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Do You Know How Much It Costs To Process Your Customer Related Orders? Steve Hatajlo President – CEO Faxinating Solutions Inc.
Faxinating Solutions Inc. (FSI) • Founded in 1991 as a service bureau specializing in FAX-to-EDI transaction processing. • Has evolved into a full EDI outsourcing and Integration solutions provider – Provides Cloud Based Software as a Service Model • Simply : FSI Translates Data from one format to another and provides direct integration for both partners eliminating unnecessary investment in non-core technology FSI Technology Bridge © 2009, Data Interchange Standards Association 2
Faxinating Solutions Inc. - SERVICES Complete EDI Outsourcing Services Supply Chain and Customer Chain EC/EDI/XML management services Desktop EDI software that integrates into Accounting and ERP packages such as Quickbooks©, Sage 50©, MS Dynamics© and Business Vision© Customized Web-Based solutions for EC/EDI/XML transaction processing FSI specializes in treating data from faxed or emailed documents and translates them into transactions (invoices, PO’s) in minutes FSI offers Data Management (BIG DATA), Analysis, Dashboard and Reporting tools © 2009, Data Interchange Standards Association 3
The Problem with Paper • Expensive to process – up to 15% of company’s annual revenue • Costs include printing, filing, data entry, indexing and storage • When including all fixed and variable costs, typical PO processing cost vary from $25 up to $2001 depending on the size of the company • Not usually factored into the cost of processing: 1. Manual Keying Error Rate – Typically 2 -5% 2. Lost Documents 3. Storage of Paper 1 Sales Order Processing Paper – Esker. com
Current Paper Processing Trends • AMR Research estimates only 20% of all orders in retail supply chain are fully automated. • Another 20% are sent electronically but still require manual intervention • Many products for general corporate operations (office supplies) are manually ordered and utilize paper-based processes Sustainability and B 2 B Outsourcing – GXS Whitepaper
Can you give us a real-world example?
W. L. Gore • Overview • W. L. Gore & Associates, Inc. , was founded January 1, 1958, in Newark, Delaware, by Wilbert L. (Bill) and Genevieve (Vieve) Gore. • Today, with approximately $3 billion in annual sales • More than 10, 000 employees (called associates) worldwide are also part owners of the enterprise through the associate stock plan. • Gore is one of the 200 largest privately held U. S. companies. • By using proprietary technologies with the versatile polymer polytetrafluoroethylene (PTFE), Gore has created numerous products for medical implants; fabric laminates; and cable, filtration, sealant, membrane, venting and fiber technologies for diverse industries. • Gore has been granted more than 2, 000 patents worldwide in a wide range of fields, including electronics, medical devices and polymer processing. • More than 40 million innovative Gore medical devices have been implanted, saving and improving the quality of lives worldwide. • Gore has offices in more than 25 countries, with manufacturing operations in the U. S. , Germany, the UK, China and Japan.
W. L. Gore Liaison Technologies is a leader in cloud-enabled data solutions. Our tailored approach allows organizations to meet today’s toughest data integration and management challenges while building a robust data-centric foundation for tomorrow. • W. L. Gore’s Integration Brokerage Services provider since June 2013 • A unified data management and integration solutions provider • Born “in the cloud” in 2000 • Strong financials – profitable, over 41% CAGR during the last 8 years • Serving over 7, 000 enterprise customers in 46 countries • Recognized leader in retail, manufacturing, healthcare, life sciences, and financial services
W. L. Gore • PROBLEM DEFINITION a) Gore’s US Medical Division handled more than 70, 000 faxed or emailed Purchase Orders in annually b) 26 Customer Support Agents perform data entry and order follow up c) Every Order had to be manually entered and reviewed d) Slow processing resulted in delays in confirming Customer Orders
W. L. Gore • GOALS a) Streamline Data Capture b) Reduce Processing Time c) Reduce the need for the CSR’s to “Touch the PO” d) Embed special logic in data capture processing e) Increase Customer Satisfaction f) Reduce Processing Costs
W. L. Gore • Functional Analysis a) Detail current process b) Identify new pathway(s) - Inbound c) Setup processing logic d) Provide data element and file format requirement e) Establish communication protocol f) Design Interfaces (Web Portal) g) Establish benchmarks
W. L. Gore • Design Overview a) Gore to continue to receive Faxes and Emails and route them to FSI directly (unique email address) b) FSI team receives TIF or PDF image and extracts data from documents c) Uses Database Lookup to cleanse transaction (Customer, Ship To, Buyer and Product Databases) d) Applies specific logic (Consignment, Bill Only, Credit Cards, etc. ) e) Application verifies data content f) Transaction is published to Web Portal g) Errors are trapped and CSR’s are notified h) XML Transaction is delivered via AS 2 to Liaison and then routed to W. L. Gore.
W. L. Gore TIF Customer PDF LENS TXN Info XML DOC FSI Portal XML FSI. Liaison TXN Info
W. L. Gore • Results a) Reduced PO touches to only 14% of overall orders b) More than 75 K PO’s handled through the system c) Reduced manual data entry manpower (Reduced 3 by attrition and anticipate 2 more) d) Redeployed remaining CSR’s to more complex task and focused Customer Support e) Reduced overall processing time to average under 60 minutes f) Reduced processing costs by 63% (More than $175 K) – first year’s savings – anticipated to grow when new divisions have all been added g) Expanded to Elixir, Venting and Sealing Business – Anticipate further savings h) Expanded to MPD Europe – Specialty Language Requirements i) Seeking other divisions within Gore to implement similar workflows
How Many Trees were Saved?
Questions © 2009, Data Interchange Standards Association 17 17
Contact Information • Steve Hatajlo President – CEO Faxinating Solutions Inc. 6600 Trans. Canada Highway Suite 209 Pointe-Claire, Qc H 9 R 4 S 2 www. fsiedi. com [email protected] com 1 -800 -282 -6283 ext 231 Thank You ! © 2009, Data Interchange Standards Association 18 18
Cost of Processing a Paper Transaction Average cost per PO is roughly $26. 00 May 2009 – www. manufacturing. net – Eliminating Waste in Supply Chain Management