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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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.

14. 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

15. 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

16. 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.