SAVING COSTS BY SEEING THE BIGGER PICTURE
Electronic Data Interchange produces major savings for our customers
There’s a limit to how much you can save when buying screws, nuts, bolts, washers or gaskets no matter what they are made of. For this reason, the savings we make for ourselves and our customers are based, only to a limited extent, on price-driven strategies. Instead, we base our savings on extremely effective, orderly, predictable and transparent logistics.
Traditional ordering of goods is laborious. A foreman creates an order for a buyer. A buyer punches the order and sends it to the supplier. The supplier punches the order and sends an order confirmation to the customer. The order is picked and packed. The foreman receives the goods and checks the packing list against the order, and the invoice is sent on the basis of the packing list. Each stage is carried out manually. Each stages increases the opportunity for error. Each stage is also completely unnecessary. When EDI – Electronic Data Interchange – is used correctly, this whole process can be replaced by an electronic workflow, which crosschecks the order, consignment and invoice throughout all stages of the process.
Our own IT department produces a data file, which works as a means of “translation” between our data system and the customer’s data system. In other words, costly investments in hardware and software aren’t necessary; what we need is a custom intermediary between systems. We’ve had a full, data-based logistics system since the early 1990s, which makes us something of a pioneer in the field. Experience has made us extremely efficient in a number of fields, and we’ve produced major savings for our customers in many instances. Our delivery efficiency and precision reaches close to 100% – way beyond the demands specified in even the strictest industry standards.