2. Electronic Data Interchange (EDI)
20 – 22 May 2003

3. Agenda Learning Points Definition of EDI EDI usage in UTi Case Studies
EDI process
Potential problem areas
Summary

4. Learning Points What is EDI ?
EDI adds value to our customers and our operations.
Our EDI product is called uConnect.
Most EDI solutions are unique due to the different demands from customers.
Providing an EDI solution follows a well defined process in UTi and requires teamwork.

5. Electronic Data Interchange
Definition of EDI
Electronic Data Interchange
is the exchange of data between computers in a pre-defined format agreed upon by both parties.
EDI or Electronic Data Exchange is the transfer of data in any pre-defined format between computers
There are a variety of pre-defined formats such as ANSI.X12 generally preferred by US partners and EDIFACT generally preferred by non-US partners.
UTi has has internal specification known as the USI (Universal Systems Interface) which is adopted by some clients.
Similarly some clients prefer to use their own formats or are not EDI enabled and use flat files or spreadsheets. Although not the preferred method, UTi can accommodate these too.

6. Formats used in UTi solutions
ANSI X.12
Mainly US implementation
856 ASN
214 Status
850 Order
210 Invoice
EDIFACT
IFTMIN Shipping Instruc
IFTSTA Status Update
ORDER Purchase Order
USI
XML
Cargo-Imp
Cargo Community Systems
IDOC
SAP systems

7. EDI Usage Statistics

8. EDI Usage Statistics

9. EDI Usage Statistics

10. EDI Usage Statistics

11. Case studies: Shipping instructions
Cost & time savings : Eliminate Faxing of Instruction
Client
eMpower
UTi Operations
Shipping instruction u C O N E T
Pending
shipment
Regional
System
Create shipment
Improved Data Quality : Reduce Data Capture
USI
uTrac
Status update
Status trigger
Visibility : Client has status on own system

12. 134 man hours Case Study : Reebok eMpower Reebok UTi Operations u
Client Purchase Order u C O N E T
uOrder
Create PO
Link PO & HB
EDIFACT ORDER
uTrac
Despatch Advice
Shipment info
DA Status
EDIFACT DESADV
Reebok is a fairly recent addition to the long list of EDI clients and is a uOrder implementation which is generally more complex that a standard tracking implementation. Reebok is a fairly simple uOrder implementation by comparison to many.
UTi provides air freight shipping from ……. To the US for Reebok. In order to achieve supply chain visibility, Reebok sends their Purchase Orders to UTi in EDIFACT format. These are translated by uConnect and sent to uOrder for processing.
The origins then capture their HAWBs in the usual way and then link the PO to the HAWB.
When the HAWB is assigned to a MAWB and the DA status is established, a despatch advice is generated and sent to Reebok.
134 man hours

13. Case Studies : Dow Corning (Inbound)
eMpower
UTi Operations
eSys
Create Job
Delivery Order
Pick Confirm u C O N E T
USI
ANSI 856
uTrac
Create HB
Goods Issued
USI
Create TM
ANSI 856
uOp2000
Delivery Order
The Dow Corning LLP project in EMENA initiated a global EDI project with Dow Corning. This was then reduced to EMENA and the USA, all modes of transportation.
The interchange commences with a Advanced Shipping Notification being sent to UTi when the picking in any of the included Dow Corning warehouses is confirmed. This message is then routed by uConnect depending on origin and mode of transport.
Belgium and UK all modes of transport goes to eSys
Germany, Italy and US road freight goes to uTrac/eMpower
US air and ocean freight goes to uOp2000
Shipments are created in the various systems and by means of the USI, the regional systems send these shipments to uTrac. The road freight directly to uTrac paths are almost entirely automatic.
The next message from Dow Corning is received when the goods leave the warehouse.
Belgium and UK all modes of transport goes to eSys.
Germany, Italy and US road freight goes to uTrac. A duplicate of Belgian and UK road freight also goes to uTrac. This then establishes the Freight Received status and creates a Transfer Manifest in uTrac.

14. Case Studies : Dow Corning (Outbound)
Road Carriers
eMpower
UTi Operations
Delivery u C O N E T
POD
uTrac
Dow Corning
POD
Actual Delivery Date
For US to CA road freight, one of the carriers has been enabled to provide UTi with POD information. In EMENA, all carriers are required to provide the information to UTi.
On receipt of the POD information, a POD is triggered back to Dow Corning in the form of a 214 status message.
ANSI 214
1666 man hours

15. Case Studies : Apple Computers (In)
Apple OEMs
eMpower
UTi Operations u C O N E T
Warehouse Shipping Advice
Finalize HB &
Assign to MAWB
Create HB
uTrac
ANSI 945
Apple computers is the latest large EDI implementation in the UTi camp and the implementation is currently in progress.
Apple has five suppliers, four of which provide UTi with a Warehouse Shipping advice in the form of an ANSI X The fifth supplier is unable to provide the required EDI formats to either Apple or UTi and as a result, provides the information in a flat file format.
The message from the supplier is processed by uConnect and the result is a HAWB is booked in uTrac. The origins then process the HAWB as usual.

16. Case Studies : Apple Computers (Out)
eMpower u C O N E T
Advance Shipping
Notification
BO Status
uTrac
ANSI 856
For the fifth supplier that cannot provide EDI, UTi provides the information to Apple in the form of an ANSI Advance Shipping Notification.
As the HAWB progresses through the normal uTrac tracking statuses, these status updates are provide to Bridgepoint which is Apple’s shipment tracking information provider.
Not displayed here for simplicity, there is an additonal Apple message which is the invoice generated from uOp2000 and sent to Apples service provider TRAX.
BridgePoint
RV, DA, AR, DC
Status
Status Update
ANSI 214
772 man hours

17. Business must give the green light to go ahead with the project.
EDI Process
Business must give the green light to go ahead with the project.
Client contact report
Evaluate client requirement
Assign IT project leader
Business Requirement definition & analysis
Message specifications & Client EDI Agreement
Project planning and scheduling
Develop & Testing solution
Confirm process and data correctness with the client
Develop SOP & train operational staff
Deploy and activate the interchange
Manage and monitor the interchange

18. Potential problem areas
No clear definition of the real requirements
Incomplete analysis phase
Changes in specifications/requirements mid-stream
Data quality
Timeliness of correct and complete data
Incomplete or inaccurate data requirements
Customer SOPs
Non existent or out-dated
Not addressing real data requirements from a business perspective
Non compliance by operations
There are many potential problem areas in an EDI connection. Most EDI implementations interact with eMpower which is an event driven, real-time system.
If the data is incomplete or inaccurate at the time an event (such as ‘Delivered to Airline’ status) takes place, this data will be sent to the client unless a condition has been placed on it which will stop the data going to the client. In this case, the client will not receive the data and manual steps must be taken to provide said data to the client.
It is of vital importance that the requirements and analysis phase of such an implementation is done thoroughly. If the analysis or data requirements are incomplete or inaccurate, the entire implementation can fail because it has been designed incorrectly.
In many cases, clients change their specification mid-stream. Unfortunately, UTi has to deal with this but it does affect the planning of an implementation.
Where there are specific data capture requirements for a client in order to make the implementation work, it is essential that a complete and accurate SOP detail these requirements in order to enable the UTi offices to provide the data that the customer is requesting.

19. Summary
A successful EDI solution depends on a partnership between the client, UTi operations, regional and global IT teams