| The most effective way to reduce supply chain | | | | 1) If you plan to use the AS2, you also need AS2 |
| costs is to collaborate with your suppliers. This helps | | | | software module, EDI transformation engine, web |
| not just reduce supply chain costs, but also assists in | | | | server. The AS2 can also be used in conjunction with |
| expanding your business to other locations. Apart | | | | VAN. This helps in slowly replacing the VAN with AS2 |
| from supply chain collaborations, other ways to | | | | system. |
| reduce the supply chain costs include, using better | | | | 2) AS2 is ideal for horizontal application over supply |
| communication tools and sophisticated software. Let | | | | chains. |
| us discuss about both the methods. | | | | Advantages of Using AS2; |
| Effective Supplier Collaboration; | | | | AS2 holds immense possibilities for those who wish |
| Collaborating with your suppliers means that there | | | | to interact better with their suppliers. Some of the |
| must be free access to information regarding the | | | | advantages of using the AS2 communication system |
| stages of supply chain planning. You and your supplier | | | | are detailed below. |
| must aim for making the customer come back, by | | | | 1) Cost Effective |
| providing him/her with the best possible service. | | | | The AS2 can be deployed on the Internet, reducing |
| Here are some ways to make supplier collaboration | | | | installation charges. |
| work for you: | | | | 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 |
| labeling items will be done by the suppliers. | | | | The possibility of human error is reduced, since AS2 |
| Communications Standards; | | | | is easy to use, and does not need extensive |
| Using the latest communication tools can increase the | | | | technical know how. |
| efficiency of the interaction between the supplier and | | | | Use of sophisticated communication tools and |
| yourself. The latest communication tools help you in | | | | software like AS2 helps integrate your business to |
| not just verbal communication, but also in exchanging | | | | the needs of the supplier, thus making both parties |
| documents, sending emails etc. | | | | collaborate. This ensures reduction in supply chain |
| One of the latest communication standards in use for | | | | costs. If you need help in reducing supply chain costs |
| supplier collaboration is the AS2. The AS2 is a | | | | in your small business, you can approach a small |
| mechanism that helps in communications transport. | | | | business consultant for help. |
| AS2 Basics | | | | |