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Marine Data ExchangeMarine Data Exchange
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About The PresenterAbout The Presenter
• Norman Katz, Katzscan Inc. (www.katzscan.com)• Specialties:
– Barcode applications (inventory, mfg)– Electronic Data Interchange (EDI) / e-B2B– Supply chain vendor compliance
• Since January 1996• NMMA Supply Chain Consultant since 4/2004• MDX Technical/Business Lead since 1/2005• Resource available to all marine industry
companies (mfgr, distributor, boat builder, retailer)
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Presentation OutlinePresentation Outline
• What is the MDX?
• How is the MDX used?
• Why MDX?
• Who uses the MDX?
• Benefits of the MDX!
• MDX and the Supply Chain
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What is the MDX?
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What is the MDX?What is the MDX?
• Internet-based software program developed & hosted by the NMMA
• Used to transfer business documents as electronic data files– First done in the mid 1970’s (EDI)– Common in many other industries
• Supply chain enablement tool – Users are called “trading partners”
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What does the MDX do?What does the MDX do?
• Enables electronic business document communications
• Removes barriers created by spam filters and anti-virus software – better than e-mail
• Creates internal & external efficiencies
• Consolidates business document lifecycle to a single data repository
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What does the MDX What does the MDX notnot do? do?
• Will not generate data
• Will not validate data
• Will not count your inventory
• Will not manufacture products
• Will not read your mind
• Will not make your morning coffee or afternoon tea
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The MDX is.....The MDX is.....
• A communications pipeline between a buyer and seller
• A very low cost supply chain enablement tool
• A way to reduce / eliminate errors
• A way to increase / improve efficiencies
• A way to do business better
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MDX Business DocumentsMDX Business Documents
• Purchase Order
• Purchase Order Change
• Purchase Order Acknowledgement
• Advance Ship Notice
• Invoice
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Purchase OrderPurchase Order
• Sent from the buyer to the seller (from the customer to the supplier)
• A commitment to buy goods and services
• Contents: items, quantities, prices, payment terms, ship-to, delivery information, dates
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Purchase Order AcknowledgementPurchase Order Acknowledgement
• Sent from seller to buyer
• Used to accept or reject all or part of a PO:– Item quantities– Delivery dates– Unit Prices
• Used to verify receipt of a PO
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Purchase Order ChangePurchase Order Change
• Sent from buyer to seller• Modifies a previously sent PO
– Delivery date– Item quantities – Item costs
• Should be used to verify a seller’s modification via the PO ACK
• Should be used with restrictions to avoid excessive / late PO changes very close to ship date
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Advance Ship NoticeAdvance Ship Notice
• Sent from seller to buyer
• Acts as an electronic bill of lading
• Contains shipment information:– Carrier, Ship To, Ship From– Weight & Volume– Items and quantities– PRO # / tracking #
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InvoiceInvoice
• Sent from seller to buyer
• Requests payment for goods shipped, not ordered
• Contents:– Payment terms, remit to, vendor ID– Item, quantities, costs, taxes– Adjustments, i.e. freight costs
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Document Exchange Example – Document Exchange Example – PO With No ChangesPO With No Changes
Buyer Seller
(1) (1)
(1) Buyer sends PO(2) Seller sends PO ACK(3) Seller sends ASN(4) Seller sends Invoice
(2)(2) (3)(3) (4)(4)Solid line = sent docDashed line = recv’d doc
MDX
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Document Exchange Example – Document Exchange Example – PO With Changes # 1PO With Changes # 1
1. Buyer sends a PO to the Seller.2. Seller rejects part of the PO; sends PO ACK to the Buyer.3. Buyer updates the PO in Buyer’s ERP system to reflect
changes. (Assumes Buyer accepts Seller’s changes.)4. Buyer resends updated PO to Seller.5. Seller sends PO ACK to Buyer with no changes,
accepting updated PO.6. Seller sends Buyer an ASN when shipping.7. Seller sends Buyer an Invoice after shipping.
Easily accomplished with automated processes.
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Document Exchange Example – Document Exchange Example – PO With Changes # 2PO With Changes # 2
1. Buyer sends a PO to the Seller.2. Seller rejects part of the PO; sends PO ACK to the Buyer.3. Buyer cancels the original PO in Buyer’s ERP system.
(Buyer accepts Seller’s changes.)4. Buyer creates new PO to send to Seller.5. Seller sends PO ACK to Buyer with no changes,
accepting new PO.6. Seller sends Buyer an ASN when shipping.7. Seller sends Buyer an Invoice after shipping.
Easily accomplished with automated processes.
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How is the MDX used?
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How is the MDX used?How is the MDX used?
• User Interfaces:– Web Form– Software Integration
• Helpful Documentation
• Business relationship procedures
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Web FormWeb Form
• Requires high-speed connection to the Internet (cable or DSL)
• No software to purchase
• Similar to an e-mail mailbox:– Retrieve and print inbound documents – Data enter and send outbound documents
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Web Form - MailboxWeb Form - Mailbox
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Web Form – PO’sWeb Form – PO’s
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Web Form – PO ACKWeb Form – PO ACK
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Web Form – PO CHGWeb Form – PO CHG
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Web Form – Invoice Web Form – Invoice
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Web Form – ASN Header Web Form – ASN Header
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Web Form – ASN Shipment Web Form – ASN Shipment
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Web Form – ASN Order Level Web Form – ASN Order Level
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Web Form – ASN Pack Level Web Form – ASN Pack Level
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Web Form – ASN Item Level Web Form – ASN Item Level
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Web Form – Settings Web Form – Settings
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Web Form HighlightsWeb Form Highlights
• Purchase Orders can be automatically converted to:– PO Acknowledgements – PO Changes
• Saves redundant data entry
• PO ACK’s and PO CHG’s can be further edited before sending
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Software IntegrationSoftware Integration
• Open platform – any operating system– Windows®– Unix®– AS/400®– VAX VMS®– HP/UX®
• Uses Secure Socket Layer (SSL) File Transfer Protocol (FTP)
• Software application independent
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Helpful DocumentationHelpful Documentation
The following documentation is available on the MDX web site Downloads page to help you:
• Data File Standards• MDX FTP Client• Web Forms • System Integration Overview• Trading Partner Checklist• …..more to come
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Data File StandardsData File Standards
• Used for software integration
• Text files
• ANSI X12 EDI version 4010
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Data File GuidelinesData File Guidelines
• Applies to all MDX transaction files
• Describes general data file and data record structures characteristics
• Data field and data record delimiters
• Data field notations
• Read before individual transaction file data standards
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Data StandardsData Standards
• One document for each business transaction file (i.e. PO, ASN, Invoice)
• Data records and data fields in detail
• Data field characteristics (i.e. M/O, alpha vs. numeric, min/max lengths)
• Sample data file
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MDX FTP ClientMDX FTP Client
• Free Windows®-based secure FTP software
• Accompanying user guide
• Easy to install and use
• Not applicable for non-Windows platforms
• Not as flexible as 3rd party options
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Web Forms documentWeb Forms document
• Contains a screen snap-shot of every web form screen in the MDX
• How to maneuver through the MDX
• Pushbutton functions for each screen
• General web form functionality
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System Integration OverviewSystem Integration Overview
• Describes trading partner relationship– Customer– Supplier
• Trading partner responsibilities
• Testing methodology
• Business procedure changes
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System Integration Example – System Integration Example – Purchase OrderPurchase Order
Buyer Seller
EXTRACT:PO HeaderPO Detail
APPEND:SO HeaderSO Detail
MDX
> SSL FTP < > SSL FTP <
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Trading Partner ChecklistTrading Partner Checklist
• Used to document data field requirements by transaction– Inbound– Outbound
• Established by the customer (“buyer”)
• Does not vary by supplier (“seller”)
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Trading Partner Checklist – Trading Partner Checklist – Customer / BuyerCustomer / Buyer
• Data record requirements
• Data field characteristics
• Internal notes only (2nd copy):– Notate application files and fields for
outbound file generation– Notate application files and fields for
inbound data file validation & append
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Trading Partner Checklist – Trading Partner Checklist – Supplier / SellerSupplier / Seller
• Data record requirements • Data field characteristics • Internal notes only:
– Notate application files and fields for outbound file generation
– Notate application files and fields for inbound file data validation & append
• Helps to organize and standardize software programming for multiple trading partners
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Business Relationship ProceduresBusiness Relationship Procedures
• Once “electronic”, no business commitments or changes via:– Paper– E-mail– Fax– Telephone
• Consolidates communications to a single pipeline…..
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Communications ConsolidationCommunications Consolidation
• All communications relating to a business transaction are now documented in the MDX
• No more searching multiple sources:– E-mail– Phone conversation notes– Fax– Paper / postal mail
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Why MDX?
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Why is the MDX?Why is the MDX?
• Introduce good supply chain practices to the marine industry
• Affordable supply chain enablement
• Foster growth by helping companies conduct business more efficiently and effectively
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Good Supply Chain PracticesGood Supply Chain Practices
• You are trading partners, not trading adversaries
• Enable your suppliers by providing tools for success – don’t just dictate rules
• Suppliers must grow with their customers needs
• Suppliers can often leverage customer requirements for themselves (i.e. barcode labeling)
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The MDX is affordableThe MDX is affordable
MDX EDI
Transaction charges (per 1,000 chars)
NO Yes, 10’s or 100’s of dollars per month
Monthly fees NO Yes, 10’s or 100’s of dollars per month
NMMA Member Costs
$900 one-time fee, $300 annual, no software to buy
Varies extremely, may involve software
purchase
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MDX Business EfficienciesMDX Business Efficiencies
• Efficiencies for buyer and seller
• Efficiencies via web form or integration
• Fosters a better (more efficient) trading partner relationship
• Reduce / eliminate manual errors
• Speed processing
• Can be a competitive advantage
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Shared Business InefficienciesShared Business Inefficiencies
• Buyers & Sellers can both suffer from:– Lost documents (mail, fax)– Blocked e-mails (spam, anti-virus)– Illegible handwriting – Manual data entry errors – Phone / e-mail tag – Long distance phone charges– Unnecessary follow-up’s – Tasks that waste time (anti “Lean”)
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Business GrowthBusiness Growth
• Internal growth: more efficiencies = more profits
• Internal growth: more profits = business expansion / product innovation
• External growth: increased sales
• External growth: reduce competition (on-shore & off-shore)
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Who uses the MDX?
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MDX Marine User CommunityMDX Marine User Community
• The MDX can be used by:– Accessory Manufacturers– Distributors– Boat Builders– Engine Manufacturers– Retailers
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Extending the supply chainExtending the supply chain
• The MDX can be used by marine companies to conduct efficient e-B2B with non-marine industry suppliers
• Supply chain enablement within and outside the marine industry
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Benefits of the MDX!
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Technology BenefitsTechnology Benefits
• Direct point-to-point electronic communications
• No concerns associated with e-mail:– Verify better than "read receipts" which are
not available through all e-mail services – Bypass e-mail restrictions such as spam
blocking and virus filtering
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Process & Procedure BenefitsProcess & Procedure Benefits
• Enable automation with optional system integration • Improve accuracy of information • Reduce paperwork • Eliminate manual data entry errors • Eliminate errors due to illegible hand-written characters • Eliminate lost purchase orders & invoices • Verify shipment receipt faster• Eliminate need for follow-up telephone calls:
– Increases office staff efficiency – Reduces long-distance telephone bills
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Supply Chain BenefitsSupply Chain Benefits
• Supply chain is internal and external
• Internal– Communication between departments
• External– Communication to suppliers– Communication to customers
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Internal Supply Chain BenefitsInternal Supply Chain Benefits
• Improve inter-departmental communication– Purchasing– Accounting– Warehouse
• Automate cross-validation of MDX documents
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Document Cross ValidationsDocument Cross Validations
• Warehouse receipt should match ASN– Stop & determine / correct mismatch errors
• ASN should “match” PO– Except backorders & short shipments– Over-shipments? Wrong items?
• Invoice should match ASN; ASN previously matched to warehouse receipt; ASN previously validated to PO
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External Supply Chain BenefitsExternal Supply Chain Benefits
• Verification of business document communications – Content– Transport
• Speed business document transport– PO, PO Ack, PO Chg– Invoice
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Overall Supply Chain BenefitsOverall Supply Chain Benefits
• Move closer to Just In Time (JIT)– PO, PO Chg, PO Ack require less transport time– Leaner inventory levels
• Replenishment PO automation eliminates manual involvement– Reduces number of supplier PO’s– Catch “close to replenishment” items & order them– Shipment consolidation, reduces freight costs
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THANK YOU!THANK YOU!
Any questions?
