Electronic Commerce Enabling Solutions for Small to Medium Enterprises

1. Electronic Commerce Enabling Solutions for Small to Medium Enterprises Carol Pozezanac Associate - Electronic Commerce Imperial Tobacco Limited Mario Binette Director - Procurement Systems Provigo

2. Electronic Commerce will be the global method of conducting business in the near future! ARE YOU READY!

3. 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!

4. PRESENTATION : OBJECTIVES • 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.

5. Barriers to Electronic Commerce • Perceived as too costly $$$ • Do not see any tangible benefits (show me the money!!) • Complex • Lack of understanding of EDI

6. Electronic Commerce & EDI • 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.

7. Electronic Commerce & EDI • All the various solutions outlined today have one common theme; they provide a means to communicate using EDI.

8. Why Use ElectronicCommerce • 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.

9. Benefits of EC implementation Supplier has the opportunity to sell product within a large distribution network $$$$$$$$$$

10. Benefits of Electronic Commerce • Competitive Advantage • Provides Customer Service • Helps get products to the consumer faster and at a lower cost.

11. Manufacturing : Just In Time (JIT) (ex : GM) supplies and materials delivered when required for production Retail : Quick Response (QR) ( Sears) A program using bar codes to track sales and trigger timely reordering of inventory using EDI Grocery : Efficient Consumer Response (ECR) Business Strategies

12. Product Activity Data 8 5 2 By product : - On Hand - On Order - Sold Wholesaler 8 5 5 By product : quantity Purchase Order Acknowledgment Vendor Managed Replenishment Vendor takes responsibility for managing the inventory at the wholesale distribution level Wholesaler Imperial Tobacco Imperial Tobacco

13. EDI - Small Company Solutions • PC with general EDI translator

14. 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 communication that facilitates the exchange of high volume of business data from one computer to another. Data is presented in a standardized format that provides for generating, receiving and processing information with no human intervention.” Price Waterhouse

15. 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

16. FILE -TRANSFER FAX TELEX E-MAIL TELEPHONE MAIL Business Communication NON STRUCTURED TO VERY STRUCTURED EDI

17. Technical Components Hardware Business Application Application Interface Translation Software or EDI software Communication EDI Standards

18. Hardware Personal Computer P/C Mini or Midsize Computer Main Frame or Maxi Computer

19. Business Applications • Business applications are all the applications that create or process a business document • EX :850 Purchase Orders 810 Invoices 852 Product Activity 855 PO Acknowledgment 879 Price Change 888 Item Maintenance 856 Ship Notice Manifest or ASN

20. Application 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.

21. Translation 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

22. Communication • Modem • Line • Software Establish the link between the user’s computer and the VAN (Value Added Network)

23. Value Added Network (VAN) • Manage the distribution, verification and storage of EDI transactions. Examples of Value added Networks: • Bell • Advantis • GEIS • Ordernet

24. COMMUNICATION LOEB MAILBOX LOEB MAILBOX MAXI ITL MAXI ITL MAILBOX PROVIGO PROVIGO

25. EDI 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.

26. EDI STANDARDS • 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...

27. EDI Trading Community Government Supplier / Warehouse Customs / Brokers Retailer / Manufacturer Transport Buyer`s Bank Suppliers Bank

28. EDI - PC with EDI translator • PC Windows-based EDI translation software that translates from EDI standards into application flat file format and vice versa.

29. EDI - PC with EDI translator

30. EDI : Tangible Benefits • 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

31. EDI : Tangible Benefits • Improve customer service • Increased access to timely information • Increase the data reliability and quality • Foster closer internal/external working relationships

32. Conclusion - Evaluate Your Business • 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.

33. EDI - Small Company Solutions • PC with general EDI translator • PC with specific EDI software ( E-Forms)

34. E-Forms • PC Forms-based Trading Partner specific solution to send and receive business documents via EDI as required.

35. E-Forms

36. EDI - Small Company Solutions • PC with general EDI translator • PC with specific EDI software ( E-Forms) • Web EDI

37. Web EDI • Internet-based trading partner specific solution

38. Web EDI

39. EDI - Small Company Solutions • PC with general EDI translator • PC with specific EDI software ( E-Forms) • Web EDI • Fax to EDI

40. 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.

41. Fax to EDI

42. EDI - Small Company Solutions • PC with general EDI translator • PC with specific EDI software ( E-Forms) • Web EDI • Fax to EDI • Service Bureau

43. EDI - Service Bureau • 3rd party solution for low-end small companies to convert information into EDI standard format and deliver to trading partner.

44. EDI - Service Bureau