EDI Integrations with major retailers
Our client, a rapidly growing medical device company, needed to enhance their data exchange processes. That is why they needed to better interact with major US marketplaces. They sought our help to establish EDI connections with top retailers like Walgreens, Amazon, and Walmart.
This case study explores how we connected our client to these major retailers through EDI. It also covers challenges faced, solutions provided, and benefits gained.
3 Functional leads, 1 Software developer,
1 Deployment lead, 2 Managers
In the retail environment, efficiency and speed maintain a competitive edge. Retailers need to meet the end-customer demands and manage in-house data at the same time. Electronic Data Interchange (EDI) is a key tool for achieving this efficiency.
Our client, a rapidly growing medical device company, needed to enhance their data exchange processes. That is why they needed to better interact with major US marketplaces. They sought our help to establish EDI connections with top retailers like Walgreens, Amazon, and Walmart.
The initiative aimed at:
- Improving sales and invoice processing
- Speeding up transactions
- Minimizing errors
This case study explores how we connected our client to these major retailers through EDI. It also covers challenges faced, solutions provided, and benefits gained.
Challenge
Retail projects usually come with a range of challenges due to the extensive data volumes and detailed requirements. We highlight five main challenges of this project.
Task
Need for Deep Expertise in Two Domains
The client needed deep expertise in both Sales and Distribution (SD) SAP functionality and EDI mappings. The complexity of integrating these systems required a nuanced understanding of how SAP interacts with various EDI standards and protocols.
Follow Budget Constraints
Another challenge was the need to perform end-to-end testing with minimal resources. The client aimed to conduct thorough testing of the EDI integration with a single individual. Thus, they planned to reduce project costs and complexity. We needed extensive preparation and efficient execution to cover all potential scenarios and edge cases without more people.
Perform Complex EDI Mappings
EDI mappings involved translating data
between different systems. The systems
required various standards, such as ANSI X12. Accurate mapping and integration for each retailer’s system and maintaining data integrity across different platforms was a complex task.
Ensure Compatibility
The client required the new EDI processes to integrate with their current SAP configuration. We needed to cause zero disruption to ongoing operations and data accuracy.
Conduct Risk-Free Testing
Implementing EDI connections and performing extensive testing posed the risk of disrupting daily operations. Balancing the implementation process while maintaining business continuity was crucial. The project had to be managed carefully to avoid any negative impact on the client’s regular business activities.
Solution
We integrated the Electronic Data Interchange (EDI) with Amazon, Walgreens, and Walmart to improve business transactions. The project took six phases.
1. Initial Assessment and Planning
We conducted a thorough assessment of the client’s existing systems and business processes. Next, we identified specific requirements for EDI integration with the major retailers for the following EDI documents:
- 850 — Purchase Order
- 855 — Purchase Order Acknowledgement
- 856 — Advanced Shipment Notification
- 810 — Invoice
2. EDI setup via Purchase Orders (PO)
We configured the EDI system to handle purchase orders according to the standards and requirements of Amazon, Walgreens, and Walmart. We also established communication protocols and data formats for successful EDI transactions.
Then, our team implemented the necessary mappings and translation logic to align internal data formats with EDI standards.
3. Testing for Sales Orders and Invoice Processing
We conducted comprehensive testing of the EDI setup to ensure the accurate processing of sales orders and invoices. The end-to-end testing was then performed.It included unit tests, integration tests, and supported scripts’ creation and execution of the user acceptance tests. After that, we simulated various scenarios to validate the system’s ability to handle different transaction types and error conditions.
4. Documentation and Training
Our team created detailed documentation of the EDI setup, configurations, and testing procedures. We developed user guides and training materials to educate the client’s team on new EDI processes. Training sessions were conducted to ensure proficiency in managing the EDI system.
5. Deployment and Go-Live
Our team planned and executed the deployment of the EDI system into the production environment. We closely monitored initial transactions for smooth operation.
We provided immediate support to address any issues during the go-live phase.
6. Post-Go-Live Support and Optimization
DigIT provided ongoing support to resolve post-go-live issues and keep the system stable. We continuously monitored EDI transactions and optimized the system for performance and accuracy. In summary, the project encapsulated a comprehensive process aimed at achieving
Result
The EDI integration project was completed on schedule and approved budget. The transition from a manual data exchange system to an automated EDI solution brought many improvements.
Better operations
The client drastically reduced the reliance on manual handling. The new EDI system allowed for:
- Real-time transactions
- Minimized errors
- Faster processing times
The client repurposes the headcount dedicated to manual processes and reallocated resources to more strategic areas.
Effective EDI connections
We established EDI AS2 connections with major U.S. retailers, including Walgreens, Amazon, and Walmart. The client reported smooth, secure, and reliable data exchanges with these key marketplaces.
Improved sales order and invoice processing
Orders are now processed faster and more accurately. It enhances operational efficiency and improves customer satisfaction due to quicker order fulfillment.
Enhanced Invoice Processing
Invoice processing is more streamlined and less error-prone with the new EDI system. The automation of invoicing tasks reduces administrative overhead and the risk of
discrepancies. It leads to more accurate and timely financial transactions.
