197 Implementation of EDI in the retail trade

Implementation of EDI in the retail trade

In the following there is an introduction for those who will implement EDI in the retail trade where STAND’s guidelines are to be used.

Before an exchange of EDI can take place, an EDI exchange agreement must be established.

This specifies all relevant information, such as:

  • Which parties are covered by the EDI agreement
  • Contacts for different functions at customer and supplier
  • Addresses to be used when exchanging EDI messages
  • Which EDI messages to be exchanged
  • What format and version of EDI messages that are used
  • The way in which EDI messages are exchanged

In addition, the EDI exchange agreement shall state all bilateral agreements relating to EDI Interaction.

Bilateral agreements shall be established in all areas where deviations from other guidelines in STAND, which involve EDI, arise. This may be:

  • Processes
  • Deadlines
  • Content in EDI messages

Some important clarifications

Valid formats of messages

STAND supports two main formats;

  • EANCOM, based on UN EDIFACT-format
  • XML, self-developed and customized EANCOM format, except for customized invoice e2b Invoice

In addition, some customers accept other formats, but description of these is not part of the STAND guidelines.

The most used of other formats are

  • EHF, developed by DIFI and mandatory in use in the public sector
  • e2b Invoice

Both are XML-based

Exchange methods

There are different ways to exchange EDI messages. This is not regulated in STAND, but is agreed between the parties. The most relevant methods of exchange are:

  • Exchange messages via a mailbox feature. This involves a third party who communicates inbound and outbound messages between the customer and the supplier’s mailbox
  • Customer and supplier agree that messages are sent directly to each other’s server without the use of a third-party actor
  • Supplier sends and receives messages via a web-portal

Validation of messages

Some customers require that messages they receive are tested using GS1 Norway’s validation service before regular messaging can take place.

This is a free of charge service for users, funded by the retail chains, and managed by GS1 Norway.

The service is web-based and is always available. The service is based on user uploading a file with the message to be tested. In a few seconds, the file is tested, and a document is returned, stating what may be incorrect in the message.

The following messages are available for validation:

  • Order Receipt
  • Order confirmation
  • Despatch Advice
  • Invoice

Both XML and EANCOM format is supported

To get access to the service look online at www.gs1.no.

 

Introduction to technical documentation EDI

In the following, relationships are described as independent of what format EDI messages are exchanged and must be considered / considered when implementing EDI.

The target group for the documentation is technical personnel who will implement EDI in the IT solutions at the customer or supplier.

However, it is highly recommended that the documentation be reviewed together with the customer / supplier’s business department, as several areas describe in detail what needs to be considered for expected interaction to take place.

 

Technical documentation describes message flow and interaction related thereto for all processes where EDI is used and deals with the messages:

  • Order
  • Order Receipt
  • Order confirmation
  • Despatch Advice
  • Invoice
  • Invoice Receipt

As messages and interaction may vary for each distribution, the documentation is divided into three parts, one for each of the distribution forms:

  • Delivery via distributor
  • Delivery direct to retailer
  • Crossdock

STAND attaches importance to the exchange of messages according to simple and transparent principles that also make checking and follow-up as easy as possible.

Despite this, bilateral agreements must be concluded in several areas. These are described for each form of distribution and process in subsequent documentation.

Bilateral agreements must be documented in the EDI exchange agreement.

Areas where bilateral agreements can be established is:

  • If order receipt shall be sent
  • Deadline for order confirmation if ordering and pick-up same day
  • If Deviation from deadline on Despatch Advice at EXW
  • If invoice receipt shall be sent

 

 Areas where bilateral agreements can be established is:

  • Order
    • About order type Forecast shall be used and how this process is to be carried out
    • About order type Industrial Sales / Representative orders shall be used and how this process will be carried out if this deviate from ordinary process
    • Desired delivery / pick-up date. If the following codes are to be used:
      • Latest delivery time
      • Earliest delivery time
      • Desired delivery for a week beginning with
    • If text information should be specified and which associated codes will be used
  • Order confirmation
    • If Quantity delivered must be entered. Not recommended to include because deviations from ordered are added in a separate field calculated for this
    • If Availability date of product For temporary sold out, please state
    • If text information should be specified and which associated codes will be used

 

Areas where bilateral agreements can be established is:

  • Despatch Advice
    • If amount of load carriers included in the pallet exchange scheme must be entered
    • If number of pallet places the shipment requires in transport must be entered
    • If Promotional Unit must use Despatch Advice Level 3


 

Areas where bilateral agreements can be established is:

  • If simple or advanced version of invoice receipt must be sent

Areas where bilateral agreements can be established is:

  • If order receipt shall be sent
  • If order confirmation shall be sent
  • Deadline for order confirmation if ordering and pick-up same day
  • If Despatch Advice shall be sent
  • If invoice receipt shall be sent

Areas where bilateral agreements can be established is:

  • Order
    • About order type Industrial Sales / Representative orders shall be used and how this process will be carried out if this deviate from ordinary process
    • Desired delivery / pick-up date. If the following codes are to be used:
      • Latest delivery time
      • Earliest delivery time
      • Desired delivery for a week beginning with
    • If text information should be specified and which associated codes will be used
  • Order confirmation
    • If Quantity delivered must be entered. Not recommended to include because deviations from ordered are added in a separate field calculated for this
    • If Availability date of item For temporary sold out, please state
    • If text information should be specified and which associated codes will be used

Areas where bilateral agreements can be established is:

  • Despatch Advice
    • If amount of load carriers included in the pallet exchange scheme must be entered
    • If number of pallet places the shipment requires in transport must be entered
    • If Promotional Unit must use Despatch Advice Level 3
    • If Quantity (ordered quantity) must be entered (can only be used if order confirmation is not used)

Areas where bilateral agreements can be established is:

  • If simple or advanced version of invoice receipt must be sent

Areas where bilateral agreements can be established is:

  • If order receipt shall be sent
  • Deadline for order confirmation if ordering and pick-up same day
  • If Deviation from deadline on Despatch Advice at EXW
  • If invoice receipt shall be sent

Special conditions at Crossdock

Replacement product (alternative product)

Use of replacement products must be agreed bilaterally. Replacement products can be used in connection with customer packed deliveries.

The principle is that original product ordered is replaced by alternate product from supplier. The supplier and the customer have agreed in advance which products are to be replaced. Order confirmation to describe the deviation between which product is ordered and which is delivered will not be used in this case.

It may occur that one product may be replaced with several replacement products.

Additional product lines

Use of additional products must be agreed bilaterally. Additional product lines can be used for customer packed deliveries.

The principle is that additional product lines are used if the products is not ordered in the original order but is ordered in retrospect (for example, by phone). The supplier and the customer have agreed in advance which products are to be replaced. Order Confirmation is not used in this case.

Customer packed deliveries from supplier

Identification of end customer / end receiver

In case of customer packed deliveries from the supplier, the main rule is that the end receiver is identified with GLN in the order notice. In special situations where the supplier has no access to GLN, the customer may send with the end receiver’s name and address information.

Handling Instructions

In case of customer packed deliveries from the supplier, the customers need to be informed about detailed transport information / handling instructions for Crossdocking on transit storage. This type of information is exchanged in the order notice.

Handling instructions sent from customer to supplier are specified as a structured free text field.

Indication of SSCC

Each unit of customer packed deliveries must be labelled with SSCC. Information about the individual devices and the connection to the SSCC is sent in the Despatch Advice.

Parties

At Crossdock, the buyer or product recipient shall identify the Crossdocking terminal. The end receiver shall then identify the recipient, which may be a warehouse or a store.

 

Areas where bilateral agreements can be established is:

  • Order
    • Desired delivery- / pick-up date. If the following codes are to be used:
      • Latest delivery time
      • Earliest delivery time
      • Desired delivery for a week beginning with
    • If text information should be specified and which associated codes will be used
  • Order confirmation
    • If Quantity delivered must be entered. Not recommended to include because deviations from ordered are added in a separate field calculated for this
    • If Availability date of product For temporary sold out, please state
    • If text information should be specified and which associated codes will be used

Areas where bilateral agreements can be established is:

  • Despatch Advice
    • If amount of load carriers included in the pallet exchange scheme must be entered
    • If number of pallet places the shipment requires in transport must be entered
    • If Promotional Unit must use Despatch Advice Level 3
    • If replacement product must be available
    • If replacement products must be included in the delivery / Despatch Advice
    • If End receiver of delivery must be able to be entered at line level

Areas where bilateral agreements can be established is:

  • If simple or advanced version of invoice receipt must be sent
Published on: 14. August 2018
×