Collaborative Technology – Part 2

By Steve Epner – Founder, BSW Consulting, Inc.

Last time I described collaborative technology. This time, I want to talk about its use in the real world. When collaborative technology is used correctly, everyone wins. A simple example is the elimination of paper invoices. In industries that use Evaluated Receipts Settlement, there are no invoices. The customer pays for product as it is received on their dock. They pay based on the agreed to price in the Purchase Order.

Think about the results. Since all payments are made electronically on receipt, there is no need for an accounts receivable department. Since we do not hold invoices for later payment, there is not need for an accounts payable department. Maybe this is why there is so much delay in making ERS work – too many companies are trying to protect jobs.

What if we take the people who are now handling paper and give them more important things to do? Can we be more effective? Can we get things done we do not have time for today? Can we improve the workplace? These are all possibilities, if we want them.

Collaborative technologies take trust that the PO system is working, that trading partners will not try to cheat each other, and that the product was accurately picked, packed, shipped, and received. Trust can be improved with proper auditing techniques, but until two partners can feel comfortable with each other, nothing can happen.Success requires a desire to make sure the trading partners are “on board.” It may be necessary to sell the idea inside and outside of the organization. Enthusiasm is contagious. If it is absent, the process is much more difficult to make work.

Success requires a commitment to implementing not only the technology applications, but the training and manual procedures that can verify the accuracy of the process. We must take the time to make sure that the systems are tested and validated.

The experience of large companies proves the value. The technology is available – and within most systems sold today. All that is required is for the top management teams in our supply chains to get together and make it a reality.