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3 Reasons High Tech Companies Need High Tech EDI Solutions

Posted by Brooke Lester on May 11, 2017 8:38 AM

EDI solution

High tech companies produce cutting-edge, game-changing products and services. However, they face certain challenges that do not affect other industries in the marketplace. 

An EDI solution can address those obstacles. There are three reasons in particular why high tech companies need high tech EDI tools: the complexity of their supply chain, the tendency towards disruptions, and the cost savings EDI systems bring.

Complex Supply Chains

High tech companies tend to have much more complex supply chains than other industries. Why?

For a start, the high tech industry’s supply chain tends to have many moving parts. In order to succeed, businesses have to build collaborative, agile partnerships with others. While other industries’ supply chains are hierarchical in nature, the high tech sector’s supply chain more closely resembles a matrix.

Apple outsources manufacturing to several other companies, many of which are far from its California offices.

Consider Apple as an example. Apple does not manufacture any of its own products; rather, it outsources manufacturing to several other companies, many of which are located far from its California offices. Even the slightest hiccup at one of its contractors’ plants could lead to serious consequences; orders would not be fulfilled, customers would be unhappy, and Apple’s stock price would drop considerably. 

A high tech EDI solution keeps all of those moving parts connected and visible. If there is a delay, managers know about it and can make plans to shift resources to keep business flowing.

EDI solution

The High Tech Industry: Prone to Disruption

Another issue that the high tech sector faces that is less of a problem for other industries is disruption. In business and technology, “disruption” refers to a product or service that addresses a market that has not previously been served. 

Although high tech firms are disruptors themselves, that does not mean that they are immune to the market forces of other disruptive companies. In today’s environment, another firm could come up with a solution to a problem that meets the needs of a completely ignored market segment. That could mean that an incumbent in the market could find itself in danger of becoming irrelevant. 

Although high tech firms are disruptors, that does not mean they are immune to other disruptive companies.

How can a high tech EDI solution help high tech firms stay one step ahead of disruption? Modern systems work in real time. If you realize that a disruptor has entered the market, you can quickly respond by adjusting your product or service with new features by communicating with supply chain partners. With legacy EDI systems or even email, it could take weeks or longer to submit (let alone change) orders, which put companies at risk from their innovative competitors.

Cost Savings

In uncertain economic climates, every industry has to do more with less. However, the high tech sector is particularly cost sensitive. Many start-ups have low budgets; they cannot afford to waste a single dollar.

That is where a cutting-edge EDI system can save the day. Think back to the point made earlier about visibility; if you can see there is going to be a delay in a shipment of crucial parts, you can program the EDI solution to automatically shift the order to an alternate supplier. 

Many start-ups have low budgets; they cannot afford to waste a single dollar.

The one thing high tech companies do have in common with firms in other sectors is that they cannot afford to be left behind. EDI tools help them stay competitive and agile. To learn more about how an EDI solution benefits your high tech company, contact us.

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