ROI

Thanks to the move from manual inputting to automated DI and faster invoicing, PIPHK has produced more immediate business and improved cost efficiencies and labor allocation. In general, after implementing the EDI project, PIPHK saves about one-third of labor allocation earlier needed for order processing.

Increased Accuracy, More Rapid Order Processing

“Our goal was to enhance our competitive edge and link up with our largest buyer through automated EDI processes, and that’s what we’ve done,” says PIPHK Deputy Managing Director Paul Tao. “We have been able to reduce human error through automation while enhancing both the Hong Kong and U.S. offices’ efficiency and reducing labor costs. We like being able to more rapidly process orders and save work for our employees and customers.”

Printable Format

Poly-Asia e-Technology, Pervasive deliver automated EDI for PIPHK

Protective Industrial Products Hong Kong (PIPHK), a supplier of industrial safety equipment, required EDI integration with ERP system Microsoft Dynamics NAV. The company wanted to automate its purchase ordering and invoicing processes with its largest partner and customer Protective Industrial Products USA (PIPUSA). Doing so would help both businesses reduce costs and increase revenue recognition in a leaner business climate. PIPUSA requested that EDI be instituted by PIPHK, which turned to business solutions specialist Poly-Asia e-Technology.

Poly-Asia e-Technology implemented PIPHK’s Microsoft Dynamics NAV. For the EDI integration, Poly Asia e-Technology recommended Pervasive® Data Integrator™; the recommendation has brought great value to PIPHK and PIPUSA.

Implementing EDI, improving efficiencies

The purchase ordering and invoicing processes between PIPUSA and PIPHK involve PIPUSA generating sales orders to PIPHK, which generates purchase orders to vendors, and then fulfills orders back to PIPUSA. PIPHK also sends a shipping notice and invoice back to PIPUSA. These processes, while functional, were slow and error prone due to manual data input. Users would create Excel and Word invoices and send them through email, an unproductive and mistake-ridden process that slowed revenue recognition. An automated EDI process—one that was fast, reliable
and improved business efficiencies—was needed.

Pervasive has the EDI schemas needed by PIPHK

PIPHK assessed Microsoft BizTalk but selected Pervasive Data Integrator because it offered the flexibility, support and best cost for the EDI schemas needed to complete its project. The EDI format is x12.40, including formats 810, 820, 850, 855, 856, and 997. The EDI project was completed in five
months, with Pervasive’s portion of the work taking from July 2008 to November 2008. Ken Lee, Senior Technical Consultant for Poly-Asia e-Technology, said, “We implemented the project by using Pervasive Data Integrator and the Microsoft NAV dataport function. We provided full EDI integration for the sales operation.”

This is the process flow now in place:
1. PIPUSA sends purchase order file 850 to PIPHK.
2. PIPHK receives the file and sends back an acknowledgment file 997 to PIPUSA.
3. PIPHK confirms order, and sends purchase acknowledgment 855 to PIPUSA.
4. PIPHK ship the goods, and sends shipment notice file 856 to PIPUSA.
5. PIPHK issues invoice, and sends invoice file 810 to PIPUSA.
6. PIPUSA sends payment file 820 to PIPHK.

PIPHK plans to implement an EDI 820 payment file with PIPUSA once the format is accepted by U.S. banks. This will further meet process improvement goals, facilitating even-better efficiencies and even-faster revenue recognition. In PIPHK’s assessment of Pervasive Data Integrator, PIPHK Deputy Managing Director Paul Tao points out, “Pervasive Data Integrator had pre-built EDI connectors that helped ensure that Poly-Asia could rapidly and cost-effectively implement the project in the timeframe we wanted. We were also pleased at Poly-Asia’s depth of experience with Microsoft Dynamics and Pervasive’s Microsoft Dynamics connectivity. In our relationship with Poly-Asia, we have found that they offer high value, good service and responsiveness. They have great sales, marketing and delivery, and they meet our Pervasive Data Integrator update requests often on the same day.”

Pervasive provides EDI integration with Microsoft Dynamics NAV; PIPHK's efficiencies improve 

Using Pervasive Data Integrator for EDI integration with Microsoft Dynamics NAV creates significant value and benefit for both PIPHK and its partner PIPUSA. Errors have been reduced and efficiencies at both organizations have improved. As Paul Tao is pleased to point out, “We’re gaining a competitive advantage. In fact, keeping a compact but professional unit is one of our focuses in managing our business during today’s economic downturn.” In a tough global economy, PIPHK knows it has made a sound decision in working with Poly-Asia e-Technology and Pervasive integration.

EDI automation planned at other international locations

PIPHK is planning to link up its Shanghai office and a recently introduced Italian office with its software. EDI automation is expected to be used in these locations during the coming future.

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