20140515 BTUG.be - Oops i need to do EDI

Presenters : Tom Ameye & Stijn Van RaemdonckEDI Specialists @ Cnext

Oops, I need to do EDI

Agenda

Who is Who?

EDI vs TDI

EDI from a technical point of view

Running an EDI project

Best Practices

Questions

Agenda

Who is Who

EDI vs TDI

EDI from a technical point of view

Running an EDI project

Best Practices

Questions

Who is who?

What is your experience with EDI?

Agenda

Who is Who

EDI vs TDI

EDI from a technical point of view

Running an EDI project

Best Practices

Questions

EDI vs TDI

EDI

Electronic Data Interchange

TDI

Traditional Data Interchange

Traditional Data Interchange

Invoices : Send by mail on paper, …

Orders : Via Phone, fax, mail, E-mail, …

Order confirmation : Via Phone, Fax, E-mail, …

Delivery Notification : Via paper in the truck, …

…

No IT involvement

Business in full control of the process, the data, the format,

the transport

Traditional Data Interchange

Data : Invoice Date, Invoice number, Invoice lines, Tax information,

promotion data, …

Format :

Transport : Mail, Fax, E-mail

Traditional Data Interchange

Disadvantages of TDI

Labour intensive

Error prone

Slow process

Business risk because EDI more often required by customers

Electronic Data Interchange

Translate TDI into EDI

Do we still need the same functionality as with TDI?

Yes and No

Electronic Data Interchange

Data : Invoice Date, Invoice number, Invoice lines, Tax

information, promotion data, …

Format :UNB+UNOA:3+5410687000047:14+5400102000099:14+130225:1316+59++++0++1'

UNH+59+INVOIC:D:96A:UN:EAN008'

BGM+380::9+0090340823+9'

DTM+137:20130218:102'

DTM+35:20130219:102'

DTM+3:20130219:102'

RFF+AAJ:8080393249'

....

Transport : FTP, VAN, E-mail, AS2, …

Yes ! It looks like TDI …

Electronic Data Interchange

The data must be much better

The agreement must be strict

IT is involved

Monitoring of the process is different

No ! You have to pay attention…

Traditional -> Electronic

Business IT

Traditional -> Electronic

Data : Still owned and best known by the business

Symantic Data agreement : Knowledge owned by the business

Format :

ERP format is known by ERP-analists

EDI format is known by EDI-specialists

Transport : Managed by EDI-specialists

Agenda

Who is Who

EDI vs TDI

EDI from a technical point of view

Running an EDI project

Best Practices

Questions

EDI From A Technical Point Of View What EDI is NOT

EDI Defined

EDI standards

An EDI message explained

Transport Protocols

What EDI is NOT

NOT – Programming Language

NOT – E-mail

NOT – A Custom flat file

NOT – Only for “LARGE” Companies

NOT – Only an IT-application

NOT – New

EDI DefinedTrading partners

Customers /Suppliers / Logistics partners / Government /…

Message format standards

X12, EDIFACT, Tradacom, XML, ..

Transport Protocols

x400 (VAN), AS2, FTP, …

EDI message standards

“Old” StandardsUN/EDIFACT X12TRADACOMS…

XML StandardsRossetaNetebXML...

UN/EDIFACT

United Nations rules for EDI

A set of internationally agreed standards that can be used as a reference for all

companies that want to setup EDI.

Popular in Europe & Asia

Transactions are called messages

ORDERS, INVOIC, DESADV, …

UN/EDIFACT

• Directories describe how EDI-messages should be created

X12

American National Standards Institute (ANSI)

Founded 1979, by late 1980s became No. 1

Transactions are identified by numbers (810 – Invoice)

Mainly used in the US

X12 Message Sample

Tradacoms

Introduced in 1982 Obsolete since 1995 (in favour of EDIFACT) But still used in UK, mainly in retail sector

XML Standards

RosettaNet

Most used in USA & ASIAPopular in specific sectors (electronics)

ebXMLInitiative between UN and OASISStarted in 1999Not wide spread because of a lot legacy applications ..

An EDI Message ExplainedUNB+UNOA:3+5400000000000:14+5400102000086:14+050718:1704+40013++SUPBELGINV04++++1'UNH+1+INVOIC:D:96A:UN:EAN008'BGM+380+201201+9'DTM+137:20050718:102'DTM+171:20050711:102'NAD+DP+5400102601092::9++COMPANY+ADDRESS+CITY++POSTCODE+BE'NAD+IV+5400102000086::9++COMPANY+ADDRESS+CITY++POSTCODE+ BE 'RFF+VA:BE0448826918'NAD+SCO+5400000000000::9++COMPANY+ADDRESS+CITY++POSTCODE+ BE'RFF+VA:BE0123456789'NAD+SU+5400000000000::9++COMPANY+ADDRESS+CITY++POSTCODE+ BE 'FII+RB+BANK-999-9999999-99+:25:5'CUX+2:EUR:4'LIN+1++5162545875213:EN'IMD+F++:::TEST::EN'QTY+47:40'MOA+203:11260'PRI+AAA:281.50'PRI+AAB:281.50'TAX+7+VAT+++:::21.00+S'LIN+2++2222222222222:EN'IMD+F++:::AGAIN TEST::EN'QTY+47:70'MOA+203:19705'…

An EDI Message Explained

LIN+1++5162545875213:EN'

SEGMENT TAG

DATA ELEMENT SEPARATOR

DATA ELEMENT

SUB-ELEMENT SEPERATOR

SEGMENT TERMINATOR

An EDI Message Explained

One segment

DTM+137:20050718:102'

UNB+UNOA:3+5400000000000:14+5400102000086:14+050718:1704+40013++SUPBELGINV04++++1' UNH+1+INVOIC:D:96A:UN:EAN008' BGM+380+201201+9' DTM+137:20050718:102' DTM+3:20050718:102' DTM+35:20050718:102' RFF+AAJ:10400000' DTM+171:20050711:102' NAD+DP+5400102601092::9++COMPANY+ADDRESS+CITY++POSTCODE+BE' NAD+IV+5400102000086::9++COMPANY+ADDRESS+CITY++POSTCODE+ BE ' RFF+VA:BE0448826918' NAD+SCO+5400000000000::9++COMPANY+ADDRESS+CITY++POSTCODE+ BE' RFF+VA:BE0123456789' NAD+SU+5400000000000::9++COMPANY+ADDRESS+CITY++POSTCODE+ BE ' FII+RB+BANK-999-9999999-99+:25:5' RFF+VA:BE0123456789' RFF+ARA:BE0123456789' RFF+XA:RPR/RPM CITY' CUX+2:EUR:4' LIN+1++5162545875213:EN' IMD+F++:::TEST::EN' QTY+47:40' MOA+203:11260' PRI+AAA:281.50' PRI+AAB:281.50' TAX+7+VAT+++:::21.00+S' LIN+2++2222222222222:EN' IMD+F++:::AGAIN TEST::EN' QTY+47:70' MOA+203:19705' PRI+AAA:281.50' PRI+AAB:281.50' TAX+7+VAT+++:::21.00+S' UNS+S' CNT+2:2' CNT+1:110' MOA+79:30965' MOA+176:6502.65' MOA+86:37467.65' TAX+7+VAT+++:::21.00+S' MOA+125:30965' MOA+124:6502.65' UNT+42+1'UNZ+1+40013'

Envelope: Sender & Receiver identifier,

Interchange Number, …

Message header: Message type, Version, Subset

Invoice Header data

Invoice Line data

Invoice Summary data

EDI Message Branch Diagram

Transport/Messaging Protocols

Popular protocols

FTPAS2X400/VAN

VAN and X.400

Value Added NetworkHosted service offeringIntermediary between business partnersMessage & transport translation

X.400Old e-mail standardStill used by some companies

Agenda

Who is Who

EDI vs TDI

EDI from a technical point of view

Running an EDI project

Best Practices

Questions

Running an EDI project

Why using EDI?

What to agree with the partner?

Create a partner File

The MIG’s

Create a mapping analyse

Who is involved?

Why Using EDI?

Allows for automated high volume of transactions with business partners

Time and cost saving because of less manual work / Avoidance of human errors

Often required by trading partners

What to agree with partners?

What messages to interchange (Order, Invoice, Despatch advice, …)?

What message format to use (EDIFACT, X12, … )?

Determine the MIG (Message Implementation Guide) to use

Agree on the communication protocol to use

The Partner File

A partner file should contain the following information

Partner contact data:

Functional contact

Technical contact

Project information (milestones, risks, …)

Messages to interchange (with format and versions)

Location of MIG

Communication information

What about the MIG?

Message Requirements

The partner implementation of the messaging standard

To be able to create or process a correct message.

Must be retrieved from the partner

Some partners have a public internet site for their EDI documentation

- http://edi.carrefour.eu/

- https://www.metro-mgp.com/

The Mapping Analysis

Descriptions of the source message

Description of the destination message

Where to find the data to generate the destination message

ALWAYS START FROM THE DESTINATION MESSAGE

The Mapping Analysis

Who is (should be) involved?Different Departments• IT• Finance• Logistics• Sales• …

Different Roles / Contacts• EDI Coordinator• Mapping analyst / ERP data specialist• Process owner Business• EDI specialist (EDI format, Communication)• Operations• Trading partner contacts

Ideal project structureCompany BCompany A

EDI CoordinatorOverall EDI solution governance

EDI Tech ConsultantMessaging Implemenation

EDI Business ConsultantMapping Analysis

EDI Tech ConsultantMessaging Implemenation

EDI Business ConsultantMapping Analysis

EDI CoordinatorOverall EDI solution governance

Best Practices

Partner Management

Data Management

Partner Management

Where do I administrate my partner management?

• ID’s of the partners, like invoicee, delivery location and supplier

• Conversion between Partners ID and my ERP ID

• Does the ERP knows the correct (technical) invoicee?

How is the partner management done at the interface of your ERP?

Data Management• EDI messages often work with EAN codes.

Does every combination product / Unit Of Measurement has a unique EAN?

• Typically, 3 product codes exist: Buyer product code, Suppliers product code and EAN Number.

Are they consistently maintained in the ERP?

• Can a customer order on the phone with the Supplier product code and receive an EDI invoice based on the EAN code for example?

• How are the Quantities handled? Always in a base unit like Piece, Kg, Liter, Meter, … ? Or does the EDI software (not recommended)

still needs to convert if a customer wants the invoice only in PCE even if they order in a carton of 24 pieces.

• How are special costs like freights or insurances handled? Are they special fields on the order or normal invoice lines of a special

product?

• What about discounts, what kind of discounts are allowed in the ERP system and how to translate them into the EDI message.

Is the data model of the payment terms in the ERP detailed enough to provide detailed information for the EDI message (for

example a string with “30 days end of month” is not good for most EDI partners, they need to know the exact calendar date!)

Data Management•An Edi invoice typically wants to have lots of intermediate totals like, be sure the ERP can provide amounts like:

o Line Qty / Price per Unit / Line Tax amount/ Line Discount % / Line Discount amount / Net amount and tax amount

o …

•A common message is a shipment. But this is used by different partners for different use. Sometimes as information for customs,

or for customers to know what and when to expect goods, or for transporters to create freight letters. Depending on the goal of the

message, it should be created on different points in the logistics process. Does everyone know exactly at what point a shipment can

be created and what information is in the shipment? (Like: Is the invoice information know at creation of the shipment?, … )

•What is the relation between invoice and order? Can one invoice contain more orders? Not all EDI partner accept this, so can

this be configured on partner level?

•What is the relation between invoice and credit note? Also 1 on 1?

•How are currencies handled?

What have we learned?

1/ EDI is a shared competence between IT and Business

2/ Data management is key

3/ EDI is simple but getting all the information together is a challenge

Q & A