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Recently, the editors of RetailEDI.com commented that, "Everyone should consider MFT for their company." But, few people understand what managed file transfer (MFT) is all about, how it works, and how to get started. Even worse, many retailers don't understand the pitfalls of not using MFT.
Files-In-Motion Affect The Supply Chain And More.
Retail businesses need to safely exchange high-value, high-volume files with customers or trading partners. Consider for a moment the types of files your company juggles: ACH transfers, EDI, XML, check images, PLM, employee data, and many others. The individuals, systems, and processes sending and receiving files are typically spread throughout the enterprise, and need to connect to a variety of destinations outside the organization. How they connect and exchange files is just as important as the "what" or "why”.
{jcomments on}MFT is not simply about moving a file from point A to point B. Anyone can do that with point-to-point transfer tools (FTP/SFTP), email, scripts, homegrown systems, and physical media like CDs and USBs. The problem with FTP/SFTP, email, and physical media is that your company can't control, monitor or audit these methods. Scripts and homegrown systems aren't any better. They are very difficult to scale, automate and secure. Each instance of a file sent using any one of these methods creates ongoing risk to audit failure, lost data, or both. Connection and security failures can disrupt the supply chain, expose intellectual property, and jeopardize financial or personal data. Decide for yourself: an approach that usually gets the file to its destination and hardly ever allows files to become corrupt or intercepted in transit–OR –MFT, which guarantees secure and complete file delivery, and provides notification if it’s not possible. “Usually” and “hardly ever” pale in comparison to a guarantee with MFT.
Risks aside, what about the hidden cost of using point-to-point transfer tools or "DIY" systems? These approaches usually require months to program, test connections and on-board trading partners or customers. Delays mean lost revenue that’s impossible for your company to recapture. Worse, programming errors might not become apparent until months later, when there have already been business disruptions or data loss.
Retail companies that that look to managed file transfer to avoid these problems ultimately control risk, enable growth, and reduce cost.
Just The Basics—What is MFT?
Managed file transfer is a way to integrate file start and end points, with centralization, configurability and compliance. It connects senders and receivers in a way that:
• Accommodates vast file sizes and quantities, in an any-to-any fashion
• Features centralized administration for controlling users and transfers across the enterprise
• Is easy to configure, maintain and on-board users
• Eliminates training requirement for senders and receivers
• Enables send, receive and failure visibility for senders and receivers
• Ensures compliance within industry standards and regulations
• Prevents file disclosure and loss with robust security and encryption
• Maintains automatic history logs and audit trails
• Includes configurable controls to define and enforce policies
• Offers very low cost to start up and support
Simplicity in Action
To understand how managed file transfer operates, let's first review how a protocol like FTP works. Traditionally, the FTP server provides file upload and download services, and is protected by a single firewall. This configuration is a virtual invitation for hackers to easily come in from the Internet, capture a file, and get back out again. A typical FTP server has user and password tables right on the server, and if a hacker captures those files, they end up with access to every file on that server.
In a managed file transfer system, an FTP server is replaced by an MFT server with a number of powerful, yet simple defenses, to thwart this activity. File upload and download services reside behind a second firewall, and an encrypted file system provides another layer of security. Then, a set of smart proxies provides access to the files through a variety of protocols including FTP, secure FTP in its many incarnations, HTTP, and so on. Next, by eliminating the user tables, and linking to an existing user management infrastructure like the email directory, anyone with permission on that infrastructure automatically has access to the system, limited only by user-based roles and permissions. The existing authentication and address infrastructure in the email system provides another layer of authentication and usability to the MFT system. Finally, rich routing and delivery options in MFT prevent the need for programming and scripting, all but eliminating system errors and faults. In the end, choosing to use MFT is an easy decision to make. The toughest part is simply deciding which route to take onsite, hosted, or blended.
Getting Started with MFT Can Be as Easy as Click, Click, Click.
Some software companies suggest that they have a “complete” MFT solution. However, many of these are nothing more than FTP with added features or a pleasing interface. A true managed file transfer solution will combine centralization, configurability and compliance. Scalable capacity, any-to-any capability and integration, and centralized configuration and reporting are the hallmarks of centralization. Configurability means easily adding partners and connections, sending and receiving files with simplicity, and scheduling recurring and mass transfers with the click of a button. Finally, data protection against file theft or loss, rich transfer histories, integrated change control audits, and robust controls signal rich compliance. Select a provider or system without any one of these elements, and you might as well continue with risky FTP!
Some providers only sell MFT as software to be used within the retailer’s four walls. Many companies will find this entirely acceptable as long as they don’t fall prey to usage volume or server size and replacement traps. For example, there have been businesses who simply wanted to replace an outdated server, and found that they had to pay tens of thousands of dollars to replace the software license and for services to rebuild the maps. Avoid this costly pitfall when choosing your MFT provider.
Another route that retailers have found surprisingly advantageous is MFT-as-a-service, or ad-hoc MFT. This type of solution can exist entirely “in the cloud” or with some portion residing behind your own firewall, as a blended solution. This can be a permanent choice or an excellent gateway until your business requires a change. MFT-as-a-cloud service is typically low risk and economical, and getting started can be as easy as click-click-click—click to configure, click to add trading partners, and click to send and receive. Who knew that serving and securing the retail enterprise could be this easy?
About GXS
GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration and collaboration among trading partners. Organizations worldwide, including more than 70 percent of the Fortune 500, leverage the on-demand services on GXS Trading Grid® to extend supply chain networks, optimize product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. GXS Managed Services, GXS’ B2B outsourcing solution, empowers customers with the expertise, technical infrastructure and program support to conduct B2B e-commerce with trading partners globally.
Based in Gaithersburg, Md., GXS has an extensive global network and has local offices in the Americas, Europe and Asia-Pacific regions. GXS can be found on the Web at http://www.gxs.com/.
INOVIS, A GXS COMPANY
11720 AmberPark Drive
Suite 400
Alpharetta, GA 30009, US
+1-877-446-6847 t
+1-404-467-3000 t
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http://www.gxs.com/
NORTH AMERICA AND GLOBAL HEADQUARTERS
9711 Washingtonian Blvd.
Gaithersburg, MD 20878, US
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http://www.gxs.com/
Additional Resources:
• http://www.gxs.com/products/edge_software/managed_file_transfer/
• Risky Business Whiteboard Video Series
o Video 1: How to Prevent File Loss with MFT - http://vimeo.com/11498179
o Video 2: The Security Around Scripting - http://vimeo.com/11655013
o Video 3: Hosting Your Business Services in the Cloud - http://vimeo.com/12053161
Also try us on Twitter (http://twitter.com/RetailEDI) or on Linkedin (RetailEDI).
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