Toy manufacturer leverages EDI to enable frictionless growth

Businesses in all sectors and of all sizes can benefit from efficient order data processing thanks to EDI (Electronic Data Interchange). The following case study investigates the benefits of EDI for toy manufacturers.

Our knowledgeable team at Transalis were able to implement a robust EDI solution for our client, allowing them to realise supply chain resilience as they entered the market in Europe.

Background

In 2020, a leading manufacturer of licenced collectables executed a plan to grow its European market share.

As its EDI partner, Transalis provided the wrap-around support necessary to ensure its client could move at pace and manage the effects of Brexit and the COVID-19 pandemic’s changing market conditions.

Identifying the current challenges for the client

• A highly manual pick and pack warehouse process limited the ability to scale-up distribution in line with sales growth objectives
• The need to onboard new retailers at speed
• Cross-border shipping and potential delays due to Brexit

Meeting the challenges by implementing a robust EDI solution

• Integrating EDI directly into Microsoft Office 365 provided much needed connectivity between the retailer and the manufacturer’s warehouse and 3PL operation Read more: Microsoft 365 EDI integration for orders and invoices. Read more: 3PL multi-source platform for stock visibility across logistics partners.
• Online platform Transalis OpenEDI™ provided new retailers immediate access to order stock
• Narrow AI routed orders to the correct warehouse to mitigate the need for shipping orders cross-border, reducing time and paperwork which resulted in happy retailers

Outcomes and benefits of EDI for toy manufacturers

• New, state-of-the-art warehouse system, linked directly with EDI data feed, reduced the need for manual processing of orders
• Retailer on-boarding was reduced to 24 hours, which created faster sales growth
• Minimal cross-border disruption and improved stock management reduced money tied up in transit and stock arriving in the wrong location

Is EDI addressing the challenges of 21st-century commerce?

New research* reveals disparities between EDI user requirements and services delivered by EDI providers.

EDI enabled integration

EDI messages go beyond the commonly used order and invoice. As a forward-thinking organisation, our client realised the benefits of extending their standard message-set to include, among others, ASN’s (Advanced Shipping Notices) and inventory reports.

Integrating directly into Office 365 enabled our client to take full advantage of the valuable information now coming into the business. It made the information instantly visible to what had previously been a siloed business, leading to greater agility through better decision-making.

The benefits of combining a broader range of EDI messages, directly integrated with internal systems is clear. However, according to research commissioned by Transalis*, 42% of respondents have concerns about integrating an EDI solution with internal systems.

Further investigation highlighted the commonly held belief that the “sticker price” for integration is not representative of the actual cost upon completion. To minimise this concern, Transalis provides total price transparency for a wide range of integrations, including the most commonly used order and supply chain management software.

For further details visit our self-serve calculator: eDI Freedom.

Online platform proves invaluable for growth

Onboarding of new customers was central to developing robust sales growth. Transalis recommended that the client provides all new retailers access to its Transalis eDI™ online platform, giving them a simple and effective way to place orders and receive invoices and ASNs.

Setting up new customers via Transalis OpenEDI™ reduced the average onboarding process from several weeks to 24 hours.

Phase two of the onboarding strategy was identifying high order frequency. This allowed our clients to identify their valuable customers and recruit them for a roll-out of a one-to-one EDI connection, thus optimising the ordering process further.

AI smart message routing reduces costs

Having stock stuck at Customs or at a wrong distribution point equates to lost sales. Part of our client’s Brexit strategy involved setting up satellite distribution hubs inside the Europe Economic Union.

By using inventory reports and other EDI messages, the client was able to better predict demand relative to a satellite distribution hub sufficiently, early enough to ship stock from the UK warehouse.

Using Smart Message Routing from Transalis ensured that retailers’ orders were always routed to the relevant distribution hub, reducing delays and additional admin.

Conclusion

As businesses develop new channels to market, leveraging EDI to connect new technology to existing infrastructure delivers supply chain resilience.

It’s important for businesses to understand that EDI for toy manufacturers is much broader than order, invoice and ASNs. To realise the full benefits of this technology, businesses need to utilise untapped data within their trading networks, which can inform faster and better business decisions.

Ensure your current EDI has the capability to support your business objectives. Understanding your technology roadmap for the future will provide the necessary insight to ensure your business has the right solution in place, with the capabilities to support you and your customers’ changing needs.

* Independent research commissioned by Transalis Ltd: Is EDI addressing the challenges of 21st-century commerce?