ELECTRONIC DATA INTERCHANGE (EDI) IN LOGISTICS AND WAREHOUSING

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1 YOUR GLOBAL EDI NETWORK ELECTRONIC DATA INTERCHANGE (EDI) IN LOGISTICS AND WAREHOUSING B2BGATEWAY MARCH 31, 2015 NORTH AMERICA // +1 (401) EUROPE // +353 (0)

2 TODAY S AGENDA & PRESENTERS 1 What Is EDI? 2 Where Does EDI Fit Into The Marketplace 3 Third Party Logistics (3PL) EDI 4 EDI and 3PL Communication 5 Example of 3PL Data Flow 6 Popular 3PL / Warehouse EDI Transactions 7 Integration with Accounting Software / ERP / WMS 8 GS1/UCC-128 Labels 9 Advantages of using EDI with a 3PL 10 Client Focus Red Star Traders 11 EDI in the Transportation Industry 12 B2BGateway Fact Sheet 13 B2BGateway Trading Partners 14 B2BGateway Contact Information Jon Bellemore SMB Sales Specialist

3 WHAT IS EDI? IT SOUNDS SIMPLE EDI (Electronic Data Interchange) is defined as the structured transmission of data between organizations by electronic means It is used to transfer electronic documents such as Purchase Orders, Invoices, Advance Shipping Notices (ASNs), and many more from one computer system to another, ie from one trading partner to another trading partner RETAILER EDI USER RETAILER

4 BUT IT CAN BE VERY COMPLEX Each trading partner specifies their required communication method and which documents they require to complete EDI transactions This can make the EDI process very complex as illustrated below AS2 AS2 Server AS2 Software X-12 Ver 5010 Encryption Software Annual Licensing Software Certification Consultant Fees VAN Van Software Mailbox Setup Mailbox Fees X-12 Ver 4040 Mapping Tools Modem Phone Consultant Fees FTP FTP Server FTP Software Software Credential X-12 Ver 4010 Mapping Tools Consultant Fees EDI USER FTPS FTPS Software Encryption Software Software Certificate X-12 Ver 3040 Mapping Tools Consultant Fees

5 B2BGATEWAY MAKES IT EASY AS2 VAN FTP FTPS AS2 Server AS2 Software X-12 Ver 5010 Encryption Annual Licensing Software Certification Consultant Software Fees Van Mailbox Setup Mailbox Fees X-12 Ver Mapping Modem Consultant Software FTP FTP Software 4040 X-12 Ver Tools Mapping Phone Consultant Fees FTPS Encryption Software Server Software Software Credential 4010 X-12 Ver Tools Mapping Fees Consultant Software Certificate 3040 Tools Fees EDI USER

6 WHAT IS A THIRD PARTY LOGISTICS (3PL)? A 3PL is a third party logistics provider that provides services to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions 3PL s typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers' needs based on market conditions and the demands and delivery service requirements for their products and materials Sometimes these services go beyond logistics and include value-added services related to the production or procurement of goods

7 HOW CAN EDI HELP 3PL COMMUNICATIONS? Through EDI and full integration with your Accounting Software/ERP solution, B2BGateway can help you communicate with your 3PL to: 1 Inform the 3PL of new orders (EDI 940) and get them to ship the goods direct to the correct Distribution Centre or Store 2 Receive confirmation (EDI 945) from your 3PL that the goods have been shipped so that you can bill your customer 3 B2BGateway can convert the Warehouse Ship Advice (EDI 945) received from your 3PL and send an Advance Ship Notice (EDI 856) to your customer to let them know the goods are en-route and when they will arrive

8 FULFILL ORDERS WITH ERP & 3PL USING B2B (Purchase Order) is sent from Trading Partner to Client and is imported into Accounting Software as a Sales Order 2 The Sales Order is pulled from Accounting Software based on pre-determined criteria and sent as a 940 (Warehouse Ship Order) to the 3PL 3 The 3PL returns a 945 (Warehouse Ship Advice), which B2BGateway sends to the TP (if required) as an 856 (ASN) and simultaneously fulfills the sales order in the Accounting Software 4 The Client creates an Invoice in the Accounting Software and based on the query rules established it will be pulled by B2BGateway and sent to the TP as an 810 (Invoice)

9 POPULAR 3PL / WAREHOUSE EDI DOCUMENTS EDI Advance Ship Notice: This can be sent from the client or the warehouse to let the trading partner know the goods have been shipped and when and where to expect delivery EDI Warehouse Shipping Order: Is used to advise the warehouse that a shipment is to be made to the designated "ship to" on the behalf of the client; it also provides detailed information concerning a warehouse shipment EDI Warehouse Stock Transfer Shipment Advice: The transaction set can be used by a client to advise the recipient that a transfer shipment has been made This transaction set provides a receiving location with detailed information concerning product being shipped to that location EDI 944 Warehouse Stock Transfer Receipt Advice: This transaction set provides the client with detailed information concerning product that has been received EDI 945 Warehouse Shipping Advice: The transaction set can be used by the warehouse to advise the client that shipment was made It is used to reconcile order quantities with shipment quantities EDI 947 Warehouse Inventory Adjustment Advice: The transaction set can be used to inform a warehouse/client of a quantity or status change to inventory records This transaction set provides detailed information concerning the internal adjustments which occur between a warehouse and a client

10 INTEGRATION WITH ERP/WMS SOLUTIONS

11 GS1-128 LABELS In today s business environment, GS1-128 (formerly known as UCC- 128) labels have become a necessary part of the criteria for large format retailers in automating the supply chain with their suppliers GS1-128 labels are an outer label affixed to each carton and/or pallet and provide information about a particular shipment This label will alert the trading partner about shipment information such as who the vendor / supplier is, carton content, store ship to location, etc, and is a mix of both human readable as well as scan able information The GS1-128 label on every carton is scanned at its destination location (eg trading partner central warehouse) and information usually is tied to an Advance Ship Notice (ASN) that has already been transmitted via EDI to the trading partner from the supplier

12 ADVANTAGES OF USING EDI WITH A 3PL Automation: EDI, through its computer to computer technology, automates the entire business document (EDI transaction set flow) There is no need for human intervention and this can greatly reduce your labor costs Error Reduction: By not having to re-key data, this greatly reduces the potential for human error and can save your organization from costly chargebacks imposed by your trading partners for poor data Scalability: Communicating through EDI with your 3PL allows you to scale easily for spikes in seasonal markets, eg Christmas as you do not have to employ extra staff to manually key or transmit the extra orders and billing Speed: By communicating electronically, your orders and dispatch can be dealt with more efficiently and much faster by your 3PL This in turn helps your organization to get paid faster and reduce your 'order to payment' cycle

13 CLIENT FOCUS: RED STAR TRADERS As Red Star Traders business rapidly grew and with the addition of new retail trading partner relationships with Walmart, Home Depot, JC Penny, Amazon, Bed Bath Beyond, to name but a few, Red Star decided to outsource their warehouse and shipping needs to third party logistics provider (3PL) CEVA Logistics The problem was, with so many new relationships and so many new orders, what was going to be the most efficient, cost effective and error free way to communicate with CEVA Logistics Red Star decided to use B3BGateway s EDI solutions to send EDI 940 s (warehouse ship orders) to CEVA and receive back EDI 945 s (warehouse ship advice) that would go straight into their NetSuite system This not alone allowed Red Star fulfill the order, but B2BGateway could connect CEVA with all Red Star s retail customers as well so that all data and document flows in the supply chain were fully automated and error free

14 EDI IN THE TRANSPORT INDUSTRY 204 Motor Carrier Load Tender This transaction set is sent to carriers to offer (tender) a shipment to a full load (truckload) motor carrier including detailed scheduling, equipment requirements, commodities, and shipping instructions pertinent to a load tender 990 Response to a Load Tender This transaction set is returned by the shipper as a response to a Motor Carrier Load Tender (204) to accept or reject the Load Tender 211 Bill of Lading This transaction set can be used to allow shippers or other parties, responsible for contracting with a motor carrier, to provide a legal bill of lading for a shipment 212 Delivery Trailer Manifest This transaction set can be used to allow motor carriers to provide consignees or other interested parties with the contents, containing multiple shipments that have been tendered for delivery 214 Shipment Status Message This transaction set is used by a transportation carrier to provide shippers, consignees, and their agents with the status of shipments in terms of dates, times, locations, route, identifying numbers, and conveyance It must be able to accommodate multiple stops for an LTL 210 Motor Carrier Freight Details and Invoice The transaction set is used to provide detail information for charges for services rendered by a motor carrier

15 CUSTOMER SERVICE B2BGateway has been providing excellent customer service to all of our clients, including Acumatica and we will continue to do so in the future B2BGateway has developed two new teams to help clients with setting up and maintaining their trading partner relationships These new teams have been established at B2BGateway in order to reduce response times and decrease relationship setup times The new Rapid Response Team, known as RRT, has brought the average response time down to 2:46 (two hours and forty six minutes) and the new setup team has decreased setup times by 45% Available Support Setup phase dedicated project manager Rapid Response Team available for when issues need immediate attention Support is available 24/7 all year long and in your time zone These support features are included in the monthly fee at no extra cost

16 B2BGATEWAY FACT SHEET B2BGateway has been doing EDI since 1999, offering EDI and supply chain integration solutions to thousands of clients across the globe since 2001 Here are some other interesting facts about our EDI experience: GS1 Accredited EDI Solution Provider B2BGateway processes over $30-billion dollars in client / TP transactions each month Thousands of client / TP partner relationships worldwide

17 TRADING PARTNERS B2BGatewayNet currently supports over 25,000 EDI relationships and presently works with hundreds of trading partners See our full list of Trading Partners across all verticals at wwwb2bgatewaynet/tradingpartnersasp - New trading partner relationships are added daily

18 Questions Anyone? Please open your WebEx Chat Box to send a question

19 THANK YOU FOR WATCHING Call USA: Call Europe: Web: (USA) (EU) wwwb2bgatewaynet

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