In today’s world, however, there are solutions for small business that are not any of the above if appropriately implemented.  EDI is the magic that seems to come from the big guys and be pushed on many small suppliers without previous technical experience and a feeling that they are looking into the abyss.

First let’s define EDI – Electronic Document Interchange. It is a method by which standard documents may be exchanged between customer and vendor that has a lot of new nomenclature and standard names.  It is, however, highly implementable by even very small companies that wish to do business with the Big Box retailers who absolutely require their vendors to accept EDI documents.  The Big Box retailers are determined to squeeze every drop of overhead expense out of their order processing.  EDI allows them to do that.

Many small distributors are now doing business with these Big Box retailers and processing successfully using total EDI from PO to shipment to invoicing.  Fulcrum Products of Portland, Oregon, a distributor of lighting products such as book lights, flashlights alarm clocks, has four vendors processing EDI transactions.  Jody Brooks, the Operations Manager, says that EDI has greatly expedited the fulfillment particularly with their high volume customers.

BECCA Cosmetics of San Francisco sells high-end cosmetics to a variety of prestigious chains, including one in Australia and one in Canada. Mingyu Fang, General Manager, says that EDI has been very successful for them and it has been integrated into their total business management system.  She says that when EDI is done right, it is well worth it.

Both of these companies are relatively small and have been able to profitably implement an EDI system as part of their standard business practice.  They are playing with the Big Boys and doing well with it.