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Confidential © 2008 Ferrellgas, L.P. What does a Rhino do with EDI? 10/16/2008 Jennifer Mehaffey EDI Business Manager
Blue Rhino at NEECOM Page 2 Confidential © 2008 Ferrellgas, L.P. Topics Blue Rhino –General Overview EDI at Blue Rhino –Apply EDI to a new Business Model Then --> Now –Increase Process Efficiency Whats next for Blue Rhino Question and Answer Page 2
Blue Rhino at NEECOM Page 3 Confidential © 2008 Ferrellgas, L.P. Blue Rhino Founded in 1994 in Winston-Salem, the Blue Rhino Brand is the #1 Provider of Tank Exchange in the United States and Puerto Rico. In 2000 Blue Rhino acquired Uniflame Inc, a grill and fireplace accessories provider. In 2004 Blue Rhino was acquired by Ferrellgas the #2 provider of Retail Propane and became a division of the retail propane giant Blue Rhino offers limited Propane Tank Exchange Services for 30lb and 100lb propane tanks as well as CO2 Tank Exchange Services for 9oz and 20oz CO2 tanks.
Blue Rhino at NEECOM Page 4 Confidential © 2008 Ferrellgas, L.P. EDI Originally, needed to establish Business to Business Application for communicating POS, Invoice, and Check Remittance documents. –Custom Written EDI translation tool Currently, provide communication of POS, Invoice, Check Remittance, Purchase Order, Advance Ship Notice, Reverse PO, Store Lists, and Charge backs. –3 rd Party EDI capable tool –Current tool provides strong functionality for ANSII X12 EDI translation.
Blue Rhino at NEECOM Page 5 Confidential © 2008 Ferrellgas, L.P. Apply EDI to a new Business Model Being #1 => Leader –Tank Exchange was a brand new business at the National Level. –We sold to customers a product AND a program –We differentiated ourselves via process and technology In order to business with major customers the –852 document was necessary –810 document became a requirement in the first few months –812 document was necessary process to our business for increased efficiency in chargeback process. –820 document foundation for automation of PowerPost
Blue Rhino at NEECOM Page 6 Confidential © 2008 Ferrellgas, L.P. Apply EDI to a new Business Model In the Beginning …… What went well –Sales was able to offer business document automation as a service –The E-commerce service was able to grow in line with Blue Rhino growth and our customers growth. What did not go well –Some processes were too simplified needed to be expanded Processes that completed in paper Information Overload!
Blue Rhino at NEECOM Page 7 Confidential © 2008 Ferrellgas, L.P. Apply EDI to a new Business Model A New Challenge, The Middle Ages … Purchased a Product Company –Products represented the reverse of our business model for Tank Exchange. –The company we purchased had limited technology. –Warehousing Anyone??? In order to business with new product divisions customers the –850 document inbound and outbound to warehouse. –856 document was a customer requirement. –945 inbound from warehouse –860 enabled the customer to own the process.
Blue Rhino at NEECOM Page 8 Confidential © 2008 Ferrellgas, L.P. Apply EDI to a new Business Model What went well –The new company onboard time was 90 days –Achieved business continuity for new Products Division. What did not go well –No warehouse automation –Limited warehouse expertise –Product Master ownership and centralization
Blue Rhino at NEECOM Page 9 Confidential © 2008 Ferrellgas, L.P. Apply EDI to a new Business Model Today! What is going well –Improved on boarding time –Increased Visibility –Enhanced Reporting capabilities –Improved internal satisfaction What is our focus for improvement –Growing our Customer Base –Improving our Business Processes –Continue to improve warehouse automation
Blue Rhino at NEECOM Page 10 Confidential © 2008 Ferrellgas, L.P. Increase Process Efficiency How we utilize technology to dominate the JUNGLE. –Point Of Sale Information (852) Rhino-Net Rhino-Way Everything is a Rhino! –Check Remittance (820) Power Post
Blue Rhino at NEECOM Page 11 Confidential © 2008 Ferrellgas, L.P. Point of Sale Currently 13 Customers provide POS information –Those customers represent approx 35% of Deliveries 3 Scan Based Trading customers Process Improvement Wins –In Stock Status: Large Drug Store Chain had an In Stock Percentage of approx 90% and moved to 97% after implementation of POS –Replenishment Level Large Hardware Store Chain had a Replenishment Level of approx 55% and moved to 72%
Blue Rhino at NEECOM Page 12 Confidential © 2008 Ferrellgas, L.P. Check Remittance Currently 11 customers provide Check Remittance information. –Those customers represent approx 55% of our Revenue Process Improvement Wins –The process reduced accounting resources necessary. –No 10-key data entry necessary. Eliminated data entry errors. –Posts Checks immediately for real time A/R balance and account activity –Automated Chargeback decreased the number of open invoices in dispute. –Allowed visibility to invoicing errors.
Blue Rhino at NEECOM Page 13 Confidential © 2008 Ferrellgas, L.P. Questions
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