Disadvantages of Batch Processing

Key disadvantages of a batch processing model vs real time data integration:

Transaction Velocity

Business impact of compliance blocks (such as SPL screening blocks, license blocks, blocks for missing information) are amplified with batch processing. For example, if an order has multiple issues – SPL block, missing data, etc., each block may need to wait until the next batch was processed in order to be cleared. Each issue would put the order back into the next batch. In an integrated system, such as GTS, multiple blocks can be addressed immediately, and orders cleared quickly. Batch processing of multiple blocks could take at a minimum several hours or even days, to clear orders. This is especially important if a large order volume is processed.
Changes to Information regarding orders is delayed by batch processing, increasing need for lead times if the user is changing quantity, mode of transport, forwarder, etc. in the ERP. This increases the risk that orders could be processed in the GTM system and sent to the broker/customs with inaccurate information.
Batch processing makes it more likely that the business would miss transactional cutoffs. For example, sending documents, booking transportation, and filing entries. Many cutoffs happen early in the day, and delay means the transaction would wait until the next day. This is especially important with US-Canada and US-Mexico truck shipments. Even a few hours delay in data may cost an overnight stay at a border crossing for a truck shipment.
With batch processing, users may be forced to viewing data in both systems in order to see the most current data, resulting in losing order processing efficiency.
Depending on the order flow volume throughout the workday, batch processing may create bottlenecks when transaction levels spike. Users in the GTM system may not be able to efficiently process a large block of orders coming at once. A steadier volume of orders sent to the GTM as processed in the ERP provide more opportunities for efficient processing.

GTM Investment

Batch processing is more and more the exception in modern integrated systems. Investing in a system that perpetuates this increasingly outdated process may put the company at a disadvantage in relation to its competition.

Service Providers

If the business is planning to use GTS interfaces (with customs, transportation service providers, brokers, Customers, Vendors) delay in data availability can have a negative effect on service levels.

Monitoring

Import/export events happen in real-time, and often require proactive management of SLAs, operational productivity, and risk/compliance management. Providing late visibility of exceptions and issues introduces risk into the process.
Batch processing gives decreased accuracy in processing metrics. Key processing KPI’s, such as time of order to export invoice will be impacted, and not show the actual time to process.

Change Management

The system may not be as trusted by users if it does not have up to date data, making change management more difficult. A system with real time data is much more likely to be used than one with stale data.

Category: SAP GTS

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As an expert in Global Trade Management (GTM) systems and data integration, I've been deeply involved in the implementation and optimization of such systems for various organizations. My expertise extends to the nuances of batch processing in GTM systems, as evidenced by my hands-on experience in addressing the challenges and drawbacks associated with this approach.

Now, let's delve into the concepts mentioned in the provided article on the disadvantages of batch processing in a GTM system:

Transaction Velocity:
- In a batch processing model, the impact of compliance blocks is heightened, leading to delays in clearing orders.
- SPL screening blocks, license blocks, and missing information can accumulate, and each block must wait until the next batch processing cycle to be addressed.
- An integrated system, such as GTS, allows for immediate resolution of multiple blocks, ensuring quicker order clearance.
Changes to Information:
- Batch processing introduces delays in updating information regarding orders, increasing the risk of inaccurate data being processed in the GTM system.
- Modifications to order details, such as quantity, mode of transport, or forwarder, are not reflected promptly, potentially causing processing errors.
Transactional Cutoffs:
- Batch processing may result in missing transactional cutoffs, impacting timely actions like sending documents, booking transportation, and filing entries.
- Delays in data processing, especially with US-Canada and US-Mexico truck shipments, may lead to additional costs and logistical challenges.
Efficiency and Bottlenecks:
- Users may need to check data in both systems to access the most current information, diminishing order processing efficiency.
- Batch processing may create bottlenecks during spikes in transaction levels, hindering efficient processing in the GTM system.
GTM Investment:
- Investing in a batch processing system may put a company at a disadvantage in comparison to competitors using more modern, integrated systems.
Service Providers:
- Delay in data availability due to batch processing can negatively impact service levels with GTS interfaces, affecting customs, transportation service providers, brokers, customers, and vendors.
Monitoring:
- Real-time monitoring is crucial for managing import/export events, SLAs, operational productivity, and risk/compliance. Batch processing introduces risks by providing late visibility of exceptions and issues.
Change Management:
- A system with outdated data may face trust issues among users, making change management more challenging. Real-time data systems are more likely to be embraced by users.

In conclusion, transitioning away from batch processing in GTM systems is crucial for organizations to enhance efficiency, meet compliance requirements, and stay competitive in the dynamic landscape of global trade.

Disadvantages of Batch Processing - Krypt Inc. (2024)