| The most effective way to reduce supply chain | | | | mechanism that helps in communications transport. |
| costs is to collaborate with your suppliers. This helps | | | | AS2 Basics |
| not just reduce supply chain costs, but also assists in | | | | 1) If you plan to use the AS2, you also need AS2 |
| expanding your business to other locations. Apart | | | | software module, EDI transformation engine, web |
| from supply chain collaborations, other ways to | | | | server. The AS2 can also be used in conjunction with |
| reduce the supply chain costs include, using better | | | | VAN. This helps in slowly replacing the VAN with AS2 |
| communication tools and sophisticated software. Let | | | | system. |
| us discuss about both the methods. | | | | 2) AS2 is ideal for horizontal application over supply |
| Effective Supplier Collaboration; Collaborating with | | | | chains. |
| your suppliers means that there must be free access | | | | Advantages of Using AS2; AS2 holds immense |
| to information regarding the stages of supply chain | | | | possibilities for those who wish to interact better |
| planning. You and your supplier must aim for making | | | | with their suppliers. Some of the advantages of using |
| the customer come back, by providing him/her with | | | | the AS2 communication system are detailed below. |
| the best possible service. | | | | 1) Cost Effective |
| Here are some ways to make supplier collaboration | | | | The AS2 can be deployed on the Internet, reducing |
| work for you: | | | | installation charges. 2) Data Exchange |
| 1) Shift from Advance Shipping Notice reception to | | | | The speed of exchanging information using AS2 is |
| facility flow through. | | | | phenomenal. In fact, the real time data transfers are |
| 2) Customize the technology that you use to fit in | | | | an effective way of passing documents to your |
| better with the model your supplier uses. This will | | | | suppliers. |
| help in better communication. | | | | 3) Network Formation |
| 3) Chart out a plan with your supplier that will | | | | Since the AS2 is highly affordable, you can have all |
| forecast customer demand and provide information | | | | your partners and collaborators install the system and |
| about inventory. | | | | work as a network. |
| 4) Negotiate division of work, so that jobs like | | | | 4) Reduced Errors The possibility of human error is |
| labeling items will be done by the suppliers. | | | | reduced, since AS2 is easy to use, and does not |
| Communications Standards; Using the latest | | | | need extensive technical know how. |
| communication tools can increase the efficiency of | | | | Use of sophisticated communication tools and |
| the interaction between the supplier and yourself. | | | | software like AS2 helps integrate your business to |
| The latest communication tools help you in not just | | | | the needs of the supplier, thus making both parties |
| verbal communication, but also in exchanging | | | | collaborate. This ensures reduction in supply chain |
| documents, sending emails etc. | | | | costs. If you need help in reducing supply chain costs |
| One of the latest communication standards in use for | | | | in your small business, you can approach a small |
| supplier collaboration is the AS2. The AS2 is a | | | | business consultant for help. |