Monday, March 13, 2006

Tremendous returns on/of Investment in EDI

The supply chain management efforts are witnessing of drastic increase in adopting EDI and, if correctly adopted, its consequent incredible returns among diverse industries.The largest retail chain of stores that offers a number of products for home improvement, agriculture, lawn and garden maintenance, and livestock, equine and pet care through US, Tractor Supply Co. (TSC, www.tractorsupplyco.com), has employed EDI to support its transportation management system with the aims of reducing lead-time and increasing visibility and reliability of collaboration with vendors and carriers. By joining the greatest logistics network all through the North America (Nistevo, www.nistevo.com), this company captured a salient reduction in transportation costs cut by 20%, significant improvements in its on-time deliveries by 10%, reduction in inquiries by 90%, as well as improvements in vendors and carriers interface systems, by utilizing EDI. As published, return-on-investment will be over the first year of investing in EDI by this company, and there is no need, I think, to discuss around the return-of-investment in this exemplary EDI project following this one year period.