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Re: Re: What sort of group is this?

From: "William J. Kammerer" <wkammerer@...>
Date: Mon Jan 26, 2004  3:48 pm
Subject: Re: [EDI-L] Re: What sort of group is this?
Isn't EDI a natural for out-sourcing? Lots of fine red-blooded American
companies make their living doing EDI for small suppliers, insulating
their customers from the expense of a translator and the headaches of
mapping. Is there a particular competitive advantage to a company having
knowledgeable EDI staff on board when an out-sourcer can do the job?
There's no proprietary knowledge of the business involved in mapping
EDI, is there? About the only thing I can figure out is that the
outsourcer might then know customers, prices, terms and buying patterns.
But most folks trust other third-parties, like VANs, who have access to
the very same information simply by reading the EDI that passes under
their noses!

And if good reasons hold for small companies to outsource EDI, why
wouldn't they apply to big companies? - aside from the fact that it's
easier for a big company to achieve economies of scale doing EDI (and
EDI-INT to bypass VAN intermediaries) themselves.

William J. Kammerer
Novannet, LLC.
Columbus, US-OH 43221-3859
+1 (614) 487-0320

----- Original Message -----
From: "rkasnick" < To: < Sent: Monday, 26 January, 2004 10:20 AM
Subject: [EDI-L] Re: What sort of group is this?


Hello Kurt. You are correct in that some business managers have been
short-sighted enough to think "once I have EDI processing my orders I
can reduce headcount", however those that fully understand the process
soon realize that instead of reducing headcount, implementation of an
integrated EDI solution allows the reallocation of headcount into
activities that directly improve the bottom line, such as improved
customer service, becoming proactive in the sales cycle through
up-selling and cross-selling activities, etc.

Of course, there always has to be someone who manages the process,
whether that person is internal or an outside consultant.

As long as I am on my soapbox, I do not blame any particular country
for the outsourcing of American jobs. In a global economy that will
happen. The loss of American jobs is a direct result of American
companies trying to lower their costs to compete. What American
management fails to realize is that outsourcing is ultimately a
suicide strategy. Someone who has been put out of a job through
outsourcing is in no position to buy a non essential product at any
price, and if enough people are in that position that will ultimately
lower the overall sales volume for those products. What a vicious
downward cycle. Better would be for companies who manage to lower
their costs to also lower their price. More sales at a lower volume
means more profits in the long run. Too bad, I don't think THAT will
happen any time soon. There are too many MBA types who think their
social conscience should stop at "make myself look good to my
employers at all costs and to hell with the rest of the world".

Ok, off my soapbox, get my flame-retardant suit fitted and put on.....

Regards
Rod





 
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