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Automating PO Change in Work Flow Process

Automating PO Change in Work Flow Process. By Michael Kotoyan, Co-Founder Beacon EDI. Speaker Intro. Michael Kotoyan, Founder EDI Academy 15 years in EDI industry Implemented EDI for dozens of small-to-medium size companies Experience includes EDI Leadership at 3 Fortune 500 Companies.

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Automating PO Change in Work Flow Process

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  1. Automating PO Change in Work Flow Process By Michael Kotoyan, Co-Founder Beacon EDI

  2. Speaker Intro • Michael Kotoyan, Founder EDI Academy • 15 years in EDI industry • Implemented EDI for dozens of small-to-medium size companies • Experience includes EDI Leadership at 3 Fortune 500 Companies

  3. Agenda • PO Change Defined • Types Of PO Changes • PO Header Section • PO Line Item Detail • Challenges With Po Automation • Automating PO Change Process • Automating PO Cancellations • Automating PO Changes • Communicating Back Acceptance/Rejection Details • ROI – Cost-To-Benefit Analysis

  4. Purchase Order Change

  5. PO Change Types (Header Section)

  6. PO Change Types (Header Section)

  7. PO Change Types (HeaderSection)

  8. PO Change Header Section Examples

  9. PO Change Types (Detail Section)

  10. Scenario: Add ItemsST*860*999999999BCH*04*SA*1234569***20100322*****20100401POC**AI**5*EA*9**UP*9999999999999

  11. Scenario: Delete ItemsST*860*999999999BCH*04*SA*1234569***20100322*****20100401POC**DI******UP*777777777777

  12. Scenario: Price ChangeST*860*0125BCH*04*SA*345890345***20100627*****20101015POC*00001*PC**0**34.85*WE***PI*34534*VA*189916050POC*00002*PC**0**45.73*WE***PI*34534*VA*189916050

  13. Scenario: Quantity IncreaseST*860*9560001BCH*04*BK*499980940***20090104*****20090115POC**QI*100*50*EA*10.71*QT*SK*12345678901

  14. Scenario: Quantity ChangeST*860*000000001BCH*04*SA*0023-0412345***20000627*****20000630POC*1*PQ*90*120*EA*7.495*WE*CB*023000500*UP*023456789015*VA*34M098SDQ*EA*92*0551*20*0552*20*0553*20*0554*10*0555*10*0556*20*0557*10*0559*10

  15. Scenario: Replace All Values (Slide 1 of 6)Original Purchase Order Line-Item Detail Section – JCP Example: • Item number 12345679S (UPC 678901111111) is a replacement for item number 12345678S (UPC 678901111111). • POC**RZ*900*0*EA*15.25*WH*IN*12345679S***UP*678911111111 POC**DI******IN*12345678S***UP*678901111111 • Item number 123456783X - no change. Item(s) without changes will not be included on the 860 transmission.

  16. Scenario: Replace All Values (Slide 2 of 6)Original Purchase Order Line-Item Detail Section – JCP Example: • Item number 12345678M - quantity ordered will be decreased to 1000 units (subtracting 500 units from the original quantity). POC**RZ*1000*0*EA*15.25*WH*IN*12345678M***UP*678902222222 • Item number 12345678L - quantity will be increased to 1500 units (adding 500 units to the original quantity). POC**RZ*1500*0*EA*15.25*WH*IN*12345678L***UP*678903333333 • Item number 123456783X - no change. Item(s) without changes will not be included on the 860 transmission.

  17. Scenario: Replace All Values (Slide 3 of 6)Original Purchase Order Line-Item Detail Section – JCP Example: • Item number 12345678XL - the SKU cost was changed to $15.75. POC**RZ*700*0*EA*15.75*WH*IN*12345678XL***UP*678904444444 • Item number 123456783X - no change. Item(s) without changes will not be included on the 860 transmission.

  18. Scenario: Replace All Values (Slide 4 of 6)Original Purchase Order Line-Item Detail Section – JCP Example: • Item number 12345678XXL has been deleted. POC**DI******IN*12345678XXL***UP*678905555555 • Item number 123456783X - no change. Item(s) without changes will not be included on the 860 transmission.

  19. Scenario: Replace All Values (Slide 5 of 6)Original Purchase Order Line-Item Detail Section – JCP Example: • Item number 123456783X - no change. • Item(s) without changes will not be included on the 860 transmission.

  20. Scenario: Replace All Values (Slide 6 of 6) Full Example

  21. Automation Challenges: quotes from customers • "We do not as a company support the 860 as an automatic change to our orders. Because we have short lead times our orders are planned and shipped few days after receiving them...“ • Rina Zorn from Johnsonville

  22. Automation Challenges: Quotes from customers • “…since we are in Rodent control many Pest Management Operators still prefer to do business "face to face" or "with a person", we still run into a lot a push back to do anything electronically with many of the older companies. I am sure it will progress quickly once they realize how it works in their favor but it still takes some convincing....“ Amanda Haynes from Bell Laboratories

  23. Automation Challenges: Quotes from customers • “I simply mapped the ship by date and cancel by date values they were sending in the DTM segment to our requested ship date, and EDI cancel date fields in our ERP (Navision). This was working fine, until they sent an 860 the same day an order was in queue to ship, the report didn’t run until EOD and it was too late. • After that I decided it was best to have the system through an error when an 860 tries to update a date field.” Scott Freeds

  24. Challenges with Automation

  25. Challenges with Automation

  26. Challenges with Automation

  27. Challenges with Automation

  28. Solution: Create a Rules Engine

  29. PO Change Type Cancellation Workflow – Rules EngineShipped Scenario – Too Late To Cancel

  30. PO Change Type Cancellation Workflow – Rules Engine Scenario – Unprocessed Sales Order

  31. Automating Price Changes – Rules Engine No

  32. Change Type Increase Quantity Workflow

  33. Communicating PO Change Accept/Reject via EDI Original 860: Request To Delete Item 865 EDI Response Acknowledging The Deletion of the item

  34. Communicating PO Change Rejection via Email

  35. ROI - Automation Cost

  36. ROI Scenario

  37. Summary and Q & AThank You

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