1. EDI – Information The presentation includes information on:
Ferraz Shawmut
EDI – Information
The presentation includes information on:
Benefits of EDI
What is EDI
How it works – Purchase Order Example
EDI Transaction Sets Supported Today
Specific EDI setup information
Required information from the user
Ferraz Shawmut, EDI Contact Information

2. What is EDI: EDI stands for Electronic Data Interchange.
EDI is the computer to computer exchange of structured information, by agreed standards, from one computer application to another by electronic means, with minimum human intervention.
EDI in other terms is understood to mean the specific interchange methods agreed upon by national or international standards bodies for the transfer of business transactions.

3. What is EDI:
Two major sets of EDI standards exist. UN/EDIFACT is the only international standard and is predominant in all areas outside of North America. ANSI ASC X12 or (X12) is more popular in North America and is also used worldwide.
The standards define the formats, character sets, and data elements used in the exchange of documents and forms, such as purchase orders (called "ORDERS" in UN/EDIFACT and an "850" in (X12).

4. EDI Benefits: Transfers information faster and more accurately
Automates routine transactions
Improves productivity and business controls
Reduces costs and frees up resources
Reduces errors and rework
Eliminates manual handling of data,
Builds closer business partnerships
Shortens transaction processing cycle
Enhances data accuracy
Lowers inventory levels
Improves cash-flow management
Creates a competitive advantage

5. How it works – Purchase Order Example:
Buyer enters order information into production database, which generates a purchase order. Order information then channeled through an interface programs.
Interface programs perform edits and checks and direct order data into predefined EDI intermediate files. EDI intermediate files contain information in a form that the EDI translation software can read.
Software translates interface file data into a document formatted according to EDI standards supplier's computer can recognize.
Document now is a file that contains order data in a predefined, recognizable order.
Software adds appropriate communications protocols to EDI document in preparation for transmission via telephone lines.
Using a modem / telephone line, buyer transmits purchase order to a VAN (Value added network). Think of this as a mailbox.

6. How it works – Purchase Order Example:
Using a modem / telephone line, buyer transmits purchase order to a VAN (Value added network). Think of this as a mailbox.
Software on the supplier's side picks up document from VAN, interprets and/or converts communication protocols to open the electronic document.
Purchase order is now in standard, recognizable format and is available to the supplier's computer systems.
Supplier's translation software interprets documents from the EDI format and places the order information in EDI intermediate file. EDI intermediate files contain the translated purchase order information.
Interface programs perform edits / checks before data is integrated with supplier's database.
Suppliers application software can now process the buyer's order.

7. EDI Transactions Supported Today:
850 - Purchase Order
855 - Purchase Order Acknowledgment
856 - Advanced Ship Notice
810 - Invoice
844 - Product Transfer Account Adjustment
849 - Product Transfer Account Adjustment response

8. EDI Setup Information:
ISA Qualifier - 01
ISA ID –
GS ID –
Van ID - X2
Production and Test mailboxes are the same, the only difference is the ISA15 element.
Production – P
Test – T

9. Required Customer Information:
Please provide the following information and send to the Ferraz Shawmut EDI contact listed on next slide:
EDI ID: _________________________________
EDI Qualifier: ____________________________
Branch Listing: __________________________
Duns + 4: _______________________________
Customer Contact Information:
Contact Name: __________________________
Telephone: _____________________________
Fax: ___________________________________
_________________________________
Support __________________________

10. EDI Contact Information:
Ferraz Shawmut Contact Name
Jason Moses
Telephone
Fax
Support

11. How EDI Gets Started: Lets be proactive and build our business with select partners
REACTIVE
PROACTIVE
No direction
Lack of understanding
Lack of regulated program
"Jury Rig" third-party solution
Defined Corporate direction
Clearly defined business need
Controlled program
"Selected" trading partners
Impartial "third-party" input

12. EDI Wrap Up:
Target those distributors that are already doing business with other manufacturers via EDI
Use your territory list to identify good sales volume targets.
Focus on the “850” Purchase order transaction to begin with, then move to other transaction types.
We will not be giving any further discounts to move towards EDI – everyone will save money and time.
Our target is to have 40% of our sales entered through electronics transactions
Don’t forget to update your monthly IOI’s with your successes.