Electronic Commerce Enabling Solutions for Small to Medium Enterprises Carol Pozezanac Associate - Electronic Commerce Imperial Tobacco Limited Mario Binette

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 specific EDI software ( E-Forms)


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



• Web EDI


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



• Web EDI

• Fax to EDI


• 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


Fax to EDIFax to EDI



• Web EDI

• Fax to EDI

• Service Bureau


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


EDI - Service BureauEDI - Service Bureau