Peter Grimm: Achieving a Significant ROI From EDI
What Are the Quantified Benefits of EDI?
See Cost Savings From Automation
Suppliers often ask what measurable benefits of EDI they can expect from full-service EDI solutions, including SPS Commerce Fulfillment. eCommerce supplier (and one of our EDI customers), Peter Grimm, shared their experience and gave us a real-life look at how they achieved a significant ROI.
SPS commissioned Forrester Consulting to develop a Total Economic Impact™ study on SPS Commerce Fulfillment using Peter Grimm as the study’s real-life subject. So, how has full-service EDI from SPS helped Peter Grimm? The highlights and data are below.
See Cost Savings From Automation
SPS commissioned Forrester Consulting to develop a Total Economic Impact™ study on SPS Commerce Fulfillment using Peter Grimm, an E-commerce supplier and SPS EDI customer, as the study’s subject. The highlights and data of full-service EDI and how Peter Grimm achieved a significant ROI using SPS Fulfillment are below.
What Benefits of EDI can You Expect?
Let’s walk through the benefits Peter Grimm experienced from a full-service EDI solution.
1. No order entry errors or chargebacks
In 2019, Peter Grimm had zero order entry errors. Forrester calculated the related savings using the following estimates: 15% of EDI documents typically have errors (especially during busy seasons), the time for error correction is two minutes per document, and the average penalty (chargeback) is $20.
Savings: $105K+/annually
2. No EDI resources needed
Peter Grimm’s retailers make more than 1,000 EDI mapping changes annually. Without SPS Fulfillment, the supplier would need to staff this function (estimating an average effort per change of four hours). With full-service EDI, SPS makes all mapping changes at no additional cost.
Savings: $125K+/annually
3. No hiring required
With full-service EDI, Peter Grimm avoided hiring additional staff, including a full-time EDI coordinator to onboard new retailers and process documents.
Savings: $100K+/annually
4. Minimizing chaos and costs during peak seasons
Peter Grimm has seasonal demand spikes in orders with EDI document volumes varying from 2,000/month to 20,000/month. These periods no longer require the hiring of temporary staff to manually process orders.
Savings: $40K+/annually
THE CHALLENGE
Peter Grimm’s business was expanding. They needed to hire EDI staff to keep up or automate with SPS.
THE APPROACH
Deploy SPS Commerce Fulfillment with system automation to their ERP system.
THE RESULTS
No new hires, zero order entry errors, new business and a 372% ROI.
THE CHALLENGE
Peter Grimm’s business was expanding. They needed to hire EDI staff to keep up or automate with SPS.
THE APPROACH
Deploy SPS Commerce Fulfillment with system automation to their ERP system.
THE RESULTS
No new hires, zero order entry errors, new business and a 372% ROI.
Our error liability is $0 with SPS and the integration function with our ERP system – you’re talking $50 to $500 in chargebacks just at a snap of the finger. We’re getting $0!
– Sales and Operations Manager, Peter Grimm
