PAPERHOLICS ANONYMOUS
12 STEP PROGRAM
Adapted from"Getting Started with ASC X12" by Hal McDonald., 3M (retired). Used with permission.
1. DEVELOP STRATEGIC PLANS
Aspects of the plan include revenue increase, inventory reduction, personnel reassignment, timing and project scope.
2. IDENTIFY AND DOCUMENT COSTS & BENEFITS
Implementation will require both personnel and dollar resources. Estimates for these should be carefully prepared and documented. Identify potential benefits to justify expected costs.
3. OBTAIN HIGH LEVEL MANAGEMENT COMMITMENT
Obtaining HIGH LEVEL management approval and commitment for EDI activities is crucial to the success of the project. It will minimize any internal political issues and insure adequate funding to accomplish the task.
4. PRIORITIZE TRANSACTIONS, ESTABLISH TIMETABLES
Prioritize those standards to be implemented based on business requirements.
5. INFORM AND EDUCATE PERSONNEL
Transition to a paperless environment can sometimes be a traumatic experience for people in the affected functions. Start early to inform and educate those who will be affected. (Order textbooks and the new motivational video tape from EDI, spread the word!)
6. OBTAIN A THOROUGH UNDERSTANDING OF THE STANDARDS
Active participation in committee and subcommittee activities gives you many things. First you gain depth of knowledge of the first transactions set you will ge using. During your next call from your manager, customer or supplier you will be even better prepared.
Other pluses: You gain a voice in the approval process. Also you can discuss EDI with customers or experienced colleagues.
7. SELECT PLATFORM AND SOFTWARE
Internal Considerations
Determine the computer hardware requirements. A mainframe, a dedicated machine, a minicomputer, , a personal computer, or possibly combinations of these may be indicated.
Decide on a computer software approach. Possibilities include in--house development, contract programming, purchasing or leasing commercially developed software, or perhaps a combination of these. Cost and personnel availability may be determining factors.
Decide whether to integrate to in--house systems right away.
External Considerations
Define the terms of the interchange and establish agreement with partners. Discuss the details involved so that there is no misunderstanding as to what is expected from each.
Ensure that partners have adequate EDI software. The software used by all interchange partners should be able to create, accept and process complete transactions and not be restricted to arbitrary subsets.
Exchange and review sample transaction documents to determine the data requirements necessary to support internal systems computer processing.
Provide for error reporting through a single contact at each site. If any problems are encountered they should be quickly resolved by contacting a designated person responsible for taking corrective action.
8. SELECT THIRD PARTY NETWORK
Use of third party service bureaus/networks can insulate you from most technical problems. If a third party service bureau/network is chosen, determine how the costs for its services are to be allocated between partners.
9. DETERMINE OPERATING ENVIRONMENT
Identify and resolve any security issues. Generally the use of a third party will minimize or eliminate many such issues since they provide a buffer between interchange partners.
Establish adequate error recovery techniques. Determine who is responsible for re--transmission in the event of telecommunication failure, what is to be re--sent, and when.
Back--up procedures are an important consideration. What to do if there are telecommunications, computer, or software problems must be determined and appropriate alternatives defined.
Consult with your legal department and auditors to insure that any concerns in these areas are addressed.
10. IMPLEMENT A PILOT EDI PROJECT
Select the transaction identified as having the highest priority during the planning cycle. This will give the project internal visibility.
Choose a limited number of partners for the pilot. Selecting partners with EDI familiarity will greatly simplify the task and will probably shorten the project timetable. Experienced partners can easily be found in the Business Partner Directory.
Perform a short--term parallel operation. Send both paper and electronic transactions for a short time and compare them to ensure accuracy, etc. Discontinue the paper when partners are comfortable with the electronic transaction.
Evaluate results frequently during the pilot and resolve any problems that may surface.
11. MIGRATE TO FULL EDI IMPLEMENTATION
Use a Phased Approach to Adding Partners
Success of the pilot project should signal the beginning of the migration to full implementation. Add partners gradually, over time, at a rate consistent with your capability to handle the increased volume.
Implement Only Those Transactions That are Required to Support Your Business Requirements
As your implementation of the single transaction matures, begin to add other transactions. Normally business requirements will determine which ones to add and when to add them. Re--evaluate and adjust previously defined priorities as dictated by business needs.
12. PLAN SEMINARS FOR CUSTOMERS & SUPPLIERS TO INTRODUCE YOUR EDI IMPLEMENTATION
Once you are comfortable with EDI you may wish to develop a seminar for customers/suppliers to outline your plans and introduce them to EDI. This is more easily done with suppliers. You may wish to consider giving “preferred supplier” status to those who agree to become EDI partners to encourage their participation and support. (A new video tape, “The Electronic Tonic,” helps to motivate trading partners. Order from EDI, spread the word!).
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