Fraud has been a thorn in the side of B2B business transactions as long as those transactions have existed. With more advanced technology at their disposal, illegitimate parties’ payment fraud attempts become more elaborate. According to the Association of Finance Professionals, last year saw the highest percentage of businesses impacted by payment fraud in the last decade. Here are a few of the payment control best practices your business can put into action today to combat fraud.

an infographic illustrating the prevalence of payments fraud experience by businesses with insufficient payment controls best practices.

Photo: Association for Finance Professionals

IT And Security Professionals On Payment Control Best Practices  

The rising instance of payment fraud has It and security staff concerned. As many as 85% of security professionals surveyed responded that their companies lacked the necessary security and infrastructure to combat payments fraud.

The biggest windows of opportunity for fraud reside in the Accounts Payable (AP) department of a business. Errors made during the process of manual data entry and inefficient email communication concerning dozens of invoices at any given time are just two examples of significant vulnerability. However, a majority of fraud cases results from the most insecure payment method accepted by businesses — paper checks.

Why You Need To Implement Payment Control Best Practices

While most businesses are aware of fraud and do implement some steps to mitigate its effects, few are willing or capable of giving the subject the undivided attention it requires.

Common activities businesses use to combat fraud include:

  • Reconciling validity against invoices, department heads, and their vendors
  • manual comparison of invoices to purchase orders
  • compiling checks over time to have the CFO sign off at a later date

These activities may be sufficient to insulate Accounts Payable, in theory. However, with an increase in volume as a company grows, these methods fall short of providing the security AP needs. If Outlook is where your invoice approval process resides, chances are a few of those invoices are getting lost in the shuffle. Bottlenecks emerge when it comes time to audit or get approval through a CFO, who may have only a small window of availability.

Payment Control Best Practices To Mitigate Risk

Despite the growing prevalence of fraud in B2B transactions, here are some payment control best practices you can put into place today to insulate your company from the associated risks.

1. Ditch the paper in favor of electronic payment methods

Electronic transaction support can deliver a lot of benefits to businesses of any size. not only are they convenient, secure, and efficient, these types of payments add multiple layers of security through encryption. Virtual cards take things further with the inclusion of tokenization, a process by which data is assigned a series of symbols that retain essential information without compromising security.

an image of payment control best practices being used

Beyond security, electronic payment methods expedite the payment process significantly. These more opportunities reduce liabilities and increase working capital benefits that your business can leverage. the convenience of electronic payment methods can be felt on the other side of the transaction, as well. customers and vendors that can leverage an easy to use payment system in conjunction with your business will feel greater satisfaction from your B2B relationship. Increased partner satisfaction results in stronger relationships and can lead to more referrals for your business.

2. Remove Autonomy Over The Payments Process

Accounts payable is no exception to the rule when it comes to checks and balances. It is never a good idea to give a sole individual complete control of the flow of money in and out of company accounts. Breaking up the process to include several staff members ensures that no single person is responsible for the flow of capital. Designating one team member to set up payments and another to approve and release those payments ensures proper checks and balances during the process.

3. Automate Accounts Payable

Automation isn’t just a buzzword when it comes to your accounts a payable department. with volumes of data to be received, recorded, and processed, there is plenty of room for error when the tasks are carried out manually.

Fortunately, modern tools and solutions that can be leveraged alongside your ERP system exist. The automation of these tasks increases security, efficiency, and the benefits your company is able to leverage as a result. putting manual data entry errors and headaches aside, how easy is it for your accounting department to keep up with rapidly changing rates, rules, and laws? automated software that integrates with ERP delivers that real-time visibility you need to remove mistakes from the equation.

An automated accounts payable process embeds payment controls — like the aforementioned segregation of duties — into the AP process and establishes them as simple and repeatable processes:

Segregation of duties: AP automation solutions designate separate roles in the accounts payable process by creating separate login credentials and separate dashboards. Not only does this make it incredibly challenging to forge approvals, but it also preserves receipt of all approvals in one central location for easy access at any time.

Two-factor authentication: adopting an AP automation solution that requires dual-factor authentication will decrease the probability of an account becoming compromised. the process dictates that a password and text message-delivered verification code must be entered before access tot he system is granted.

Auto AP three-way match: For businesses working with purchase orders, AP automation can take the pain out of matching them to corresponding invoices by doing it automatically and flagging any that are mismatched within your ERP system. The “three-way” part of the three-way match refers to the three documents that will be compared:

  • The vendor’s invoice that was received and will become part of an organization’s accounts payable when it is approved
  • The purchase order that was prepared by the organization
  • The receiving report that was prepared by the organization

With these controls in place, it’s much easier to protect and sustain your AP process, even as you continue adding vendors on a monthly basis. The results are felt in:

  • Improved compliance and supplier relationships
  • Simplified vendor setup and management
  • Improved visibility, insight, and control of the entire accounts payable (AP) process
  • Ability to focus your AP team on higher-value work

When automation is factored into the equation, the benefits are felt even further with:

  • Reduced cost per invoice (CPI)
  • Instant storing, securing, and cataloging of electronic documents
  • Streamlined AP workflow processes
  • Dramatically reduced paper and storage expenses
  • Improved cash flow with fewer data entry errors and early pay discounts
  • The ability to work anywhere, anytime, on any device

We Can Help With AP Automation And Payment Control Best Practices

For more information on how to implement these best practices and automate AP for your business, get in contact with the experts at Encompass Solutions.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


EDI 944 Warehouse Stock Transfer Receipt Advice

In Electronic Document Interchange (EDI), an EDI 944 Warehouse Stock Transfer Receipt Advice is a supply chain EDI transaction most often utilized by third-party logistics providers to inform manufacturers that a shipment transfer has taken place successfully. It follows an EDI 943 Warehouse Stock Transfer Shipment Advice. This indicates that an on-site official has received the shipment and inspected the contents for accuracy and damage against the EDI 943’s details.

EDI 944 Warehouse Stock Transfer Receipt Advice Format

ST*944*001211532
W17*F*20170830*SVR083411
N1*WH*Judge Warehousing, LLC*54*PL
N9*BM*2007858419*1042652
N9*PO*1042652
W08*T***RBTW*239
W07*4*RL**SN*N47H23172L
N9*DO*100015646
W20*1*4*RL*192.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*192.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*196*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172M
N9*DO*100015646
W20*1*4*RL*194.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*194.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*198*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172N
N9*DO*100015646
W20*1*4*RL*193.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*193.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172P
N9*DO*100015646
W20*1*4*RL*193.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*193.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172Q
N9*DO*100015646
W20*1*4*RL*193.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*193.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*198*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173M
N9*DO*100015646
W20*1*4*RL*196.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*196.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173N
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*195.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*200*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173P
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*195.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*200*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173Q
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*195.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23192M
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*990*M

EDI 944 Warehouse Stock Transfer Receipt Advice Key Data

EDI 944 Warehouse Stock Transfer Receipt Advice documents are a mix of data elements and fields. Most commonly the EDI 944 Warehouse Stock Transfer Receipt Advice will include:

  • Supplier information
  • When the shipment was received
  • Item numbers, descriptions and quantities
  • Warehouse receiving location
  • Shipper information

Once received, a destination official will inspect the shipment for accuracy and any damage. Once verified and accepted, the recipient will respond to the supplier with a 944 Warehouse Stock Transfer Receipt Advice.

EDI 944 Warehouse Stock Transfer Receipt Advice Benefits

EDI 944 Warehouse Stock Transfer Receipt Advice serves a specific function within the supply chain. That is, acknowledgment from a third-party warehouse location that a shipment has been received and is as described on the shipment’s pack slip. The EDI 944 communicates a shipment is progressing along its prescribed journey as it should and maintains accuracy after it has left the facility of origin.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


EDI 943 Warehouse Stock Transfer Shipment Advice

In Electronic Document Interchange (EDI), an EDI 943 Warehouse Stock Transfer Shipment Advice is used by the supplier to alert the recipient that a transfer shipment has been made. The EDI 943 Warehouse Stock Transfer Shipment Advice send details to a receiving location, which can include all manner of information concerning the product(s) being shipped to that location. A 997 Functional Acknowledgement is typically then sent from the recipient, indicating the EDI 943 Warehouse Stock Transfer Shipment Advice was received successfully.

an image of encompass solutions EDI 943 warehouse stock transfer shipment advice

EDI 943 Warehouse Stock Transfer Shipment Advice Format

ST*943*0001
W06*F*19691*20180214*704961**6215******1
N1*DE*Fiji Water*91*FW038070236
N3*11444 W Olympic*Suite 210
N4*Los Angeles*CA*90064
N1*CN*Schneider Logistics*ZZ*FGA
N3*c/o Schneider Logistics*246 Grange Road
N4*Port Wentworth*GA*31407
N1*SF*FW Natural Waters of Viti Ltd*ZZ*FYQ
N3*1 Naseyani Road
N4*Yaqara*FJ
G62*02*20180214
W27*VE*SCAC*Routing
W04*1260*CA*632565000630*VN*FFUS 330ML 6PK*LT*14FEB18
N9*OC*IVLU-9554210
N9*SN*47895799
W04*1416*CA*632565000111*VN*FFUS 0.5L 6PK*LT*14FEB18
N9*OC*ANSU-1910735
N9*SN*1286690
W04*1484*CA*632565000128*VN*FFUS 1.0L 6PK*LT*14FEB18
N9*OC*SUDU-3972176
N9*SN*1286633
W04*1484*CA*632565000050*VN*FFUS 1.0L*LT*14FEB18
N9*OC*SUDU-3362002
N9*SN*1286640
W04*1484*CA*632565000050*VN*FFUS 1.0L*LT*14FEB18
N9*OC*SUDU-3323304
N9*SN*1286691
W04*1484*CA*632565000050*VN*FFUS 1.0L*LT*14FEB18
N9*OC*SUDU-3660408
N9*SN*1286636
W04*1484*CA*632565000128*VN*FFUS 1.0L 6PK*LT*14FEB18
N9*OC*SUDU-2581650
N9*SN*1286729
W04*1484*CA*632565000128*VN*FFUS 1.0L 6PK*LT*14FEB18
N9*OC*SUDU-3983951
N9*SN*1286770
W04*1484*CA*632565000128*VN*FFUS 1.0L 6PK*LT*14FEB18
N9*OC*SUDU-3375890
N9*SN*1286727
W04*1484*CA*632565000128*VN*FFUS 1.0L 6PK*LT*14FEB18
N9*OC*SUDU-3610238
N9*SN*1286761
W04*1416*CA*632565000111*VN*FFUS 0.5L 6PK*LT*14FEB18
N9*OC*SUDU-3448220
N9*SN*47895798
W04*1416*CA*632565000111*VN*FFUS 0.5L 6PK*LT*14FEB18
N9*OC*SUDU-1528183
N9*SN*1286692
W04*1416*CA*632565000111*VN*FFUS 0.5L 6PK*LT*14FEB18
N9*OC*ANSU-1985539
N9*SN*1286682
W04*1416*CA*632565000111*VN*FFUS 0.5L 6PK*LT*14FEB18
N9*OC*ANSU-1980270
N9*SN*1286799
W03*20212*0*LB
SE*57*0001

EDI 943 Warehouse Stock Transfer Shipment Advice Key Data

EDI 943 Warehouse Stock Transfer Shipment Advice documents are a mix of data elements and fields. Most commonly the EDI 943 Warehouse Stock Transfer Shipment Advice will include:

  • Order number
  • SKUs
  • Item(s) shipped
  • Item(s) quantities
  • Item(s) weight
  • Shipment destination location
  • Supplier information
  • When the shipment was sent
  • Shipper information

Once received, a destination official will inspect the shipment for accuracy and any damage. Once verified and accepted, the recipient will respond to the supplier with a 944 Warehouse Stock Transfer Receipt Advice.

EDI 943 Warehouse Stock Transfer Shipment Advice Benefits

EDI 943 Warehouse Stock Transfer Shipment Advice serves a specific function within the supply chain. That is, acknowledgment of receipt of a specific transfer has taken place for shipments to a third-party warehouse location. The receiving location derives key details about the shipment from the EDI 943 Warehouse Stock Transfer Shipment Advice, which helps to streamline the shipping process and save both time and money.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


2019 ERP Trends

2019 ERP trends and digital transformation strategies can take many shapes. However, an ERP solution may exist as the most powerful tool to empower businesses. These systems unify people, processes, and resources within a single environment, more importantly, one that provides a single source of the truth (read data). With a modern ERP system in place, you can inject renewed vigor and capability into once disparate, siloed systems and departments within your organization. The ERP landscape is one that is changing constantly alongside new and emerging technologies. Businesses are increasingly leveraging these technologies as they become more attainable than they have been in the past. New deployment methods also enable smaller organizations to do more with less. You can download a free PDF guide of the most essential ERP selection strategies, here.

Here are just some of the 2019 ERP trends we expect to see take shape over the next year.

More System Audits And Disaster Preparedness

Cybersecurity has long been brushed aside as a buzzword but, with ransomware and bad actors abound, it is a topic taking up more an more meeting time among IT professionals and C-suite executives. Maintaining systems is another topic that often gets put on the back burner, as businesses find a system that works for them and effectively ride it until the wheels fall off in many cases. however, failing to maintain modern infrastructure for critical systems is setting oneself up for disaster in the long run.

Last week I spoke with a newly-hired IT professional whose company manufactures products for the railway industry. Their company had been operating on an AS/400 system for more than 15 years. In all that time, it had been working without a hitch and the company could get by conducting business as usual without a second thought. Until they couldn’t. The system began freezing intermittently a few weeks ago. It eventually required a hard reset as many as three times a week, taking 2-3 hours to become operational in each instance. Eventually, it stopped responding altogether. It was then revealed that there were no backups of any kind and no disaster recovery plan in place. A mad dash to get something, anything done and resume operations ensued. However, the company was left in the dark with an in-house system on antiquated hardware with that left no quick recovery in sight.

an image of an IT professional wishin he had paid more attention to the 2019 erp trends and digital transformation topics sooner

Fortunately, the company was able to locate an AS/400 and data recovery specialist in Florida that had an intimate knowledge of their systems. They are now on the road to recovery. What’s important to note about this situation is that the subsequent events brought their systems to the forefront of just about every internal conversation. Moving forward, there will be a disaster recovery system in place and you had better believe they’ll be backing up their data religiously.

While anecdotal, the account highlights the need to be hyper-vigilant at a time when technology is moving faster than most businesses can. You should always be evaluating your systems and disaster preparedness plans, regardless of what technology you use. There will always be companies that won’t budge on setting aside the budget for regular audits of internal systems and disaster recovery plans. However, more companies are getting on board with the idea of ensuring they are safe from infrastructure failure from the inside out. Tech will earn more focused discussion not just in the server room, but the boardroom, as well.

Cloud Deployment Of ERP On The Rise

The above anecdote leads into our next item on the list of 2019 ERP trends, whereby traditional deployment models of ERP systems fall by the wayside and cloud deployment is elevated to top preference. This deployment method not only saves companies high upfront costs associated with traditional deployment models but also provides a significantly more capable data protection strategy to be adopted.

cloud erp as part of 2019 erp trends

ERP vendors that offer cloud deployment are already pushing for this method over on-premise and hosted options. These entities often have substantial budgets for storage and security of client data that surpass anything small and medium-sized businesses can alone dedicate to maintaining their internal systems. While cloud deployments will certainly be on the rise, we expect traditional deployments will be offered and implemented less frequently if not entirely phased out, as a result.

More Failed Implementations

That headline is one you probably don’t want to read, but it’s a result that manifests all too often. As many as 2/3 of all ERP implementations fail. It’s a scary statistic. When businesses without the experience and teams they need try to implement an ERP system on their own, a menagerie of things can go wrong. With this push for digital transformation and adoption of technology to stay relevant and competitive, we expect many small, medium, and even large enterprises will be lulled into a false sense of capability. On the other end of the spectrum, we anticipate many independent contractors and other tech professionals making moves to break into this competitive market of ERP integrations and consult. The results will be many new operators faking it until they make or learning on the company dime

If you are considering an ERP implementation as part of your company’s digital transformation strategy, at the very least you should consult with the vendor directly about best practices. Additionally, there are value-added resellers (VARs), independent consultants, and project managers with decades of experience in the field who can ensure these projects are successful. Do your research and align your organization with a proven partner that can deliver effective strategies to make your implementation a success.

Accountability For Integrators

As ERP systems become more affordable and prevalent in small and medium business environments, we fully expect more failed implementations to result as more businesses adopting the technology without proper preparation. However, not enough can be said about the increased scrutiny that will be heaped on independent consultants and integrators. It’s understandable for a business to want to go it alone if they’re already paying the in-house staff carrying out the project. Bringing in external help can be costly. This is doubly so when the hired help doesn’t deliver on their contractual obligations.

increased accountability as part of 2019 erp trends

Unfortunately, there are a lot of less-seasoned professionals in the implementation space. With so many ways to conduct research, read unbiased reviews, and consult with former customers of integrators, businesses have plenty of resources at their disposal to find the right partners. They also have the right tools to let the world know when one hasn’t lived up to their promises in the past.

No More “Old Way” Of Doing Things

As with all new processes, integration needs to be approached with caution and a considerable amount of planning. Let’s say a business, not unlike the one mentioned earlier, decides to implement a new enterprise-wide system. Continuing to operate with the same processes that are decades old just doesn’t make sense. Businesses will have to adopt change not just at the technology level, but at structural and operational levels, as well.

new methods of achieving results as part of 2019 erp trends

With new technology, new ideologies need to emerge within an organization so that it may rise to operate on the same level as its innovative tools. Internal processes, organizational cultures, and business models will all need to be reevaluated. If change is deemed necessary, that change needs to be managed appropriately. This way, operations are not disrupted while these new approaches to how things get done take root.

Start On Your Path To Digital Transformation

If these 2019 ERP trends have piqued your interest in taking your organization to the next level of operation, we can help you get there with a few essential strategies to adopt in your ERP evaluation process. Download your free guide of ERP evaluation strategies by clicking the link below.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Manufacturers and Manufacturing solution providers are eager to learn about what industry leaders and professionals forecast as the 2019 Manufacturing trends to keep a close eye on. NetSuite’s Senior Director for Global Manufacturing Center of Excellence David Gustovich sat down in a recent interview with Hayley Null, NetSuite’s Manufacturing Industry Marketing Lead, to discuss the 2019 Manufacturing Trends he expects to see take root.

This interview was previously published on the Netsuite Blog, here.

2019 Manufacturing Trends

Hayley Null: What do you recommend that manufacturers pay attention to in 2019?

David Gustovich: Based on my research and conversations with our manufacturing customers, there are 3 main trends that will affect manufacturing companies in 2019.

  • State of the art technology becoming more widely accepted
  • Potential slowdown of the global economy
  • Greater adoption of new revenue channels, including servicing

Null: How does the increasing adoption of state-of-the-art technology (i.e. Artificial Intelligence, Machine Learning, Blockchain, the Internet of Things) help manufacturers gain a competitive edge?

Gustovich: As 2019 progresses, more and more companies are going to embrace this advanced functionality than ever before. Next generation technology can be used as a strategic weapon to allow manufacturers, and companies in general, to manage their businesses more profitably and efficiently, increase operating effectiveness, better service customers and create new revenue channels. Specifically, companies can drive more effectiveness in their global supply chain (form order management, procurement, delivery, logistics, distribution, managing partner and outsourcing networks), which is always a top priority for manufacturers. Through better visibility and awareness, these technologies open new doors that weren’t there before.

an image of blockchain technology as one of the predicted 2019 manufacturing trends

Null: How should manufacturers prepare for the risk of a potential global economic slowdown?

Gustovich: To ride some of the turbulent waves of any potential downturn, manufacturers are investing more in customer service and maintaining business continuity. One of the areas manufacturers are investing in specifically is inventory management. Manufacturing companies must ensure they have the correct inventory alignment, meaning not carrying more inventory than they absolutely need, to keep inventory costs low while meeting customer’s expectations. The bottom line is that manufacturers are, or should be, looking at new initiatives that will allow them to come out of a possible slowdown stronger, and maintain or gain a competitive edge against competition.

Null: You mentioned that manufacturers can use technology to create new revenue channels- can you speak a bit more about how manufacturers are creating new revenue channels? 

Gustovich: One of the most prominent ways to diversify revenue channels is through ecommerce, mobile and social media. Manufacturers must fully embrace these platform capabilities as an outlet to drive new revenues (acquire new customers, retain current customers, increase brand recognition) and create new customer experiences (diversify product-line, add after-sales servicing) – or fall behind.

an image illustrating that manufacturers will needs to step up customer experiences as one of the big 2019 manufacturing trends

Null: We’ve been discussing what lies ahead for manufacturers in 2019. Switching gears, were there any big surprises for manufacturers in 2019? 

Gustovich: I would say that the biggest surprise was probably the amount of receptivity and visibility that AI and Blockchain are starting to gain in the marketplace. How accepted these capabilities are becoming is a good barometer of things to come.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider, Suite Success Partner, and Epicor Gold Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


We’re happy to see our partners at Avalara delivering top tech solutions, like AI with their recent acquisition of Indix, to empower businesses of every size. These tools will be instrumental in enabling businesses to better address compliance and regulation issues surrounding their taxes. Avalara is one of the leading providers of tax compliance automation software for businesses of all sizes. They announced today in a press release that the company has acquired Indix’s AI technology and expertise. Avalara acquires Indix in an effort to offer the industry’s most accurate, up-to-date, and comprehensive source of global tax and product content.

Thoughts From CEOs As Avalara Acquires Indix

According to Sanjay Parthasarathy, CEO of Indix, “Avalara and Indix share a similar global vision. From day one, we built Indix to collect, organize, and structure the world’s product information using artificial intelligence. With the addition of the Indix expertise, Avalara will be able to efficiently and rapidly refine its content to meet the expanding and evolving needs of its customers.”

Scott McFarlane, co-founder and CEO of Avalara, added,”Global taxing authorities govern compliance through ever-changing rules and requirements, and the task of gathering and maintaining this data is core to the value Avalara provides. We believe the combination of deep product knowledge, broad product content, and artificial intelligence technology will allow us to provide our customers the information they want and need to factor compliance into their business decision-making, and for Avalara to address more compliance requirements to support their growth.”

Avalara Acquires Indix For Database Applications

As Avalara acquires Indix, the goal is to use AI as a tool in maintaining and expanding the company’s already substantial tax content database. The database includes international product codes and their classifications, taxability rules, exemption conditions, tax holidays, jurisdictions, boundaries, tax rates, thresholds, registration, compliance, and return preparation and filing requirements.

As a non-revenue generating activity, remaining compliant and up-to-date on tax regulations and laws can place a significant drain on business’ accounting departments. Maintaining knowledge is difficult and resource-intensive. The required technology, expertise, and human resources are not insignificant and by collecting new content and tracking changes through automated software, businesses can eliminate what is generally a highly manual process. Avalara acquires Indix to address this problem and automate the aggregation and accurate maintenance of its tax content.

About Avalara

Offering end-to-end tax compliance solutions to enterprises big and small, Avalara makes automated certificate validation, storage, and management easy. Avalara’s cloud-based sales tax automation software provides accuracy for all of the 12,000+ tax jurisdictions in the United States. Avalara ensures that automating sales, tax calculation, and maintaining compliance are all possible within your existing ERP, POS, or e-commerce system.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


EDI 870 Order Status Report

In Electronic Document Interchange (EDI), the EDI 870 Order Status Report is an electronic version of a paper-based Order Status Report. The EDI 870 Order Status Report is utilized by a supplier in response to an EDI 869 Order Status Inquiry that has been provided by a trading partner. The resulting report delivers critical information and updates regarding a Purchase Order.

an image of encompass solutions EDI 870 order status report

EDI 870 Order Status Report Format

BSR*2*PP*001234*20061012
DTM*079*20061013
HL*1**O
PRF*80000235***20061012
REF*VN*123456
DTM*938*20061012
HL*1**I
PO1*000010*5*EA*5*CP8BP*1000050
ISR*ED*20061013
QTY*01*5*EA
HL*1**I
PO1*000020*5*EA*15*CP*BP*1000105
ISR*ED*20061016
QTY*01*5*EA
CTT*2

EDI 870 Order Status Report Key Data

In a real-time manufacturing environment, the status of a purchase order can change frequently depending on an array of factors. The 870 includes information deemed relevant to both supplier and trading partner, the most basic of which includes:

  • Vendor number
  • Purchase order number
  • Purchase order status

There can be many more details included on an EDI 870 Order Status Report. This data is subject to what the supplier finds relevant and what trading partners want to be detailed specifically on the report. This can include:

  • Item SKU
  • Item Quantity
  • Item Price
  • Shipping details
  • Freight carrier
  • Additional details relative to the status of an order

EDI 870 Order Status Report Benefits

An EDI 870 Order Status Report offers many benefits to both the supplier and trading partner. The most obvious of which includes delivering pertinent details about pending orders. The EDI 870 Order Status Report can be sent at-will or be delivered according to a set schedule between supplier and trading partner if such arrangements have been made according to contract.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.