Off purpose EDI Documents - PowerPoint Presentation

Slide1

Off purpose EDI Documents

Extracting more value from the systemSlide2

Since 2000, 52 percent of the companies in the Fortune 500 have either gone bankrupt, been acquired or ceased to exist

Why?

Competitive advantage is the lifeblood of any organization.

Moving faster, cheaper, better than the competition means you win. Slide3

Concept

It is faster and cheaper to reuse existing tools than to create new ones

EDI systems provide features, some or all of which would need to be added to any new business solution:

Cross platform communication

Established data sets

Communication protocols and formats

Transaction based functionality

Built in error handling / responseSlide4

Berlin Airlift

It is frequently referenced that EDI has it’s roots in the Berlin Airlift. But what is actually meant by that is somewhat vague.

But in general it refers to the flight crews sending telex via radio to Berlin at “wheels up”, so the Berlin field could plan for distribution of the inbound materials.

But more than the “electronic message”, the core concepts were:

Translating multiple languages

Standardizing formats for inbound flight manifestsSlide5

Today’s EDI professional will recognize Common EDI Tasks including:

Translation

Application Data -> EDI File

EDI File -> Application Data

Mapping

Field xx -> Field

yy

Transmit

Physically send file from

A -> BSlide6

I want to take a step back from that and look at the bigger picture. Looking at what it took to land a cargo plane in Berlin every 60 seconds for 15 months.

The raw logistics of getting trucks, trains and cargo ships to the points they needed to be at the time they needed to be there, unloaded / loaded in time to clear

space for the next one in line.

All while balancing the quantity and flow of consumables into Berlin

when needed…..

No earlier…. No later.Slide7

Someone had the foresight to realize they had a list of goods, and a rough timetable of arrival in Europe. They had the Shipping Manifest

Using that data to determine when, where and what kind of transportation to have in place. What goods needed faster (or slower) transport to the airports. What mix of goods to put together on each train, truck and plane to ensure needed products arrived when needed.

Those were not the intended use of those documents. But the data certainly filled a pressing need…….Slide8

Where can we find new uses for existing data, documents or transactions that already exist in the EDI system

What do we mean by Off Purpose Document use?

Lets review some examplesSlide9

ASN As Invoice

With issues such as Multiple PO in a shipment, Split PO shipments and Dynamic Routing, invoices can become quite challenging to implement, track and pay. Due to inclusion of all the required data elements to facilitate payments, with minor processing changes an ASN can serve as an invoice.

ASN as Invoice is now so common it is no longer considered “Off Purpose”Slide10

Bill Only PO

A PO by design is an instrument created to create the sale of products but also to initiate other processes, primarily; creating and processing a shipment and generating an invoice.

In circumstances where a variety of products are on hand and the buying organization needs to be invoiced for products actually used. An entirely manual process for invoicing must be maintained. This is a very common practice in joint replacement and vascular surgeries.

Where the exact products and quantities used is not known until the

surgery is performed. Because of the nature of the transaction, it

needed to be processed manually as a

reference to products used and a

request for an invoice.

Some enterprising folks at

Belmero

, a

specialized ERP & HCM services &

solutions company, have worked with

hospitals, their vendors and the

existing PO (850) in PeopleSoft and

other major ERPs to create the aptly

named “Bill Only PO” solution. If the

vendor can configure correctly for the

Bill Only PO, the entire process can be

brought back into electronic commerce and EDI. With all the

attendant efficiencies, accuracy and savings.Slide11

Validated Data

PO / INV / ASN

Rules

PO

Data

INV/ASN

Data

Process

Reject

Rather than using 3

rd

party software to validate inbound data against internal systems data. Using the existing EDI system, to validate the data prior to processing.Slide12

How many of you have an Atlas SM-65

Intercontinental Ballistic Missile?

How hard is it to find new uses for existing tools?Slide13

Originally developed to protect the outer skin and, more importantly, the paper-thin fuel tanks of the Atlas missile from rust and corrosion. The WD 40 company now maintains a library of over 2000 uses for WD 40.

The Reigning King of “Off Purpose Use”Slide14

How to do it

Stop looking at what you do.

Stop looking at how you do it.

Ask Why?

Why are we doing this?

With

new

people, during training, explain why a process is done, the

outcom

eSlide15

Q/A