Building a stronger supply chain with EDI
See how MSC Industrial Supply nailed efficiency with SPS Commerce, leading to an improved procure-to-pay process, better-performing suppliers and improved trust and communication among their internal teams.
The challenge:
Improve data organization, reduce high inventory costs and streamline vendor processes that slowed operations.
The solution:
SPS Commerce Supply Chain Performance Suite
The result:
By implementing a standardized data-sharing process via EDI, MSC improved efficiency, inventory control and vendor relationships while building trust in automated processes, which revealed new opportunities to streamline operations.
The challenge
MSC Industrial Supply Co. has been a trusted name in industrial distribution for over 75 years. They are the leading North American distributor of metalworking and maintenance, repair, and operations (MRO) products and services. However, even a leader like MSC faces challenges. Coming out of the COVID-19 pandemic, MSC struggled with elevated safety stock that had been essential for avoiding supply chain disruptions. These high inventory levels were tying up resources and driving up costs. At the same time, they faced inefficiencies in managing EDI processes. While MSC had implemented EDI years before, adoption across teams had been inconsistent, and the data it provided was often overlooked. Without trust in the system, teams found workarounds rather than relying on EDI to drive efficiency.
Data was inconsistent and unreliable, making it challenging to use. Essential processes like tracking shipments, confirming orders, controlling margins and managing inventory weren’t as accurate or efficient as they could be. With over 3,000 suppliers—from major manufacturers to family-run businesses—MSC needed a way to connect with everyone efficiently and keep things running seamlessly for their customers. They needed a solution that would not only standardize their data but also make it accessible and actionable to make it easier for their team to trust the information they were working with every day.
“How do you act on the data that you are getting? EDI allowed us to get better information coming into our system, which meant we were able to order in a more efficient manner.”
—William Boland, Director of Product Management at MSC
The solution
MSC partnered with SPS Commerce to implement a comprehensive EDI solution that simplified operations and improved their ability to collaborate and communicate with suppliers. Together, they introduced tools and processes that made a significant difference in their day-to-day processes, including:
- Standardized data sharing: With SPS Commerce, MSC automated data exchanges like shipping updates, order confirmations and invoices, eliminating delays and miscommunication.
- Vendor scorecards: MSC created clear, actionable scorecards that helped vendors understand where they excelled and where improvements were needed. These scorecards strengthened trust, fostered collaboration and ensured everyone was speaking the same language.
- Solutions for every vendor: Whether a large enterprise or a small mom-and-pop shop, SPS provides tools that make it easy for all suppliers to connect seamlessly.
SPS also helped MSC onboard new suppliers smoothly and adapt to changing needs, ensuring the system worked effortlessly. This transformation ensured that suppliers had the resources to succeed while MSC’s teams could trust and act on the data they received every day.
“Our internal teams now have a lot more trust in the EDI system and the data that they get from it. They can then use that data to be more efficient in their day-to-day.”
—Daniella Debitetto, Product Manager at MSC
The results
Since implementation with SPS Commerce, MSC has seen a big difference in how their business runs:
- Reduced inventory costs: MSC has been able to reduce overstocked inventory without falling short of customer demand.
- Stronger vendor relationships: With better communication and clear expectations, MSC built closer partnerships that allowed everyone to work together more effectively—even tackling potential roadblocks before they occurred.
- Better visibility for the team: Employees now have the tools and information they need to make smarter decisions and offer better service to customers.
- More trust in data: By clearly understanding what the data meant, why it mattered and how to act on it, MSC’s teams were able to optimize processes and address issues proactively.
MSC Industrial Supply’s story shows how the more seamlessly you partner with your network, the easier the journey becomes. Their collaboration with SPS ensures they have the support and expertise to achieve a high-performing supply chain and fuel a successful future.
Not all our suppliers have the capability of doing EDI on their own. With Fulfillment, we can continue to still get those efficiencies from all suppliers, even those that don’t have an IT department. As long as they have a computer, they have the ability to be able to share information with us in a standardized way and receive their orders back to them in a standardized way.
– William Boland, Director of Product Management at MSC
