EDI POS Systems ATG 383 — Spring

EDI & POS Systems ATG 383 - Spring 2002

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

3 Technologies We Will Consider • Electronic Data Interchange • POS Systems • e. Xtensible Markup Language & e. Xtensible Business Reporting Language

Electronic Data Interchange • Computer to computer exchange of business information in a standard format. • EDI is not faxes, email, or web sites.

EDI - General Idea In-house system. Translate into EDI format. Translate into in-house format. Transmit. Receive.

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.

EDI - Acknowledgement Match P. O & acknowledgement. Create acknowledgement. Translate into in-house format. Translate into EDI format. Receive from vendor. Send to customer.

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 X 12 in North America – EDIFACT outside North America • Following examples taken from: – http: //developer. netscape. com/docs/presentations/xpert/edi. html

Example of Standards-Based EDI Message Interchange Group Header Functional Group Header Transaction A - 1 of 2 Transaction A - 2 of 2 Functional Group Trailer Functional Group Header Transaction B - 1 of 1 Functional Group Trailer Interchange Group Trailer

EDI Network Options

Three ways to connect Buyers & Sellers Direct Connection Partner A Partner B Value Added Network Partner A mailbox Van mailbox Partner B Internet Partner A mailbox Partner B

Comparison of EDI & Traditional Systems

What can go wrong with EDI? What are the controls?

POS & Scanners

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

Bar Codes Identify Products

Bar Codes in Operation Scan Bar Code Add amount to customer’s purchase. Bar Code Number Product info & price Look up price & product info. Update sales & inventory records

• 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 adjust overstocked / understocked stores.

• 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.

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.

Michigan Scanning Tests

Scanners and POS - What can go wrong? What are the controls?

Using XML to Define Documents and XBRL for Business Reporting

A Web Page

HTML That Created A Web Page

EDI Message in XML

Partial XML Document 967634 19961002 5412345000176 0316907235 Labaln, Brian/Chrome 2 0856674427 Parry, Linda (ed)/William Morris 1

XBRL • XML based framework for exchange of financial information. • Example: – July 26, 1998 • Describes the information, not the presentation. Format flexible.

XML Tags: The Key • – Cash. Equivalents. Cash – Cash and Securities – 2000 – 1000 •

Financial Statement

Financial Statement XML/XBRL

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