Paul,
Keeping item master files/databases in sync between sellers and buyers is
the biggest challenge for any automated order processing between the two.
The X12 transaction used to initially sync of the files and then to maintain
them is most often the 832 Price/Sales Catalog. Quite frankly an initial
sync is imperative in my opinion prior to starting to exchange PO's,
invoices, etc. Once initially sync'd then the frequency of maintenance
(again using the 832 but only with changes) should be agreed to between the
two business partners based on the volatility of the data and other
variables. The array of elements to be sync'd is typically not that many:
product identifier, unit-of-measure, and perhaps price, whether catalog or
contract. Everything else relates to other terms & conditions or entity
identification for bill-to/ship-to, which of course, needs to be sync'd as
well including which codification system is going to be used between the two
business partners. All of this is fundamental to any electronic procurement
and invoicing effort, regardless of which standard, if any, is used.
After more than 15 years in implementing X12 it still amazes me that
companies will rush to implementing the PO and invoice without ever thinking
or planning for syncing the data files and keeping them in sync. No wonder
companies still do read/rip/rekey since they can't rely on data accuracy and
no wonder they wonder "where the beef is!" This approach only results in
wrong shipments, returned goods, increased ARO days, invoice reconciliation
and so on. And, unfortunately, it's EDI that gets the black eye. However,
whether one uses X12, UN/EDIFACT, XML or any other data structuring rule
set, the result would be the same if the item master files are not sync'd
and maintained. Oh well......
Rachel
Rachel,
I agree strongly with the importance of quality data.
What sort of procedures do you suggest to keep them current ?
We use
1/ Error reports which check for various errors and are used as part of KPIs
for ALL the departments involved in the process.
2/ Defaulting as much data for each master file.
If a customer is of a certain type we use that information to set up other
related master files. If the customer changes type we give the user a report
to approve and when he screen accepts it kicks off updates.
I know you could normalise this data to the customer file, but it normally
involves heaps of mod'ns to the ERP.
I find also that most master files in manufacturing and distributions and
sales are very sparse in terms of their ratio of used fields to available
fields on records. This with the strong repetitions of combinations of
fields and values within fields (especially in product masters) allows many
opportunities for defaulting.
3/ Making compulsory on the initial process data needed for later process,
but non-core data for the initial process. So you make critical data you
need later.
regards Paul.
> -----Original Message-----
> From: Rachel Foerster [SMTP:[EMAIL PROTECTED]]
> Sent: Friday, June 22, 2001 4:11 AM
> To: [EMAIL PROTECTED]
> Subject: Re: Success Story
>
> Scott,
>
> You clearly identify one of the major issues for a completely integrated
> EDI
> environment....clean data, accurate product identification, correct
> units-of-measure, etc. Companies that fail to clean their data during
> implementation and testing will reap only headaches and problems.
>
> Furthermore, using a different syntax (XML) to structure the purchase
> orders
> does nothing to resolve the issue of dirty data, bad, missing, incorrect
> products IDs and UOMs.
>
> It continually amazes me that there are so many XML proponents who don't
> understand this fundamental requirement, which holds true regardless of
> what
> set of rules one uses to format/structure the documents.
>
> Thus, the initial critical steps for any end-to-end integrated EDI effort,
> whether using X12, XML, UN/EDIFACT, or even a proprietary file structure
> are:
>
> 1. Clean up your item master databases and get correct product IDs and
> UOMs,
> and then institute procedures to KEEP THEM CURRENT
> 2. Clean up your customer/supplier files and ship-to/bill-to codes, and
> institute procedures to KEEP THEM CURRENT
> 3. Reach agreement with your trading partner on the semantic for each and
> every data element
> 4. Reach agreement with your trading partner on the business rules, i.e.,
> what does your trading partner expect you to do with the data they send
> you
> and what are you willing/prepared to do with it and are you in sync with
> your trading partner on this
>
> Getting through these first essential critical steps is the challenge.
>
> Michael, this is a great success story. Thanks for sharing it.
>
> Rachel Foerster
> Principal
> Rachel Foerster & Associates, Ltd.
> Strategies for Electronic Commerce
> 39432 North Avenue
> Beach Park, IL 60099
> Phone: 847-872-8070
> Fax: 847-872-6860
> http://www.rfa-edi.com
>
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