QAD EDI Part II Enterprise Material Transfer [EMT] QAD Pitch Report QAD EDI Part II Enterprise Material Transfer [EMT]

EMT - Enterprise Material Transfer Introduction to EMT EMT - Enterprise Material Transfer … Automatically generates Purchase Order (Supply) based on Sales Order (Demand) in Intra-Company Producer – Consumer scenario. … Automation of document transfer is achieved through QAD EDI ECommerce.

EMT – Features Automatically generates Purchase Orders from Sales Orders. Automatically exports Purchase Orders through QAD EDI ECommerce. EDI Purchase Order is imported in Manufacturing unit to create Sales Order. When an EMT Purchase Order is modified, the changes are automatically transmitted to Source Unit through EDI.

Sales Order changes are sent to Sourcing Unit through EDI. EMT – Features Sales Order changes are sent to Sourcing Unit through EDI. Supports two material delivery options – Direct Shipment : direct shipment from final supplier to end customer. Transshipment : shipment to the original unit that created Sales Order. Integrated with QAD Shipment, Invoicing and Accounts Receivable modules.

EMT – Standard EMT Standard EMT involves a simple two level relationship between two Business Unit. Primary Business Unit (PBU) : Business Unit that receives and responsible for processing the Customer’s Purchase Order. Secondary Business Unit (SBU) : Business Unit that receives Primary Business Unit’s Purchase Order and responsible for full-filling the PBU Purchase Order.

Standard EMT – PBU & SBU Customer Primary Business Unit Sales Office Sales Office responsible for Forecast, Sales and Customer Management. Secondary Business Unit Plant 1 Secondary Business Unit Plant 2 Manufacturing Units responsible for Manufacturing Products.

Standard EMT – Customer to PBU Sales Office converts Customer PO into SO. PO SO Primary Business Unit Sales Office Secondary Business Unit Plant 1 Secondary Business Unit Plant 2

Standard EMT – PBU to SBU Customer PO SO PBU creates PO for Item 1 on Plant 1. Primary Business Unit Sales Office PBU creates PO for Item 2 on Plant 2. PO PO SO SO Secondary Business Unit Plant 1 Secondary Business Unit Plant 2

Standard EMT – At SBU Customer Plant 1 creates SO (Demand) for Item 1. PO SO Plant 1 creates SO (Demand) for Item 1. Plant 2 creates SO for Item 2. Primary Business Unit Sales Office PO PO SO SO Secondary Business Unit Plant 1 Secondary Business Unit Plant 2

Standard EMT – Direct Shipment Customer Supply Item 2 Material Flow Invoice Flow Invoice Primary Business Unit Sales Office Invoice Direct Shipment Secondary Business Unit Plant 1 Secondary Business Unit Plant 2

Standard EMT – Direct Shipment With direct shipment, SBU is authorized to ship the material directly to the Customer bypassing the PBU. Advance Shipment Note will be sent to PBU to inform about the Direct Shipment and Customer Invoicing will be through PBU.

Standard EMT – Transshipment Customer Material Flow Invoice Flow Supply Item 1 Invoice Primary Business Unit Sales Office Supply Item 1 Transshipment Invoice Transshipment Secondary Business Unit Plant 1 Secondary Business Unit Plant 2

Standard EMT – Transshipment With transshipments, the SBU satisfies the customer demand through PBU. SBU ships to PBU and PBU in turn ships to Customer. Transshipment is useful in case of PBU doing any value addition to the materials shipped.

Secondary Business Unit Standard EMT – EDI Flow Customer All EDI Documents are from ANSI X12. EDI Message Flow 850 (PO) imported as SO in PBU. PBU sends 855 (PO Acknowledge) to Customer. PBU sends 850 to SBU. SBU send 856 (Ship Notice/Manifest) to PBU and to customer in the case of direct shipment. PBU sends 856 to customer in the case of Trans-shipment. SBU sends 810 (Invoice) to PBU. PBU sends 810 to Customer. Change Management through EDI Any PO change by Customer to PBU and PBU to SBU will be communicated through 860 (PO Change Request – Buyer initiated). Any SO change by PBU to Customer and SBU to PBU will be communicated through 865 (PO Change Request – Seller initiated). 4 ASN 850 Ack ASN Invoice 1 2 5 7 SO 855 856 810 Primary Business Unit Sales Office 850 Invoice 3 6 4 SO 810 Secondary Business Unit Plant 1 856

Standard EMT – Business Flow PBU SBU Import/Create Sales Order EMT PO is created Export EMT PO Import EMT PO to create Secondary SO. Import Acknowledgement Export Acknowledgement Order Changes Order Changes Receive PO Change Allocate and pick inventory Receive, process and ship material (transshipment) Ship Material to PBU or Customer

EMT – Uses and Benefits EMT enables organizations having supply chain spanning multiple business units to have streamlined with less manual intervention. Intra-company transactions would not require VAN to transmit EDI Messages, a simple EDI Sub-system would be suffice. Provides Change Management process within QAD to manages changes to Purchase Orders and Sales Orders involved in intra-company transactions. EMT can be used within Trading Partners depending on the mutual relationships and cohesiveness of the shared processes.