“Today, we are seeing the efficiencies EDI was supposed to give us and we have a renewed desire to proactively put more high-volume customers on EDI because we can see the efficiencies we gain in our business processes. We sell to many online retailers and getting them to do EDI is a definite advantage for us because of the volume.”
-Ed Pearsall, ERP Analyst
For 15 years, Chaco, Inc. (Chaco) has been making sport sandals and boots in the rural town of Paonia Colorado. The company started as a custom shoemaker and today is a rapidly growing manufacturer of high-quality, environmentally friendly footwear selling to 1500 retail outlets around the world. Chaco’s steady growth and increasing demand has sparked signiﬁcant changes over the last few years. In 2004 Chaco expanded their warehouse and shipping facility and also introduced it’s footwear to the European market. Chaco is currently processing more than 25,000 orders annually and chooses not to advertise their products; opting to donate 3% of after-tax proﬁts to organizations dedicated to caring for people and the environment. Like other consumer product manufacturers selling to retailers, Chaco was charged with meeting complex customer requirements that proved to be inefficiencies for their business.
“For most customers our EDI solution was working.” said Ed Pearsall, ERP Analyst with Chaco, Inc.“ The problems started when one of our largest retailers asked us comply with their EDI program. Our customer’s program required us to receive and send EDI documents outside of the spectrum of sales orders and invoices using fulillment and shipping data we didn’t easily have access to. Our 7 month struggle to become compliant was costing us precious time and money.”
“We didn’t want to get burned.” said Pearsall. “After 7 months and still not being able to meet the customer’s requirements, we vowed to never be in that situation again. We chose HighJump EDI for Microsoft Dynamics® GP for our EDI solution because the integration was embedded into Great Plains. When we saw the HighJump EDI for Microsoft Dynamics® GP demo, it was clear that they understood not only how complex customer requirements work, but how Great Plains can handle those requirements. It made all the difference.”
“With our former vendor, EDI was killing our efficiencies. We avoided EDI as a proactive business strategy because of the pain involved. It was such a burden that the last thing we wanted to do was add more EDI customers. Today, it’s a very different story.” said Pearsall.
Reduced Labor And Time
Using the HighJump solution Chaco reduced order processing time from 1 hour to just minutes. With the new system in place, Chaco’s sales orders ﬂow into the Sales Order Processing module of Microsoft Great Plains where the HighJump EDI for Microsoft Dynamics® GP system checks for a variety of errors. Sales orders that are erroneous are flagged and sent to a designated employee for handling. Compliant sales orders trigger Great Plains to produce an invoice. All processing occurs inside of Great Plains; users don’t need to learn additional systems to manage their EDI nor do they need to manually manipulate the system to produce an order. The process is streamlined to the point where Chaco requires only one employee instead of two to manage orders.
Improved Access And Accuracy
Electronic pick tickets are sent from Great Plains to the warehouse management system where orders are fulfilled, compliant UCC Shipping Labels are printed and Ship Notices sent. Shipping data for each order is written back to the Great Plains system so designated employees have easy access to order tracking information and item level shipping data such as which pallets contain which cases and associated cartons. Customer Service no longer has to make phone calls to the warehouse and the accounting department to address customer’s inquiries and requests.
Step Into The Future
“Today, we are seeing the efficiencies EDI was supposed to give us and we have a renewed desire to proactively put more high-volume customers on EDI because we can see the efficiencies we gain in our business processes. We sell to many online retailers and getting them to do EDI is a definite advantage for us because of the volume.” said Pearsall.
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