Monday, June 17, 2024

Helping businesses calculate savings

GS1 Australia Advisory Services Manager John Szabo says supply chains, more than ever, are feeling the pressure of increasing costs, competition and demand.

“A small investment in process automation or simplification can have significant impact on efficiency while reducing costs,” he says. “Knowing where to look is sometimes the hardest part, and that’s where GS1’s Savings Calculator comes in.”

The GS1 Australia Savings Calculator is a free online business analytics tool that helps organisations identify potential savings through the implementation of either electronic data interchange (EDI) for electronic documents such as purchase orders and invoices, or electronic master data exchange and synchronisation.

“Implementing EDI or electronic data synchronisation is seen as a cost to the business, as opposed to being an investment,” Mr Szabo says. “The Savings Calculator provides organisations with an opportunity to explore the benefits of what these implementations bring.”

Suitable for suppliers and retailers, and available to both GS1 members and non-members, the tool has been developed to be industry agnostic.

“There are two calculators to select from in each category – one for a buyer and one for a supplier,” Mr Szabo says.

“Users receive instant results delivered in an easy-to-read report, specifically tailored for their business, providing them with strong quantitative data to support a business case.”

The report generated from the Savings Calculator displays comparative costs, highlighting where savings could be made by implementing GS1 standards.

The tool focuses on the cost savings related to EDI, which is sometimes referred to as e-messaging, and those related to electronic data synchronisation, such as reduced operational costs, eliminating processing errors, improving stock receiving processes, reducing out-of-stocks, and improving customer satisfaction.

“Manual, paper-based processing of business transactions between trading partners can be very costly and time consuming,” Mr Szabo says. “Adopting a standards-based approach to paperless trading across processes creates value for your company, your business partners and your customers.”

By automating supply chain processes, tangible results are achieved, including:

  • More fluid stock movements.
  • Greater flexibility and accuracy in stock management.
  • Improved end-to-end traceability.
  • Better product availability.

“The Savings Calculator was developed in conjunction with leading universities including La Trobe, Deakin and Cranfield (UK), leveraging the work completed by GS1 UK and GS1 France to ensure the Savings Calculator delivers accurate results,” Mr Szabo says. “Try it out at savingscalculator.gs1au.org.

Read more about financial services to help your business in the in the August issue of Retail World.

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