Presentation on theme: "EDI & POS Systems ATG 383 - Spring 2002. When to adopt technology? “Things have to change to remain the same” What do we want to accomplish? –Lower costs."— Presentation transcript:
EDI & POS Systems ATG Spring 2002
When to adopt technology? “Things have to change to remain the same” What do we want to accomplish? –Lower costs –Increase revenues –Comply with required standards
3 Technologies We Will Consider Electronic Data Interchange POS Systems eXtensible Markup Language & eXtensible Business Reporting Language
Electronic Data Interchange Computer to computer exchange of business information in a standard format. EDI is not faxes, e- mail, or web sites.
EDI - General Idea In-house system. Translate into EDI format. Transmit.Receive. Translate into in-house format. In-house system.
EDI - Purchase Order Identify need. Create purchase order. Translate into EDI format. Transmit to vendor.Receive from customer. Translate into in-house format. Create sales order & continue processing.
EDI - Acknowledgement Match P.O & acknowledgement. Translate into in-house format. Receive from vendor.Send to customer. Translate into EDI format. Create acknowledgement.
Translate In-house Data to Common Standard Translation process –Data fields in business applications are mapped to corresponding fields in EDI documents Two Common EDI Standards –ANSI X12 in North America –EDIFACT outside North America Following examples taken from: –http://developer.netscape.com/docs/presentations/xpert/edi/edi.html
Example of Standards-Based EDI Message Transaction A - 1 of 2 Transaction B - 1 of 1 Transaction A - 2 of 2 Functional Group Header Functional Group Trailer Functional Group Header Functional Group Trailer Interchange Group Header Interchange Group Trailer
EDI Network Options
Direct Connection Partner APartner B Value Added Network Partner A Partner B Van mailbox Internet Partner B Three ways to connect Buyers & Sellers Partner Amailbox
Comparison of EDI & Traditional Systems
What can go wrong with EDI? What are the controls?
POS & Scanners
Retail POS Systems Captures and collects sales information at time of sale. Technologies that are important for this: –Bar codes –Scanners & PCs –Off the shelf software
Bar Codes Identify Products
Bar Codes in Operation Scan Bar Code Bar Code Number Look up price & product info. Update sales & inventory records Product info & price Add amount to customer’s purchase.
Use POS data to track sales and manage inventory. A few of the changes K Mart made: –Eliminate use of retail inventory method. –Ability to make inquiries of data as the day proceeds. –Find and adjust overstocked / understocked stores.
JC Penney sends POS data to VF Corp., maker of Lee and Wrangler jeans. VF watches flow of stock and automatically updates a particular item once the quantity reaches an agreed-upon point. VF uses a flexible manufacturing, allowing many small production runs.
Some Advantages of POS Better customer service. Faster. Fewer errors with proper controls. More accurate inventory counting and control. Increased productivity through automated systems. Opportunity to integrate with EDI for improved replenishment time.
Michigan Scanning Tests
Scanners and POS - What can go wrong? What are the controls?
Using XML to Define Documents and XBRL for Business Reporting
A Web Page
HTML That Created A Web Page Hello Hello again
EDI Message in XML
Partial XML Document EDItEUR Lite-EDI Book Ordering Labaln, Brian/Chrome Parry, Linda (ed)/William Morris 1
XBRL XML based framework for exchange of financial information. Example: – July 26, 1998 Describes the information, not the presentation. Format flexible.
XML Tags: The Key – CashEquivalents.Cash – Cash and Securities – 2000 – 1000
Financial Statement - XML/XBRL
Summary Operation of EDI Operation of POS systems Use of XML and XBRL