The Rest of EDI - International and Transportation/Logistics

The Rest of EDI - International and Transportation/Logistics

© SPS Commerce 2006

AgendaAgenda

Introductions

SPS Commerce Overview

International Supply Chain

International Suppliers

Sourcing Suppliers

3 Party Logistic – Order Fulfillment Services and Distribution

Domestic Transportation

Relevant Case Studies

Proposed Next Steps

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SPS Commerce - SaaS LeadershipSPS Commerce - SaaS Leadership

Most Customers • Hosted EDI Software Company

• AKA Software as a Serve (SaaS)

• Market Leaders with 46% Market Share

• 72,000 Suppliers Enabled

• 1200+ Retailer / Distributor Connections

• 12,000+ Hosted EDI Customers

• 2,000+ Universal Catalog Customers

Rapid Growth• Acquired Owens Direct (Increased Grocery Penetration)

• Opened Sales & Support Office in Beijing China

• Strategic & Managed Growth - 400%+ in past 5 years

• 24 Consecutive Quarters of Growth – Predicable Revenue Stream

• 275% plus growth in new subscriptions

Clarification

• SPS is NOT a Van and SPS does NOT sell software

• Revenue is generated from Suppliers Monthly Subscription Fee’s

AccentureTower333 South Seventh St.Suite 1000Minneapolis, MN

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Typical Evolution of EDITypical Evolution of EDI

• Orders – 850/875• Invoice – 810/880• Shipping – 856• Change Orders – 860• Introduce existing transactions with new Order Models (DSD,

Cross Dock, Direct to Consumer)• Item Synchronization – 832• Finance – 812/820• Sales Activity – 852 (VMI – Vendor Managed Inventory)• Forecast – 830• International Supply Chain – All of the above and more!• Transportation – 204/990/214/753/754• 3PL Orders and Distribution – 940/945

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International Supply ChainInternational Suppliers

International Supply ChainInternational Suppliers

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International Supplier “Before EDI”International Supplier “Before EDI”

1. Retailer places order with Supplier2. Retailer obtains Letter of Credit from Bank and shares copy of PO3. Supplier Warehouse packs boxes and faxes or call in packing slips, puts shipping labels on boxes and sends to

consolidator4. Consolidator arranges for Booking and communicates with Retailer5. Consolidator packs/builds container for placing on ocean vessel6. Retailer takes ownership of goods and moves to port of import7. Goods pass customs, Goods are trans-load off vessel and onto domestic truck8. Goods moved to domestic location(s)

Merchandising

Port of ExportPort of Import

InternationalSupplier

PO

Packing Slip

1

3

7

5

7

Bank

LC/PO

2

6

8

Consolidator

4

Retailer DC

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International Supplier “After EDI”International Supplier “After EDI”

1. Retailer places order with Supplier and shares copy of PO to consolidator – 850/8752. Retailer obtains Letter of Credit from Bank and shares copy of PO - 8503. Supplier Warehouse packs boxes, prints UCC-128 labels, ships product to consolidator –

- Sends ASN to Retailer– 856- Sends ASN to Consolidator - 856

4. Consolidator arranges for Booking – 3005. Consolidator packs/builds container for placing on ocean vessel – 856 (could be a 315 on the status of the

shipment)6. Retailer takes ownership of goods and moves to port of import7. Goods pass customs, Goods are trans-load off vessel and onto domestic truck – 856 (860 - Allocation),8. Goods moved to domestic location(s) - 214

Merchandising

Port of ExportPort of Import

InternationalSupplier

PO

ASN

1

3

3

5

7

Bank

LC/PO

2

6

8

Consolidator

4Booking

ASN

ASNRetailer DC

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International Supply ChainSourcing Suppliers

International Supply ChainSourcing Suppliers

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Sourcing Supplier “Before EDI”Sourcing Supplier “Before EDI”

1. Retailer places order with Sourcing Company2. Supplier forwards order to manufacturer contracted for this order3. Manufacturer packs boxes and faxes or call in packing slips, puts shipping labels on boxes and

ships to consolidator4. Consolidator arranges for Booking and communicates with Supplier5. Consolidator packs/builds container for placing on ocean vessel6. Retailer takes ownership of goods and moves to port of import, 7. Goods pass customs, Goods are trans-load off vessel and onto domestic truck8. Goods moved to Retailer

Domestic DCs

Merchandising

Factory #2

Port of Export

Port of Import

PO

Packing Slip

1

4 3

2

6

5

Factory #1

Factory #3

78

SourcingSupplier

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Sourcing Supplier “After EDI”Sourcing Supplier “After EDI”

1. Retailer places order with Sourcing Company – 850/8752. Supplier forwards order to factory (#2) contracted for this order 850/9403. Factory packs boxes, prints UCC-128 labels, ships product to consolidator –

- Sends ASN to Retailer– 856- Sends WSN to Supplier - 945, Supplier sends ASN to Retailer – 856- Sends ASN to Consolidator - 856

4. Consolidator arranges for Booking and communicates with Supplier - 3005. Consolidator re-packs items and builds container for placing on ocean vessel - 8566. Retailer takes ownership of goods and moves to port of import, Goods pass customs, Goods are trans-load off

vessel and onto domestic truck – 860 (Allocation), 8567. Goods moved to Retailer - 214

Domestic DCs

Merchandising

Factory #2

Port of ExportPort of Import

PO

ASN

1

3

2

6

5

Factory #1

Factory #3

7

3

SourcingSupplier

Fulfillment Order

WSN

3

Booking4

ASNASN

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Domestic TransportationDomestic Transportation

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Transportation “Before EDI”Transportation “Before EDI”

1

3

2

Carrier

Merchandising Supplier

Retailer DC

1. Merchandising approves and sends order to Supplier2. Supplier acknowledges/requests change/Buyer calls for status of order

3. Supplier packs contents and labels shipment 4. Supplier arranges for shipment with Carrier and ships packages (BOL)5. Carrier calls for an appointment or buying organization contacts carrier on the status of the

shipment/order6. Buying organization receives shipment at DC7. Buying organization breaks apart shipment and ships items to individual stores

Stores 4

5

67

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Transportation “After EDI”Transportation “After EDI”

1/2

3

Carrier

Merchandising Supplier

Retailer DC

1. Merchandising approves and sends order to Supplier – 850/8752. Supplier acknowledges/requests change/Buyer calls for status of order – 855/8603. Supplier packs contents and labels shipment 4. Supplier arranges for shipment –

• With Carrier and ships packages (204/211/990)• With Retailer (753/754) then Retailer arranges with Carrier (204/211/990)

5. Carrier picks up shipment, Supplier sends - 856 6. Carrier on the status of the shipment/order - 2147. Buying organization receives shipment at DC, buying organization breaks apart shipment and

ships items to individual stores

8. Retailer arranges with Carrier (204) and carrier on the status of the shipment/order - 214

Stores4

7

4

2

5

6

4

8 6

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3rd Party Logistic Fulfillment Services3rd Party Logistic

Fulfillment Services

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3PL “Before EDI”3PL “Before EDI”

1. Retailer places order with Supplier (paper or EDI)2. Supplier faxes or phones order to 3PL3. 3PL packs items and faxes or phones packing slip to Supplier4. 3PL prints shipping labels5. 3PL applies labels and ships product to Retailer

Merchandising

3PL

PO

ASN

Retailer DC

1

4

32

6 5

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3PL “After EDI”3PL “After EDI”

1. Retailer places order with Supplier – 850/8752. Supplier places Fulfillment order with 3PL - 9403. 3PL packs items, prints UCC-128 labels, ships product to Retailer4. 3PL ships product to Retailer -

• sends ASN to Retailer as Supplier - 856• Sends WSN to Supplier - 945, Supplier sends ASN to Retailer - 856

5. Goods moved to domestic location(s) - 214

Merchandising

3PL

PO

ASN

Retailer DC

1

5

4

2

Fulfillment Order

ASN4

WSN

43

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Relevant Case StudiesRelevant Case Studies

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What It Means to The RetailerWhat It Means to The Retailer

• More Programs for New and Existing Vendors to be EDI Enabled

• Increased Use of EDI Reduces Costs In New Areas

• Better Visibility into Supply Chain and More Reliable Information

• New Players participating in EDI• Banks• Consolidators• Carriers• 3rd Party Logistics

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What It Means to The ManufacturerWhat It Means to The Manufacturer

• Suppliers will now need to involve Fulfillment Service Companies to assist with EDI Requirement

• Suppliers will become EDI Customers with their Supply Chains

• Make Meeting New Retailer Electronic Requirements Easier

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Value PropositionsValue Propositions

StoresDomestic DCs

Supplier

Int’l Suppliers

Efficient Trans-loading

Shipping Visibility to Port of Export

In Transit Vessel Visibility

Automated ReceivingAutomated WM

Accelerated Planning

Paper OrdersOrder Tracking & VisibilityItem Data Management

Merchandising

In Transit Domestic Visibility

3PL

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Next StepsNext Steps

• Who are the new players participating in EDI and where are they in EDI?

• What services does my Consolidator provide, what capabilities do they have and how can EDI assist?

• Are some of my suppliers Sourcing suppliers and what are the capabilities of those factories?

• What can my preferred carriers do for me?• When do I need to know what?• System integration concerns• Can I do this alone or will I need assistance?

© SPS Commerce 2006 22

Questions?Questions?