Re: Charging a customer for EDI ???????

[Jim Divoky]

Title: RE: Charging a customer for EDI ???????

This is the same scenario I was describing earlier.  Curious since EDI was invented for the transportation industry yet many warehouse operations are woefully backward when it comes to EDI.  Several clients of mine had to purchase the hardware and software for the third party warehouse, install it, and pay all charges.  If I had been the decision maker I would have selected only an EDI-ready warehousing service. It is about time they moved into the 21st century.   Jim Divoky ----- Original Message ----- From: Michael Pokraka To: [EMAIL PROTECTED] Sent: Wednesday, September 05, 2001 4:09 AM Subject: Re: Charging a customer for EDI ??????? Quite correct - WE are the Gorilla in this case. 90% of our trading is as a supplier, but not this time :-) Thanks a stack for all your excellent input, it confirms my suspicions.   The real story is a little more complicated:  - Partner X (the one in question) is a logistics supplier - freight, warehousing and the likes.  - We supply customer ABC. The 'main' contract is between ABC and freight company X, stating to use EDI (3 way EDI communications).  - Company X will only sends us data (stock movement).  - They do not seem to have much of an EDI infrastructure to start with (surprising for a large co.)   In effect we are only a 200lb gorilla, with the 800lb Gorilla on the other side and X in the middle. Nevertheless, we are still gorilla, and will let them know what to do with their 'charges'. The part that confused me was their bold matter-of-fact approach to bill us, sounded like 'this is the norm', hence my asking the list. Thanks again for all your input. Michael Pokraka SAP EDI Analyst Samsung Semiconductor Europe Ltd Tel: +44 (0)20 8380-7050 Fax: +44 (0)20 8380-7218 This message transmitted on 100% recycled electrons.       -----Original Message----- From: Stephen O'Shaughnessy [mailto:[EMAIL PROTECTED]] Sent: 04 September 2001 22:01 To: [EMAIL PROTECTED] Subject: Re: Charging a customer for EDI ??????? Read a little closer.  Michael is the 800lb gorilla. -----Original Message----- From: Mark Kusiak [mailto:[EMAIL PROTECTED]] Sent: Tuesday, September 04, 2001 2:36 PM To: [EMAIL PROTECTED] Subject: Re: Charging a customer for EDI ??????? If a "trading partner" i.e. the 800 LBS of gorilla can get you to pay for it, and he usually can, then you are providing a benefit to his bottom line.  The key to leveraging his/her EDI investment is to develop once and use over and over and over again.  It's the age old business solution where they are in the position to demand it their way and also get you to pay for it in the process.  He realizes that he can drag you along and "dictate" to you what and when and how you are going to do this.  You ask if this is right, legal or ethical.  The answer for most in the banana republic is no, but the gorilla is licking his chops. Bottom line is this..... If you need the business then you are going to do it.  It now becomes a cost of doing business.  Is this a true cost of EDI?  No, you are being saddled with the total costs of getting the data to your customer.  This skews your prospective on the cost and makes your ROI much lower. Usually each trading partner shares the cost evenly amongst themselves.  The problem is that sooner of later you will run up against the 800 LBS of gorilla and if you need the gorilla's business, you'll grin and bear it. How do you think that he's getting the fantastic leverage on his investment that he is going to write about in the next issue of EC World magazine.  He's passing his costs off on the banana republic.  One way you have to fight back is refuse to do business with him.  The only problem is that if your passing on his business, then there is someone hungry enough to take your place and go along for the ride.  For the record, it's these guys that give the EDI community the most trouble.  They realize such a fantastic savings from doing business this way then they gore everyone else by making them pick up a disproportionate amount of the costs.  I guess they never heard the story of the guy who killed and ate the goose that laid the golden eggs.  I guess that becoming an 800 LB Gorilla makes you go a little weak in the head!!!!! Regards, Mark  -----Original Message----- From:   Michael Pokraka [mailto:[EMAIL PROTECTED]] Sent:   Tuesday, September 04, 2001 9:17 AM To:     [EMAIL PROTECTED] Subject:        Charging a customer for EDI ??????? Hi folks, A new supplier wishes to charge us for doing biz by EDI. Now, the situ is a little unusual for me, as - to my knowledge - the 800lb Gorilla (us for a change) is not normally billed for the privilege.... or is it???? A bit of background: The supplier is a well-known worldwide logistics company, providing warehouse and transport services. The supplier has been contracted with prerequisite to the whole thing being that they deal by EDI. Now that the deal is struck, supplier comes back and says that EDI is of no benefit to them, but merely a service that they provide as part of the package, thus they will charge their customer for it. My question: is this a 'standard' practice? Does that mean that we start charging our customers ? :-) TIA Michael Pokraka SAP EDI Analyst Samsung Semiconductor Europe Ltd Tel: +44 (0)20 8380-7050 Fax: +44 (0)20 8380-7218 This message transmitted on 100% recycled electrons. ----------------------------------------------------------------------- The information contained in this email may be privileged, confidential and protected from disclosure. The opinions expressed are those of the individual and not Samsung Semiconductor Europe Ltd or Samsung Electromechanics Ltd. Internet communications are not secure and therefore Samsung Semiconductor Europe Ltd and Samsung Electromechanics Ltd do not accept legal responsibility for the contents of this message. 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