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Published byFatima Davenport
Modified over 2 years ago
The Rest of EDI - International and Transportation/Logistics
© SPS Commerce 2006 Agenda Introductions SPS Commerce Overview International Supply Chain International Suppliers Sourcing Suppliers 3 Party Logistic – Order Fulfillment Services and Distribution Domestic Transportation Relevant Case Studies Proposed Next Steps
© SPS Commerce 2006 2 SPS Commerce - SaaS Leadership Most Customers Hosted EDI Software Company AKA Software as a Serve (SaaS) Market Leaders with 46% Market Share 72,000 Suppliers Enabled 1200+ Retailer / Distributor Connections 12,000+ Hosted EDI Customers 2,000+ Universal Catalog Customers Rapid Growth Acquired Owens Direct (Increased Grocery Penetration) Opened Sales & Support Office in Beijing China Strategic & Managed Growth - 400%+ in past 5 years 24 Consecutive Quarters of Growth – Predicable Revenue Stream 275% plus growth in new subscriptions Clarification SPS is NOT a Van and SPS does NOT sell software Revenue is generated from Suppliers Monthly Subscription Fees AccentureTower 333 South Seventh St. Suite 1000 Minneapolis, MN
© SPS Commerce 2006 3 Typical Evolution of EDI Orders – 850/875 Invoice – 810/880 Shipping – 856 Change Orders – 860 Introduce existing transactions with new Order Models (DSD, Cross Dock, Direct to Consumer) Item Synchronization – 832 Finance – 812/820 Sales Activity – 852 (VMI – Vendor Managed Inventory) Forecast – 830 International Supply Chain – All of the above and more! Transportation – 204/990/214/753/754 3PL Orders and Distribution – 940/945
© SPS Commerce 2006 4 International Supply Chain International Suppliers
© SPS Commerce 2006 5 International Supplier Before EDI 1. Retailer places order with Supplier 2. Retailer obtains Letter of Credit from Bank and shares copy of PO 3. Supplier Warehouse packs boxes and faxes or call in packing slips, puts shipping labels on boxes and sends to consolidator 4. Consolidator arranges for Booking and communicates with Retailer 5. Consolidator packs/builds container for placing on ocean vessel 6. Retailer takes ownership of goods and moves to port of import 7. Goods pass customs, Goods are trans-load off vessel and onto domestic truck 8. Goods moved to domestic location(s) Merchandising Port of Export Port of Import International Supplier PO Packing Slip 1 3 7 5 7 Bank LC/PO 2 6 8 Consolidator 4 Retailer DC
© SPS Commerce 2006 6 International Supplier After EDI 1.Retailer places order with Supplier and shares copy of PO to consolidator – 850/875 2.Retailer obtains Letter of Credit from Bank and shares copy of PO - 850 3.Supplier Warehouse packs boxes, prints UCC-128 labels, ships product to consolidator – - Sends ASN to Retailer– 856 - Sends ASN to Consolidator - 856 4.Consolidator arranges for Booking – 300 5.Consolidator packs/builds container for placing on ocean vessel – 856 (could be a 315 on the status of the shipment) 6.Retailer takes ownership of goods and moves to port of import 7.Goods pass customs, Goods are trans-load off vessel and onto domestic truck – 856 (860 - Allocation), 8.Goods moved to domestic location(s) - 214 Merchandising Port of Export Port of Import International Supplier PO ASN 1 3 3 5 7 Bank LC/PO 2 6 8 Consolidator 4 Booking ASN Retailer DC
© SPS Commerce 2006 7 International Supply Chain Sourcing Suppliers
© SPS Commerce 2006 8 Sourcing Supplier Before EDI 1.Retailer places order with Sourcing Company 2.Supplier forwards order to manufacturer contracted for this order 3.Manufacturer packs boxes and faxes or call in packing slips, puts shipping labels on boxes and ships to consolidator 4.Consolidator arranges for Booking and communicates with Supplier 5.Consolidator packs/builds container for placing on ocean vessel 6.Retailer takes ownership of goods and moves to port of import, 7.Goods pass customs, Goods are trans-load off vessel and onto domestic truck 8.Goods moved to Retailer Domestic DCs Merchandising Factory #2 Port of Export Port of Import PO Packing Slip 1 4 3 2 6 5 Factory #1 Factory #3 7 8 Sourcing Supplier
© SPS Commerce 2006 9 Sourcing Supplier After EDI 1.Retailer places order with Sourcing Company – 850/875 2.Supplier forwards order to factory (#2) contracted for this order 850/940 3.Factory packs boxes, prints UCC-128 labels, ships product to consolidator – - Sends ASN to Retailer– 856 - Sends WSN to Supplier - 945, Supplier sends ASN to Retailer – 856 - Sends ASN to Consolidator - 856 4.Consolidator arranges for Booking and communicates with Supplier - 300 5.Consolidator re-packs items and builds container for placing on ocean vessel - 856 6.Retailer takes ownership of goods and moves to port of import, Goods pass customs, Goods are trans-load off vessel and onto domestic truck – 860 (Allocation), 856 7.Goods moved to Retailer - 214 Domestic DCs Merchandising Factory #2 Port of Export Port of Import PO ASN 1 3 2 6 5 Factory #1 Factory #3 7 3 Sourcing Supplier Fulfillment Order WSN 3 Booking 4 ASN
© SPS Commerce 2006 10 Domestic Transportation
© SPS Commerce 2006 11 Transportation Before EDI 1 3 2 Carrier Merchandising Supplier Retailer DC 1.Merchandising approves and sends order to Supplier 2.Supplier acknowledges/requests change/Buyer calls for status of order 3.Supplier packs contents and labels shipment 4.Supplier arranges for shipment with Carrier and ships packages (BOL) 5.Carrier calls for an appointment or buying organization contacts carrier on the status of the shipment/order 6.Buying organization receives shipment at DC 7.Buying organization breaks apart shipment and ships items to individual stores Stores 4 5 6 7
© SPS Commerce 2006 12 Transportation After EDI 1/2 3 Carrier Merchandising Supplier Retailer DC 1.Merchandising approves and sends order to Supplier – 850/875 2.Supplier acknowledges/requests change/Buyer calls for status of order – 855/860 3.Supplier packs contents and labels shipment 4.Supplier arranges for shipment – With Carrier and ships packages (204/211/990) With Retailer (753/754) then Retailer arranges with Carrier (204/211/990) 5.Carrier picks up shipment, Supplier sends - 856 6.Carrier on the status of the shipment/order - 214 7.Buying organization receives shipment at DC, buying organization breaks apart shipment and ships items to individual stores 8.Retailer arranges with Carrier (204) and carrier on the status of the shipment/order - 214 Stores 4 7 4 2 5 6 4 8 6
© SPS Commerce 2006 13 3 rd Party Logistic Fulfillment Services
© SPS Commerce 2006 14 3PL Before EDI 1.Retailer places order with Supplier (paper or EDI) 2.Supplier faxes or phones order to 3PL 3.3PL packs items and faxes or phones packing slip to Supplier 4.3PL prints shipping labels 5.3PL applies labels and ships product to Retailer Merchandising 3PL PO ASN Retailer DC 1 4 3 2 6 5
© SPS Commerce 2006 15 3PL After EDI 1.Retailer places order with Supplier – 850/875 2.Supplier places Fulfillment order with 3PL - 940 3.3PL packs items, prints UCC-128 labels, ships product to Retailer 4.3PL ships product to Retailer - sends ASN to Retailer as Supplier - 856 Sends WSN to Supplier - 945, Supplier sends ASN to Retailer - 856 5.Goods moved to domestic location(s) - 214 Merchandising 3PL PO ASN Retailer DC 1 5 4 2 Fulfillment Order ASN 4 WSN 4 3
© SPS Commerce 2006 16 Relevant Case Studies
© SPS Commerce 2006 17 What It Means to The Retailer More Programs for New and Existing Vendors to be EDI Enabled Increased Use of EDI Reduces Costs In New Areas Better Visibility into Supply Chain and More Reliable Information New Players participating in EDI Banks Consolidators Carriers 3 rd Party Logistics
© SPS Commerce 2006 18 What It Means to The Manufacturer Suppliers will now need to involve Fulfillment Service Companies to assist with EDI Requirement Suppliers will become EDI Customers with their Supply Chains Make Meeting New Retailer Electronic Requirements Easier
© SPS Commerce 2006 19 Value Propositions Stores Domestic DCs Supplier Intl Suppliers Efficient Trans-loading Shipping Visibility to Port of Export In Transit Vessel Visibility Automated Receiving Automated WM Accelerated Planning Paper Orders Order Tracking & Visibility Item Data Management Merchandising In Transit Domestic Visibility 3PL
© SPS Commerce 2006 20 Next Steps Who are the new players participating in EDI and where are they in EDI? What services does my Consolidator provide, what capabilities do they have and how can EDI assist? Are some of my suppliers Sourcing suppliers and what are the capabilities of those factories? What can my preferred carriers do for me? When do I need to know what? System integration concerns Can I do this alone or will I need assistance?
© SPS Commerce 2006 21 Questions?
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