Accelerating Partner Onboarding with Legacy EDI Modernization for a Global Manufacturer

Overview:

A global manufacturer with a footprint in over 30 countries faced significant operational challenges due to outdated Electronic Data Interchange (EDI) systems. The company sought a modern solution to simplify B2B communication, enhance efficiency, and eliminate system complexities. Tellestia delivered a secure, advanced, and cost-effective EDI solution that streamlined the company’s business transactions and improved its supply chain operations.

The Challenge:

The company's reliance on legacy EDI systems, including the aging AS400 platform, created substantial inefficiencies and delays in its business operations. The outdated systems were a bottleneck, especially when communicating with vendors and partners. In addition to transaction delays, the company faced financial losses due to missed invoices, straining relationships with key partners. The lack of visibility, tracking, and compliance in the legacy infrastructure further hampered the company’s ability to manage its supply chain effectively and scale its operations.

The Objective:

The goal was to replace the legacy EDI systems with a modern, secure, and cost-effective solution that would:

• Streamline B2B communications and data transactions.
• Improve transaction visibility and regulatory compliance.
• Eliminate the complexity associated with managing outdated systems.
• Reduce operational costs by optimizing data exchange processes.

The Solution:

Tellestia guided the company through a comprehensive legacy EDI migration, employing a phased approach to ensure minimal disruption to day-to-day operations. The solution was tailored to meet the company’s specific business needs, with the following key components:

• Transition to AS2 Protocol: Tellestia migrated the company’s legacy EDI systems to the secure, cost-effective AS2 protocol, replacing the traditional Value Added Network (VAN) connections. This move not only enhanced the security of transactions but also delivered significant cost savings by eliminating VAN fees.
• Comprehensive Integration: Over 20 of the company’s EDI integrations were successfully migrated to the new cloud-based EDI platform, covering 15 different EDI transaction formats. Despite the complexity of the migration, Tellestia ensured a seamless transition with minimal impact on ongoing operations.
• Support for Multiple Protocols: The new EDI platform was designed to be adaptable, supporting a wide range of protocols, including FTP, SSH, HTTP(S), SMTP, and MQ. This flexibility ensured that the platform could integrate smoothly with a variety of business systems and adapt to evolving operational needs.

The Impact:

The modernization of the company’s EDI systems yielded measurable improvements across key operational areas:

• Streamlined B2B Communication: The transition to a modern EDI system enabled faster, real-time transactions with vendors, suppliers, and partners, reducing delays and enhancing overall supply chain efficiency.
• Cost Savings and Enhanced Security: Migrating to AS2 resulted in significant savings by eliminating the need for costly VAN services, while simultaneously improving transaction security and safeguarding sensitive business data.
• Improved Operational Efficiency: The new EDI platform provided better visibility into transactions, helping to reduce missed invoices and improve compliance. Additionally, the modernized system facilitated smoother and faster onboarding of new partners, supporting the company's ongoing digital transformation.
• Scalability for Future Growth: The flexible, multi-protocol support of the new EDI solution ensures the company can scale its operations as needed and remain agile in response to changing business requirements.

This successful migration to a modern EDI system has significantly enhanced the company’s operational capabilities, enabling more efficient, secure, and scalable B2B communication as it continues to expand in the manufacturing industry.