HVAC Manufacturer Glasfloss Industries Saved $500K With the Right EDI Solution

A Leading American HVAC Filtration Manufacturer

Glasfloss Industries manufactures commercial and industrial filtration products. Established in 1936, it is the oldest employee-owned manufacturer of HVAC air filtration products in the United States. Glasfloss serves commercial, industrial and residential HVAC filtration markets. With a commitment to quality products, short lead times, high fulfillment rates, and excellent customer service, Glasfloss is a trusted name in the HVAC industry.

Overcoming EDI Obstacles

The oldest employee-owned and operated HVAC filtration manufacturer, Glasfloss had a streamlined and mostly paperless ordering process and a team of customer service reps. However, with a specialized inventory of more than one million products, Glasfloss struggled with errors in 20-30% of orders, including wrong quantities, part numbers, and shipping facilities. 

To address this persistent issue, Glasfloss customers and the sales department requested an Electronic Data Interchange (EDI) option. While the company realized the potential of implementing an EDI solution, the high cost of its Oracle ERP EDI module and the associated implementation expenses made it difficult to justify the return on investment (ROI). 

“We’ve lost potential business opportunities because we couldn’t support EDI. We looked at EDI solutions for many years, but the EDI module for our ERP costs a quarter million dollars and implementation would cost close to that, and we knew that we couldn’t recover that $500,000 anytime soon.

We needed an EDI solution that would give us the efficiencies of EDI without the astronomical cost,” said Juby Alexander, IT Manager, Glasfloss Industries.

Finding the Right Solution

After a rigorous search for an EDI vendor, Glasfloss found the IDEA Exchange team to be the most knowledgeable and capable of meeting its requirements. IDEA stood out by simplifying the EDI process and offering a seamless implementation plan, making it easier for the manufacturer to understand and adopt the technology.

The IDEA Exchange team developed a tailored EDI managed services solution, working closely with Glasfloss to:

• Create a template with the required transactions and volume
• Handle the majority of data transformation and preparation
• Import orders from customers into Glasfloss' Oracle ERP system without any manual data entry
• Avoid exorbitant implementation and software costs

“We make any type of dimension and filter in every efficiency possible, so the right part number is important. If one character is wrong, the customer is getting a different item,” said Alexander. “Once the EDI order is uploaded, it works seamlessly. The time our customer service reps would have spent checking part numbers can now be used servicing customers.”

“I recommend IDEA because it is a true partner that is cost-effective, with a team skilled at finding solutions and supporting us.” Juby Alexander, IT Manager at Glasfloss Industries

Cost-Effective Implementation and Ongoing Success with IDEA's EDI Services

Saving $250,000 in expenses associated with Oracle's EDI module, Glasfloss minimized capital expenditures. Partnering with IDEA Exchange Managed Services lowered ongoing costs as EDI is now the responsibility of a single part-time staff member versus the estimated two full-time staff members needed to manage the Oracle EDI module.

In addition to the $500,000 Glasfloss saved by selecting IDEA Exchange, the manufacturer is more efficient, redeploying resources with fewer order errors and manual processes.

“Compared year over year, Glasfloss errors on orders processed by EDI and IDEA's solutions are down 92%. The remaining 8% of errors have nothing to do with the order entry process, but are customer purchasing errors,” said Alexander.

Through IDEA Exchange Managed Services, Glasfloss gained an experienced EDI partner to provide proactive EDI monitoring, including:

• In-depth understanding of manufacturers' trading partner requirements
• Daily EDI management
• Software updates
• Trading partner onboarding and product mapping
• A primary contact and backup members

Benefits of EDI Managed Services for Glasfloss

• Faster order processing: By automating transactions, Glasfloss can process a large volume of orders quickly and accurately import them into the ERP system.

• Fewer errors: With IDEA's EDI solution, Glasfloss experienced a significant decrease in errors and achieved seamless integration of customer data.

• Lower costs: The company didn’t need to invest in expensive EDI infrastructure.

• Improved productivity: The customer service team was freed up from repetitive tasks, allowing them to focus on more customer-centric activities, improving customer engagement and satisfaction.