120: All You Need to Know About Implementing EDI Eduardo Valdes, Vilore Foods, Co., Inc. Bekki Windsperger, Best Buy Co., Inc.

Transcription

1 120: All You Need to Know About Implementing EDI Eduardo Valdes, Vilore Foods, Co., Inc. Bekki Windsperger, Best Buy Co., Inc. Agenda Introductions All About Electronic Data Interchange (EDI) Why Do EDI Implementation Options Communication Methods Establishing a Trading Partner Relationship Order To Cash Business Process Flows Facts & Figures Reference Links 2 1

2 About Vilore Foods Exclusive importer, distributor and marketer of leading Hispanic brands in the U.S. and Canada Founded in 1983 Sales Offices in Los Angeles, Houston, Atlanta, Chicago, San Francisco and more 2 Distribution Centers s 500, and 150, sq ft 3 Eduardo Valdes IT DIRECTOR Headquarters SanAntonio Antonio, TX 4 2

3 About Best Buy Founded in 1966; based in Minneapolis, Minnesota An innovative $50 billion Fortune 100 growth company North America s #1 CE retailer Stores in Americas and China United States Canada Mexico China 5 Bekki Windsperger Manager, Global Trading Partner Solutions Responsible for EDI development and TP support of all B2B e commerce transactions Global support in Minneapolis for Best Buy US Best Buy Mexico Best Buy Exclusive Brands America and Asia Sourcing 6 3

4 All About EDI 7 Our Definition of EDI Standards Based Format Communication 3 Components of EDI Communications Translation Integration to Back End Systems 8 4

5 Why EDI / Benefits Legacy Investment EDI has become a key enabler for today s business and will continue to grow Mature Technology Significant savings XML has been added for network transactions not enabled for EDI GDSN Emerging markets 9 Why EDI / Benefits Drives efficiencies and automation Reduced Lead Time Warehouse Efficiencies Accounting Efficiencies Transaction Accuracy Increased Productivity Administrative and Clerical Costs 10 Source: Business Process Guideline for EDI Published by GS1-US 5

6 EDI Implementation Options Behind Fire Wall Software installed internally Translation Communication IT and Business Support teams Mapping Trading Partner Onboarding Ongoing Support 11 EDI Implementation Options Managed Services Outsourced Software Development & Support Translation Communication 3 rd Party Mapping Trading Partner On Boarding Ongoing Support 12 6

7 EDI Implementation Options Web Forms Based EDI Hosted website Internal 3 rd Party Allows non EDI trading partner access via Internet Browser Allows EDI trading partner to use existing infrastructure to communicate transactions Return Documents Pre populated 13 EDI Communications Historically EDI communications was via Value Added Network (VAN) Limited Direct Communications Bi Sync Async FTP 14 7

8 EDI Communications EDI Over the Internet (EDIINT) Secure, directcommunications communications using internet protocols Benefits Visibility through the pipeline Elimination of VAN costs Risks Resources Trading Partner Knowledge Security considerations 15 EDIINT Protocols AS1 Secure attachments AS2 Encrypted message in a direct connection using HTTP or HTTPS protocol With the MDN, the original sender will "know" that the recipient got their message (Non repudiation) AS3 Secure File Transfer Protocol (FTP) with digital security and receipt validation Newer Standard 16 8

9 EDI Communication Options AS2 AS3 FTP Bi-Sync A-Sync AS1 Standardized or Custom Connection 17 Source: Business Process Guide for EDI, Version 2, Published by GS1-US Establishing The Trading Partnership Identify Key Players EDI Team Business Owners Application System Owners Exchange EDI TP Setup Information Agree upon transactions and timelines Agree upon implementation guidelines 18 9

10 Establishing The Trading Partnership Test.. And Test. And Test. Parallel Processing Production Data Validation Production Monitor & Follow up 19 Order To Cash Business Processes 20 10

11 Order 21 Source: Business Process Guideline for EDI Published by GS1-US Deliver 22 Source: Business Process Guideline for EDI Published by GS1-US 11

12 Pay 23 Source: Business Process Guideline for EDI Published by GS1-US Bundled Credit EFT 24 Source: Business Process Guideline for EDI Published by GS1-US 12

13 Unbundled Credit EFT 25 Source: Business Process Guideline for EDI Published by GS1-US Facts & Figures 26 13

14 Vilore EDI Organization One EDI Department + Outsourced Support and Development EDI Software Support and Development External Houston, TX Vilore Foods EDI Environment Customers Vendors Banks Carriers AS2 VAN Software Support/Dev. X12 XML EDIFACT FTP IDOCS Web Portal VILORE ERP System 28 14

15 Vilore Foods EDI Functional Areas North America Foodservice Retail Wholesale 3 PLS International Vendors Customers 29 Vilore Foods EDI Statistics Currently support 14 transactions X12 EDIFACT XML Over 50 trading partners Customers; Carriers; Suppliers; Banks Partners in Mexico, Canada and USA 30 15

16 Vilore Foods - EDI Interesting Facts 95% of our customer purchase orders and invoices are processed via EDI. 97% of our Vendors PO s and Invoices are handled via EDI. In the last 4 years we have reduced in half our Order Processing and Billing Personnel. Currently supporting 14 transactions. 31 Best Buy EDI Organization Two Departments Two SeparateReporting Structures Business Trading Partner Management 8 Employees Physically located in US Information Technology Map Development Application and Infrastructure Support # of resources ebb & flow with projects

17 Best Buy EDI Functional Areas North America Retail US Brick & Mortar Best Buy for Business Best Buy Mobile BestBuy.com Marketplace Transportation/Direct Import American Sourcing Finance GDSN International Sourcing China Customer Fulfillment Product Sourcing Vendor Portal All countries All Organizations Retail Mexico Brick & Mortar 33 Best Buy EDI Statistics Currently support 21 transactions X12 EDIFACT (EANCOM) Over 1700 trading partners Suppliers/Vendors; Freight Forwarders; Carriers; Banks; and 3PLs Over 36 Million transactions a year Volume increasing by approx 10% YoY 34 17

18 Best Buy - EDI Interesting Facts 99.5% of purchase orders, purchase order changes and invoices are processed via EDI Support 21 types of transactions across multiple business processes around the world. We have an EDI business support organization of 8 employees worldwide (excluding Canada). If every one of our core transactions took 5 minutes to handle in a manual process, we would need approximately employees to do the work. 35 Best Buy EDI Environment 36 18

19 Reference Links GS1 - GSMP (Global) EANCOM GS1-XML GDSN GS1-US - XRG (North America) UCS, VICS, I/C Published Guidelines Business Process Guide Knowledge Shop Bar Code EPC GS1-XML Drummond Group Interoperability Certification for AS2, AS3 & AS