QuestDirect.org Introduction Kevin Pahnke – B2B Integration Team Leader for Appvion, Inc. Work with trading partners on a variety of B2B integration opportunities.

QuestDirect.org

Introduction

Kevin Pahnke – B2B Integration Team Leader for Appvion, Inc.

• Work with trading partners on a variety of B2B integration opportunities

• Company has used JD Edwards since 2002 (XE)

• Upgrade to 9.1 in May of 2013

• NOT a seasoned JD Edwards developer (work on the fringes)

• [email protected]

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Introducing Appvion, Inc.

Appvion, Inc. creates product solutions through its development

and use of coating formulations, coating applications and

microencapsulation technology.

Founded in 1907 in Appleton, Wis., on site of its current

headquarters

Employs 1,700 people and has manufacturing facilities in

Wisconsin, Ohio and Pennsylvania

Sells into more than 70 countries; 2012 net sales were $850

million

Has been a 100% employee-owned company since 2001

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Appvion U.S. Operations

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Wisconsin Company headquarters,

coating and converting plant, and distribution center in Appleton; capsule plant in

Portage

Ohio Coating plant in West Carrollton

and distribution center in Monroe.

Pennsylvania Pulp and paper mill in

Roaring Spring and distribution center in Harrisburg

Distribution center

Kansas City

Atlanta

Portland

Los Angeles

Manufacturing facility

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Thermal Paper Products

• Appvion is North America’s largest producer of direct thermal

media

• Our thermal products are used for

– Point-of-sale receipts and coupons

– Entertainment & transportation tickets

– Lottery and gaming tickets

– Tags, label and charts

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Carbonless Paper Products

• Appvion is world’s largest producer carbonless paper,

a product we helped introduce in 1954.

• Appvion is the sole producer of the world’s

leading brand of carbonless paper,

the NCR PAPER* brand.

• Our carbonless paper products are used

for multipart business forms such as

invoices and purchase orders.

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*NCR PAPER is a registered trademark licensed to Appvion, Inc.

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Security Products

• Appvion’s security products contain features that

resist forgery, tampering and counterfeiting:

– Watermarks & taggants

– Embedded threads and fibers

Our products are used to make checks and

secure business and government documents.

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Encapsys Microencapsulation

• Appvion’s Encapsys® division applies

the company’s extensive knowledge

of the microencapsulation process

in creative and collaborative ways.

• Encapsys is working with partners

in agricultural, paints and coatings,

food, building and construction,

paper, textiles, personal & household care,

adhesives, and oil & gas industries.

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Background

• Customer service processes around 1200 total line items per day. 13 CSR’s to take and schedule all types of orders.

• 55% of the line items are received electronically. One person is dedicated each day to electronic orders

• Merchant customers place orders in the afternoon, once they have accumulated orders from their customers. This accounts for over half of the EDI line items entered daily

• Stress on customer service to complete orders by 5:00PM

• Customers are awaiting acknowledgments. Many expect them within 1 hour of order placement. Calls made to CSR’s to confirm

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Volume for 2012 Per Day Volume through Sept. 2013 Per Day

Orders EDI 33,443 132 Orders EDI 23,230 122

Email 5,934 23 Email 4,150 22

Fax 20,557 81 Fax 14,835 78

Phone 3,450 14 Phone 2,299 12

Web 2,226 9 Web 1,506 8

Totals 65,610 259 Totals 46,020 241

%Electronic 54.37% 141 %Electronic 53.75% 130

Lines EDI 160,503 634 Lines EDI 109,715 574

Email 32,058 127 Email 21,154 111

Fax 93,107 368 Fax 67,636 354

Phone 11,261 45 Phone 6,729 35

Web 13,262 52 Web 8,664 45

Totals 310,191 1226 Totals 213,898 1120

%Electronic 56.02% 687 %Electronic 55.34% 620

Between 600 and 700 Order Lines per day via EDI/Web

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• Event held in late 2011 to enhance EDI ordering processing. Purpose was to determine ways in which waste could be removed from the process.

• Event focused all EDI and Web Site orders (both processed as EDI)

• CSR’s were spending much time reviewing orders that had flagged as in error during processing, forcing manual review and entry.

• The one CSR assigned to EDI orders had a difficult task since they must deal with over half of the line item volume

Kaizen Event

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State before Kaizen

• Orders are mapped to the EDI Input tables by IBM B2B Integrator one minute before the batch process executes (F47011, F4714, F47012, F4715). CSR’s do not modify data using P47010 (Work with Inbound EDI Orders)

• EDI Batch Process (R5547011) is scheduled to run every 20 minutes between 7:00AM and 6:00PM. Updates orders as successfully processed regardless of error conditions.

• The report prints automatically to a printer in the customer service area. One CSR is designated for “EDI Orders” on a daily basis. Their function is to pick up the report, review all errors, and manually enter the information from the report into JD Edwards.

• Approximately 75% of orders processed were not added due to some type of error. Many only were rejected due to one or two items that were in error, resulting in late order acknowledgments and customers calling about order statuses.

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Example: Entire order rejected due to error we want CSR’s to address

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Future State

• Reduction in number of errors on batch report (cleanup)

• Increase frequency of EDI Batch Process (R5547011) from every 20 minutes to every 10 minutes

• Add line items not in error for each order to JD Edwards, not rejecting the entire order

• Allow selected orders to “auto-schedule” if there are no errors. CSR would not have to click the “Place Order” button for orders that process cleanly.

• Do NOT auto-schedule orders with detail text on line items

• Create the acknowledgment automatically for auto-scheduled orders

• Devise a more efficient method for delivery the report for processed EDI orders rather than printing the report after each processing run

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Actions Taken• Created another UDC in P00092 (Work with Supplemental Data)

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• Entry is for SHIP-TO customer. Gives CSR’s control over which customer’s orders can be auto-scheduled. Some require additional review.

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Processing Changes in R5547011 (EDI Inbound Purchase Order Edit/Update) – Non Auto-Scheduled Orders

• Order is created for lines without errors and the lines are placed in a next status of 521 (Send Order Acknowledgment)

• Remaining order lines are reviewed by CSR’s for errors and added manually to the order

• Order is manually scheduled in JD Edwards when complete to generate the order acknowledgment

• Supplemental data is checked to determine if ship-to customer is an auto-schedule customer

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Example of a non auto-scheduled order

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All lines added for the order, awaiting “scheduling” by CSR.

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Processing Changes in R5547011 (EDI Inbound Purchase Order Edit/Update) – Auto-Scheduled Orders

• Supplemental data is checked to determine if ship-to customer is an auto-schedule customer. If so, a notation is made on the report for this order.

• If an auto-schedule customer and there are no errors, the order is “scheduled”. The line items are at a last status 530, next status 533 (Approve Load). At this point the order is ready for planning by our traffic department

• During the auto-schedule function the Order Acknowledgement UBE (R5542566) is called to generate the acknowledgement (FAX, EMAIL, EDI) automatically.

• The EDI extract for order acknowledgments occurs two minutes after R5547011 executes, we will turn around the order acknowledgment just after the order is added.

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Example of an Auto-Scheduled Order

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What happens in WSJ (Work with Submitted Jobs)

• R5547011 executes at 12:50:04

• Calls R5542566 twice to generate acknowledgments for two orders that were auto-scheduled

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Example where ship-to is set up for auto-schedule but error encountered

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Line item 1 was added successfully, but since the auto-schedule did not execute, the line is left at a next status 521 until customer service investigates the error and adds the additional line.

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Results since implementation

• Since the process runs every 10 minutes, the calls related to late order acknowledgments have dropped considerably. Most are now transmitted within the hour

• “Hours” per day saved by customer service teams on re-entry of information, error checking

• Vast reduction in errors due to information added correctly the first time. Estimated cost savings of approximately $1500/week due to increased efficiencies

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Sample Day of Orders – Results of Modifications

•142 orders, 613 items – 66 line items contained an error (11%)

• 62 orders auto-scheduled, 221 items auto-scheduled

• 44% of electronic orders required no action by CSR’s in JD Edwards

• 216 items would have required manual entry due to these errors. Because of the change, only the 66 must be addressed, a reduction in manual entry of 69%

Adding Lines Not in Error

Auto-Scheduling Feature

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Upcoming enhancements to the process

• Discontinue printing the results from R5547011

• Created another UBE that calls R5547011 and breaks on customer P.O. number

• Each P.O. is an individual unit of work and is distributed to an email address through our Customer Interaction Center phone network.

• Will evenly distribute EDI orders to individual CSR’s and allow all to participate in the processing of these orders

• Customer service has now been divided into groups by “Value Stream”. Carbonless Rolls, Carbonless Sheets, Thermal TLE, and Thermal POS are all separate value streams.

• Will make changes to JD Edwards to identify customers by primary value stream, then the UBE will be modified to distribute by this new identifier

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Questions?

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