SUPPLY CHAIN ELECTRONIC COMMERCE PARTNER GUIDE

Transcription

1 SUPPLY CHAIN ELECTRONIC COMMERCE PARTNER GUIDE September 16, 2010

2 Table of Contents I. INTRODUCTION... 2 II. EDI CONTACTS... 2 III. SUMMARY OF INFORMATION FLOW... 3 IV. SUPPLIER S RESPONSIBILITIES... 4 V. KI S RESPONSIBILITY... 5 VI. POLICIES AND PROCEDURES... 5 a. EDI 830 Planning Schedules... 5 b. EDI 850 Purchase Order... 6 c. EDI PO Acknowledgements... 6 d. EDI 856 Advance Shipment Notification (ASN)... 6 e. EDI 860 Purchase Order Change Notifications... 6 VII. EDI TECHNICAL SPECIFICATIONS... 7 VIII. SPS TECHNICAL REQUIREMENTS... 9 IX. TRADING PARTNER AGREEMENT / TERMS AND CONDITIONS

3 I. INTRODUCTION The purpose of this document is to ease the implementation of EDI between KI and its trading partners. KI believes that electronic commerce is a valuable tool in providing better service to its partners. Documents that were previously manually processed can be exchanged through EDI quickly, without errors, at a reduced expense, and increased transparency of supply chain information for both parties. This information exchange allows both parties to improve their business processes. KI recommends all suppliers to actively use the most effective method of electronic commerce for communication of supply chain information. II. EDI CONTACTS KI Contacts: Charlotte Goska, EDI Coordinator (920) address: charlotte.goska@ki.com Responsible for: Coordinating development of new trading partners and documents. Le Nguyen, EDI Technical Support (920) address: le.nguyen@ki.com Responsible for: Support, development and maintenance of KI's EDI systems. SPS Commerce Contact: Brian Ratnayake Toll-free phone: Direct Fax Bvratnayake@spscommerce.com 2

4 III. SUMMARY OF INFORMATION FLOW 3

5 IV. SUPPLIER S RESPONSIBILITIES KI recommends that suppliers use traditional EDI systems (ANSI X12, version 4010) that allow full integration of EDI transactions into the supplier s business systems. See the Technical Specifications section for more information. If the supplier does not have traditional EDI capabilities, KI has partnered with SPS Commerce to offer a webform-based EDI solution. KI does not sponsor the SPS Commerce web application, and it is up to the supplier to establish a relationship with SPS Commerce. Please see the contacts section of this document for SPS Commerce and KI EDI contact information. KI requires that all suppliers chosen as electronic trading partners have the following transaction capabilities. Required: Receive Send Send Receive Send Optional: Receive (850) Purchase order (855) Purchase order acknowledgement (856) Advance shipment notification (ASN) (860) Purchase order change notification (997) Functional acknowledgement (830) Planning schedule KI requires that all trading partners send an 855 purchase order acknowledgement within 24 hours of the original 850 purchase order transmission. KI also requires that 856 advance shipment notifications be sent the same day as the actual physical shipment. Please refer to the policies and procedures and technical specifications for further details on these transactions. KI does not require an acceptance document in response to purchase order changes, but in the event the supplier cannot meet the communicated changes, it is the supplier s responsibility to contact the buyer at KI and inform them that the change cannot be met as communicated. KI will propose an EDI testing and implementation schedule to the trading partner and expects that the trading partner will be able to meet that schedule or suggest a reasonable alternative schedule. Once a schedule is committed to by both partners, it is expected that the trading partner meet the established dates. KI expects that trading partners, through the use of a 997 functional acknowledgement, acknowledge the receipt of all documents sent by KI. 4

6 V. KI S RESPONSIBILITY It will be KI s responsibility to initiate the implementation of electronic commerce with each trading partner. KI will contact trading partners with the use of a formal letter asking for a commitment to integrate our supply chains through electronic commerce. At that time, it will be the trading partner s option to integrate through traditional EDI systems or to work with our preferred third party EDI provider, SPS commerce. VI. POLICIES AND PROCEDURES a. EDI 830 Planning Schedules The 830 transaction will show net requirements, taking into account on hand inventories at KI as well as open purchase orders from KI. 1. Mutual Agreement to be understood with supplier: a. KI will commit to parts/quantities that are transmitted via the 830 transaction. (Note: If there ever is an unusual quantity for any particular part, a call to the Buyer must be made to confirm as a reasonableness check). b. Supplier to produce parts and quantities from 830 transactions with the understanding that actual delivery dates may change (either expedited or deexpedited). c. Purchase orders will be used as shipping releases since the 830 transaction will be used to inform the supplier of part numbers, quantities and approximate required dates. Therefore, the time frame of the purchase order, (entry date to due date), may be very short depending on the supplier s time to pull, pack and ship. d. KI is responsible for a quantity of finished parts not to exceed one month s average usage based on the previous three months. 2. Benefits: a. Provides the supplier access to all requirements, which should allow supplier to make more informed scheduling decisions and to better manage inventories. b. Most immediate visibility to all requirements the day after they are entered in the KI MRP system. In many cases, the supplier will see these requirements before the KI buyer. 5

7 b. EDI 850 Purchase Order KI will transmit PO s several times per day. We expect vendors to process PO s at least 2 times per day. c. EDI PO Acknowledgements Suppliers should send an 855 within 24 hours of receipt of the PO. Suppliers can acknowledge a PO multiple times, if things change, to revise the data that was previously sent. d. EDI 856 Advance Shipment Notification (ASN) Suppliers should create the ASN as soon as possible after shipping the product. You may need to wait for certain information, such as BOL numbers, until the truck arrives, in order to complete the ASN data. KI would like to receive the ASN before the product arrives, but in some cases this may not happen due to the proximity of the vendor s shipping location. e. EDI 860 Purchase Order Change Notifications When KI sends an 860, only a 997 is required to be returned. The vendor does not need to send back another PO Acknowledgment. Typically, the buyer and vendor will have already discussed the needed changes and the EDI PO Change will serve as a confirmation of what has already been discussed. 6

8 VII. EDI TECHNICAL SPECIFICATIONS This information applies only to vendors who are using their own EDI systems (not SPS Commerce). EDI Requirements If you wish to do EDI directly with KI, you must have your own EDI system. There are three pieces you must have. 1. An EDI translator. This is software specifically designed to put outbound data into EDI format, and to translate inbound EDI data into your internal databases. It is capable of checking EDI syntax for compliance to standards, checking control data for duplication and integrity, and generating functional acknowledgments. Often, the EDI translator also handles the transmission of data to your trading partners. 2. Integration software. This is programming that receives data from the EDI Translator and pushes it to your ERP, or pulls data from your ERP for feeding into your EDI translator. Typically, this programming does validation and editing of content, beyond what s required by EDI standards. 3. A transmission method. Typically, a connection to an EDI VAN, to transport your data. KI requires the vendor to receive 850 PO s, and 860 PO Changes. The vendor is required to send back 855 PO Acknowledgments and 856 Advance Ship Notices. 997 s will be sent by both parties to indicate successful receipt of each EDI transaction. Any vendor which chooses to do EDI directly with KI instead of using SPS Commerce must be able to exchange all five of these transactions. STANDARDS: KI uses the X12 standards, version ACCESS METHOD: KI s preferred access method is through our mailbox on Sterling's Commerce:Network. EDI ID's KI s EDI ID s are: ID Qualifier: 01 ID Number ISA15: T Use: Test P Production Application ID (GS03):

9 Checks against duplication of orders KI trading partners should check both the EDI ISA control numbers, and the PO numbers, to prevent duplication of orders. EDI 997 Functional acknowledgements KI sends 997 functional acknowledgments for all EDI transactions received by KI, and expects trading partners to send 997s for all documents which they receive, within 24 hours of receipt. If you do not receive an acknowledgment within 24 hours of sending your document, please contact the EDI Technical Support at KI. EDI Specifications KI s EDI specifications will detail what data is required for each document. Specification documents will be provided to you. 8

10 VIII. SPS Technical Requirements Minimum System Requirements: Computer Memory Operating System Internet Modem Display Printer PC Compatible Pentium III 933mHz (or equivalent processor) 512 MB RAM Windows XP, Service Pack 2, Windows Vista, or Windows 7 56k modem An internet service provider (AOL not recommended) Super VGA (1024 x 768) resolution with 32 bit color A laser or thermal printer if printing Barcodes Labels from WebForms Software Internet Explorer 7.0 Current Java version listed on SPS portal Recommended System Requirements: Computer PC Compatible Pentium IV 1.5gHz (or equivalent processor) Memory Operating System Internet Modem Display Printer 768 MB RAM for Windows XP 1.5GB RAM for Windows Vista Windows Vista Broadband connection (DSL, Cable, ISDN) An internet service provider (AOL not recommended) XGA (1152 x 864) resolution with 32 bit color A laser or thermal printer if printing Barcodes Labels from WebForms Software Internet Explorer 8.0 or Mozilla Firefox Current Java version listed SPS on portal 9

11 IX. TRADING PARTNER AGREEMENT / TERMS AND CONDITIONS KI requests that all trading partners complete a Trading Partner Agreement. If you have your own Trading Partner Agreement, it may be used in place of our agreement. Please include our terms and conditions in your agreement's appendix. List only those transaction sets which we will be exchanging initially. If you have any questions regarding the Trading Partner Agreement, please call the EDI Coordinator at KI. 10