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Efficient Supply Chain Execution

Efficient Supply Chain Execution. Communications and Connectivity Trevor Richards. Contents. Efficient Supply Chain Execution Drivers for automating interaction with suppliers Business processes Message formats Communications options Achieving total supplier compliance

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Efficient Supply Chain Execution

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  1. Efficient Supply Chain Execution Communications and Connectivity Trevor Richards

  2. Contents • Efficient Supply Chain Execution • Drivers for automating interaction with suppliers • Business processes • Message formats • Communications options • Achieving total supplier compliance • Related technologies/initiatives • QAD Solutions • Questions

  3. Efficient Supply Chain Execution • Customers impose their business processes • Initial focus on automating customer interaction • Supply chain efficiency relies on all links • Whole supply chain needs to be “connected” • Customers gravitate to “connected” suppliers • Industry associations urge full participation

  4. Supplier Connectivity Drivers (External) • Individual customer demands • Industry best practices (MMOG/LE) • OEMs demand Tier 1 suppliers comply • Tier 1 suppliers demand their suppliers comply • MMOG self assessment now part of supplier rating

  5. Supplier Connectivity Drivers (Internal) • Enables accurate & timely information exchange • Supplier systems become “integrated” • Easier to respond to customer needs • Complete business process can be automated • Supplier payments made via EFT, for example • Leads to increased business efficiency

  6. Supplier Connectivity Questions • Replace manual business process or enhance ? • How much of business process to automate ? • What message format(s) should be exchanged ? • What communications options to provide ? • How do I achieve 100% compliance ?

  7. Supplier Business Process • Most customers focus on Order-to-Cash cycle • Frequency of interaction influences process • Industry influences business process selected • Custom vs Standard Products influence

  8. Schedule-Based Order-to-Cash • Planning Schedule (Out) • Shipping Schedule (Out) • Advance Ship Notice (In) • Remittance Advice (Out) • ERS typically implemented

  9. Discrete Order-Based Order-to-Cash • Order (Out) • Advance Ship Notice (In) • Invoice (In) • Remittance Advice (Out)

  10. Message Formats • XML messages exist but have limited traction • EDI messages supported by all ERP vendors • ANSI X12 for domestic only • EDIFACT for domestic and international • Proprietary formats can be used intracompany

  11. Scheduled Order Messages • Planning Schedule (Out) • ANSI X12 830, EDIFACT DELFOR • Shipping Schedule (Out) • ANSI X12 862, EDIFACT DELJIT • Advance Ship Notice (In) • ANSI X12 856, EDIFACT DESADV • Remittance Advice (Out) • ANSI X12 820, EDIFACT REMADV

  12. Discrete Order-Based Messages • Order (Out) • ANSI X12 850, EDIFACT ORDERS • Advance Ship Notice (In) • ANSI X12 856, EDIFACT DESADV • Invoice (In) • ANSI X12 810, EDIFACT INVOIC • Remittance Advice (Out) • ANSI X12 820, EDIFACT REMADV

  13. Communication Options • Value-Added Networks • Traditional (GXS, Sterling Commerce, etc) • Industry focused (Covisint, GHX, etc) • Private Networks • ANX, ENX, JNX • Point to Point • All industries • AS2, FTP/S, HTTP/S

  14. Total Supplier Compliance • EDI-capable suppliers need carrot & stick • Approach determined by your leverage • Supplier rating needs to include EDI capability • Start with largest suppliers (80/20 rule) • Option required for non-EDI capable suppliers

  15. Related Technologies/Initiatives • Labeling/Product Identification • Data Synchronization • RFID • EDI with logistics providers

  16. QAD Solutions • QAD Total eCommerce • EDI ECommerce • Gentran Integration Suite • Supply Visualization • QAD Global EDI Business Unit • Michelle Seibert, Director, ims@qad.com • John Porten, NA Delivery Manager, jgp@qad.com • Trevor Richards, Principal Consultant, tir@qad.com

  17. QAD’s Total eCommerce Solution QAD Controls Data Transformation, Validation, & Transaction Management Communications ERP Translation to/from SNF MFG/PRO Gentran Integration Suite EDI ECommerce MFG/PRO 9.0 + Raw File SNF File Translator EC Sub Transform EDI ECommerce Gateways

  18. Questions

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