Vendors who do not submit an EDI Partner Set-Up Form prior to doing business with a Kroger division will receive a formal notice from that Kroger division with a given time frame to establish an EDI connection. Vendor compliance to EDI requirements must be met before the end of the specified time. Should the vendor not send or receive documents electronically after the compliance deadline, a $150.00 assessment will be applied against all future payments until EDI compliance is met to help offset the cost of manual processes.
Thursday, November 4, 2010
Electronic Data Interchange
I found something interesting tonight regarding how Kroger deals with its vendors in its supply chain activities. Kroger uses Electronic Data Interchange, or EDI, as an integral business strategy to increase customer satisfaction. Several years ago, Kroger began trading EDI documents and saw first hand how doing so takes cost out of the supply chain. Kroger wants to pass this cost savings onto customers and drive sales, mutually beneficial for both Kroger and its vendors. Kroger requires vendors to accept purchase orders and submit invoices via EDI.
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I would bet that before too long, most companies of a good size will move into using EDI. The manufacturing company I work has several customers we are required to use EDI with. It really speeds up the ordering and billing processes.
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