EDI Solutions Made Simple
If you are dedicated to working with the EDI Major department stores and want to be successful, you must have a good understanding of the whole process.
eC Systems Service Solutions, Inc. can implement, train & support you on EDI from start to finish with advanced support and services on specific trading needs.
Regardless of what business you are in, organizations generate profitable revenue as a result of executing business processes. Over the last few decades, business processes have become more and more automated, requiring more and more IT services to execute those business processes effectively. In addition, new IT technologies have enabled new business processes that could not exist before.
What is EDI ?
Electronic Data Interchange (EDI) is the computer to computer exchange of business documents in a standard format. Typical EDI documents (or transactions) for retail are the purchase order, the invoice, and the advance ship notice.
In today's environment, most transactions are delivered via a Value Added Network (VAN). The VAN's commonly used in retail are nationwide networks such as GE, IBM Advantis with which INOVIS is affiliated, and Sterling. (AT&T purchased the IBM Global Network.) By using a VAN, a retailer can issue an EDI purchase order, place it in a mailbox, and let the VAN be responsible for holding and delivering the document. If the vendor has a communications problem picking up the purchase order, the VAN is notified for re-delivery of the order. EDI documents are all sequenced and interchanges numbered so that there should be no loss of documents even with a communication problem.
Businesses that exchange EDI documents are termed trading partners. Each time a trading partner transmits a document, the receiver sends back a Functional Acknowledgment (997 transaction) which indicates that the interchange has been received.
Here is a typical electronic commerce workflow:
The vendor assigns Universal Product Codes (U.P.C.'s). A U.P.C. uniquely identifies the vendor's product down to style, size, and color. The U.P.C. is on the bar code tag that is scanned at point of sale. Once the codes are assigned, the vendor uses an EDI 832 Price Sales Catalog transaction to load an electronic catalog at INOVIS or GE. When the retailer selects a style to order from the vendor, the retailer's computer system accesses the electronic catalog to pull the U.P.C.'s into their system with no re-keying of codes or information.
The retailer issues an EDI 850 Purchase Order transaction. The order is sent to the vendor's mailbox and is typically picked up by the vendor the next day. If the vendor's systems are integrated, the order is automatically entered into the computer without data entry. Many retailers are now asking for retail price on their tickets. If retail price is sent on the order, this information can feed the ticketing programs at the vendor site. The vendor is often asked to pre-ticket and to place apparel on approved hangers as part of a Floor Ready Merchandise program. The floor ready merchandise goes straight to the selling floor when it arrives at the store.
When the vendor is ready to ship the merchandise, UCC-128 labels are printed for the cartons and the EDI 856 Ship Notice is created and transmitted to the retailer. The UCC-128 label contains a bar code that uniquely identifies the carton. The ship notice gives the retailer advance information as to the exact quantities being shipped and anticipated arrival time. This information is used to schedule receiving at the Distribution Center and to update on-order systems. The ship notice contains bill of lading information (bill of lading number, carrier, weight), purchase order information, and detailed carton contents. When the carton arrives at the retail distribution center, it is scanned, and the ship notice information is pulled up. From the ship notice, the system knows what is in the carton and which store is the destination. The carton can be routed on conveyor belts without human intervention.
The vendor also transmits an EDI 810 Invoice. Many retailers do not process paper invoices, using EDI format exclusively.After the merchandise is received and the invoice processed, payment can be scheduled automatically and can be issued via check or Electronic Funds Transfer to the vendor's bank. The EDI 820 Remittance Advice transaction gives payment details for each paid invoice.
Other EDI documents used in retail include:
816 Organizational Relationships - used to convey store address information.
852 Product Activity - provides point of sale information. It can include quantity on order, quantity on hand, quantity sold, and dollar values of these amounts.
864 Message Text - free form text, can be used like email for general information, sometimes used to indicate problems with EDI transmissions and sometimes used for store addresses.
860 Purchase Order Change - used to make changes in a purchase order. Because there are many practical implementation issues, some retailers use this transaction only for cancellations. The 860 is also used to extend delivery dates. The biggest implementation challenge occurs when a retailer issues a change and the shipment has already been sent by the vendor.
