Growing Companies Seek Out EDI, Software
Despite emerging radio frequency identification (RFID) technology, electronic data interchange (EDI) is still the only way to conduct electronic order processing between apparel companies and major retailers. Learning the basics of EDI is a must for every manufacturer or importer that intends to do business with department stores, said Scott Chaban, principal of Santa Ana, Calif.–based software company AIMS during “EDI Made Simple,” a seminar held April 5 at the Los Angeles International Textile Show at the California Market Center.
Some industry experts say RFID technology will soon be the successor to EDI, but EDI is more pertinent to the current market environment, especially for start-ups and young businesses looking to grow, Chaban said. Like RFID, EDI is viewed as a cost of doing business with department stores but it is easy to learn, he added.
“EDI is basically a sophisticated form of e-mail,” Chaban said. “The benefit comes with speed, timeliness and control. It’s better than paper. You get confirmations, and it’s more accurate. It also eliminates the constant re-keying of data.”
To become EDI-ready, apparel suppliers must subscribe to a number of networks and agencies as well as equip themselves with the necessary hardware and software. Costs can hit the thousands, but AIMS and other seminar presenters, including Laguna Hills, Calif.–based Innovative Systems LLC, are presenting new services to keep the expense down.
AIMS offers AIMS on the Internet, which features software that allows clients to process EDI transactions online rather than through office computers. The service, conducted in conjunction with Los Angeles–based Fashion Business Inc., provides substantial savings, said AIMS’ Henry Cherner.
Innovative Systems provides companies with EDI services without requiring them to purchase printers and other hardware. The savings can be impressive for companies that do not have the resources to purchase a full-blown EDI system.
For those looking to buy their own software systems to help manage EDI and other aspects of business, companies need to conduct research, get referrals, and understand objectives and goals, said John Murphy, principal of Glendale, Calif.–based Murphy & Associates and a speaker at a different seminar, which addressed software purchasing.
Murphy’s company markets ApparelMagic, a business management system geared specifically for the apparel industry. The system manages all aspects of order processing and business management and also produces e-showrooms that allow companies to show their products to retailers or consumers online.
Murphy said companies looking for new products should follow four steps: conduct research, see demonstrations, evaluate options and then make selections. “You have constant challenges. How do you stay on top of it? What are your goals? Sometimes, it’s a people problem. Sometimes it’s a software problem. Be clear on goals,” he advised.
One problem many companies encounter is having different software systems address different aspects of business. It is important for those systems to communicate with each other to minimize data entry, Murphy explained.
Some companies opt for end-to-end systems and others take the “best of breed” approach. But understanding the inner workings of an organization is mandatory, Murphy said. “You’re not going to make the best decision for your company unless you understand, ’Why?’” he said.
Murphy said businesses should get systems that can handle the skyrocketing growth that some apparel companies have been known for. Getting referrals and choosing companies with experience and reliability are also fundamental steps, he said. —Robert McAllister
