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    Third Party Logistics and Edi

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    akashkrsna
    This document summarizes an EDI and third party logistics session presented by Susan Delaney of OSI Group and Corey Herchenroder of CONTAX. It discusses how OSI Group set up EDI with their third party logistics providers using SAP and Gentran software. It describes OSI's environment, EDI document flows and transactions, SAP IDoc configuration, partner setup, and daily EDI monitoring processes.

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    Third Party Logistics and Edi

    Uploaded by

    akashkrsna
    355 views35 pages
    This document summarizes an EDI and third party logistics session presented by Susan Delaney of OSI Group and Corey Herchenroder of CONTAX. It discusses how OSI Group set up EDI with their third party logistics providers using SAP and Gentran software. It describes OSI's environment, EDI document flows and transactions, SAP IDoc configuration, partner setup, and daily EDI monitoring processes.

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    Third Party Logistics and Edi

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    This document summarizes an EDI and third party logistics session presented by Susan Delaney of OSI Group and Corey Herchenroder of CONTAX. It discusses how OSI Group set up EDI with their third party logistics providers using SAP and Gentran software. It describes OSI's environment, EDI document flows and transactions, SAP IDoc configuration, partner setup, and daily EDI monitoring processes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    355 views35 pages

    Third Party Logistics and Edi

    Uploaded by

    akashkrsna
    This document summarizes an EDI and third party logistics session presented by Susan Delaney of OSI Group and Corey Herchenroder of CONTAX. It discusses how OSI Group set up EDI with their third party logistics providers using SAP and Gentran software. It describes OSI's environment, EDI document flows and transactions, SAP IDoc configuration, partner setup, and daily EDI monitoring processes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 35

    Orange County Convention Center

    Orlando, Florida | May 15-18, 2011

    Third Party Logistics and EDI


    Session 2511
    Susan Delaney, OSI Group, LLC
    Corey Herchenroder, CONTAX

    [ CONTAX Corporate Bio

    Real Experience. Real Advantage.

    Privately Owned, Founded in 1991


    ~ 100 Employees
    SAP fluency for 20 years
    SAP Business Objects Partner
    SAP Channel Partner
    Awarded 2010 Pinnacle Award
    Some Active Clients Include:

    [ OSI Group Background


    The OSI Group, headquartered in Aurora IL, is a global leader in food
    processing.
    The company has 47 processing facilities located in 17 countries and have
    over 10,000 employees dedicated to providing food solutions for some of
    the world's leading food companies.
    Core products include beef, pork, poultry, pizza and produce
    OSI is a world-class food manufacturer offering global solutions for product
    innovation, product development, and custom process engineering with a
    strong and proven focus on food safety and operational excellence.
    9 US plants on SAP
    2 more US facilities projected to start SAP implementation project in
    2012 - multiple 3PL possibilities

    Real Experience. Real Advantage.

    [ Learning Points
    How OSI set up EDI with its Third Party Logistics Providers
    Introduction to EDI
    EDI from a Logistics Viewpoint
    EDI from an EDI Viewpoint

    Real Experience. Real Advantage.

    [ EDI (Electronic Data Interchange)


    EDI means to exchange information between a sender and a
    receiver. Both communication partners need to speak the
    same language to understand each other.
    The language for EDI is comprised of the file formats and
    description languages used in the EDI data files. In the simple
    case of exchanging plain data files, the partners need to agree
    on a common file format.
    From SAP IDoc Book

    Real Experience. Real Advantage.

    [ 3PL Reasoning
    Third Party Logistics (3PL) is using an outside party to take
    care of all or part of your product distribution. If you are a
    small or medium company, you may not want to develop a
    logistics function. You may not want to invest in the facilities
    or the systems needed for logistics. Or your customers may
    require you to use a 3PL to save them transportation costs and
    allow them to mix products from multiple vendors at one
    location.
    A 3PL can perform the management function of warehousing,
    order fulfillment, distribution, customs and inbound/outbound
    transportation.

    Real Experience. Real Advantage.

    [ OSI 3PL Environment


    OSI has a batch-managed environment. Every pallet has an ID
    that is a combination of the year, day, and time the pallet came
    off the production line.
    OSI has three 3PLs we currently exchange EDI with:
    Large foodservice customer wanted one pick-up point for
    multiple vendors products.
    Grocery chain wanted two pick-up points (East, Midwest) for
    multiple vendors products.
    Major quick service restaurant wanted a single pick-up point in
    the Midwest for multiple vendors products.

    Real Experience. Real Advantage.

    [ Software/Consulting Environment
    SAP ECC 6.0
    Sterling Gentran for Windows EDI Mapping/Translation
    Software
    Sterling R/3 Extension for SAP
    Sterling AS2 Software (B2B)
    Sterling VAN Mailbox
    Consulting: CONTAX
    CONTAX has vast knowledge of both SAP and Gentran
    software

    Real Experience. Real Advantage.

    [ Document Flow Outbound


    .
    Stock Transport Order

    Sales Order

    Outbound Delivery

    Outbound Delivery

    IDoc

    IDoc

    Gentran Map
    Conversion
    to 943

    AS2 or EDI Van


    Real Experience. Real Advantage.

    Gentran Map
    Conversion to
    940

    AS2 or EDI Van


    9

    [ Document Flow Inbound


    AS2 or EDI Van

    Gentran Map
    Conversion
    from 944 to
    IDoc

    IDoc

    STO Delivery - MIGO


    Real Experience. Real Advantage.

    AS2 or EDI Van

    Gentran Map
    Conversion
    from 945 to
    IDoc

    IDoc

    Delivery - PGI
    10

    [ Transactions
    Current OSI EDI transactions used for the 3PL businesses:
    Outbound:
    943 Outbound stock transfer delivery of product to 3PL to create
    warehouse inventory.
    940 Outbound delivery information for customer shipment info to ship
    directly from 3PL.

    Inbound:
    944 Inbound confirmation of stock receipt from 943.
    Automatically creates a MIGO transaction in SAP.

    945 Inbound confirmation of customer shipment details


    Automatically PGIs the customer delivery

    Each customers file format is different in our environment.

    Real Experience. Real Advantage.

    11

    [ SAP IDocs
    An IDoc (interchange or intermediate document) is an SAP data container
    for one business object (delivery, order, etc) which determines the IDoc
    type. IDocs are an ASCII file format to exchange data between computers.
    Outbound
    IDoc DELVRY02 + extension ZLIVRY02 for both 943 and 940
    Message Type SHPORD
    Used SP partner for 943 and SH for the 940

    Inbound
    IDoc WMMBID02 for 944
    Message Type WMMBXY

    IDoc DELVRY03 for 945


    Message Type SHPCON

    Real Experience. Real Advantage.

    12

    [ 943 IDoc to EDI Map Example


    Example of 943 STO delivery

    Real Experience. Real Advantage.

    13

    [ Starting Point Transaction WEDI


    Provides EDI Menu Path

    Real Experience. Real Advantage.

    14

    [ Master Data
    There is a great deal of communication with your EDI partner
    on master data, EDI standards, and field definition. You need
    to agree on what data gets populated in every field and what
    sequence that data follows.
    Your terminology may mean something different to your
    partner.

    Real Experience. Real Advantage.

    15

    [ Material Master Data


    We have provided our material master data and the
    customer-material information record for our end customer to
    the 3PL so they can translate the EDI and distribute correct
    shipping paperwork that the customer can understand.
    We relay this master data information via email since there are
    less than 15 material numbers involved for each location.
    You can send this master data information via an EDI message
    if your material master environment is different.

    Real Experience. Real Advantage.

    16

    [ OSI LE Structure
    We have identified each of our 3PLs as storage locations attached to the
    manufacturing plant from which product is being supplied. When we do an
    STO, we identify the manufacturing plant as the header plant and the 3PL at
    the item level with the same plant number but the 3PL storage location.
    We do get customer order changes after a delivery is created for one of our
    3PLs, so we need to be able to change our deliveries. If the product has not
    been received at the 3PL, any further shipment of the product gets an error and
    cannot be processed.

    Other companies identify their 3PL as a warehouse.


    Once a WHSE is set up as External then no goods movements are allowed
    without the third party confirmation.

    Real Experience. Real Advantage.

    17

    [ Storage Location
    Two of the plants using these transactions are not WM plants
    so have no warehouse identified.
    Storage location configuration is done at OX09.
    Be sure to fill out the address of the 3PL in config so it appears
    on the STO and also on the delivery documents.

    Real Experience. Real Advantage.

    18

    [ WE20 Transaction
    Partner Profile set-up is required for communicating messages.

    Bank
    Customer
    Vendor
    Logical System

    Identify IDoc types, message types, RFC vs. file transfer ALE.
    Identify EDI standard and version.

    Real Experience. Real Advantage.

    19

    [ Customer Set-up
    WE20 requires set-up for each vendor, customer, bank, and
    logical system

    Real Experience. Real Advantage.

    20

    [ WE60 IDoc Type

    Real Experience. Real Advantage.

    21

    [ WE21
    Port Definition is used to define a file port to pass information
    back and forth from EDI to SAP.

    Real Experience. Real Advantage.

    22

    [ OMKY
    ALE is used to define a direct application link between EDI and
    SAP.

    Real Experience. Real Advantage.

    23

    [ Output

    Master Data - EDI Trigger for Deliveries

    Output determination triggers this EDI.


    LAVA delivery output can be copied to create new EDI
    outputs.
    Can trigger at the same time as your B/L
    Requirement of PGI to trigger - or Without requirement of PGI

    Multiple EDI partners in one delivery is possible with multiple


    outputs.
    Output medium is 6 for EDI with a dispatch time of 4 if
    triggering needed immediately.

    Real Experience. Real Advantage.

    24

    [ Daily Monitoring
    WE02 We all want green lights

    Real Experience. Real Advantage.

    25

    [ WE02 Error Correction


    You can use WE02 to do error correction.
    Double click on the paper icon on the left of the segment with
    the error.
    Menu path Data Record > Display > Change

    Real Experience. Real Advantage.

    26

    [ WE19
    Error correction can also be done here by drilling into the
    header or each line and correcting the data.

    Real Experience. Real Advantage.

    27

    [ Status Monitor For ALE BD87 Reprocess Without


    Correction

    Select red light item and hit process button - no data


    correction can be done here.
    If successful, turns yellow/red lights into green lights in WE02.

    Real Experience. Real Advantage.

    28

    [ Inbound IDoc Example


    Item of a 944 inbound receipt of stock

    Real Experience. Real Advantage.

    29

    [ EDI Confirmations
    When we send a document outbound to the partner from our
    mapper, we always get an EDI message type 997 confirmation
    back into our mapper. When we receive a new document
    from the 3PL, we always send a 997 back to them. The 997
    EDI transaction verifies you received a specific EDI message. It
    does not confirm any specific details from within the original
    message.
    There are other types of EDI messages that require a detailed
    confirmation back but that is not applicable with these
    transactions.

    Real Experience. Real Advantage.

    30

    [ Warehouse Inventory Cycling Reports


    The 947 EDI message is a warehouse inventory cycling report.
    We have not implemented this with any of our 3PLs yet. We
    do receive a PDF report with this data.
    Most 3PLs have various reports they can email you daily,
    including an inventory report.

    Real Experience. Real Advantage.

    31

    [ Best Practices

    If you are in a batch managed environment, be sure to assign


    your batch numbers in the STO PO. That way, when an
    error is made by the 3PL upon receipt confirmation, you will
    get a specific error message at the batch level. If you only
    assign the batches on the delivery, SAP error messaging is not
    specific and this creates a lot more work and creates an
    environment for errors to get into SAP.

    Make sure your plant double checks their inventory and


    verifies customer shipment accuracy daily.

    Real Experience. Real Advantage.

    32

    [ Key Learnings
    EDI lessens data entry but definitely needs to be checked in detail on a daily
    basis from an EDI perspective, a plant inventory perspective, and a
    customer invoicing perspective.
    You may need to customize your IDocs to bring in fields that are available
    in SAP but not in your IDoc.
    SAP has their IDoc which you then need to translate to EDI. This requires
    mapping of which IDoc field data corresponds to the EDI standard field that
    you have agreed upon with your customer.
    Depending on what system your 3PL uses, you might need to provide
    header data at the item level.
    There are various types of standards for EDI that you may need
    to communicate with.
    Real Experience. Real Advantage.

    33

    [ Contacts
    Susan Delaney, OSI Group
    SAP Business Analyst Sales/EDI
    [email protected]

    Corey Herchenroder, CONTAX


    Managing Director
    [email protected]

    Real Experience. Real Advantage.

    34

    Thank you for participating.


    Please remember to complete and return your
    evaluation form following this session.
    For ongoing education in this area of focus, visit www.asug.com.
    SESSION CODE:
    2511

    Real Experience. Real Advantage.

    35

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