Marine Bill of Lading - PowerPoint

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					                   Marine Data Exchange
www.nmma.org/mdx




                                          1
                           About The Presenter
www.nmma.org/mdx




• Norman Katz, Katzscan Inc. (www.katzscan.com)
• 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)
                                                      2
                      Presentation Outline
www.nmma.org/mdx




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

                                             3
www.nmma.org/mdx




                   What is the MDX?


                                      4
                           What is the MDX?
www.nmma.org/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”
                                                5
                    What does the MDX do?
www.nmma.org/mdx




    • Enables electronic business document
      communications
    • 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
                                                 6
                   What does the MDX not do?
www.nmma.org/mdx




    •   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
                                               7
                        The MDX is.....
www.nmma.org/mdx




    • 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
                                                 8
                   MDX Business Documents
www.nmma.org/mdx




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


                                            9
                        Purchase Order
www.nmma.org/mdx




    • Sent from the buyer to the seller (from
      the customer to the supplier)
    • A commitment to buy goods and
      services
    • Contents: items, quantities, prices,
      payment terms, ship-to, delivery
      information, dates
                                                10
                   Purchase Order Acknowledgement
www.nmma.org/mdx




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

                                                  11
                            Purchase Order Change
www.nmma.org/mdx




    • 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
                                                    12
                        Advance Ship Notice
www.nmma.org/mdx




    • 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 #
                                              13
                                Invoice
www.nmma.org/mdx




    • 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
                                               14
                    Document Exchange Example –
 www.nmma.org/mdx
                        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)
            (1)
(4) (3) (2)           Dashed line = recv’d doc


                            MDX


                                                         15
                   Document Exchange Example –
www.nmma.org/mdx
                       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.
                                                         16
                   Document Exchange Example –
www.nmma.org/mdx
                       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.
                                                         17
www.nmma.org/mdx




              How is the MDX used?


                                     18
                        How is the MDX used?
www.nmma.org/mdx




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


                                               19
                             Web Form
www.nmma.org/mdx




    • 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


                                                   20
                   Web Form - Mailbox
www.nmma.org/mdx




                                        21
                   Web Form – PO’s
www.nmma.org/mdx




                                     22
                   Web Form – PO ACK
www.nmma.org/mdx




                                       23
                   Web Form – PO CHG
www.nmma.org/mdx




                                       24
                   Web Form – Invoice
www.nmma.org/mdx




                                        25
                   Web Form – ASN Header
www.nmma.org/mdx




                                           26
                   Web Form – ASN Shipment
www.nmma.org/mdx




                                         27
                   Web Form – ASN Order Level
www.nmma.org/mdx




                                           28
                   Web Form – ASN Pack Level
www.nmma.org/mdx




                                          29
                   Web Form – ASN Item Level
www.nmma.org/mdx




                                          30
                   Web Form – Settings
www.nmma.org/mdx




                                         31
                      Web Form Highlights
www.nmma.org/mdx




    • 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
                                             32
                       Software Integration
www.nmma.org/mdx




    • 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
                                              33
                      Helpful Documentation
www.nmma.org/mdx




    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
                                                  34
                      Data File Standards
www.nmma.org/mdx




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




                                            35
                      Data File Guidelines
www.nmma.org/mdx




    • 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
                                                36
                         Data Standards
www.nmma.org/mdx




    • 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

                                                 37
                        MDX FTP Client
www.nmma.org/mdx




    • Free Windows®-based secure FTP
      software
    • Accompanying user guide
    • Easy to install and use
    • Not applicable for non-Windows
      platforms
    • Not as flexible as 3rd party options
                                             38
                    Web Forms document
www.nmma.org/mdx




    • 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



                                             39
                     System Integration Overview
www.nmma.org/mdx




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

                                               40
                        System Integration Example –
www.nmma.org/mdx
                              Purchase Order

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




                             MDX
               > SSL FTP <           > SSL FTP <




                                                       41
                     Trading Partner Checklist
www.nmma.org/mdx




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

                                                 42
                      Trading Partner Checklist –
www.nmma.org/mdx
                          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

                                                    43
                        Trading Partner Checklist –
www.nmma.org/mdx
                             Supplier / Seller


    • Data record requirements
    • Data field characteristics
    • Internal notes only:
        – Notate application files and fields for outbound file
          generation
        – Notate application files and fields for inbound file
          data validation & append
    • Helps to organize and standardize software
      programming for multiple trading partners
                                                              44
                   Business Relationship Procedures
www.nmma.org/mdx




    • Once “electronic”, no business
      commitments or changes via:
        – Paper
        – E-mail
        – Fax
        – Telephone
    • Consolidates communications to a
      single pipeline…..
                                               45
                   Communications Consolidation
www.nmma.org/mdx




    • 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
                                            46
www.nmma.org/mdx




                   Why MDX?


                              47
                      Why is the MDX?
www.nmma.org/mdx




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


                                              48
                   Good Supply Chain Practices
www.nmma.org/mdx




    • You are trading partners, not trading
      adversaries
    • 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)
                                             49
                            The MDX is affordable
www.nmma.org/mdx




                                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

                                                                   50
                   MDX Business Efficiencies
www.nmma.org/mdx




    • 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
                                                  51
                   Shared Business Inefficiencies
www.nmma.org/mdx




    • 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”)
                                                52
                       Business Growth
www.nmma.org/mdx




    • 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)
                                             53
www.nmma.org/mdx




                   Who uses the MDX?


                                       54
                   MDX Marine User Community
www.nmma.org/mdx




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


                                          55
                   Extending the supply chain
www.nmma.org/mdx




    • 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



                                             56
www.nmma.org/mdx




                   Benefits of the MDX!


                                          57
                          Technology Benefits
www.nmma.org/mdx




    • Direct point-to-point electronic
      communications
    • 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

                                                     58
                        Process & Procedure Benefits
www.nmma.org/mdx




    •   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

                                                              59
                      Supply Chain Benefits
www.nmma.org/mdx




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


                                              60
                   Internal Supply Chain Benefits
www.nmma.org/mdx




    • Improve inter-departmental
      communication
        – Purchasing
        – Accounting
        – Warehouse
    • Automate cross-validation of MDX
      documents
                                              61
                    Document Cross Validations
www.nmma.org/mdx




    • 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
                                                   62
                   External Supply Chain Benefits
www.nmma.org/mdx




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

                                              63
                     Overall Supply Chain Benefits
www.nmma.org/mdx




    • 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

                                                           64
                          THANK YOU!
www.nmma.org/mdx




                   Any questions?




                                       65

				
DOCUMENT INFO
Description: Marine Bill of Lading document sample