5 tips for a successful edi implementation

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5 TIPS FOR A SUCCESSFUL EDI IMPLEMENTATION

B2BGATEWAY

JANUARY 11, 2017

“YOUR GLOBALEDI NETWORK”

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B2BGATEWAY‘S 5 TIPS FOR SUCCESSFUL EDI IMPLEMENTATIONPRESENTED BY: B2BGATEWAY

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TODAY’S AGENDA & PRESENTER

1. About B2BGateway2. Small Selection of Trading Partners Supported3. What Is EDI?4. EDI Standards & Protocols5. Integration6. Make it easy7. Where Does EDI Fit Into The Marketplace?8. GS1-128 Labels9. 5 Tips for a Successful EDI Implementation10. How can B2BGateway Help your EDI Requirements?11. Customer Service12. B2BGateway’s Mobile App13. Advantages of EDI14. Questions & Answers15. B2BGateway Contact Information

Aggie GrabowskaDigital Marketing Executive

Roger LeydenDirector of Global Business

Development

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ABOUT B2BGATEWAY

B2BGateway has been doing EDI since 1999, offering EDI and supply chain integrationsolutions to thousands of clients and trading partners across the globe since 1999.

1999 $30-biliion

invoices processed per

month

25,000+ trading

relations

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TRADING PARTNERS

B2BGateway.Net currently supports over 25,000 EDI relationships andpresently works with thousands of trading partners. See our full list of TradingPartners across all verticals at https://www.b2bgateway.net/trading-partners/

https://www.b2bgateway.net/trading-partners/

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WHAT IS EDI? IT SOUNDS SIMPLE…

EDI (Electronic Data Interchange) is defined as the structured transmission of data betweenorganizations by electronic means. It is used to transfer electronic business documents suchas Purchase Orders, Invoices, Advance Shipping Notices (ASNs), and many more from onecomputer system to another, i.e. from one trading partner to another trading partner.

RETAILER

RETAILER

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LET’S START AT THE BASICS

EDI is not an out of the box solution.

Whether your organization is implementing EDI on your own terms to introduce best business practice or you are implementing EDI to meet a Trading Partners requirement's, the following must be considered:

• EDI Standards (X12, EDIFACT, XML….)• EDI Communication Protocols (VAN, AS2, FTP…)• Integration with ERP or Accounting Software Protocols

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EDI STANDARDS

ANSI X12• Developed by American

National Standards Institute (ANSI) in 1979

• Most popular EDI transaction set in North America

• Transaction sets given numeric values, e.g. PO = 850, Invoice = 810 etc.

• Multiple standards within X12, 4010, 4030, 5010 etc.

EDIFACT• Developed by the United

Nations (UN) in 1986

• Most popular EDI transaction set outside of N. America. Mostly used in Europe &Far East

• Transaction sets given names.PO = ORDERS, Invoice = INVOIC, etc.

• Multiple standards within EDIFACT. Most popular current standard is D96A

Tradacoms• Developed by the United

Kingdom Retail Sector in 1982

• Had been most popular EDI Transaction Set in UK but is now being over taken by EDIFACT

• Still used today by UK retailers but is slowly being phased out and replaced by EDIFACT subset Eancom

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EDI STANDARDS

ANSI X12 – 850 (PURCHASE ORDER)

ISA*00* *00* *08*925485US00 *08*472103RI *141106*1211*:*00501*850011160*0*P*>GS*PO*925485US00*472103RI*20141106*1211*850011160*X*005010ST*850*0001BEG*00*SA*0453517993**20141106CUR*BY*USDREF*DP*00003REF*MR*0003REF*PD*JANFEAWK51REF*IA*472103030FOB*CC*OR*CHICAGO IL ILITD*05*15*****65DTM*038*20150123DTM*037*20150121DTM*063*20150128PID*S*08*VI*FLTD5*O****RETAIL LINK/ BBN9*L1*SPECIAL INSTRUCTIONSMTX**NO PRETICKETMTX**==============================IF MULTIPLE DESTINATIONS HAVEMTX**THE SAME SHIP DATE, PLEASE SHIP TO FURTHEST DESTINATIONMTX**FIRST AND CLOSEST DESTINATIONSLAST.MTX**CALL FOR DELIVERY APPOINTMENT 48 HOURS IN ADVANCE.MTX**==============================SUPPLIER WILL SHIP ALLMTX**MERCHANDISE IN ACCORDANCE WITHTHE CURRENT SHIPPING AND

EDIFACT – ORDERS (PURCHASE ORDER)

UNB+UNOA:3+5000119000006:14+5088942150030:14+110513:0510+360949++ORDERSUNH+1+ORDERS:D:96A:UN:EAN008BGM+220+LM73553272001 T+9DTM+137:20110513:102DTM+64:20110515:102NAD+DP+5000119007353::9++BALLYMUN PBLLOC+7+5000119007353::9NAD+SE+5088942150030::9++OLD IRISH CREAMERY CHEDDARNAD+BY+5000119000006::9++TESCO STORES LTDLIN+1++05391517715644:ENPIA+1+9629668:IN:92IMD+F++TU:::OAK SMOKED CHED 200GQTY+21:82.000QTY+59:12.000LIN+2++05391517715651:ENPIA+1+9629743:IN:92IMD+F++TU:::CHEDDAR WITH CHILLI 200GQTY+21:81.000QTY+59:12.000LIN+3++05391517715736:ENPIA+1+9629766:IN:92IMD+F++TU:::CHEDDAR WITH CRANBERRIESQTY+21:81.000QTY+59:12.000

TRADACOMS – ORDHDR (PURCHASE ORDER)

STX=ANAA:1+5000167000003:UK LTD+5088942150038:SUPPLIER PLC+120208:170512+ZZ0014 +ORDHDR+BMHD=1+ORDHDR:9TYP=0430+NEW-ORDERSSDT=5088942150038:987654+SUPPLIER PLC+THE FACTORY:ANYSTREET:ANYTOWN:ANYSHIRE:AN1 9ZZCDT=5000167000003+BOOTS UK LTD+BEAUTY & P.CARE:1 THANE RD:NOTTINGHAM NG90 1BSFIL=5+1+940601MTR=6MHD=2+ORDERS:9CLO=5000167100301:D82ORD=Q8521073::940601++NOLD=1+5012345000015+5012345100012+:1364537+12+100+54000+++TOOTHBRUSH FIRMOLD=2+5012345000022+5012345100029+:1364541+12+100+54000+++TOOTHBRUSH MEDOTR=2MTR=7MHD=3+ORDERS:9CLO=5000167100301:D82ORD=Q8521086::940601++NOLD=1+5012345000046+5012345100043+:1364595+12+50+54000+++TOOTHBRUSH SOFTOTR=1MTR=6MHD=4+ORDTLR:9OFT=2MTR=3MHD=5+ORDHDR:9

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COMMUNICATION PROTOCOLS

Protocols are the communication methods used to transfer the EDI data between trading partners. Some of the most popular communication protocols include:

• VAN: A value-added network (VAN) is a private network provider (sometimes called a turnkey communications line) that is hired by a company to facilitate electronic data interchange (EDI)

• AS2: Applicability Statement 2(AS2) is a specification about how to transport data securely and reliably over the Internet. Security is achieved by using digital certificates and encryption

• FTP/sFTP: The File Transfer Protocol (FTP) is a standard network protocol used to transfer computer files from one host to another host over a TCP-based network, such as the Internet

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EDI INTEGRATION

Your organization must decide whether you want to integrate your EDI solution with your ERP/ Accounting Software or you want a ‘Stand Alone’ web-based portal solution.

Full integration will remove the need to re-key data, thus in turn reducing errors and overhead.

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SO LET’S PUT ALL THAT TOGETHER…

Each trading partner specifies their required communication method and which documentsthey require to complete EDI transactions. This can make the EDI process very complex asillustrated below.

VAN

AS2

FTP

FTPS

AS2 Server

AS2 Software

EDIFACT D96A

Encryption Software

Annual Licensing

Software Certification

ConsultantFees

ConsultantFees

ConsultantFees

ConsultantFees

Modem Phone

VanSoftware

Mailbox Setup

Mailbox Fees

EDIFACT D96A

Mapping Tools

FTPServer

FTPSoftware

SoftwareCredential

X-12 Ver.4010

Mapping Tools

FTPSSoftware

EncryptionSoftware

SoftwareCertificate

X-12 Ver.3040

Mapping Tools

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B2BGATEWAY MAKES IT EASY…

VAN

AS2

FTP

FTPS

AS2 Server AS2

Software X-12 Ver. 5010 Encryption

Software Annual Licensing Software

CertificationConsultant

Fees

ConsultantFees

ConsultantFees

Modem Phone

VanSoftware

Mailbox Setup

Mailbox Fees

X-12 Ver.4040

Mapping Tools

FTPServer

FTPSoftware

SoftwareCredential

X-12 Ver.4010

Mapping Tools

FTPSSoftware

EncryptionSoftware

SoftwareCertificate

X-12 Ver.3040

Mapping Tools

ConsultantFees

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WHERE DOES EDI FIT INTO THE MARKETPLACE?

820

852(BOX STORE RETAILER)

(ONLINE RETAILER)

850

810

846

850

846

846

846

852

855

3PL(THIRD PARTY LOGISTICS)

846

810

810

(FACTORY)

(SHOPPING CART)

820

(FINANCIAL INSTITUTION)

820 – Payment Remittance Advice

856 – Advanced Ship Notice

846 – Inventory Inquiry

850 – Outgoing PO / Incoming SO

852 – Product Activity Data

855 – P.O. Acknowledgement

860 – Purchase Order Change

940 – Warehouse Ship Order

945 – Warehouse Ship Advice

810 – Invoice

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GS1-128 LABELS

GS1-128 labels are:• Outer case carton or pallet labels• Provide information on goods being shipped• Has relevant trading partner information such as

vendor number, carton content, ship to location anddelivery date.

The GS1-128 label on every carton is scanned at itsdestination location (e.g. trading partner centralwarehouse) and information usually is tied to anAdvance Ship Notice (ASN) that has already beentransmitted via EDI to the trading partner from thesupplier.

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5 TIPS - PREPARING FOR EDI

1. DETERMINE WHERE YOUR ORGANIZATION LIES IN THE

SUPPLY CHAIN.

• Is your organization an ‘Initiator’ or ‘Responder’.

• In other words are you implementing EDI on your

own terms to help improve your overall business

processes (‘Initiator’) or are you responding to a

request from large customers who require you to

become EDI compliant.

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2. PUT IN PLACE A DEDICATED PROJECT TEAM.

• A dedicated project team is needed to determine your objectives.

• Assign a dedicated Project Manager to own and oversee the project.

• Have full buy in from Senior Management and C-Level Executives.

• Make sure to have a good communications process between

Operations and Accounting Teams.

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3. COMMUNICATE WITH TRADING PARTNERS.

• Ensure your trading partners have full commitment. Ask for a copy

of your trading partners agreement and find out which EDI

standards (X12, EDIFACT, Tradacoms, Odette, etc.), transaction sets

(850, 810, 846, 856, 997, etc.) and communication protocols (VAN,

FTP, AS2, etc.) they will require.

• Try to get a designated point of contact in your Trading Partner

team.

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4. USE FIRST IMPLEMENTATION AS A PILOT PROJECT AND THEREAFTER A

STEPPED APPROACH.

• If you have many trading partners to communicate thru EDI, use

your first implementation as a pilot project.

• You can tweak and make improvements to as you move forward.

• Many organizations make the mistake of trying to add too many

trading partners at once.

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PREPARING FOR EDI

5. ‘IN-HOUSE’ OR ‘OUTSOURCED’ EDI

• At this stage you need to determine if you have the internal capabilities

and resources to successfully implement your own EDI department or do

you outsource your EDI requirements to a 3rd party EDI provider?

• A 3rd party EDI provider will act as your own EDI department and will take

away the hassle, constraints and complexities of using EDI with many

trading partners.

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HOW CAN B2BGATEWAY HELP YOUR EDI REQUIREMENTS?

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MANAGE YOUR EDI ACCOUNT WITH B2BGATEWAY CLIENT PORTAL

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CLIENT PORTAL FEATURES

In the Client Portal clients can view and manage their EDI relationships. Features include:

Business Intelligence such as Most Active Trading Partners, Documents Processed Per Day,Trading Partner Relationships Progress.

View and update company information. Contact support. View Trading Partners Status and add new Trading Partners. Reprocess EDI documents. Login to Cross Reference and WSS. View reports such as Transaction, Exception and/or Custom Reports.

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CLIENT PORTAL REPORTING - TRANSACTION REPORTS

Each B2BGateway client gets access to their unique B2BGateway Client Portal. Under thereports tab in the Client Portal the client can view all transactions over a given time period.B2BGateway can also email the client a daily transaction report if required.

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CLIENT PORTAL REPORTING - EXCEPTION REPORTS

If a client sees an Open Exception in the Transaction Report, they should open up theException Reports Section on their Client Portal. Here they will see files that have beenrejected by the trading partner and a reason as to why the were rejected. The client can thenfix these errors and re-send or contact B2BGateway support for help.

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CUSTOMER SERVICEB2BGateway has been providing excellentcustomer service to all of our clients since 1999and we will continue to do so in the future.B2BGateway has developed two new teams tohelp clients with setting up and maintaining theirtrading partner relationships.

(1) Setup Team: A dedicated Project Managerand setup team is assigned to each newB2BGateway client for the implementationphase of the project.

(2) Rapid Response Team (RRT): The RRT isthere to assist any client with any issues theymay come across once in production. Eachclient has direct access to the RRT team withemergency 24/7 support if needed.

Available Support

• Setup phase dedicated project manager

• Rapid Response Team available for when issues need immediate attention.

• Support is available 24/7 all year long and in your time zone.

• These support features are included in the monthly fee at no extra cost.

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EDI CONNECT APP

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1. Greater Accuracy – Removing the need to re-key data greatly reduces the potential for human error.

2. Integration – EDI allows true integration with all relevant parties/systems in your supply chain: 3PL, WMS, ERP…..

3. Greater Speed – Electronic almost real time communications.

4. Faster Payments – EDI speeds up your ‘Order to Payment’ cash cycle with you Trading Partners.

5. Environmentally Friendly – EDI removes the need for paper and printing. This not alone helps the environment but can drastically reduce your overall costs.

TOP 5 ADVANTAGES OF EDI

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Questions Anyone?

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5 tips for a successful edi implementation

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