Marine Bill of Lading - PowerPoint

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Marine Bill of Lading - PowerPoint Powered By Docstoc
					                   Marine Data Exchange

                           About The Presenter

• Norman Katz, Katzscan Inc. (
• Specialties:
     – Barcode applications (inventory, mfg)
     – Electronic Data Interchange (EDI) / e-B2B
     – Supply chain vendor compliance
•   Since January 1996
•   NMMA Supply Chain Consultant since 4/2004
•   MDX Technical/Business Lead since 1/2005
•   Resource available to all marine industry
    companies (mfgr, distributor, boat builder, retailer)
                      Presentation Outline

    •   What is the MDX?
    •   How is the MDX used?
    •   Why MDX?
    •   Who uses the MDX?
    •   Benefits of the MDX!
    •   MDX and the Supply Chain


                   What is the MDX?

                           What is the MDX?

    • Internet-based software program
      developed & hosted by the NMMA
    • Used to transfer business documents as
      electronic data files
        – First done in the mid 1970’s (EDI)
        – Common in many other industries
    • Supply chain enablement tool
        – Users are called “trading partners”
                    What does the MDX do?

    • Enables electronic business document
    • Removes barriers created by spam
      filters and anti-virus software – better
      than e-mail
    • Creates internal & external efficiencies
    • Consolidates business document
      lifecycle to a single data repository
                   What does the MDX not do?

    •   Will not generate data
    •   Will not validate data
    •   Will not count your inventory
    •   Will not manufacture products
    •   Will not read your mind
    •   Will not make your morning coffee or
        afternoon tea
                        The MDX is.....

    • A communications pipeline between a
      buyer and seller
    • A very low cost supply chain
      enablement tool
    • A way to reduce / eliminate errors
    • A way to increase / improve efficiencies
    • A way to do business better
                   MDX Business Documents

    •   Purchase Order
    •   Purchase Order Change
    •   Purchase Order Acknowledgement
    •   Advance Ship Notice
    •   Invoice

                        Purchase Order

    • Sent from the buyer to the seller (from
      the customer to the supplier)
    • A commitment to buy goods and
    • Contents: items, quantities, prices,
      payment terms, ship-to, delivery
      information, dates
                   Purchase Order Acknowledgement

    • Sent from seller to buyer
    • Used to accept or reject all or part of a
        – Item quantities
        – Delivery dates
        – Unit Prices
    • Used to verify receipt of a PO

                            Purchase Order Change

    • Sent from buyer to seller
    • Modifies a previously sent PO
        – Delivery date
        – Item quantities
        – Item costs
    • Should be used to verify a seller’s
      modification via the PO ACK
    • Should be used with restrictions to avoid
      excessive / late PO changes very close to
      ship date
                        Advance Ship Notice

    • Sent from seller to buyer
    • Acts as an electronic bill of lading
    • Contains shipment information:
        – Carrier, Ship To, Ship From
        – Weight & Volume
        – Items and quantities
        – PRO # / tracking #

    • Sent from seller to buyer
    • Requests payment for goods shipped,
      not ordered
    • Contents:
        – Payment terms, remit to, vendor ID
        – Item, quantities, costs, taxes
        – Adjustments, i.e. freight costs
                    Document Exchange Example –
                        PO With No Changes

                      (1) Buyer sends PO             Seller
   Buyer              (2) Seller sends PO ACK
                      (3) Seller sends ASN
                      (4) Seller sends Invoice

                      Solid line = sent doc      (1) (2) (3) (4)
(4) (3) (2)           Dashed line = recv’d doc


                   Document Exchange Example –
                       PO With Changes # 1

 1. Buyer sends a PO to the Seller.
 2. Seller rejects part of the PO; sends PO ACK to the Buyer.
 3. Buyer updates the PO in Buyer’s ERP system to reflect
    changes. (Assumes Buyer accepts Seller’s changes.)
 4. Buyer resends updated PO to Seller.
 5. Seller sends PO ACK to Buyer with no changes,
    accepting updated PO.
 6. Seller sends Buyer an ASN when shipping.
 7. Seller sends Buyer an Invoice after shipping.

 Easily accomplished with automated processes.
                   Document Exchange Example –
                       PO With Changes # 2

 1. Buyer sends a PO to the Seller.
 2. Seller rejects part of the PO; sends PO ACK to the Buyer.
 3. Buyer cancels the original PO in Buyer’s ERP system.
    (Buyer accepts Seller’s changes.)
 4. Buyer creates new PO to send to Seller.
 5. Seller sends PO ACK to Buyer with no changes,
    accepting new PO.
 6. Seller sends Buyer an ASN when shipping.
 7. Seller sends Buyer an Invoice after shipping.

 Easily accomplished with automated processes.

              How is the MDX used?

                        How is the MDX used?

    • User Interfaces:
        – Web Form
        – Software Integration
    • Helpful Documentation
    • Business relationship procedures

                             Web Form

    • Requires high-speed connection to the
      Internet (cable or DSL)
    • No software to purchase
    • Similar to an e-mail mailbox:
        – Retrieve and print inbound documents
        – Data enter and send outbound documents

                   Web Form - Mailbox

                   Web Form – PO’s

                   Web Form – PO ACK

                   Web Form – PO CHG

                   Web Form – Invoice

                   Web Form – ASN Header

                   Web Form – ASN Shipment

                   Web Form – ASN Order Level

                   Web Form – ASN Pack Level

                   Web Form – ASN Item Level

                   Web Form – Settings

                      Web Form Highlights

    • Purchase Orders can be automatically
      converted to:
        – PO Acknowledgements
        – PO Changes
    • Saves redundant data entry
    • PO ACK’s and PO CHG’s can be further
      edited before sending
                       Software Integration

    • Open platform – any operating system
        –   Windows®
        –   Unix®
        –   AS/400®
        –   VAX VMS®
        –   HP/UX®
    • Uses Secure Socket Layer (SSL) File
      Transfer Protocol (FTP)
    • Software application independent
                      Helpful Documentation

    The following documentation is available on the
      MDX web site Downloads page to help you:
    • Data File Standards
    • MDX FTP Client
    • Web Forms
    • System Integration Overview
    • Trading Partner Checklist
    • …..more to come
                      Data File Standards

    • Used for software integration
    • Text files
    • ANSI X12 EDI version 4010

                      Data File Guidelines

    • Applies to all MDX transaction files
    • Describes general data file and data
      record structures characteristics
    • Data field and data record delimiters
    • Data field notations
    • Read before individual transaction file
      data standards
                         Data Standards

    • One document for each business
      transaction file (i.e. PO, ASN, Invoice)
    • Data records and data fields in detail
    • Data field characteristics (i.e. M/O,
      alpha vs. numeric, min/max lengths)
    • Sample data file

                        MDX FTP Client

    • Free Windows®-based secure FTP
    • Accompanying user guide
    • Easy to install and use
    • Not applicable for non-Windows
    • Not as flexible as 3rd party options
                    Web Forms document

    • Contains a screen snap-shot of every
      web form screen in the MDX
    • How to maneuver through the MDX
    • Pushbutton functions for each screen
    • General web form functionality

                     System Integration Overview

    • Describes trading partner relationship
        – Customer
        – Supplier
    • Trading partner responsibilities
    • Testing methodology
    • Business procedure changes

                        System Integration Example –
                              Purchase Order

 Buyer                                             Seller
               EXTRACT:             APPEND:
               PO Header            SO Header
               PO Detail            SO Detail

               > SSL FTP <           > SSL FTP <

                     Trading Partner Checklist

    • Used to document data field
      requirements by transaction
        – Inbound
        – Outbound
    • Established by the customer (“buyer”)
    • Does not vary by supplier (“seller”)

                      Trading Partner Checklist –
                          Customer / Buyer

    • Data record requirements
    • Data field characteristics
    • Internal notes only (2nd copy):
        – Notate application files and fields for
          outbound file generation
        – Notate application files and fields for
          inbound data file validation & append

                        Trading Partner Checklist –
                             Supplier / Seller

    • Data record requirements
    • Data field characteristics
    • Internal notes only:
        – Notate application files and fields for outbound file
        – Notate application files and fields for inbound file
          data validation & append
    • Helps to organize and standardize software
      programming for multiple trading partners
                   Business Relationship Procedures

    • Once “electronic”, no business
      commitments or changes via:
        – Paper
        – E-mail
        – Fax
        – Telephone
    • Consolidates communications to a
      single pipeline…..
                   Communications Consolidation

    • All communications relating to a
      business transaction are now
      documented in the MDX
    • No more searching multiple sources:
        – E-mail
        – Phone conversation notes
        – Fax
        – Paper / postal mail

                   Why MDX?

                      Why is the MDX?

    • Introduce good supply chain practices
      to the marine industry
    • Affordable supply chain enablement
    • Foster growth by helping companies
      conduct business more efficiently and

                   Good Supply Chain Practices

    • You are trading partners, not trading
    • Enable your suppliers by providing tools
      for success – don’t just dictate rules
    • Suppliers must grow with their
      customers needs
    • Suppliers can often leverage customer
      requirements for themselves (i.e.
      barcode labeling)
                            The MDX is affordable

                                MDX                    EDI

     Transaction charges          NO            Yes, 10’s or 100’s of
      (per 1,000 chars)                          dollars per month

         Monthly fees             NO            Yes, 10’s or 100’s of
                                                 dollars per month

        NMMA Member        $900 one-time fee,    Varies extremely,
           Costs            $300 annual, no     may involve software
                            software to buy          purchase

                   MDX Business Efficiencies

    • Efficiencies for buyer and seller
    • Efficiencies via web form or integration
    • Fosters a better (more efficient) trading
      partner relationship
    • Reduce / eliminate manual errors
    • Speed processing
    • Can be a competitive advantage
                   Shared Business Inefficiencies

    • Buyers & Sellers can both suffer from:
        – Lost documents (mail, fax)
        – Blocked e-mails (spam, anti-virus)
        – Illegible handwriting
        – Manual data entry errors
        – Phone / e-mail tag
        – Long distance phone charges
        – Unnecessary follow-up’s
        – Tasks that waste time (anti “Lean”)
                       Business Growth

    • Internal growth: more efficiencies =
      more profits
    • Internal growth: more profits = business
      expansion / product innovation
    • External growth: increased sales
    • External growth: reduce competition
      (on-shore & off-shore)

                   Who uses the MDX?

                   MDX Marine User Community

    • The MDX can be used by:
        – Accessory Manufacturers
        – Distributors
        – Boat Builders
        – Engine Manufacturers
        – Retailers

                   Extending the supply chain

    • The MDX can be used by marine
      companies to conduct efficient e-B2B
      with non-marine industry suppliers
    • Supply chain enablement within and
      outside the marine industry


                   Benefits of the MDX!

                          Technology Benefits

    • Direct point-to-point electronic
    • No concerns associated with e-mail:
        – Verify better than "read receipts" which are
          not available through all e-mail services
        – Bypass e-mail restrictions such as spam
          blocking and virus filtering

                        Process & Procedure Benefits

    •   Enable automation with optional system integration
    •   Improve accuracy of information
    •   Reduce paperwork
    •   Eliminate manual data entry errors
    •   Eliminate errors due to illegible hand-written characters
    •   Eliminate lost purchase orders & invoices
    •   Verify shipment receipt faster
    •   Eliminate need for follow-up telephone calls:
        – Increases office staff efficiency
        – Reduces long-distance telephone bills

                      Supply Chain Benefits

    • Supply chain is internal and external
    • Internal
        – Communication between departments
    • External
        – Communication to suppliers
        – Communication to customers

                   Internal Supply Chain Benefits

    • Improve inter-departmental
        – Purchasing
        – Accounting
        – Warehouse
    • Automate cross-validation of MDX
                    Document Cross Validations

    • Warehouse receipt should match ASN
        – Stop & determine / correct mismatch errors
    • ASN should “match” PO
        – Except backorders & short shipments
        – Over-shipments? Wrong items?
    • Invoice should match ASN; ASN
      previously matched to warehouse
      receipt; ASN previously validated to PO
                   External Supply Chain Benefits

    • Verification of business document
        – Content
        – Transport
    • Speed business document transport
        – PO, PO Ack, PO Chg
        – Invoice

                     Overall Supply Chain Benefits

    • Move closer to Just In Time (JIT)
        – PO, PO Chg, PO Ack require less transport time
        – Leaner inventory levels
    • Replenishment PO automation eliminates
      manual involvement
        – Reduces number of supplier PO’s
        – Catch “close to replenishment” items & order them
        – Shipment consolidation, reduces freight costs

                          THANK YOU!

                   Any questions?


Description: Marine Bill of Lading document sample