EDI

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EDI POS Systems

• ATG 383 - Spring 2002

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When to adopt technology?

• Things have to change to remain the same
• What do we want to accomplish?
• Lower costs
• Increase revenues
• Comply with required standards

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3 Technologies We Will Consider

• Electronic Data Interchange
• POS Systems
• eXtensible Markup Language eXtensible Business
  Reporting Language

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Electronic Data Interchange

• Computer to computer exchange of business
  information in a standard format.
• EDI is not faxes, e-mail, or web sites.

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EDI - General Idea
In-house system.
In-house system.
Translate into EDI format.
Translate into in-house format.
Transmit.
Receive.
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EDI - Purchase Order
Identify need. Create purchase order.
Create sales order continue processing.
Translate into EDI format.
Translate into in-house format.
Transmit to vendor.
Receive from customer.
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EDI - Acknowledgement
Match P.O acknowledgement.
Create acknowledgement.
Translate into in-house format.
Translate into EDI format.
Receive from vendor.
Send to customer.
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Translate In-house Data to Common Standard

• Translation process
• Data fields in business applications are mapped
  to corresponding fields in EDI documents
• Two Common EDI Standards
• ANSI X12 in North America
• EDIFACT outside North America
• Following examples taken from
• http//developer.netscape.com/docs/presentations/x
  pert/edi/edi.html

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Example of Standards-Based EDI Message
Interchange Group Header Interchange
Group Trailer
Functional Group Header Functional Group
Trailer
Transaction A - 1 of 2
Transaction A - 2 of 2
Functional Group Header Functional Group Trailer
Transaction B - 1 of 1
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EDI Network Options
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Three ways to connect Buyers Sellers
Direct Connection
Partner A
Partner B
Value Added Network
Van
Partner A
mailbox
mailbox
Partner B
Internet
Partner B
Partner A
mailbox
mailbox
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Comparison of EDI Traditional Systems
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What can go wrong with EDI? What are the controls?
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POS Scanners
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Retail POS Systems

• Captures and collects sales information at time
  of sale.
• Technologies that are important for this
• Bar codes
• Scanners PCs
• Off the shelf software

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Bar Codes Identify Products
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Bar Codes in Operation
Bar Code Number
Look up price product info. Update sales
inventory records
Scan Bar Code
Product info price
Add amount to customers purchase.
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• Use POS data to track sales and manage inventory.
• A few of the changes K Mart made
• Eliminate use of retail inventory method.
• Ability to make inquiries of data as the day
  proceeds.
• Find and adjust overstocked / understocked stores.

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• JC Penney sends POS data to VF Corp., maker of
  Lee and Wrangler jeans.
• VF watches flow of stock and automatically
  updates a particular item once the quantity
  reaches an agreed-upon point.
• VF uses a flexible manufacturing, allowing many
  small production runs.

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Some Advantages of POS

• Better customer service. Faster. Fewer errors
  with proper controls.
• More accurate inventory counting and control.
• Increased productivity through automated systems.
• Opportunity to integrate with EDI for improved
  replenishment time.

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Michigan Scanning Tests
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Scanners and POS -What can go wrong?What
are the controls?
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Using XML to Define Documents andXBRL for
Business Reporting
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A Web Page
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HTML That Created A Web Page
ltHTMLgt ltHEADgt ltTITLEgtHellolt/TITLEgt lt/HEADgt lt
BODYgt ltCENTERgt ltH1gtHello againlt/H1gt lt/CENTE
Rgt lt/BODYgt lt/HTMLgt
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EDI Message in XML
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Partial XML Document
lt!DOCTYPE Book-Order PUBLIC "-//EDItEUR//DTD Book
Order Message//EN"gt ltBook-Order
Supplier"4012345000094" Send-to"http//www.bic.o
rg/order.in"gt lttitlegtEDItEUR Lite-EDI Book
Orderinglt/titlegt ltOrder-Nogt967634lt/Order-Nogt ltMess
age-Dategt19961002lt/Message-Dategt ltBuyer-EANgt541234
5000176lt/Buyer-EANgt ltOrder-Line
Reference-No"0528837"gt ltISBNgt0316907235lt/ISBNgt ltA
uthor-TitlegtLabaln, Brian/Chromelt/Author-Titlegt ltQ
uantitygt2lt/Quantitygt lt/Order-Linegt ltOrder-Line
Reference-No"0528838"gt ltISBNgt0856674427lt/ISBNgt ltA
uthor-TitlegtParry, Linda (ed)/William
Morrislt/Author-Titlegt ltQuantitygt1lt/Quantitygt lt/Ord
er-Linegt
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XBRL

• XML based framework for exchange of financial
  information.
• Example
• ltDATEgtJuly 26, 1998lt/DATEgt
• Describes the information, not the presentation.
  Format flexible.

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XML Tags The Key

• ltitemgt
• ltnamegtCashEquivalents.Cashlt/namegt
• ltlabelgtCash and Securitieslt/labelgt
• ltamount period1998gt2000lt/amountgt
• ltamount period1997gt1000lt/amountgt
• lt/itemgt

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Financial Statement
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Financial Statement - XML/XBRL
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Summary

• Operation of EDI
• Operation of POS systems
• Use of XML and XBRL