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Electronic Data Interchange (EDI)
Electronic Data Interchange, or EDI, is a process in which University selected preferred
contract suppliers electronically receive University purchase orders to reduce order
cycle time and transmit supplier invoice information to Penn thereby reducing the costs
associated with the handling and processing of paper purchase order invoices. As a
paperless process, EDI is ideally suited for high volume/low dollar supplier transactions.
Global Exchanges Services (GXS) is the
University's business partner for the electronic transmission of supplier purchase orders,
change orders and supplier invoices. Electronic transmission of purchase orders and
invoices with Global Exchange Services facilitates a seamless, end-to-end electronic
process for the entire purchase-to-pay process.
The electronic transmission of purchase/change orders from the
BEN Buys Purchasing System to
EDI enabled supplier order processing
systems eliminates time and cost related to managing the auto faxing of transactions
and eliminates errors due to supplier re-keying of purchase order information into their
order entry system. Similarly, electronic receipt of supplier invoices and credit memos
saves time and cost associated with the manual processing of paper invoices.
The electronic receipt of supplier invoices, automatic routing and processing of the
invoices is enabled via 170
Systems MarkView software, which uses workflow functionality to route and queue the
invoices for appropriate processing. This processing not only reduces the need for
sending paper back and forth, but it also reduces time to process and the use of the
telephone, since it can all be done electronically. In the case where the requisition
is above the tolerance or designated for special processing (e.g. Hazardous Material),
it automatically gets routed to the appropriate caretaker for approval. If there is no
problem with the invoice, it is automatically fed into the General Ledger system, where
the appropriate accounting takes place.
Please direct all questions and requests for information on Penn's EDI related initiatives
to Vira Homick in Purchasing Services.
Benefits of EDI
EDI provides many benefits in support of business objectives and strategic supplier
relationships:
- Reduces paperwork (invoice handling), data entry labor costs, postage costs, and printing costs
- Supports the concept of Just in Time (JIT) inventory delivery promoting improvement in flow time of delivered goods to minimize closet inventories and support the research community needs
- Dives out inefficiencies in the business process
- Reduces administrative cost for the buyer and seller
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