This sub process consists of the following activities:
- Manage orders and send order confirmation
- Receive and process order confirmation
Areas affected by, and subject to guidelines from STAND are:
- How EDI is used in the retail trade in general and in the order confirmation process in particular
- Requirements for EDI messages
- EDI exchange agreement
- Generic description of order confirmation process
- Assessments related to delivery capability and temporarily sold out
- Bilateral agreements on the assessment of shelf life on products covered by this
Use of EDI in the retail trade
EDI – Electronic Data Interchange – is used in the retail industry to exchange commercial documents like Order, Order Receipt, Order Confirmation, Despatch Advice, Invoice and Invoice Receipt.
EDI can be performed in various ways, from fully automated processes both at customer and supplier, to web solutions where information is registered manually.
EDI is used for all distribution types.
Overview of EDI messages and in which processes they are used
Which EDI messages to use will vary with the distribution type.
An overview of this, along with deadlines for when the messages are to be sent, are described in EDI message, type of distribution and deadlines.
Before using EDI, it is necessary to clarify which messages to be used, message formats, exchange methods, electronic message addresses, etc. This documented the EDI Exchange agreement.
This document also specifies other bilateral issues related to the exchange of EDI messages.
To ensure that both parties and all business functions are familiar with all bilateral agreements, it is crucial that the EDI Exchange Agreement is used actively.
How to get started with EDI is described in Implement EDI in the retail trade.
In order to start using EDI, trading documents must be translated into an EDI format.
The following formats are available:
- Message description EANCOM for order, order receipt, order confirmation, Despatch Advice, invoice, invoice receipt
- Message description XML for order, order receipt, order confirmation, Despatch Advice, invoice, invoice receipt
Revisions of the EDI formats, is documented in Change log current version vs. past versions
Manage orders and send Order Confirmation
Upon receipt of an order, the supplier shall check that the order complies with the bilateral agreements specified in the EDI Exchange Agreement.
Deadline for sending an Order Confirmation
An Order Confirmation must be sent no later than 3 hours after the order stop time. If not possible to meet the 3-hour deadline, it can be agreed bilaterally what the deadline should be.
For deliveries with order and pick up the same day, bilateral deadlines apply.
Bilateral deadlines must be agreed in writing.
Check for delivery ability
The expected delivery must be confirmed in the Order Confirmation. This means that it must be checked for deliverability.
An Order Confirmation must be sent that confirms what the supplier with a high degree of probability expects will be delivered. The distributor is aware of that there may be a discrepancy between what is confirmed delivered and what is actually delivered. In the case of repeated deviations over time, the parties will enter into a dialogue about how the this can be corrected, in a constructive and flexible way.
It must not be confirmed more than originally ordered without agreement.
When checking for delivery ability, consideration shall be taken regarding any bilateral agreements that allow products to be delivered which, under normal conditions, do not meet the requirements for the distribution of total shelf life between the players. See The establishment of bilateral agreements for the assessment of shelf life
Products that are not covered by a bilateral agreement must have a remaining shelf life that satisfies the requirements for distribution between the players as specified in Table for assessment of shelf life of a product.
Information to be sent for products that are temporarily sold out
If a product is temporarily sold out, it is a request from the distributors that the date for when the product is expected back for sale can be sent in the Order Confirmation. However, this must be agreed bilaterally.
If the supplier does not have systems that can provide this in the Order Confirmation, this information must be exchanged in other bilaterally agreed ways. By exchanging information about when a temporarily out-of-stock product is expected to be available for sale, this can be used actively in the order.
Reservation of quantity for order confirmation
When the order confirmation is sent, the supplier must reserve the quantity that is confirmed delivered to the current order.
Confirmed quantity versus what can be delivered at delivery time
If the order confirmation confirms a quantity that differs from what has been ordered, it is what is stated in the order confirmation that will be included in the delivery to the buyer.
This also applies if the supplier in the meantime will be able to deliver the ordered products.
Requirements for order confirmation
- The order confirmation must be sent by EDI
- One order confirmation shall be sent per order
- The order confirmation must be sent within the deadline
- The order confirmation shall provide a code that gives the customer a quick understanding of the status of the order. One of the following codes must be sent:
- The order is accepted and delivered in full
- The order is accepted, but can not be delivered in full
- The order is accepted, but contains one or more product numbers that have expired
- The order is accepted, but contains one or more product numbers that are unknown
- The order is accepted and checked for product information, however inventory information / delivery ability is not verified
- The order is accepted, but there is an error on a line with an undefined reason
- The order is rejected (usually due to syntactic errors in the order itself)
For Crossdock, the following feedback applies in addition to the above:
- The order is accepted, but the quantity on a line is reduced by agreement with the final customer
- A new order confirmation can not be sent to replace a previous order confirmation, even if the delivery situation changes
Receive and process order confirmation
An order confirmation is an end of the procurement process, and the customer should therefore not respond to the order confirmation even though this should have changed according to the order.
The order confirmation number from the supplier must be unique. Recipient shall reject an order confirmation with an order confirmation number received and processed earlier.
How the order confirmation is used by the customer in internal systems is not covered by the STAND guidelines.