ECommerce EDI Toolkit

What is EDI?
EDI stands for Electronic Data Interchange EDI is the electronic exchange of business data using a published standardized format
Partners must agree on the format specifications to be used when exchanging business documents

EDI is intended to be a computer-to-computer exchange EDI enables efficient, accurate, and paperless business flows

How Does EDI Work?

Standard electronic business documents are communicated from an organizations computer, through translation software, then to an electronic post office, which is called a Value Added Network (VAN) The documents are then distributed by the VAN to all the necessary trading partners Trading partners receive the documents to process through translation into their computer applications

EDI Data Flow

Supply Chain Typical Message Flows

Cummins
Material Release System
Update Inventory (MRP) DELFOR

Supplier
Manufacturing Planning System

Material Receiving System

DESADV APERAK RECADV

Material Shipping System

INVOIC

Accounts Payable System

REMADV
$$$
Bank

REMADV
$$$

Accounts Receivable System

Cascading Benefits of Electronic Information

Price Catalogs
Orders

Ship Notices
Invoices
Invoices

Remittance / Payments Evaluated Receipt Settlements

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Sample EDI DESADV

UNB+UNOA:1+004154415:1+006415160:1+060919:1445+1855' UNH+2775+DESADV:D:98B:UN' BGM+351+00095093+9' DTM+11:200609191444:203' DTM+17:200609201444:203' RFF+AAU:M00009107' NAD+SF+004120::16++CUMMINS FILTRATION' NAD+ST+792820524++CUMMINS CMEP+WALESBORO COMPONENTS PLANT:WALESBORO EXIT, RL 22+COLUMBUS+IN+47201' LOC+7+022' RFF+PK:00095093' TDT+20+00009107++LT+MHRE::182' EQD+TE+530467' CPS+1++4' PAC+7++CTN25' QTY+52:252:EA' LIN+1++4944410:IN' IMD+++:::IDLER ASSEMBLY' QTY+12:1764:EA' ALI+US' RFF+ON:521019' LIN+2++4944420:IN' IMD+++:::IDLER ASSEMBLY' QTY+12:1750:EA' ALI+US' RFF+ON:521019' CNT+2:2' UNT+26+2775' UNZ+1+1855

Benefits of EDI
Timeliness is increased
Data can be exchanged 24 hours a day, 7 days a week No delay due to physical mailing time

Customer service is improved

Electronic processes meet customer mandates and maintain competitiveness Data throughput time decreases to meet costumer needs

Bottom line costs are reduced

Data accuracy improves when manual process are eliminated Resources formerly spent reconciling variances and entering data can be used to add value

Cummins Business Expectations

Information flows are vital to the success of companies in the global business environment Cummins utilizes ECommerce tools to obtain and communicate accurate, reliable, and timely information throughout our supply chain Cummins is committed to meet and exceed our customers expectations Cummins expects that our supply chain partners will share our commitment to adopt world-class business practices

Cummins ECommerce Expectations

Cummins requires all suppliers to use Electronic Data Interchange (EDI) to support business-tobusiness (B2B) communications Use of EDI EDIFACT message formats as documented in the Cummins Implementation Guides is required

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Cummins Standard EDI Documents

Sending Partner
Cummins

Business Document
Forecast / Orders

EDI Message
DELFOR

Presented via Presented Traditional EDI via Web Format Browser

Cummins
Supplier Cummins Cummins

Pull Signal
Advanced Ship Notice Receiving Advice Data Error Notice

DELJIT
DESADV RECADV APERAK

Supplier

Invoice

INVOIC
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DELFOR Delivery Forecast

Planning schedule with release capability Sent by the customer, Cummins Materials/production forecast by part number May include firm order, planned, and immediate requirements Full schedule replacement will be sent no less than once per week Additionally, net change schedule for a part number may be sent daily

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DELFOR Benefits
Allows direct download of delivery forecast data into suppliers MRP system Conveys Cummins material requirements in a timely and accurate manner

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DESADV Despatch Advice

Advanced Ship Notice Sent by the supplier Contains list of contents in a specific shipment All DESADVs must be received before the arrival of the material at the Cummins plant DESADV should be sent within 30 minutes of departure from the supplier dock Shipment identification (SID) number must be clearly marked on all packing list documents The SID number cannot be repeated within a 12 month period The purchase order number and part numbers on the DESADV must match the purchase order
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DESADV Benefits
Allows direct download of advanced shipment data into Cummins inventory receiving system Reduces inventory discrepancies, material shortages, and time spent correcting manual errors Provides receiving and materials personnel with visibility of inbound shipments and reduces orders to expedite Avoids time and effort needed to sort through non-standard packing slips to match receiving documentation
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INVOIC Invoice
Invoice Sent by the supplier Allows direct load of invoice to Cummins accounts payable system to increase accuracy and reduce manual effort Purchase order number and part numbers must match the purchase order The EDI invoice must contain identical data when compared to the invoice of record in the suppliers invoicing and accounts receivable systems
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INVOIC Benefits
Eliminates the risk of an invoice being lost or detained due to traditional mail routing Reduces the costs associated with manually processing invoices
10 full time analysts are needed to process/resolve issues associated with an average monthly volume of 35,000 supplier invoices in Southern Indiana alone

Allows an automated reconciliation process Improves data accuracy

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APERAK Application Error and Acknowledgment

Notification of error in DESADV or INVOIC Sent by the customer, Cummins Automatically notifies supplier of a data content error in an EDI document and that the document was not accepted into the customers system Supplier is required to correct the error and resend the corrected EDI document

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APERAK Benefits
Eliminates reconciliation errors within systems Notifies suppliers of inconsistent or incorrect data Supports Cummins common approach/best practices and requires no manual intervention at the plant Saves time and effort by eliminating the need for materials planners/schedulers or finance managers to follow up with suppliers due to simple data errors
Average time for materials planners/schedulers to resolve each receiving error ranges from 60-90 minutes

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Other Messages
DELJIT
Delivery Just In Time
Supplement to DELFOR

RECADV
Receiving Advice
Part number / quantity discrepancy

PRICAT
Price Catalog
Up to date pricing information

REMADV
Remittance Advice
Electronic Funds Transfer (EFT)
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EDI Getting Started

Select Integrated EDI or Sterling Web Forms
Integrated EDI computer to computer transfer of data in standard EDIFACT format (requires translation software and a VAN connection) Web Forms an EDI alternative that allows a trading partner to send and receive documents using a web browser through Sterling Commerce

Complete the Supplier Response Form

http://www.cummins.com/suppliers

Visit the ECommerce website for more information

http://www.cummins.com/suppliers

Contact the Cummins ECommerce Implementation Team

Electronic.Commerce.Support@cummins.com 812-377-3441 21