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The True Costs of Vendor and Supplier Onboarding

The standard procedure for integrating a new supplier into your systems often spans weeks or even months, particularly for certain retailers. However, this extended duration isn't merely inconvenient; it poses a significant problem. A protracted onboarding process can result in substantial financial losses, including missed sales opportunities and tangible expenses.

Estimate the potential cost by considering your projected sales. Deduct the duration of the anticipated onboarding process. Calculate the potential sales volume for two, three, or six months. Assess the risk of not being the first to market. This represents the true financial impact of prolonged onboarding time.

Based on our data, the average retailer needs to initiate 13 communications with a supplier during onboarding just to garner their attention, let alone ensure completion. When multiplied across all suppliers onboarded annually, the cumulative cost and prevalence of these delays become evident.

Imagine reducing that timeframe to mere days. Those missed opportunities transform into tangible sales. What might have been significant losses now translate into substantial revenue gains.

Actual Costs of Vendor Onboarding

In addition to revenue loss, consider the programming expenses incurred when it takes six weeks to six months to integrate your retailer database with a supplier's (or vice versa). If you're paying a programmer for this task, and onboarding stretches over several months, calculate the actual cost in terms of salary and overhead.

These represent tangible expenses associated with vendor onboarding. Any potential sales generated after operationalization are mitigated by the expenses incurred during the onboarding process. Consequently, profitability is further delayed until these initial costs are recouped.

EDI by Design offers a significant advantage in this regard. We can efficiently assist retailers in identifying suppliers with the necessary products, delivery capabilities, and seamless integration into their EDI system within days, rather than months. Consequently, you can start generating revenue almost immediately, rather than waiting weeks or months.

Accelerated supplier onboarding enables swift adoption of new trends and products. Suppose you catch wind of a popular new toy or groundbreaking technology gaining traction in October. In just a few days, you could onboard the supplier and capitalize on the burgeoning trend ahead of the holiday season, rather than watching competitors seize the sales opportunity.

Benefiting from our proven system, EDI by Design has assisted numerous retailers and suppliers globally. We handle all aspects of onboarding, sparing you the need for 13 phone calls or emails. Simply direct the supplier to EDI by Design, and we'll manage the process entirely.

After successfully integrating the supplier into your ERP system, ensuring alignment of their item data with yours and maintaining accuracy is crucial. Our assistance extends to this aspect as well

Our EDI system acts as a universal translator bridging suppliers' diverse date formats with retailers' ERP systems, ensuring seamless alignment. This enables the exchange of product data, purchase orders, and associated transaction documentation to commence effortlessly.

For further information, explore the EDI by Design website to discover how you can swiftly locate, onboard, and begin ordering from new suppliers within days of identifying them in our Retail Network. Request a free demonstration or consult with one of our onboarding specialists for personalized assistance.