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:
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
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.