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Introduction

Exceutive Overview

  Introduction

By enhancing communications with vendors, EDI helps secure the right items at the right time, price, and delivery. As the most efficient form of ordering, EDI can help provide the lowest possible total cost of production.

EDI information is transmitted electronically - there's no need to load special forms into the printer, wait for the mail, stand by the fax machine for hours, or hope the supplier can read what they receive on the other end and enter it correctly into their system.

EDI eliminates errors and unnecessary delays - there is no re-keying of information on either end; orders and invoices go directly into the computer applications.

Pay less for the goods - Electronic payments often result in better prices and terms. Also, fewer obstacles to getting the order into the supplier's hands sooner can eliminate expensive and wasteful expediting.

Be more competitive with EDI. Match capabilities and gain the same benefits as the largest and most successful companies in the world, who are already using EDI to their advantage.

Compete on lowest total cost not just price. EDI provides many internal (cost and time saving) benefits that increase reliability and competitiveness. Errors are eliminated, information is timely.

EDI offers top-line results (sales gains) as well as bottom-line savings. Customers who understand the value of EDI insist on its use. Suppliers who also understand can make it easy for customers to become "locked in" through the electronic commerce infrastructure. As more business is transacted via EDI, cash flow improves (faster, more reliable payments from customers; take advantage of payment discounts with suppliers). Electronic commerce involves more precision and speeds business processes. Spend less time matching documents, searching for errors, and tracing activities - it's all tied together through the electronic exchanges from application to application. And EDI business is typically more predictable; therefore, cash flow can be better planned.

Paying vendors electronically (sooner and more reliably) offers leverage for negotiating better terms and prices.

EDI and Just-In-Time (JIT) go hand-in-hand. often, the only way to keep up with the more frequent deliveries and smaller quantities that result from JIT efforts is to use EDI planning schedules, purchase orders, and advance ship notices to stay in synch with key suppliers. The same is true if your company is a JIT supplier to one or more customers.

Quicker communications with suppliers reduces lead times which can help reduce inventories. EDI-linked suppliers also tend to be more reliable because they are closer (in communications and spirit, if not physically) to their customers, reducing the need for safety stock buffers.

The EDI advance shipping notice (ASN) message provides the ability to greatly improve accuracy and speed in processing receipts. By knowing exactly what is coming, and when it will arrive, dock personnel can be prepared and production schedules verified (or changed in the event of a problem) before the goods arrive. Efficient handling of incoming goods is another result of knowing the detail ahead of the actual arrival. ASNs are also useful for planning receiving department manpower and space requirements.

New Support -

Consolidated Shipping Support

Consolidated Invoicing Support

Remittance Advice Invoice Matching

Introduction (top) EC Benefits (next)

  

  Executive Overview

The MAPICS XA Electronic COMMERCE (EC) application enables MAPICS XA Purchasing, Customer Order Management, IFM, Accounting Management, Accounts Payable and Accounts Receivable, Inventory Management, and Material Requirements Planning to communicate with trading partners via Electronic Data Interchange (EDI). EC provides the most comprehensive set of EDI capabilities available, fully integrated with the industry-leading MAPICS XA operational applications.

Both ANSI ASC X12 (US) and EDIFACT (International) standard transactions are supported for purchase orders, changes, acknowledgments, invoices, remittance advice, request for quote and response, planning schedule, shipping schedule, advance shipping notice, and others.

EDI is rapidly becoming a requirement for doing business with leading customers and suppliers. Fortunately, it is also a source of time and money savings that far outweighs its cost. EC's full integration with the MAPICS XA operational modules provides the full benefits of EDI and eliminates handling, converting, re-keying, and other labor-intensive, error-prone, time-consuming activities.

And EC is designed to be flexible. Almost everything is table-driven to allow easy customization to the selected communications package, network, and trading partners.

And as things change, re-tailoring EC is as simple as updating the tables.

Superior Integration - outgoing documents automatically created through normal processing, no special handling required. Incoming messages post directly to receiving applications.

Enhanced Support - for Premenos' EDI/400 - EC comes tailored for EDI/400 for the simplest implementation.

Translator independent - table-driven formatting and interface to commercial EDI communications facility, works with any EDI package, AS/400 based, PC-based, or other.

Supports turn-around information - special codes, description, and fields not needed for MAPICS can be stored in EC and re-applied to the reply transaction to the originating trading partner.

Trading partner maps - EC files carry all needed communications information and network control data for each trading partner.

Supported Messages (EDIFACT)/Documents (ANSI)

EDIFACT ANSI Send Receive Description
INVOIC 210 ----- AP/IFM Freight Invoice
INVOIC 810 COM AP/IFM Invoice
------ 820 AP/IFM AR/IFM Remittance Advice
DELFOR 830 MRP MRP/COM Planning Schedule
REQQTE 840 PUR COM Request for Quote
QUOTES 843 COM PUR Response for RFQ
ORDERS 850 PUR COM Purchase Order
ORDRSP 855 COM PUR PO Acknowledgment
DESADV 856 COM IM Advance Shipping Notice
INVOIC 859 ----- AP/IFM Freight Invoice to Customer
ORDCHG 860 PUR COM Purchase Order Change
DELJIT 862 PUR COM Shipment Schedule
ORDRSP 865 COM PUR PO Change Acknowledge
----- 812 COM AP/IFM Credit (only) Adjust (no debit support)
----- 861 IM COM Receiving Advice

 

Introduction (top)

 

  EC Benefits

EC provides significant cost savings opportunities -

Eliminate paper - preprinted forms, envelopes, and copies.
Once the paper is gone so is the postage and the handling.
Eliminate manual labor associated with data entry and distribution of paperwork.
Errors, their detection, and correction involve not just direct labor costs, but also impact the business and the company's image with customers and suppliers. Each manual step eliminated reduces the opportunity for introduction of errors.
Decrease inventory and associated carrying costs for both supplier and customer through reduced lead time and more reliable vendor deliveries (which follow from the closer relationships with suppliers).
Decreased shipping costs through better planning. EDI enhances visibility to shipping requirements.

Can Improve Customer Service -

Support customers who demand EDI capability.
Increase business with customers that have "partnered" with you on an EDI implementation. EDI requires a higher level of mutual dependency, trust, and cooperation.
Increased responsiveness allows you to keep customers. Fast, accurate turnaround is synonymous with EDI.

Enhance internal processes -

Integrated EDI encourages a higher level of accuracy and speed throughout your enterprise.
Information (data) exchange via EDI is more accurate and timely. Fewer mistakes, no lost paperwork, no incomplete information.
Improved cash flow. Paying sooner allows you to buy at less cost. Getting paid sooner reduces cash needs.
Streamlined internal processes through broader implementation and integration of computer-based systems. Information is available immediately throughout the enterprise.

Provides a competitive advantage -

EDI drives increased responsiveness. This responsiveness can be used to increase sales.
Ensure product availability through increased visibility of market conditions.
Your competition is using EDI as a competitive weapon (or soon will be). Seize the initiative and get a jump on the competition.
EDI makes it easier to do business with your company, often increasing sales.
It lowers your cost of operation, allowing more competitive pricing and higher margins.

 

Custom Systems Corporation 334 Sparta Avenue, Sparta, New Jersey 07871 USA
Phone (973) 726-0202 Fax (973) 726-4552
e-mail:webmaster@cussys.com