QAD Pitch Report

QAD EDI Part IIEnterprise Material Transfer [EMT]

Introduction to EMT

… Automatically generates Purchase Order (Supply) based on Sales Order (Demand) in Intra-Company Producer – Consumer scenario.

… Automation of document transfer is achieved through QAD EDI ECommerce.

EMT – Features

• Automatically generates Purchase Orders from Sales Orders.

• Automatically exports Purchase Orders through QAD EDI ECommerce.

• EDI Purchase Order is imported in Manufacturing unit to create Sales Order.

• When an EMT Purchase Order is modified, the changes are automatically transmitted to Source Unit through EDI.

EMT – Features

• Sales Order changes are sent to Sourcing Unit through EDI.

• Supports two material delivery options – – Direct Shipment : direct shipment from final

supplier to end customer.– Transshipment : shipment to the original

unit that created Sales Order.• Integrated with QAD Shipment, Invoicing

and Accounts Receivable modules.

EMT – Standard EMT

• Standard EMT involves a simple two level relationship between two Business Unit.– Primary Business Unit (PBU) : Business Unit

that receives and responsible for processing the Customer’s Purchase Order.

– Secondary Business Unit (SBU) : Business Unit that receives Primary Business Unit’s Purchase Order and responsible for full-filling the PBU Purchase Order.

Standard EMT – PBU & SBU

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

Secondary Business UnitPlant 2

Secondary Business UnitPlant 2

Sales Office responsible for Forecast, Sales and Customer Management.

Manufacturing Units responsible for

Manufacturing Products.

Standard EMT – Customer to PBU

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

PO

SO

Sales Office converts

Customer PO into SO.

Secondary Business UnitPlant 2

Secondary Business UnitPlant 2

Standard EMT – PBU to SBU

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

PO

SO

PBU creates PO for Item 2 on Plant

2.

Secondary Business UnitPlant 2

Secondary Business UnitPlant 2

PO PO

SO SO

PBU creates PO for Item 1 on Plant

1.

Standard EMT – At SBU

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

PO

SO

Plant 2 creates SO for Item 2.

Secondary Business UnitPlant 2

Secondary Business UnitPlant 2

PO PO

SO SO

Plant 1 creates SO (Demand) for

Item 1.

Standard EMT – Direct Shipment

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

Invoice

Secondary Business UnitPlant 2

Secondary Business UnitPlant 2

Invoice

Supply Item 2

Direct Shipment

Material Flow

Invoice Flow

Standard EMT – Direct Shipment

With direct shipment, SBU is authorized to ship the material directly to the Customer bypassing the PBU. Advance Shipment Note will be sent to PBU to inform about the Direct Shipment and Customer Invoicing will

be through PBU.

Standard EMT – Transshipment

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

Invoice

Secondary Business UnitPlant 2

Secondary Business UnitPlant 2

Invoice

Supply Item 1

Transshipment

Supply Item 1

Transshipment

Material Flow

Invoice Flow

Standard EMT – Transshipment

With transshipments, the SBU satisfies the customer demand through PBU. SBU ships to PBU and PBU in turn ships to Customer.

Transshipment is useful in case of PBU doing any value addition to the materials shipped.

Standard EMT – EDI Flow

CustomerCustomer

Primary Business UnitSales Office

Primary Business UnitSales Office

Secondary Business UnitPlant 1

Secondary Business UnitPlant 1

850

SO 855

Ack

All EDI Documents are from ANSI X12.EDI Message Flow• 850 (PO) imported as SO in PBU.• PBU sends 855 (PO Acknowledge) to

Customer.• PBU sends 850 to SBU.• SBU send 856 (Ship Notice/Manifest) to

PBU and to customer in the case of direct shipment.

• PBU sends 856 to customer in the case of Trans-shipment.

• SBU sends 810 (Invoice) to PBU.• PBU sends 810 to Customer.

Change Management through EDI i. Any PO change by Customer to PBU and

PBU to SBU will be communicated through 860 (PO Change Request – Buyer initiated).

ii. Any SO change by PBU to Customer and SBU to PBU will be communicated through 865 (PO Change Request – Seller initiated).

1 2

850

SO

3

856

4

856

5

ASN

4ASN

810

Invoice

6

810

Invoice

7

Standard EMT – Business Flow

Import/Create Sales Order

EMT PO is created

Export EMT PO Import EMT PO to create Secondary SO.

Export AcknowledgementImport Acknowledgement

Order ChangesOrder Changes

Allocate and pick inventoryReceive PO Change

Ship Material to PBU or Customer

Receive, process and ship material (transshipment)

PBU SBU

EMT – Uses and Benefits

- EMT enables organizations having supply chain spanning multiple business units to have streamlined with less manual intervention.- Intra-company transactions would not require VAN to transmit EDI Messages, a simple EDI Sub-system would be suffice.- Provides Change Management process within QAD to manages changes to Purchase Orders and Sales Orders involved in intra-company transactions.- EMT can be used within Trading Partners depending on the mutual relationships and cohesiveness of the shared processes.