Issue

Syensqo has multiple EDI setups using various applications. EDI (Electronic Data Interchange) involves the electronic exchange of standardized business documents between organizations (B2B). This KDD aims to analyze the EDI applications used for each process and provide recommendations for the applications.

Recommendation

Review consoildation on standard tools - eg Ariba Network.

Background & Context

EDI stands for Electronic Data Interchange. It is a standardized method for exchanging business documents between organizations electronically. EDI enables companies to send and receive documents such as purchase orders, invoices, and shipping notices in a structured format, which improves efficiency, reduces errors, and speeds up transaction processing. By using EDI, businesses can automate their communications and streamline their operations.

Following are different classifications of EDI's

1. Direct EDI

• Direct exchanges between trading partners without intermediaries.

2. EDI via Value-Added Network (VAN)

• A third-party service for document exchange, providing additional features like encryption and data translation and/or
• Outsourced services where a provider handles all aspects of EDI operations for a business.

3. Web-Based EDI

• Accessing EDI services through a web portal, allowing users to upload and download documents easily and/or
• EDI solutions hosted in the cloud, providing scalability and reduced IT infrastructure needs.

4. API-Based EDI

• Utilizes application programming interfaces for real-time data exchange, suitable for modern applications and e-commerce and/or
• Uses file transfer protocols (FTP/SFTP) for sending and receiving EDI documents securely.

Following are the key EDI systems in Syensqo along with the type of EDI

EDI based on the transactions

Assumptions

The EDI tools which facilitate B2B connections are considered in this KDD

Constraints

Capture any constraints or limitations inherent to the recommended option. This could be aspects which, if changed or removed in future, could cause the decision to be revisited or invalidated. For example, a constraint might be that a new product has significant gaps in important functionality, which caused an older alternative to be recommended. If those gaps are closed in future, this might cause the decision to be invalidated.

Impacts

Describe the impact of the decision on other aspects such as other processes, infrastructure, other SAP modules or systems, data cleansing and migration, developments, automations, interfaces, in-flight projects, etc.

From sales process perspective, Syensqo currently send a number of major customers e-invoices via Elemica to Tungsten. (Route = SAP invoice > Webmethods > Elemica > Tungsten > Customer.) Examples here are P&G, Mondelez & Unilever. Elemica hold the contract the for this process and therefore, any changes to the EDI provider needs to take both the contract and EDI connection into consideration. 

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order". 

Options considered

Option A: Simplify and standardize the EDI systems 

As part of this approach, the EDI systems are consolidated for each process to minimize complexity. A primary EDI and a secondary EDI are established, with the primary EDI serving as the strategic system where all new businesses are onboarded. The secondary EDI is utilized only on a case-by-case basis. 

NOTE: The primary and secondary EDI should be determined as part of the Business Strategy by Business. The below table is based on the limited understanding during the conceptual design phase and needs to be updated based on the strategy.

Option B: Implement the As-Is EDI systems

As part of this option, the current EDI approach continues without any formal definitions of Primary or Secondary EDI systems. This means that there is a flexible onboarding process where external businesses are integrated into the EDI framework according to their specific preferences and requirements. Each partner can choose the EDI method that best suits their operations, allowing for a more tailored approach to data exchange. This adaptability can foster stronger relationships with partners, as they have the freedom to dictate how they engage with the EDI system. However, this lack of standardization may lead to increased complexity in managing diverse systems and processes, potentially resulting in challenges related to data consistency and integration over time.

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

	Option A: Simplify and standardize the EDI systems	Implement the As-Is EDI systems
Cost	Pro Con	Pro Pro
Complexity	Pro Con	Con
Integration	Pro	Con
Data Consistency
Scalability
Risk Management
Knowledge Management
Change Management

See also

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

Change log

Workflow history