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Electronic Commerce Enabling Electronic Commerce Enabling Solutions for Small to Medium Solutions for Small to Medium
EnterprisesEnterprises
Carol PozezanacCarol Pozezanac
Associate - Electronic CommerceAssociate - Electronic Commerce
Imperial Tobacco LimitedImperial Tobacco Limited
Mario BinetteMario Binette
Director - Procurement SystemsDirector - Procurement Systems
ProvigoProvigo
Electronic Commerce will be the global method of conducting business in the near future!
ARE YOU READY!
WHY ARE WE HERE?WHY ARE WE HERE?
The industry is aware of the time and resources required to integrate Electronic Commerce in small organizations. We are here to help!
• Gain a general understanding of EDI and the flow of information using this process.
• Transmit information to help you make an informed decision on which EC solution best suits your business needs.
PRESENTATION :PRESENTATION : OBJECTIVES OBJECTIVES
Barriers to Electronic Barriers to Electronic CommerceCommerce
• Perceived as too costly $$$
• Do not see any tangible benefits (show me the money!!)
• Complex
• Lack of understanding of EDI
Electronic Commerce & Electronic Commerce & EDIEDI
• EDI - Electronic Data Interchange is at the core of Electronic Commerce since it provides the means for communicating business transactions across all industries and all companies with little human intervention.
• All the various solutions outlined today have one common theme; they provide a means to communicate using EDI.
Electronic Commerce & Electronic Commerce & EDIEDI
Why Use ElectronicWhy Use ElectronicCommerceCommerce
• Electronic Commerce (EC) allows information and money to move more rapidly, without error, and eliminates non-value added tasks.
• EC supports business strategies that allow organizations to offer products and services of better quality, at competitive prices with a better service.
Benefits of EC Benefits of EC implementationimplementation
Supplier has the opportunity to sell product within a large
distribution network $$$$$$$$$$
Benefits of Electronic Benefits of Electronic CommerceCommerce
• Competitive Advantage
• Provides Customer Service
• Helps get products to the consumer faster and at a lower cost.
Business StrategiesBusiness Strategies
Manufacturing : Just In Time (JIT) Manufacturing : Just In Time (JIT) (ex : GM)(ex : GM)
supplies and materials deliveredsupplies and materials deliveredwhen required for production when required for production
Retail : Quick Response (QR) Retail : Quick Response (QR) ( Sears)( Sears)
A program using bar codes to track sales and triggerA program using bar codes to track sales and trigger timely reordering of inventory using EDItimely reordering of inventory using EDI
Grocery : Efficient Consumer Response (ECRGrocery : Efficient Consumer Response (ECR)
Vendor Managed Vendor Managed ReplenishmentReplenishment
Imperial Tobacco
8 5 2
Imperial Tobacco
855
Wholesaler
Vendor takes responsibility for managing the inventoryat the wholesale distribution level
Wholesaler
Product Activity Data
By product : - On Hand - On Order - Sold
Purchase Order Acknowledgment
By product : quantity
EDI - Small Company EDI - Small Company SolutionsSolutions
• PC with general EDI translator
What Is EDI ?What Is EDI ?
Exchange of structured information between two or more business partners, from one computer to another according to a standardized format
“EDI is a high-speed method of electronic communicationthat facilitates the exchange of high volume of businessdata from one computer to another.Data is presented in a standardized format that providesfor generating, receiving and processing informationwith no human intervention.”
Price Waterhouse
Why EDI?Why EDI?
• Customers as a request or as a must• Suppliers as a request or as a must• Competitive advantage• Cost/Saving analysis
• EDI is at the heart of Electronic Commerce (EC) due to the fact it supports the different business strategies
MAIL TELEPHONE E-MAIL FAX TELEX FILE-TRANSFER
EDI
NON STRUCTURED
TO
VERY STRUCTURED
Business CommunicationBusiness Communication
Technical ComponentsTechnical Components
Hardware
Business Application
Application Interface
Translation Software or EDI software
Communication
EDI Standards
HardwareHardware
Personal Computer P/C
Mini or Midsize Computer
Main Frame or Maxi Computer
Business ApplicationsBusiness Applications
• Business applications are all the applications that create or process a business document
• EX :850 Purchase Orders810 Invoices
852 Product Activity855 PO
Acknowledgment 879 Price Change 888 Item Maintenance 856 Ship Notice Manifest or ASN
Application InterfaceApplication Interface
• An application interface is the application that creates or processes the input/output file for the translator (EDI software )
• EDI must be fully integrated to add value to your organization.
Translation SoftwareTranslation Software
• The translation software translates the input file from the application interface into an EDI file according to a given standard and vice versa
• There are two very basic functions :1- Generate (into EDI )
2- Interpret (from EDI)• There are many more functions
CommunicationCommunication
• Modem • Line• Software
Establish the link between the user’s computer and the VAN (Value Added Network)
Value Added Network Value Added Network (VAN)(VAN)
• Manage the distribution, verification and storage of EDI transactions.
Examples of Value added Networks:
• Bell
• Advantis
• GEIS
• Ordernet
COMMUNICATIONCOMMUNICATION
MAILBOX
LOEB
MAILBOX
MAXI
MAILBOX
PROVIGO
LOEB
MAXI
PROVIGO
ITLITL
EDI STANDARDSEDI STANDARDS
• The EDI standards are an elaborate language of codes.
• The standards define the vocabulary as well as the syntax and the structure rule for the EDI transactions.
• The EDI standards are updated on a regular basis.
• There are two major EDI standards
X 12 and EDIFACT
• Within the X 12 standard there are subsets:
UCS VICS WINS etc...• Within these subsets are different versions:
3030, 3040, 4010 etc...
EDI STANDARDSEDI STANDARDS
EDI Trading CommunityEDI Trading Community
Government Supplier / Warehouse
Retailer / Manufacturer
Customs / Brokers
Transport
Buyer`s Bank Suppliers Bank
• PC Windows-based EDI translation software that translates from EDI standards into application flat file format and vice versa.
EDI - PC with EDI translatorEDI - PC with EDI translator
EDI - PC with EDI translatorEDI - PC with EDI translator
Features DescriptionHardware PC/ModemSoftware Windows 3.X, Windows’9XStartupCosts
$2,500-3,500 plus add.Documents
OngoingCosts
60+ per month depending onvolume
Support Included (24x7)Training/Skill Intermediate/AdvancedIntegration YesVolume Medium to high (mult. TP and
docs)Implem. Time 2 days to 2 weeksBenefits Multiple TP, multiple documents,
integration capability, eliminatesrekeying, improves accuracy, TPcompliance
• Reduce office supply costs• Reduce postal and courier costs• Reduce telephone costs• Reduce data entry and errors• Reduce processing time• Reduce cost of float on funds transfer• Reduce A/R days• Reduce inventory• Eliminate Stock Outs
EDI : Tangible BenefitsEDI : Tangible Benefits
• Improve customer service• Increased access to timely information• Increase the data reliability and quality• Foster closer internal/external working
relationships
EDI : Tangible BenefitsEDI : Tangible Benefits
Conclusion - Evaluate Your Conclusion - Evaluate Your
BusinessBusiness• Before making the decision to invest in
EDI technology, you must evaluate your business and identify all internal processes that can be improved. You must also commit to implementing a full cycle of transactions in order to reap the benefits of EDI.
• PC with general EDI translator
• PC with specific EDI software ( E-Forms)
EDI - Small Company EDI - Small Company SolutionsSolutions
E-FormsE-Forms
• PC Forms-based Trading Partner specific solution to send and receive business documents via EDI as required.
Features DescriptionHardware PC/ModemSoftware Windows 3.X, Windows’9XStartup Costs $500-700 per TP, plus add.
DocumentsOngoing Costs $60+ per month depending on
volumeSupport Included (8:00-8:00 EST)Training/Skill BeginnerIntegration NoVolume Low (1-2 TP, <50 docs/month)Implem. Time 24 hoursBenefits Low cost and low maint., easy to
use, instant TP compliance,little/no knowledge of EDI req’d
E-FormsE-Forms
• PC with general EDI translator
• PC with specific EDI software ( E-Forms)
• Web EDI
EDI - Small Company EDI - Small Company SolutionsSolutions
Web EDIWeb EDI
• Internet-based trading partner specific solution
Features DescriptionHardware ISP, PC, ModemSoftware Windows’9X, Web browserStartup Costs $200-400 one time fee plus add.
DocumentsOngoing Costs 60+ per month depending on
volume plus ISP servicesSupport Email, on-line, $/hour telephone
supportTraining/Skill BeginnerIntegration NoVolume Low (1-2 TP, <50 docs/month)Implem. Time Immediate (if they have ISP)Benefits Low cost and low maint., easy
to use, instant TP compliance,little/no knowledge of EDI req’d
Web EDIWeb EDI
• PC with general EDI translator
• PC with specific EDI software ( E-Forms)
• Web EDI
• Fax to EDI
EDI - Small Company EDI - Small Company SolutionsSolutions
• Hub transmits EDI transaction to service provider, document is converted to fax format and sent to trading partner. Inbound documents are transmitted in fax format and converted to EDI and transmitted to Hub.
Fax to EDIFax to EDI
Features DescriptionHardware Fax machineSoftware N/AStartup Costs $100-200 set up chargeOngoing Costs $25-50/month, $1.00-$4.00 per
document + transmission chgs.Support 1-800 Mon-Fri (8-6 EST)Training/Skill BeginnerIntegration NoVolume Low (1-2 TP, <25 docs/month)Implem. Time 24 hoursBenefits Low cost and maint., easy to
use, instant TP compliance,little/no knowledge of EDI req’d
Fax to EDIFax to EDI
• PC with general EDI translator
• PC with specific EDI software ( E-Forms)
• Web EDI
• Fax to EDI
• Service Bureau
EDI - Small Company EDI - Small Company SolutionsSolutions
EDI - Service BureauEDI - Service Bureau
• 3rd party solution for low-end small companies to convert information into EDI standard format and deliver to trading partner.
Features DescriptionHardware Minimum reqmt. Fax machineSoftware NAStartup Costs $150-$500 depending on # of
TPsOngoing Costs $50-$100/month depending on
volume + transmission chargesSupport 8:00 - 6:00 Mon-FriTraining/Skill BeginnerIntegration NoVolume Low (1-2 TP, <50 docs/month)Implem. Time 24 hoursBenefits Low cost and maint., easy to
use, instant TP compliance,little/no knowledge of EDI req’d
EDI - Service BureauEDI - Service Bureau
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