies. This can lead to better communication, faster decision-making, and a more efficient supply chain.

Overall, collaborative retail planning is essential for any retailer looking to improve their supply chain. By working closely with their suppliers and partners, retailers can reduce costs, improve forecasting accuracy, and build stronger relationships. This approach can help retailers stay competitive, increase profits, and provide better customer value.

What’s Next?

Collaborating between retailers and their suppliers is essential for managing the risks associated with perishables, short product lifecycle merchandise, and a broad range of products. Retailers must work closely with their suppliers to manage inventory levels, communicate effectively about demand forecasts, and ordinate promotions to meet their customers’ needs and drive revenue and margin growth. By doing so, retailers can stay ahead of the competition and succeed in today’s dynamic retail environment.

PartnerLinQ is a robust supply chain transformation cloud-native platform that helps bring multi-enterprise collaboration with network visualization, intelligent planning and forecasting, and actionable insights. Join PartnerLinQ with Forrester on this upcoming webinar to explore more about collaborative retail planning and how it can help bring supply chain resilience. 

While the Great Disruption had a huge impact on health and daily lives, it also significantly influenced businesses. The largest business disruption in history left in its wake layers of adverse economic and supply chain conditions. Almost overnight, businesses the world over needed to ensure safety while simultaneously protecting their businesses and livelihoods, the latter of which remains under stress from residual disruption.

Businesses have been focusing on quick responses to mobility changes and handling crises, but now, supply chain leaders are shifting their attention to rebuilding for long-term success in the post-disruptive world. They are creating a solid foundation for recovery in the new normal.

Fissures in Manufacturing

The effects of supply chain disruptions have been keenly felt by everyone and by most accounts we are all players in a global supply chain whether directly involved in supply chain activities or not, and the impact of supply chain disruptions manifested in many different ways.

Manufacturing, for instance, is one of those industries, which faced maximum adversity from supply chain disruption . Even today, global manufacturers are facing increasing cost pressures due to shortages in the global workplace due to the initial pandemic outbreak, shutdowns, and reopening. At the same time, they are facing shortages of raw materials, ingredients, components, and packaging.

Excess demand as a result of the global supply chain disruption, continues to impact finished goods with some still hard to find, impacting costs further still. A recent study has revealed that the skills gap in US manufacturing will culminate in 2.1 million unfilled jobs by 2030 and cost the country a staggering $1 trillion. Shortages in the workforce and increasing demand are signs that the disruption exposed a fundamental flaw in the production methodologies that dominated the past 100+ years— lean manufacturing, a process founded in the production of interchangeable parts.

When batch production techniques went “The Toyota Way,” lean manufacturing moved from concept to production and on to rival to batch production methods of years past. The lean approach was well suited to a rapidly growing global economy by doing away with excess inventories and decreasing warehousing expense.  It incentivized diversification and product innovation and boosted shareholder value.

Lean manufacturing rested on an assumption of a settled economy where irregular disruption is impossible, rules always fixed and the sun always shining. The technology evolution in the 90 years since the Japanese automaker decried batch production localized setbacks in lean supply chains kept lean technologies malleable.  The unforeseen supply chain disruption caused an unparalleled interruption of markets, factories, and products. The mandated lockdowns added shipping times and created shortages in labor in all areas of production and transportation. The pursuit of success through “lean” coupled with an unprecedented disruption acutely hurt manufacturing businesses worldwide.

Empty Tables to Empty Plates

There was some realization of hope as restaurants started reopening gradually following the ‘Great Disruption’. Relaxed restrictions meant some businesses were able to restart their takeout business or convert dining services during continuing lockdowns. Following the disruption there was a slight upturn in some geographies, unfortunately for most of us, some of our favorite spots will never return.

Long-standing supply chain pressures continue to affect the recovery phase, like many recoveries, supply chain pressures affect manufacturers, dealers, and consumers. A Reuters report found as many as nine restaurant firms and fast-food chains, including Wendy’s, Subway, and Chipotle  continue dealing with shortages of key ingredients from time to time. The ingredient shortage is indicative of the larger pressures inflicted by the disruption on global supply chains and particularly in transportation resulting in widespread product unavailability. In the absence of visibility and transparency across supply chains, industry insiders expected bottlenecks and shortages to last well into 2022, and they have.

Empty Stores to Empty Shelves

In retail, e-commerce has become a rising star with few retailers immune to stock shortages, supply channel breakdowns, and dramatic changes in consumer behavior, there has been an unprecedented scramble to shore up web store integration. A dichotomy has been observed among retailers, the first group brings in supplies from a wider supplier base, whereas the second group has more specific product requirements, such as department stores, and thus, find it more difficult to move sourcing of supply.  Initially coupled with varying degrees of lockdowns, the separation of the first and second type of e-commerce retail widened at first and became acute in fashion retailing where goods are contracted months ahead of time accounting for both changing styles and transportation.  

During this period Macy’s reported a 14.5% drop in inventory from Q2 2019 due to difficulty obtaining products. The cost of shipping goods quickly became much more expensive, leading to conversion to air freight for luxury goods. Dollar Tree, a US-based discount variety chain found difficulties with freight expenses and supply chain shortages with $185-200 million in freight costs anticipated for the 2021 season even announcing a departure from the pricing model that made their name synonymous with their business strategy. Mitigation of such a variety of factors in a complex web of supply chain activities even now has been difficult and particularly so when coupled with razor-thin margins and a complicated supply chain.

The Road Not Taken

What was once a routine, methodical industry has become chaotic; the supply chain disruption significantly affected transportation and logistics. Increased labor shortages and simultaneous increases in demand and fuel have driven transportation costs up significantly. Globalization has created a neatly demarcated system with production facilities on one side of the planet and consumers in developed markets on the other side. Transportation serves a key role particularly in western societies.

Shipping containers contribute to conundrum, with nearly 25 million in use worldwide, shippers and carriers have container availability and procurement written into their annual agreements, which have strict provisions for non-stop service and/or a minimum number of trips per week. Today, logistics managers negotiate for ship space in the spot market, where daily rates for containers are at the mercy of freight agents and carriers. Even within national borders, companies face hurdles in clearing houses and in dealing with excess demand.  Legacy solutions designed to overcome these obstacles have failed to deliver relief.

Staying Ahead of the Curve – The Value Proposition

PartnerLinQ Multi-Tennant Cloud Platform

A hybrid cloud architecture that ensures local systems can handle even the largest volumes of transactions per month

Simplified IT Infrastructure

PartnerLinQ integrates seamlessly with legacy systems and Multiple Cloud architectures.

Enhanced visibility to Address Pain Points

Real-time insights are key to deliver consistent value to consumer and partners at every touchpoint.

Integration at the Speed of Business

PartnerLinQ simplifies the partner on boarding process through its Common Processing Workflow; complemented by the Business Rule Manager, an entire migration process involving thousands of partners are regularly integrated in months and not years.

About PartnerLinQ

PartnerLinQ is a highly scalable GCP cloud-native multi-tenant multi-geography B2B API & EDI hyper-scalable high SaaS performance platform that integrates natively with partner ecosystem & e-commerce channels with native solution for meeting B2B API & EDI challenges.  Reimagine control, visibility, and transparency across your global supply chain and e-commerce. Unify channels, boost loyalty, gain complete visibility, and accelerate order fulfillment. Manage global supply chains, material planning, package sourcing, and omnichannel retail, drive growth powered by cutting-edge technologies and unlock valuable insights with Visionet products.

About Visionet

Visionet creates value-driven digital transformation tools like PartnerLinQ that digitize business imperatives and scale the highest summits.  Time-tested products for CPG & Retail, Apparel & Footwear, Banking & Financial Services, Insurance, Pharmaceutical, Food & Beverage, manufacturing & Distribution.  

Industry Application

PartnerLinQ creates value-driven digital transformation that digitize business imperatives and scale the highest summits with time-tested products for CPG & Retail, Apparel & Footwear, Banking & Financial Services, Insurance, Pharmaceutical, Food & Beverage, manufacturing & distribution.

Enterprise Connectivity at the Speed of Business

PartnerLinQ is the result of Visionet’s decades long industry expertise and technology leadership. Hosted on the Google Cloud Platform, PartnerLinQ is an innovative, process-centric, easy-to-use B2B API & EDI platform solution that enables API-led, cloud native integrations.  A simplified B2B communication engine that includes EDI, AS2, SFTP and real-time APIs, PartnerLinQ is a fully integrated platform and easily handles both standard and proprietary file-based formats including custom integrations. PartnerLinQ is well suited for retail, e-commerce, wholesale, transportation, 3PL, as well as distribution, digital and analog partner ecosystems helping your team achieve operational efficiency and gain real-time visibility.

Advanced Technology Leadership

The PartnerLinQ & Visionet teams share more than 34 years of experience in providing industry-focused technology, consulting, and development of innovative solutions that drive global supply chain transformation from the factory floor to the consumer’s doorstep. They share vision and a technology practice that includes leveraging the Google Cloud Platform to build, test, deploy, and manage large-scale enterprise solutions for its clients so when the leadership set out to build PartnerLinQ, it made perfect sense to build, test, deploy, and manage the PartnerLinQ integration platform from within the Google Cloud Platform.

The global supply chains are becoming more volatile than ever. Customer expectations are shifting, triggering modern technology adoption for many enterprises. Difficulties in onboarding trading partners further add to the struggle. What are the possible types of EDI solutions to address the matter of exchanging EDI transactions holistically, and do these various types of EDI solutions include other things, such as different types of EDI Transactions? 

An effective Electronic Data Interchange Solution simplifies the exchange of electronic documents among partners through system and app integrations and cultivates collaboration via EDI and non-EDI exchange. As a result, the solution packages and delivers visibility, control, and optimization. In simple terms, it’s a feature-packed solution that enables intelligent decision-making in real-time. While these EDI technology solutions are critical to driving tangible business outcomes, particularly in recent years, the decision process is complex at the same time. This is why parties investigating Electronic Data Interchange Solutions must have a relatively deep understanding of the different types of EDI solutions before investing.

Identifying the Best Electronic Data Interchange System

The best way to develop a sound understanding is to start right from the beginning. EDI solution providers are organizations that offer EDI software and services to companies looking for data exchange services, in short, a solution to assist with the transportation, transformation, and integration of trade. EDI systems, from this perspective, help you seamlessly exchange business documents between your partners by leveraging an EDI solution which could be on-premises or cloud-based. Some are provided as managed, while others are self-service. The solution ensures completeness, data validity, and security.

Before we proceed, it is critical to understand the types of EDI solution providers in the market so that you can identify the best electronic data interchange system.

Types of EDI Solution Providers

There are five types of EDI solution providers offering one or more types of EDI solutions. In addition to services, they also differ in terms of industries and the business size they cater to. Take a look at these to identify which type will work best for your enterprise.

1. EDI Broker

An EDI broker typically provides a comprehensive set of EDI solutions. They offer value-added network (VAN) connections and, at the same time, help companies connect to particular trading partners or networks.  EDI brokers typically do not have their own network; instead, they serve in the capacity of an outsourced EDI staff, typically focusing on one or several industries. They provide everything from data entry to data translation services, ensuring that your EDI documents are transformed from your core systems to that of your partners while adhering to customer requirements and guidelines for various standards. 

An EDI broker ensures that any company and startup, in particular, can easily share EDI documents with their partners without investing a great deal or compromising security. EDI brokers most often assist when a trading partner lacks EDI software of their own, and a few EDI brokers even support non-EDI formats. EDI brokers are typically engaged with the market where revenue is at the lower end of the industry spectrum and are ideal for small companies and startups.  Eventually, these users reach a point where the brokered solution can no longer serve their needs. If your business involves complex integrations hybrid EDI scenarios, EDI brokers may fit your business. If your business is already involved with a brokered type of EDI solution and you are not getting the needed services, you may have outgrown your present solution.

2. Fully Managed Service Provider

Fully Managed service providers offer end-to-end EDI software and/or services just beyond the scope of an EDI broker. They may offer software or cloud-based services and help you translate EDI messages in multiple formats and transform and transfer your data. Their services may be an overreach for some as they are also involved in partner mapping, ERP integration, error handling, and resolutions. 

If you are looking to outsource your entire EDI function and invest your resources in other tasks, this might be a suitable choice for you. If you want to invest in EDI, EDI talent, and do some things yourself, while these service providers may help you achieve your goals, they can also inhibit your growth. While fully managed services work well for many SMEs (Small to medium enterprises), some of the drawbacks of a fully managed service include limited control and visibility. This can lead to unexpected costs and challenges to upgrading to a new ERP, MRP, CRM, WMS, CMS, or TMS.

3. VAN Providers

VAN providers have been around since the inception of EDI. VANs provide secure, outsourced networks that connect organizations with their trading partners across the globe. A value-added network (VAN) can help you securely send and share data with your partners and provide an outsourced network enabling seamless connections between global trading partners. Large enterprises can leverage this type of network to securely transmit documents from their EDI mailbox to a particular trading partner’s EDI mailbox through a service like a post office, but electronically. By enabling a secure network, they simplify communication between cloud-based EDI providers or internal networks using pre-connected connections with trading partners.  

Some EDI VAN providers also offer supplemental services like data backup and recovery, document mapping, compliance, and performance tracking, and have grown largely through acquisition. If your partners are spread across the globe, and you lack needed network capabilities, a VAN service may be helpful to your business. However, VANs were initially developed for large companies and may be costly if your data exchange volume is high or may cause difficulties if your partner’s messaging format varies from yours. While VANs have long claimed to have a competitive advantage by way of their networks, the supply chain today is full of complexities, something that cannot possibly be resolved by way of a single network.

4. EDI AS2 Providers

Breaking away from the traditional VAN providers are the AS2 Providers.  EDI AS2 (Applicability Statement 2) providers allow for the secure transmission of various types of data, such as EDI and XML, over the internet using HTTP and TCP/IP. AS2 can also be used to transmit images and complete PDF documents, something a traditional VAN is unprepared to do. Among these variations today associated with conventional EDI, these AS2 services are widely used to ensure seamless integration with trading partners, allowing you to handle any file format.  

AS2 providers are typically an addition to a VAN, managed service provider, or brokered EDI relationship. AS2 services require message disposition/delivery notifications that acknowledge the reception after the electronic message (document or data) transmits to the sender via AS2 protocol. One of the stated benefits of using AS2 over FTP is the message delivery notification or MDN.  Although some may argue that the MDN replaces the Functional Acknowledgement (997), the message delivery notification (MDN) used in AS2 only indicates a message received. In contrast, the Functional Acknowledgement (997) also confirms the delivery of a document, any formatting errors, or data loss.

Enterprises can leverage MDNs using in-house IT resources or through a cloud-based vendor to determine if a partner is struggling to keep up with transaction volumes and adjust accordingly. If you are looking for an EDI solution that ensures an end-to-end process and helps you securely send unlimited data while being kind to your partners and easy on your pockets, AS2 has proven to be a worthwhile investment.

5. Complete EDI Solution/Providers

A complete EDI solution/provider is the type of EDI solution provider that develops, implements and maintains EDI software for your business and businesses like yours. This is the type of EDI solution capable of bringing to bear many or all of the solutions described above by catering to your core business and enabling seamless connectivity visibility, onboarding, and training. A type of EDI solution that provides an EDI platform, EDI solutions, connectivity and interoperability by delivering, for example, a VAN and an AS2 solution from within the core of the product or platform.  

Enterprises employing such EDI tools can use their own EDI experts to manage day-to-day activities efficiently. Even activities such as error tracking, handling, and alerting can also be automated with a complete EDI solution.  This EDI solution considers integration with one or more platforms or systems, once relegated to custom code as ‘out of the box’, in other words, included with the platform. This EDI solution provider also tends to keep their solutions up to date and improve upon them by regularly updating these platforms, their customers’ instances and keeping their users informed.  

Complete EDI Solutions/Providers also include and deliver training to ensure that your EDI experts stay current with the latest technologies and can use them to deliver critical or time-sensitive transactions across your partners and networks efficiently and without errors. If you are looking for or are expecting to have or maintain complete control and visibility over your entire set of B2B, B2C messaging and/or your API/EDI practice, then a Complete EDI Solution/Provider might be a good fit for you.

PartnerLinQ by Visionet: Enterprise Connectivity at the Speed of Business

PartnerLinQ is an innovative, cloud-native platform that delivers supply chain visibility and resilience by simplifying trading partner connectivity and interoperability. PartnerLinQ’s native app ecosystem adds business context to the traditional integration, minimizing disruption by increasing set-up velocity and improving implementation speed resulting in overall efficiency gains between 30 and 500%.  

PartnerLinQ comes completely preconfigured and installed with capabilities for intelligent hyper-automation, multi-channel integration, and real-time analytics while allowing your team to take control if that’s what they want to do.  It seamlessly connects multi-tier supply chain networks, channels, and marketplaces with your core ERP, MRP, CRM, WMS, CMS, or TMS, delivering unified connectivity to a global client base. PartnerLinQ connects with more than 77 Commerce Platforms, Market Places, B2B Portals, Social Channels, enterprise-level systems and shipping solutions today, so you are ready for today and the future.

– Integration at the Speed of Business

PartnerLinQ simplifies the partner onboarding process through its Common Processing Workflow. Complemented by the Business Rule Manager, an entire migration process involving more than 1,000 partners and customers can be completed in weeks rather than months or years. 

– Scale in Transaction Volume

The PartnerLinQ platform scales automatically from transactions number in the hundreds to more than 60 million transactions. It is available in PartnerLinQ’s Azure-based hybrid cloud architecture and in the Google Cloud Platform, managing more than 8,000,000 transactions per day – nearly twice any required capacity.

– Simplified IT Infrastructure

It integrates seamlessly with your core ERP, MRP, CRM, WMS, CMS, TMS, or legacy systems, as well as Commerce Platforms, Market Places, B2B Portals, Social Channels, enterprise-level systems and shipping solutions to ensure that you are better positioned to drive even greater efficiencies with cooperative technologies, that provide real-time updates and actionable insights.

– Enhanced Visibility to Address Pain Points

Real-time insights are critical for today’s supply chain executives, and PartnerLinQ delivers consistent customer value at every touchpoint. PartnerLinQ’s biggest success comes with its ability to turn falling service ratings into top scores with the biggest clients by providing greater visibility into the operations and the ability to consistently deliver on service-level commitments.

For more information, visit our website.

Raw materials are not only the building blocks of any product we consume but also the starting point. From consumer electronics to food products, manufacturers are involved in procuring, shipping, and storing massive volumes of raw material every day. This makes ensuring adequate supply and efficient management of raw materials critical for all companies involved in the production of goods. Moreover, raw materials are often an investment that affects cash flow as raw material costs have soared in recent months.  Listed as an asset on a company’s balance sheet, soaring costs often mean increased value even during a decline in sales.

Over the last few decades, product companies have been expanding their sourcing networks for cost optimization, looking to strike the best deals in terms of material and logistics costs. This, in turn, has led to increasingly complex supply chains for raw materials filled with single producers of raw goods and strategic partnerships. However, following the disruptions brought about by COVID-19, manufacturers face increasing “cost pressures”, primarily due to shortages in the global workforce. At the same time, they are facing a scarcity of raw materials and, in particular, ingredients. This has led to increased complexities in the supply chains.

Such complexities can easily disturb the delicate balance between supply and demand if not effectively managed. Overstocks, understocks, and product quality and compliance issues can add even more complexities to transportation and warehousing and disrupt the production process. Many smaller producers lack adequate cash flows and reserve capacity to recover from these challenges despite higher company value.

Issues to Address

Working with our clients, many of them are product companies, we have identified the following key issues impacting the supply chain of their raw materials:

– Cost

A raw material supply chain incurs several layers of cost related to energy, transportation and communication, logistics, labor, and even the adoption of newer technologies. While controlling operating costs is often a continuous challenge, a company cost management model can often be short-term and functionally focused. Therefore, optimizing supply chain costs demands greater insight. Through insight, companies can develop analysis models that align with their business values, functional outcomes, and long-term business valuation.

– Visibility

Traceability and transparency are essential in minimizing raw material safety and compliance issues, and visibility is the first step in that process. Companies need the ability to trace materials from the point of manufacture through their entire journey to the point of delivery. Whether inbound or outbound transactions and product flow, it is no longer ‘safe’ to use an age-old “one up / one down” methodology for tracking trade goods. Additionally, consumers are becoming increasingly curious about where their ingredients come from. So, accurate and real-time information from every node across the network can help enhance your brand value and increase customer loyalty. On the other hand, a lack of visibility exposes a company to undue risk and expenses.

– Communication

Fragmented information and a lack of communication leave parties in the supply network without visibility into each other’s actions, leading to inefficiency. A trade relationship lacking collaboration will surely escalate supply chain problems, particularly as markets and raw material networks expand.

Many challenges in supply chain management and raw material partner networks are traceable to outdated systems and processes that depend on traditional paper tracking, manual inspection, and black box integrations lacking adequate reporting systems. Although short linear supply chains can be optimized using spreadsheets or siloed software, modern material partner networks are more complex, involving complicated business relations. Such network complexities include packaging and process materials, which are better served by integrated supply chain solutions that avoid mass customization.

Digital Solutions to Manage Risk

As the ‘Great Disruption’ continues, markets remain volatile. Fluctuating material prices and logistical disruptions due to lockdowns continue to affect the global supply of raw materials. Also, quarantine requirements continue to affect the manufacture of raw materials and finished goods. This raises the urgency for industry leaders to take a more innovative approach to raw material supply chain management. It comprises improvements in forecasting, flexibility, transparency, and increased visibility to capitalize on the new normal.

Industry leaders need to use such forecasts effectively to plan and minimize the impact of volatilities in day-to-day operations. Additionally, leverage a solution that drives down costs and provides a competitive edge via end-to-end supply chain visibility, gaining more stability. 

Modern supply chain solutions can go a long way in formalizing and optimizing raw materials inventory and management.

Key Data Management Capabilities for Inventory Control

A supply chain solution that seamlessly integrates with data management technologies makes a business more efficient and less vulnerable to uncertainty. Advanced data management helps you to optimize inventory control through the following key capabilities:

– Functional Collaboration:

Maintains a consistent flow of information and insights across raw material partner networks, concerned departments, and business functions within the organization.

– Centralized Data Management:

Removes the need to maintain multiple integrations, bringing historical data, open orders, and shipping and invoice data into one unified digital connectivity, integration platform, and transaction processing model.

– Advanced Analytics:

Generate reporting based on real-time transaction processing to enable real-time and data-driven decision-making.

– Forecasting:

Combines data contained by the unified digital connectivity and integration platform and transaction processing model with improvements in visibility to reduce inventory spikes and shortages.

– Financial Planning:

Delivers visibility to your team so they may allocate funds to functions like procurement, processing, and production in time to ensure the quality and timely delivery of your products.

Although supply chain leaders understand the need for streamlined processes related to raw material management, they have had to rely on historical data or educated guesses to forecast future raw material demand for too long. However, data-driven forecasting resulting from functional collaboration and a unified digital platform eliminates waste, improves efficiency, and ensures the on-time delivery of quality products while reducing overall inventory costs.

That’s not all. Organizations with such a data-driven, analytical approach to collaboration can stay more informed while keeping an eye on raw material inventory and gaining significant competitive and cost advantages.

PartnerLinQ by Visionet: Digital Agility at the Speed of Business

PartnerLinQ is a hosted integration platform for EDI, B2B, and API integration; and is the flagship product of Visionet’s industry expertise and technology leadership. The PartnerLinQ team at Visionet has 25 years of experience providing industry-focused technology, consulting, and innovative solutions that drive global supply chain transformation from the factory to the end consumer.

PartnerLinQ is an innovative, process-centric, easy-to-use EDI solution that enables API-led, cloud-native integrations. It includes a simplified B2B communication engine that combines EDI, AS2, SFTP, and real-time APIs and easily handles proprietary file-based formats and custom integrations. With its overarching capabilities, PartnerLinQ is well suited for retail, e-commerce, wholesale, transportation, 3PL, distribution, and digital and analog partner ecosystems, helping your team achieve operational efficiency and gain real-time visibility.

Visionet, a Microsoft Gold Partner, leverages Microsoft Azure for the PartnerLinQ platform.  The PartnerLinQ platform can process thousands of transactions simultaneously across a variety of transfer protocols. Moreover, it transforms X12, XML, Flat Files, CSV, IDocs, and custom formats and can integrate them into more than 74 ERP, WMS, and TMS systems.

Along with its job scheduling and batch job capabilities, PartnerLinQ’s ability to manage increased transaction volume means the entirety of the business workflow is much easier to manage than the black box integrations of yesteryear. Additionally, by optimizing its business rules engine, an extensive library, and ERP integration, PartnerLinQ enables easy partner onboarding, simplified configuration, and access to visual data mappings.

Many businesses struggle to take their data management and exchange processes to the next level. They may be using an outdated Electronic Data Interchange (EDI) solution, or they may not be using EDI at all. 

If your business needs better data management, you may want to consider finding an EDI service provider. Here is an introduction to EDI and 10 considerations when looking for EDI service providers in 2023.

Overview of EDI implementation

In an increasingly digitized world, businesses must also change how they operate. Many companies are now turning to EDI to manage their workflows better.

According to statistics, the global EDI software market size is estimated to reach a whopping $4.04 billion by 2029, compared to $1.88 billion in 2022.

What is EDI? 

EDI is the electronic interchange of business information following a standard format. It’s generally used to streamline transactions between companies. This process was once done using paper documents that had to be mailed back and forth, however, EDI now enables businesses to exchange data electronically and quickly.

What is the difference between EDI and non-EDI?

While EDI refers to the process of electronically exchanging business data in a pre-defined format between systems, non-EDI is the traditional way of exchanging information without any pre-defined format. This would include using paper documents or even emailing attachments back and forth. Non-EDI can be very timeconsuming and expensive due to mailing costs. Non-EDI formats can include: Fixed length flat files, Variable length flat files, Binary files, to name a few.

Benefits of EDI software to a business’s supply chain 

EDI can be powerful to the business supply chain, automating and speeding up processes that would traditionally be done manually or through ineffective processes. Various organizations, including retailers, manufacturers, and distributors, can use EDI software to automate processes and improve data accuracy. It can maximize efficiency, improve overall experience, minimize errors throughout the supply chain, and provide the following key benefits:

• Order management: If your business wants the most efficient way to fulfill orders, EDI is the solution. EDI can automate the process of orders being placed with suppliers and keep up with customer demands. This way, businesses have a way to quickly and easily place orders with suppliers.
• Inventory management: EDI can also help businesses keep track of inventory levels. By integrating with your company’s accounting software, you can get real-time updates on what needs to be restocked. This helps avoid stock-outs and keeps the supply chain running smoothly.
• Shipping and logistics: One of the major benefits of EDI is its ability to streamline shipping and logistics. In tandem with a company’s shipping software, businesses can automatically generate labels and track shipments. 

Top 10 Considerations for Selecting Your EDI Service Provider

To ensure your business is ready for the new year, you’ll want an efficient and reliable EDI service provider. Here are a few considerations to keep in mind when selecting one:

1. What kind of integration is there? Do they support all formats?

A good place to start is to make sure the provider can integrate with all the software you’re using. Finding an EDI service provider that uses an Application Programming Interface (API) for integration is recommended to make it easier to connect with your existing systems. 

Integrated solutions are important because they can automate processes and make it easier to manage data. 

2. Are they industry-agnostic?

Your EDI provider should not be specific to any one industry. This is because your business might branch out into new markets and you don’t want to change providers. An agnostic provider will also be able to give you a more objective perspective on how best to use EDI in your business and cater to your unique needs. 

3. What deployment models do they use?

There are three main deployment models for EDI: on-premise, cloud-based, and hybrid. On-premise means the EDI software is installed and managed on your company’s servers. Cloud-based solutions are hosted by the provider and accessed through the internet. 

Hybrid deployments use a combination of both on-premise and cloud-based resources. The best option for you will depend on your company’s size and needs, budget, and IT infrastructure.

4. How long do they take to implement EDI?

Time to implementation is important, as you don’t want your business to be disrupted for too long. A good provider can give you a timeline for implementation and stick to it. As EDI can be difficult to set up, it’s important to ensure your provider has a good track record with other clients. 

5. Do they have an industry understanding in which you operate? 

You should ensure that the provider you choose has a good understanding of your industry and your company’s specific needs. This way, they can help you select the best EDI software for your business and ensure a smooth transition to using it. 

For example, your provider should be familiar with HIPAA compliance if you’re in the healthcare industry. Or, if you’re in the retail industry, your provider should know about EDI for e-commerce. 

6. Do they have a technological understanding?

You’ll also want to make sure that your provider has a good understanding of the technology you’re using. They should be able to support you and help you troubleshoot any issues you may have. 

Additionally, they should be up-to-date on the latest EDI software and standards so that you can be confident your business is using the best possible solution. 

7. Is it a secure platform? 

EDI data is often sensitive, so it’s important to ensure that your provider has a secure platform. Also, 80% of all cyber breaches happen in the supply chain, and 72% of companies don’t have full visibility into their supply chains. The platform should comply with industry security standards like HIPAA and PCI DSS.

8. Is the solution user-friendly? 

One of the most important things to consider when choosing an EDI service provider is whether or not their solution is user-friendly. After all, you don’t want your employees to waste time figuring out how to use the software. 

A good EDI service provider will offer a solution that is easy to use and comes with training and support so your employees can be up and running quickly.

9. Is the solution scalable?

As your business grows, you’ll want an EDI solution that can scale with you. A good EDI provider will offer a scalable solution so that you can add on features and functionality as needed. This way, you won’t have to switch providers down the road when your business expands.

10. What is the reputation of the partner and support? 

Finally, select an EDI service provider with a good reputation. You can check online reviews and talk to other businesses in your industry to see what they recommend. Additionally, you’ll want to ensure the provider offers good customer support if you have any problems using their software. 

Why choose PartnerLinQ?

As you browse EDI service providers that can offer all of these things, you’ll want to keep PartnerLinQ in mind. We’re a leading provider of EDI solutions and have over 25 years of experience helping businesses with their data exchange needs. With PartnerLinQ, our digital platform for communication with EDI and non-EDI partners, you can take full control of your supply chain.

If you’re ready to take your business to the next level, request a demo today and learn more about PartnerLinQ and how it can help you transform your supply chain ecosystem.