Data Exchange Apps Yield Financial Gains - Modern Distribution Management

Data Exchange Apps Yield Financial Gains

IDEA Exchange and IDEA Connector designed to improve productivity, ROI
IDEA-white-paper-2

Through two applications, IDEA Exchange and IDEA Connector, both offered by Industry Data Exchange Association (IDEA), manufacturers and distributors can achieve greater efficiencies and higher profits, a new white paper, The eBusiness and Economic Benefits of Data Synchronization, shows.

IDEA Exchange is an electronic data interchange that enables members to exchange purchase orders, invoices and advance ship notices with their suppliers and customers. IDEA Connector is a master data management platform that allows manufacturers to share data with their distributors from one centralized location in a standardized electronic format. Manufacturers can use IDEA Connector to send messages about upcoming price changes, holiday closures, product updates, name changes and other information to their distributors.

Using the applications, “Purchase orders, invoices, special price authorizations, and hundreds of other business communications can all be sent securely and cost-effectively over the internet,” according to the white paper.

The benefits include: 

  • Improved customer satisfaction and loyalty,
  • Improved productivity, including personnel cost savings,
  • Increased marketing effectiveness and return on investment,
  • Fewer errors in transactions and orders,
  • Stronger relationships with partners,
  • Ability to bring products to market faster,
  • Ability to reach more customers and prospects, and 
  • Ability to upsell and cross-sell more products.

Industries and supply chains continue to become more reliant on good data. “We are seeing multiple substantive changes in the supply chain where data synchronization, sharing and electronic communication are having significant impacts on the businesses,” the white paper notes. 

With the applications, there’s the potential to achieve more productivity with a smaller staff. “Productivity savings means that people are able to devote more time to high-value activities, which sell more products and services and which dramatically increase customer satisfaction and loyalty. These activities have a direct positive impact on revenues, profit and growth,” the white paper explains. 

The biggest companies are likely to reap the most benefit from the apps. “While even small manufacturers and distributors achieve significant economic benefits, as organizations grow through organic growth or by consolidation, it is apparent that larger organizations benefit even more dramatically due to having more products, more customers and more transactions,” according to the white paper. [see chart]

IDEA Chart

Customers now expect a high level of ease and convenience in business transactions, ever since online shopping became pervasive. “E-commerce customers want intuitive, easy-to-navigate ordering platforms, together with high-quality, product data and visibility into inventory availability, [and] a variety of fulfillment options,” the white paper notes. 

The annual subscription for IDEA Connector costs between $10,000 and $75,000, depending on the size of the organization’s product catalog. The annual costs for IDEA Exchange range from approximately $7,500 for the smallest customers to more than $150,000 for the largest ones, depending on the volume of data transported over the network.

 

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!