R/S Web Site Newsletter

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1 R/S Web Site Newsletter March 2008 Issue 1 We Help Keep The World s Food Supply Safe This issues highlight: Electronic Order Methods PHconnect EDI PHAST ParZap Electronic Order Entry Besides our traditional methods of accepting customer orders (telephone, fax, mail, or ), we have several electronic options available. These are: secured Internet connection (PHconnect), Electronic Data Interchange (EDI), simple EDI (PHAST), and ParZap. Each of these methods help to reduce the amount of work required to prepare orders for submission to Parker and speed the transmission. Depending on the customer and its internal computer systems, one of these choices may be better suited than the others. Each method has its strengths and the following highlights them. Please note that multiple methods can be used by a single customer. PHconnect Parker Hannifin has put together an Internet Business to Business web site for our customers. Its main purpose is to facilitate secured communication between Parker and our customers. The site has many features, some of which are: 1. Check product availability, lead time, and pricing 2. Enter orders using drop-down boxes -- no numbers to remember 3. Work with Parker as a single supplier rather than many divisions 4. Check past order information or current order status 5. Track your order shipments 6. A/R Account Status 7. Manage your account 24 hour access, up to the moment information, no waiting for a representative Product Availability, lead time, pricing. There is 24 hour real-time access to our part master. Searches are provided which show how many units are available to order, what the lead time is for the part, and your net price. There is other information related to the part that helps identify it and assists with selection.

2 econfigurators. Because our modular product line allows many accessories to be included with the main part, we have provided an interface that allows configuration using drop-down boxes. This method is similar to those used by computer companies to purchase a PC. The drop-down boxes guide you through the ordering process. It only asks for pertinent information and does not allow for invalid combinations. The econfigurators develop a model number that we use internally to provide the individual 6-digit part numbers which comprise the line item. Below is an example of one econfigurator. uses drop-down boxes, asks you the right questions, cannot select invalid combinations One Parker. Some customers deal with multiple divisions of Parker Hannifin and may need to submit several purchase orders. Using PHconnect, you deal with Parker Hannifin as a single supplier. Several product catalogs are assigned to a customer to give access to the items they purchase. When ordering using PHconnect, the customer does not need to know which division supplies the part, they simply order what they need. Background logic works to break the parts out by division so the customer s order gets processed by the correct division and shipped by their request date. Order Information. A review of current and past orders is also available with several optional views. Initially a list of orders by date is shown that highlights the customer s PO, when it was due to ship, and the actual ship date. You can drill down into any order to see the line items that were ordered. In this view you see description, quantity, and pricing. Drilling down one additional level shows information about the shipment: carrier, number of packages, weight and tracking number.

3 Track Your Orders. Within the Order Review option, shipped orders have the tracking number which was assigned to the shipment, if applicable. A single mouse click brings up the carrier s web site and shows the status of the shipment. A/R Account Status. This option allows for viewing of the receivables that are owed Parker by a customer. Again, several views are available that highlight the account aged status by Parker division, a list of invoices that comprise the outstanding balance, and a detailed invoice view. An Excel download can be created by the customer for much of the invoice related information.

4 Reminder: set your computer s screen resolution at 1024 x 768 for optimal viewing of the Parker website Manage Your Account. Our customer is allowed to manage their own PHconnect account. You can add as many associates as you need and grant them only the access that is required. 24 hour access, computer to computer communication, no duplication of efforts Electronic Data Interchange Perhaps a more efficient method of ordering with Parker Hannifin is to use electronic data interchange (EDI). EDI is a universal standard that allows computers to communicate using formatted transactions. This eliminates any duplication of entry and quickly gets your orders to Parker. While this method is very efficient, there is some upfront work that must be performed by the customer s programming staff. Typically, the appropriate EDI purchase transaction is produced as output from whatever purchasing system the customer uses. After this one-time work is complete, there will be minimal modifications when in production. We supply instructions on what each transaction looks like, its format, and what must be provided in each field. There are several record types that can be passed: header, header comments, detail, and detail comments. The customer uses these standard EDI transaction types appropriate for the

5 information they are forwarding to Parker. PHconnect can be coupled with EDI to provide access for order review, part availability, shipment tracking, and account status. Parker Hannifin can help with a low cost solution for connectivity from our customer s business to us. We work with your I/T staff to make sure that the connection functions and that the EDI transactions come into Parker. We perform several tests to make sure that everything is set properly before any production order is processed. If your company is interested in using EDI as an ordering method, contact your customer service representative. Parker s programming staffs will communicate directly with your programming department to get you operational. Simple EDI (PHAST) Parker Hannifin has a second type of hand free electronic Order Entry that may be suited for customers who do not have large programming staffs but desire to use this type of communication. Automated Sales Transaction uses simplified transactions to communicate with customers via computers. Like regular EDI, our customer needs to provide Parker with transactions to indicate their requirements. This is a much shorter record layout and can be generated by one of our customer s system automatically or it can be typed into a text file. The text file is sent to Parker via FTP. The order is automatically received and processed into Parker s order entry system within minutes. This is available 24 hours a day and allows us to more quickly ship to our customer. PHconnect can be coupled with EDI to provide access for order review, part availability, shipment tracking, and account status. If this file can be automatically generated, our customer saves time by not having to double-enter their order and money by not having to make a telephone call or send a fax. If your company is interested in using PHAST as an ordering method, contact your customer service representative. Parker s programming staffs will communicate directly with your programming department to get you operational. ParZap The last electronic method of Order Entry is ParZap. This is best suited for wholesalers who repetitively order the same products. Configured products are supported by ParZap but are not easily processed as discreet items. Parzap is a tool to facilitate a managed inventory or customer order process by creating and sending an automated Purchase Order directly to Parker using barcode and communications technologies. The core of the ParZap solution is a hand-held computer/modem that is used to scan barcodes and send the results to Parker. There are two possible replenishment methods supported by ParZap. Inventory order point is

6 where the customer scans each of their part numbers and current inventory amounts. The Parker system determines when a predetermined order point is tripped and the item is ordered. Direct order is when the customer scans the part numbers they need and enters the order quantity for each. This will tell Parker how much of each part the customer needs. Once the hand-held computer is docked, Parzap generates a Purchase Order containing each of the parts that need ordering, electronically sends the Purchase Order to Parker, and s a Purchase Order confirmation to the customer showing what parts were ordered for what quantities. barcode reads prevent errors, 24 hour access, simple to use hardware There are some upfront costs before implementing Parzap. A package must be purchased that includes a barcode scanner, a barcode scanner cradle, and a barcode scanner cradle power pack. The customer is also to have an analog telephone line for transmission of the Parzap information. Below is a schematic that shows how Parzap functions: If your company is interested in using ParZap as an ordering method, contact your customer service representative to determine if this method is suited for you. Parker Hannifin Corporation Refrigerating Specialties 2445 South 25 th Avenue Broadview, IL Phone: (708) Fax: (708) Recap With the addition of these electronic ordering methods, Parker s Refrigerating Specialties has the most diverse set of options available in our industry. Although you may feel more comfortable with the traditional types of placing orders with R/S, we encourage you to seriously consider one or more of the electronic methods as they provide the lowest cost, fast entry, and the least potential for errors while ordering. Our goal is to not only provide the widest variety of industrial and commercial refrigeration product lines but also the broadest selection of customer valueadded services. We continue to position Refrigerating Specialties as Your One Stop Shop for any refrigeration needs. We re on the Web at: refspec

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