Electronic Commerce Enabling Solutions for Small to Medium Enterprises Carol Pozezanac Associate - Electronic Commerce Imperial Tobacco Limited Mario Binette Director - Procurement Systems Provigo

Electronic Commerce will be the global method of conducting business in the near future! ARE YOU READY!

WHY ARE WE HERE? The industry is aware of the time and resources required to integrate Electronic Commerce in small organizations. We are here to help!

Gain a general understanding of EDI and the flow of information using this process. Transmit information to help you make an informed decision on which EC solution best suits your business needs. PRESENTATION : OBJECTIVES PRESENTATION : OBJECTIVES

Barriers to Electronic Commerce Perceived as too costly $$$ Do not see any tangible benefits (show me the money!!) Complex Lack of understanding of EDI

Electronic Commerce & EDI EDI - Electronic Data Interchange is at the core of Electronic Commerce since it provides the means for communicating business transactions across all industries and all companies with little human intervention.

All the various solutions outlined today have one common theme; they provide a means to communicate using EDI. Electronic Commerce & EDI

Why Use Electronic Commerce Electronic Commerce (EC) allows information and money to move more rapidly, without error, and eliminates non-value added tasks. EC supports business strategies that allow organizations to offer products and services of better quality, at competitive prices with a better service.

Benefits of EC implementation Supplier has the opportunity to sell product within a large distribution network $$$$$$$$$$

Benefits of Electronic Commerce Competitive Advantage Provides Customer Service Helps get products to the consumer faster and at a lower cost.

Business Strategies Manufacturing : Just In Time (JIT) (ex : GM) supplies and materials delivered when required for production Retail : Quick Response (QR) ( Sears) A program using bar codes to track sales and trigger A program using bar codes to track sales and trigger timely reordering of inventory using EDI timely reordering of inventory using EDI Grocery : Efficient Consumer Response (ECR Grocery : Efficient Consumer Response (ECR)

Vendor Managed Replenishment Imperial Tobacco Imperial Tobacco Wholesaler Vendor takes responsibility for managing the inventory at the wholesale distribution level Wholesaler Product Activity Data By product : - On Hand - On Order - Sold Purchase Order Acknowledgment By product : quantity

EDI - Small Company Solutions PC with general EDI translator

What Is EDI ? Exchange of structured information between two or more business partners, from one computer to another according to a standardized format “EDI is a high-speed method of electronic communication that facilitates the exchange of high volume of business data from one computer to another. Data is presented in a standardized format that provides for generating, receiving and processing information with no human intervention.” Price Waterhouse

Why EDI? Customers as a request or as a must Suppliersas a request or as a must Competitive advantage Cost/Saving analysis EDI is at the heart of Electronic Commerce (EC) due to the fact it supports the different business strategies

MAIL TELEPHONE FAXTELEX FILE -TRANSFER EDI NON STRUCTURED TO VERY STRUCTURED Business Communication

Technical Components Hardware Business Application Application Interface Translation Software or EDI software Communication EDI Standards

Hardware Personal Computer P/C Mini or Midsize Computer Main Frame or Maxi Computer

Business Applications Business applications are all the applications that create or process a business document EX :850Purchase Orders 810Invoices 852Product Activity 855PO Acknowledgment 879Price Change 888Item Maintenance 856Ship Notice Manifest or ASN

Application Interface An application interface is the application that creates or processes the input/output file for the translator (EDI software ) EDI must be fully integrated to add value to your organization.

Translation Software The translation software translates the input file from the application interface into an EDI file according to a given standard and vice versa There are two very basic functions : 1- Generate (into EDI) 2- Interpret (from EDI) There are many more functions

Communication Modem Line Software Establish the link between the user’s computer and the VAN (Value Added Network)

Value Added Network (VAN) Manage the distribution, verification and storage of EDI transactions. Examples of Value added Networks: Bell Advantis GEIS Ordernet

COMMUNICATION MAILBOX LOEB MAILBOX MAXI MAILBOX PROVIGO LOEB MAXI PROVIGO ITL

EDI STANDARDS The EDI standards are an elaborate language of codes. The standards define the vocabulary as well as the syntax and the structure rule for the EDI transactions. The EDI standards are updated on a regular basis.

There are two major EDI standards X 12 and EDIFACT Within the X 12 standard there are subsets: UCS VICS WINS etc... Within these subsets are different versions: 3030, 3040, 4010 etc... EDI STANDARDS

EDI Trading Community Government Supplier / Warehouse Retailer / Manufacturer Customs / Brokers Transport Buyer`s BankSuppliers Bank

PC Windows-based EDI translation software that translates from EDI standards into application flat file format and vice versa. EDI - PC with EDI translator

Reduce office supply costs Reduce postal and courier costs Reduce telephone costs Reduce data entry and errors Reduce processing time Reduce cost of float on funds transfer Reduce A/R days Reduce inventory Eliminate Stock Outs EDI : Tangible Benefits

Improve customer service Increased access to timely information Increase the data reliability and quality Foster closer internal/external working relationships EDI : Tangible Benefits

Conclusion - Evaluate Your Business Before making the decision to invest in EDI technology, you must evaluate your business and identify all internal processes that can be improved. You must also commit to implementing a full cycle of transactions in order to reap the benefits of EDI.

PC with general EDI translator PC with specific EDI software ( E-Forms) EDI - Small Company Solutions

E-Forms PC Forms-based Trading Partner specific solution to send and receive business documents via EDI as required.

E-Forms

PC with general EDI translator PC with specific EDI software ( E-Forms) Web EDI EDI - Small Company Solutions

Web EDI Internet-based trading partner specific solution

Web EDI

PC with general EDI translator PC with specific EDI software ( E-Forms) Web EDI Fax to EDI EDI - Small Company Solutions

Hub transmits EDI transaction to service provider, document is converted to fax format and sent to trading partner. Inbound documents are transmitted in fax format and converted to EDI and transmitted to Hub. Fax to EDI

PC with general EDI translator PC with specific EDI software ( E-Forms) Web EDI Fax to EDI Service Bureau EDI - Small Company Solutions

EDI - Service Bureau 3rd party solution for low-end small companies to convert information into EDI standard format and deliver to trading partner.

EDI - Service Bureau