| This page builds on the previous Scenario page.
The key factor in any successful business is to find good customers, then retain them for many years through the delivery of positive and responsive customer service. But really successful working relationships are never one-sided - it is about recognising each other's business objectives and needs, and about the ease of doing business with each other.
Obviously, there are special business relationships where the Customer is so large and dominant that the Supplier will comply with all of their customer's wishes regarding how they would prefer to trade electronically. This section is more about the next level down where neither party is dominant to any great extent. For convenience, we will only relate to Orders and Invoices and not to supplementary documents, and avoid any discussion on negotiated price adjustments for one party helping to reduce the costs of the other party.
The following table sets out in a very broad cost sense who "wins" and who "loses" in most trading relationships:
| DOCUMENT |
METHOD |
CUSTOMER |
SUPPLIER |
COMMENTS |
| Customer Order |
Fax |
Lose |
Lose |
Customer incurs fax and labour costs, Supplier has re-keying cost. |
| |
EDI VAN |
Lose |
Win |
Customer incurs transaction fees. Supplier saves re-keying if there is integration. |
| |
Direct |
Win |
Win |
Integration eliminates re-keying at Supplier end and there are no transaction fees. |
| Supplier Invoice |
Mail/Email |
Lose |
Lose |
Customer has re-keying cost. Supplier incurs mailing and labour costs. |
| |
EDI VAN |
Win |
Lose |
Customer saves re-keying if there is integration. Supplier incurs transaction fees. |
| |
Direct |
Win |
Win |
Integration eliminates re-keying at Customer end and there are no transaction fees. |
|
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