August 9, 2005

Just in North America, successfully implementing and integrating EDI (electronic document interchange) within various partners is a challenge that thousands of EDI professionals face daily. It is a complex task filled with not just technical details, but many different variations in every connection. If there were ever a "plug-and-not-play" technology, EDI would be it.

Even under the best of conditions, those responsible for installations say that the key to successful implementation is direct and frequent communication between technical staff at both ends of the trading partnership. It's no wonder successful international EDI connections are still difficult.

Pressure to drive down prices and increased trade with Asian companies makes the need to do business electronically increasingly important. Even so, US companies still find it difficult to make EDI connections with their Asian trading partners. The reasons for the difficulties are obvious and stem from the same issues faced when setting up domestic connections. The complexities are amplified by the differences in time zones, language, and culture. But for those companies that find the right formula, the payoff is increased trade and reduced costs.

According to James Hatcher, Managing Director for Seeberger Asia Pacific, Ltd.,"One thing to remember is that Asia Pacific consists of 2/3rds of the world's population in some 24 countries each with their own languages, cultures, unique business practices and different levels of economic and business sophistication."

Some have found success in their ventures, while others have faced continued difficulties and frustration without accomplishing their goals. If there is a constant among those I've spoken with, it is that success requires constant, detailed effort. That doesn't seem so different from any endeavor worth achieving.

According to Bud Blankenship, of the US Customs and Border Protection, Department of Homeland Security, "One of the common threads in my experiences involved the receipt of emails containing lists of questions that they needed to be addressed. I would suggest your responses be as thorough as possible, not only due to potential language/cultural barriers, but largely given over to their insatiable desire to fully understand the very nature of the information they will be programming against." Blankenship's experience with assisting his trading partners in response to government mandated requirements for additional data demonstrates that when the situation is critical and both ends of the transaction are sufficiently motivated, the tasks can be accomplished.

On the other hand, Connie Vandervort, eCommerce Manager for AAFES voices frustration with her experience. According to Vandervort, "In addition to the language and time barriers, most of the companies we've tried to work with don't even know what EDI is." She chalks up the problems to her observation that the suppliers she has worked with haven't had the need to do EDI.

Another EDI professional, Jeff Garwick has found some level of frustration: "I have been trying to setup EDI with two huge customers of ours in Asia for a year and half now. "

Each of my contacts agrees that a key factor in any of their successful implementations has been the amount of detailed attention they devoted to the process. There seems to be no lack of desire or technical expertise when it comes to getting EDI running.

Garwick has spent time describing the particulars of the transaction detail, "Basically, I have given them every instruction of how to map from their flat files, to what segments & qualifiers need to be used. " And Blankenship says that the technical staff is interested not only in performing the programming but highly interested in understanding the data content and its implications.

Using email to pose and answer questions is a well established norm for technical teams faced with distance and time challenges. Blankenship implies that this method works well and that speedy, detailed replies are welcomed, if not expected, " I would suggest your responses be as thorough as possible... And do reply with haste, even if to simply remark that you are researching their questions, as they will appreciate such prompt acknowledgements from you." However he also advises, "Travel to their location. Though to some it may appear as though it's little more than a junket, trust me, the time spent with direct face to face discussion and collaboration is incredibly valuable." Face to face contact may be the solution to the larger issue of providing both initial setup support and ongoing technical support.

Of course, visiting Asia isn't always practical. According to Garwick,"I only wish it was that easy to convince management that traveling to their location to setup EDI would be worth the costs." No doubt travel is both time and expense intensive. But there are alternatives.

Companies faced with critical implementation schedules have found that local support can be crucial to meeting deadlines. Circuit City recently enlisted the services of Owens Direct's office in Beijing, China (link to story) when it needed to get 250 of its Asian suppliers onboard in a 2 week window of time.

A report published by The Economist surveyed Auto suppliers in China and concluded that "less than 50% receive orders by fax or phone, 25% by email, and less than 25% of the suppliers can generate an ASN. As Hatcher put it, "Ask any North American Automotive guy if they had to fax orders to 50% of their suppliers and 75% couldn't generate ASNs back what would their production line look like?"

There is plenty of EDI activity in the Asian market, along with the expertise needed to implement EDI exists. Like companies in the US, anyone new to setting up EDI in their organization needs help for at least the first time. The choice as to whether that help comes in the form of detailed email, instant messages, local or regional support, or personal visits will depend on the organization's preferences. Hatcher says, "Now days more & more companies are looking to use the Internet. They have been emailing excel attachments for several years. They are able and willing to send flat flies via FTP. Suppliers will log into a web EDI portal hosted by a strategic customer."

One cautionary suggestion with regard to interaction came from AAFES' Vandervort, "Having the technology in place makes the process work, but without good, solid, human-to-human communication [it] will fall apart every time." Consistent contact with trading partners may seem like an obvious requisite, but all professionals need to revisit the basics of the business occasionally.

If you aren't able to maintain the contact using your company's existing resources, it may be best to call on an organization that can bridge the gap at least during the initial stages of implementation.

Asian companies in general are actually more ready to comply than many small US companies. And they need the same kinds of support and attention in order to be successful. One visitor to China found that even the smallest peanut farmer had internet access and was ready to comply with EDI when asked. The Chinese government provides dialup Internet access to these businesses at no charge, and in general translation of both language and data is not seen as a substantial obstacle.

In short, Asian markets are ready, able, and willing to use EDI. They only need to be asked to comply.

Source: Line 56.com