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June 26, 2013 

Allen Lund Company Newsletter

Emergent Issues in Distribution and Transportation

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In This Issue
I & Electronic Commerce
About ALC

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Contact Information
Scott Fletcher, Co-Editor
Matt Balsly, Co-Editor
Allen Lund Company
Dallas Office
(800) 730-5863
 
Atlanta

Jim Scazzero, Asst. Mgr.
(800) 234-5863
[email protected] 


Denver
Brodie Donaldson, Mgr.
(800) 873-5863
[email protected]  

Iowa
Steve Moss, Mgr.
(800) 709-5863

Kansas City
Joe Creedon, Mgr.
(800) 458-5863

Los Angeles
Ty Tallakson, Asst. Mgr.
(800) 777-5863

Louisville
Doug Mesecher, Asst. Mgr.
Jill Deaton, Trans. Bkr.
(800) 825-5863

Memphis
Toni Rooney, Mgr.
(800) 432-5863

Minneapolis
John Wittman, Mgr.
(800) 889-5863

St. Louis
Dawn Davenport, Mgr.
(800) 370-5863

San Antonio
Troy Magers, Mgr.
(800) 456-5863

ALC Logistics
Mike Garrity, Mgr.
(800) 444-5322

I & E Commerce

Electronic Data Interchange (EDI), widely adopted in the 1980s, is a method for transferring structured data between different computer systems.  Historically, only larger companies used EDI with the same protocols for e-commerce purposes, such as sending orders to warehouses or tracking purchase orders.  Due to the Internet and the standardization of electronic communication, many small to mid-size companies can compete on a level playing field for e-commerce.  As a result, new industries are using it to gain a competitive advantage in many global markets. 

EDI has standards and document numbers for each transaction.  These standards were developed to allow the sender and receiver to transmit documents using agreed upon methodology.  There are two primary sets of EDI standards utilized today:
  1. EDIFACT - The UN recommended international standard (used primarily outside of the US)
  2. ANSI X.12 - US standard for North America

EDI is a stable component for conducting e-commerce today.  However, there are certain pros and cons when transmitting EDI documents.   

 

PROS

  • Standardized, efficient method of transferring large quantities of data and information
  • Minimizes chance of human error when storing and manipulating data
  • Speed of information sharing - maintain better internal controls (i.e. inventory levels)
  • Strengthens customer relations
CONS
  • EDI requires a considerable investment
    • A translator must be utilized for consistent EDI interface between companies
    • The EDI file format is complex and not easily implemented
    • A functional EDI expert is needed to maximize utility
  • Lack of interest or glamor and will only work if everyone uses same methodology 

EDI is a proven method and has created a strategic advantage for many organizations worldwide.  The question is how much do companies want to invest in their own EDI solution?  Currently, the perception is that EDI may no longer be an essential business tool in today's global marketplace.  People erroneously believe that as non-Internet methods of transmitting data are being replaced by the Internet, so will EDI documents.  However, the future of EDI is very clear, as it is continually a growing part of e-commerce.    

 

 

John Hartmann

National Accounts Manager, Logistics Office

[email protected] 

John Hartmann
John Hartmann is a National Accounts Manager, ALC Logistics office with 21 years of experience in the transportation industry and formerly with YRC Worldwide and RTS Financial.  Hartmann is a graduate of the University of Missouri completing the University of Arkansas Collaborative Planning, Forecasting and Replenishment (CPFaR) program within the Supply Chain Management business school.  He has been with the Allen Lund Company for over 2 years. 
About Allen Lund Company: Specializing as a national third-party transportation broker with nationwide offices and 350 employees, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated, and flatbed freight; additionally, the Allen Lund Company has a logistics and software division, ALC Logistics.
 
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Sincerely,
The Moving It Forward Team 
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