How PPD Group Reduced Costs with On-Premise EDI Integration: A Case Study from EDI2XML
Last Updated on February 25, 2025 by Tatyana Vandich
In this article, we want to share the success story of our cooperation with PPD Group, a leader in polymer and rubber processing solutions.
By looking at their example of optimizing business transactions with our on-premises EDI integration solution, we will show how an experienced EDI provider can profitably transform traditional work processes.
About the Client: PPD Group
PPD Group, established in 1960, is a prominent leader in the polymer and rubber processing industry, headquartered in Waterville, Quebec, Canada. With decades of experience, PPD specializes in high-precision processes such as molding, extrusion, and mold manufacturing. Serving industries including transportation, agriculture, and medical, PPD leverages advanced production facilities to deliver high-quality and innovative products tailored to meet the specific needs of their diverse clientele.
Their commitment to excellence, combined with their strong industry reputation, positions PPD Group as a trusted partner for businesses looking for efficient, reliable, and cutting-edge engineered polymer products and rubber compounds.
EDI Integration on Premises: Project Context
PPD Group continually seeks ways to enhance operational efficiency. As their business grew, so did the need for a robust, reliable system that could manage the increasingly complex landscape of EDI transactions—especially with key trading partners that demanded strict compliance with the X12 standard.
PPD Group faced a multifaceted challenge. Their key trading partner required seamless EDI exchanges, but integrating these transactions with their existing Oracle JDE ERP system was no small feat. Manual data entry not only introduced errors but also delayed processing times, leading to inefficiencies that could hinder business growth.
Moreover, PPD Group was faced with the need to quickly and cost-effectively onboard new trading partners to exchange EDI transactions using on-premises EDI solution.
At EDI2XML, we listen closely. We take the time to understand each client’s unique challenges and craft solutions that fit their needs perfectly. For PPD Group, we designed an on-premises integration platform that would convert and synchronize EDI transactions with the company’s Oracle JDE business system.
What is EDI Standard and Why It Matters for Manufacturers
Before we proceed with the case study, let’s briefly remind everyone what EDI is to ensure clarity.
EDI stands for Electronic Data Interchange. It’s the electronic exchange of business documents between companies in a standard format. Instead of sending paper invoices or purchase orders, businesses use EDI to send these documents electronically. That makes transactions faster, reduces errors, and saves time and money.
For manufacturers like PPD Group, EDI ensures that purchase orders, invoices, shipping schedules, and more are exchanged accurately and rapidly. For example, when a retailer sends a purchase order (EDI 850) to a manufacturer, EDI ensures the document is structured in a way both systems understand (like the widely used ASC X12 standard). This eliminates the need for human intervention, slashes processing times, and keeps supply chains running smoothly.
ASC X12 (part of ANSI, the American National Standards Institute) is a committee that develops and maintains EDI standards. So, their role is to create the specific formats and rules that different industries follow when exchanging documents electronically.
- Improved Accuracy: By automating data exchange, EDI minimizes manual errors.
- Faster Processing: Automated workflows reduce the time it takes to process orders and shipments.
- Cost Efficiency: With streamlined communication, companies save money while connecting with multiple trading partners.
Demystifying EDI On-Premise Integration
Before cloud technology became popular, on-premise integration was the standard. Today, many organizations still choose on-premise solutions because they provide complete control over sensitive data, ensuring maximum security and customization.
An on-premise solution means that all the software, hardware, and data management systems reside within your local infrastructure. This approach offers unmatched control and customization, ensuring that sensitive information remains under strict internal governance. For companies with strict data privacy requirements or those operating in regulated industries, the ability to manage every aspect of their EDI process on-site is invaluable.
For PPD Group, the key objective was to have a solution that was both profitable and agile, enabling them to connect new trading partners without incurring excessive costs.
Key benefits of an on-premise EDI integration include:
- Complete Data Control: Retaining all sensitive data internally.
- Customization: Tailoring workflows to match the company’s specific requirements.
- Scalability: Quickly integrating new partners as the business grows.
EDI2XML’s Tailored On-Premise EDI Solution
We developed a custom on-premise solution for PPD Group that transforms and synchronizes EDI transactions, ensuring a smoother and more reliable process. By leveraging robust tools and precise customization, we addressed the unique challenges faced by the company.
Magic xpi Integration Platform: Installed and configured to orchestrate complex data exchanges, this tool serves as the backbone of our integration workflow. Its visual development environment and ready-to-use connectors simplify the process of mapping and transforming data between disparate systems.
EDI2XML Transformation Engine: This powerful tool is the heart of our solution, converting X12 files to XML—and vice versa—while maintaining the high levels of security required for on-premise operations.
Customization for Oracle JDE Integration: Recognizing that every business has its own unique processes, we tailored our solution to synchronize seamlessly with PPD Group’s Oracle JDE transit tables, ensuring that the transition from EDI data to internal ERP systems was smooth and error-free.
Behind the Scenes: How Our On-Premise EDI Workflow Operates
Managing Incoming EDI Documents
Our solution continuously monitors a designated local folder where trading partners deposit EDI files. When an X12 file (such as an 850 Purchase Order) is detected, the workflow initiates:
- Data Collection and Conversion: The system gathers the X12 messages, converting them into XML format using our transformation engine.
- Acknowledgment Generation: Functional acknowledgments (997) are automatically generated for each transaction, ensuring that every exchange is tracked.
- Seamless Integration: The XML data is then transformed to align with Oracle JDE transit tables and securely inserted.
- Automated Notifications: Email alerts notify the relevant teams, ensuring a prompt response to every transaction.
Streamlining Outgoing EDI Documents
Every 15 minutes, our engine queries the Oracle JDE database for ready-to-send invoices or Advanced Ship Notices (ASNs):
- Data Extraction and Preparation: Essential information is extracted and formatted into XML.
- Conversion to X12 Format: The XML data is then converted back into X12 format, meeting the specifications of each trading partner.
- Secure File Preparation: The resulting X12 files are stored in a secure local folder for transmission.
- Continuous Updates: Automated notifications keep teams informed of all outgoing transactions.
What is Magic xpi?
Magic xpi is a powerful integration platform that orchestrates data exchanges between various systems. It simplifies complex workflows by providing:
- Pre-built Connectors: Ready-made solutions to connect disparate systems effortlessly.
- Visual Development Environment: Allows for easy mapping and transformation of data.
- Flexibility: Adaptable to various business needs, ensuring that the integration remains efficient as requirements change.
Magic xpi was a critical component of our solution, ensuring that EDI data flows smoothly between PPD Group’s ERP and the EDI2XML transformation engine.
Key Takeaways
- Cost-Effective EDI Integration: PPD Group’s solution was designed to quickly connect new trading partners without incurring high costs.
- On-Premise Advantages: Maintaining data on-premises offers security, control, and customization for manufacturers.
- Efficient Workflows: Automated incoming and outgoing document processes reduce errors and improve transaction speed.
- Magic xpi Power: This integration platform streamlines data mapping and transformation, ensuring smooth data exchanges.
Quantifiable Benefits: Efficiency, Accuracy, and Enhanced Partner Connectivity
PPD Group experienced several significant benefits from our on-premise EDI solution:
- Elimination of Manual Errors: Automation dramatically reduced the risk of human error, resulting in more reliable transactions.
- Cost-Effective Expansion: The solution provided a financial advantage by enabling a quick, low-cost connection with new trading partners.
- Accelerated Processing: Transactions that once required hours were completed in mere minutes, contributing to smoother operational workflows.
- Improved Traceability and Compliance: Automatic generation of acknowledgments and detailed logging of each transaction offered complete visibility and regulatory compliance.
Marc Sauvageau, IT Director at PPD Group, reflected on the transformation: “The work done by EDI2XML has transformed how we manage EDI transactions. Their expertise and perfectly tailored solution gave us greater flexibility, reduced errors, and improved efficiency. The platform has made onboarding new clients easier and more cost-effective.”
This testimonial underscores our commitment to delivering solutions that not only meet but exceed client expectations.
FAQ: On-Premise EDI Integration for Manufacturers
What is EDI, and why is it critical for manufacturers like PPD Group?
EDI (Electronic Data Interchange) automates the exchange of business documents (e.g., purchase orders, invoices) in standardized formats like X12. For manufacturers, it eliminates manual data entry, reduces errors, and speeds up supply chain workflows. PPD Group, for example, saw faster order processing and improved partner compliance after implementing EDI.
Why did PPD Group choose an on-premise EDI solution over cloud-based options?
On-premise EDI gives companies full control over sensitive data, which is vital for industries like manufacturing where intellectual property and client specifications are critical. PPD Group prioritized security, customization, and the ability to integrate directly with their Oracle JDE ERP system—all key advantages of an on-premise setup.
What are the benefits of Magic xpi in EDI integration?
Magic xpi is a powerful integration platform that simplifies connecting disparate systems (like ERP, CRM, or other business applications). For PPD Group, it provided:
- Pre-built connectors for Oracle JDE.
- A visual interface to map and transform data without coding.
- Scalability to onboard new trading partners quickly.
How does EDI2XML’s solution reduce costs for businesses?
By automating manual processes, businesses save on labor costs and avoid errors issues. PPD Group also highlighted the cost-effective scalability of our EDI solution—onboarding new partners became faster and cheaper compared to other solution.
Can on-premise EDI integrate with existing ERP systems like Oracle JDE?
Yes! EDI2XML’s solution was tailored to sync seamlessly with PPD Group’s Oracle JDE transit tables. Custom workflows ensured data flowed automatically between EDI documents and their ERP, eliminating manual imports/exports.
How secure is on-premise EDI compared to cloud solutions?
On-premise EDI keeps all data within your company’s infrastructure, reducing exposure to third-party breaches. For PPD Group, this meant sensitive client specifications and transaction histories remained under their internal IT team’s control.
What types of EDI transactions did PPD Group automate?
The solution handled key documents like:
Incoming: Purchase Orders – EDI 850, Purchase Order Change Request – EDI 860, Planning Schedule with Release Capability – EDI 830, Shipping Schedule – EDI 862, Text Messages – EDI 864.
Outgoing: Invoices – EDI 810, Advanced Ship Notices – EDI 856.
Automating these business transaction reduced processing times from hours to minutes.
Can small businesses afford on-premise EDI integration?
Small businesses can technically afford on-premises EDI integration if it is necessary for some reason (internal policies regarding data storage, etc.), but it should be noted that it often comes with high upfront costs, including hardware, software licenses, and IT maintenance.
For many, cloud-based EDI solutions are a more attractive option, as they offer a subscription model, and lower upfront costs.
How do I know if my business needs EDI?
Ask yourself:
- Do manual data entries cause errors or delays?
- Are trading partners demanding EDI compliance?
- Is scaling your supply chain becoming costly or complex?
If you answered “yes,”contact EDI2XML for a free consultation.
The EDI2XML Advantage: Expertise, Customization, and Commitment
At EDI2XML, our approach goes beyond providing off-the-shelf solutions. We invest time in understanding the unique challenges of our clients and then craft custom-tailored strategies that address those needs head-on. Our expertise in EDI integration, combined with our state-of-the-art technologies like Magic xpi and our proprietary transformation engine, positions us as a leader in the industry. We continuously strive to refine our solutions to ensure that companies like PPD Group can achieve operational excellence and maintain a competitive edge.
Conclusion: Affordable EDI Solutions for any Business Needs
The successful implementation of our on-premise EDI solution for PPD Group marks just one example of how strategic, cost-effective EDI integration can unlock new avenues for operational efficiency and partner connectivity. For businesses eager to modernize their data exchange processes without excessive costs, our approach represents a future-proof solution that balances control, security, and agility.
If your organization is facing similar challenges or you’re simply interested in exploring how tailored EDI solutions can drive efficiency, we invite you to reach out to us at EDI2XML. Let’s work together to unlock the full potential of your business transactions.
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