FBI Panel Attempts to Demystify EDI
The fashion industry is still slow to embrace technology, and that was in evidence at the Nov. 13 EDI seminar at the New Mart sponsored by Apparel Information Management System (AIMS), Cherish International and the Fashion Business Incubator (FBI).
So it was little surprise when AIMS Hotline president Scott Chaban asked audience members if they were conversant with EDI, and about 10 percent of the nearly 150 attendees—including representatives from James Perse, Isabelle Fiore and Frankie B.—raised their hands.“Designers are still getting on the technology bandwagon,” said Frances Harder, FBI’s executive director.
To help dispel fears and educate industry members, representatives from Macy’s West, AIMS, Innovative Systems LLC, Continuous Form Control and the Data Management Center presented background information and the “how-tos” of implementing and managing the format of EDI, or electronic data interchange—the method by which most retail chains and manufacturers process orders.
“This is the bare minimum of what department stores expect,” said Mitzi Pon Murakami, manager of purchasing and vendor development for Macy’s West. “We’re asking all resale vendors to have it.”
If they don’t, the chances of dealing with preeminent chains declines, Murakami said, and room for errors increases.
“Why we do EDI is because of a word everybody dreads: chargebacks,” said Matt Sperr, EDI director at Innovative Systems.Sperr went on to describe potential violations that can lead to chargebacks, from improperly formatted purchase orders to incorrectly printed box labels.
Panelists suggested that smaller designers and manufacturers—those with sales of $5 million or less—outsource EDI services and that others looking to grow their business bring the operations in-house. Getting started can cost as little as $150 a month coupled with a set-up fee of $1,000 to as much as $8,000 for software packages, said Henry Cherner, AIMS vice president.
The panel also fielded questions from the audience but the heat started to rise when a question returned to the issue of chargebacks, as one attendee wondered how apparel designers can survive against the imposed fines.
“You get a chargeback when you’re not compliant,” Murakami said. “We have a huge distribution center with millions of boxes sitting on docks. Imagine finding your box if it’s improperly labeled.”
After the session, Frankie B. general manager Laura Sherman said her company plans to install EDI, given the line’s growth and sales in stores including Nordstrom, Burdines and Neiman Marcus.
“I’d rather be prepared than forced to comply,” Sherman said. “We hope to have it implemented in the next two to three months.” —Nola Sarkisian-Miller
