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

Impacts

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

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

	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

Change log

Workflow history