Wednesday, March 27, 2013

The Importance of Integration Planning in B2B EDI Supply Chain Projects – Part 2, Optimal Integration Process


We know that we can’t adequately integrate anything – all the way from ingredients in a recipe to disparate systems within connected business processes – without planning. It’s just impossible. But knowing that you need to plan and understanding the process are two different things. In this post, we’ll discuss the process of integration planning and how to ensure that your process is optimized.


An Optimal and Powerful Process Outline:

Successful integration planning will achieve the removal of all of the unnecessary or redundant systems (see previous post) that consume/waste a tremendous amount of resources and play a major part in slowing down supply chain processes. It is this redundancy which is responsible for making supply chain processes cumbersome, error-prone, very difficult to manage and administer and, ultimately wasteful.


The redundant and completely unnecessary processes that must be removed from the supply chain operation were also discussed in our previous post.



The following outlines an example of a properly planned and designed integrated supply chain operation. This encompasses not only the integration planning process (that is, the planning of the actual integration phase), but also (and perhaps most importantly) the pre-integration planning process which must be considered and completed first.


Pre-Integration Planning Process:

1. Ensure that all supply chain data (either from external or internal process flows) are seamlessly and in real-time into and out of an organizations systems that support their supply chain operation. 2. Remove as many if not all in-between and redundant processes that carry the data that translate and map the data within an organization’s operation. 3. Ideally, provide the data directly into and out of the organization’s supply chain systems, by removing the in-between processes.





















Integration Planning Process:

1. Create an integration data point roadmap, which shows all the data and information exchange points. 2. Define and document the data needs in and out of all the data and information exchange points. 3. Automate all of these data and information exchange points with EDI or with non-EDI methods. 4. Integrate all the data and information exchange points based on the data needs of in-bound and out-bound data and information streams. 5. Once all of the integration is complete, the process is ready to provide visibility and responsiveness for all supply chain collaboration needs of the organization with its external and internal users.



























In summary, unless the proper automation and the proper integration are implemented, many, if not all of the key business activities cannot be improved, as any and all collaboration with external and internal users and systems will not be accurate and timely. 

In our next post, we’ll look at how integration planning applies to a retailer’s supply chain process, what waste there may be, and we’ll describe a hypothetical example of a properly implemented integration plan.

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