Marine Data Exchange www nmma org mdx 1

Marine Data Exchange www. nmma. org/mdx 1

About The Presenter www. nmma. org/mdx • Norman Katz, Katzscan Inc. (www. katzscan. com) • Specialties: – Barcode applications (inventory, mfg) – Electronic Data Interchange (EDI) / e-B 2 B – Supply chain vendor compliance • • Since January 1996 NMMA Supply Chain Consultant since 4/2004 MDX Technical/Business Lead since 1/2005 Resource available to all marine industry companies (mfgr, distributor, boat builder, retailer) 2

Presentation Outline www. nmma. org/mdx • • • What is the MDX? How is the MDX used? Why MDX? Who uses the MDX? Benefits of the MDX! MDX and the Supply Chain 3

www. nmma. org/mdx What is the MDX? 4

What is the MDX? www. nmma. org/mdx • Internet-based software program developed & hosted by the NMMA • Used to transfer business documents as electronic data files – First done in the mid 1970’s (EDI) – Common in many other industries • Supply chain enablement tool – Users are called “trading partners” 5

What does the MDX do? www. nmma. org/mdx • Enables electronic business document communications • Removes barriers created by spam filters and anti-virus software – better than e-mail • Creates internal & external efficiencies • Consolidates business document lifecycle to a single data repository 6

What does the MDX not do? www. nmma. org/mdx • • • Will not generate data Will not validate data Will not count your inventory Will not manufacture products Will not read your mind Will not make your morning coffee or afternoon tea 7

The MDX is. . . www. nmma. org/mdx • A communications pipeline between a buyer and seller • A very low cost supply chain enablement tool • A way to reduce / eliminate errors • A way to increase / improve efficiencies • A way to do business better 8

MDX Business Documents www. nmma. org/mdx • • • Purchase Order Change Purchase Order Acknowledgement Advance Ship Notice Invoice 9

Purchase Order www. nmma. org/mdx • Sent from the buyer to the seller (from the customer to the supplier) • A commitment to buy goods and services • Contents: items, quantities, prices, payment terms, ship-to, delivery information, dates 10

Purchase Order Acknowledgement www. nmma. org/mdx • Sent from seller to buyer • Used to accept or reject all or part of a PO: – Item quantities – Delivery dates – Unit Prices • Used to verify receipt of a PO 11

Purchase Order Change www. nmma. org/mdx • Sent from buyer to seller • Modifies a previously sent PO – Delivery date – Item quantities – Item costs • Should be used to verify a seller’s modification via the PO ACK • Should be used with restrictions to avoid excessive / late PO changes very close to ship date 12

Advance Ship Notice www. nmma. org/mdx • Sent from seller to buyer • Acts as an electronic bill of lading • Contains shipment information: – Carrier, Ship To, Ship From – Weight & Volume – Items and quantities – PRO # / tracking # 13

Invoice www. nmma. org/mdx • Sent from seller to buyer • Requests payment for goods shipped, not ordered • Contents: – Payment terms, remit to, vendor ID – Item, quantities, costs, taxes – Adjustments, i. e. freight costs 14

www. nmma. org/mdx Buyer (1) (4) (3) (2) Document Exchange Example – PO With No Changes (1) Buyer sends PO (2) Seller sends PO ACK (3) Seller sends ASN (4) Seller sends Invoice Solid line = sent doc Dashed line = recv’d doc Seller (1) (2) (3) (4) MDX 15

www. nmma. org/mdx Document Exchange Example – PO With Changes # 1 1. Buyer sends a PO to the Seller. 2. Seller rejects part of the PO; sends PO ACK to the Buyer. 3. Buyer updates the PO in Buyer’s ERP system to reflect changes. (Assumes Buyer accepts Seller’s changes. ) 4. Buyer resends updated PO to Seller. 5. Seller sends PO ACK to Buyer with no changes, accepting updated PO. 6. Seller sends Buyer an ASN when shipping. 7. Seller sends Buyer an Invoice after shipping. Easily accomplished with automated processes. 16

www. nmma. org/mdx Document Exchange Example – PO With Changes # 2 1. Buyer sends a PO to the Seller. 2. Seller rejects part of the PO; sends PO ACK to the Buyer. 3. Buyer cancels the original PO in Buyer’s ERP system. (Buyer accepts Seller’s changes. ) 4. Buyer creates new PO to send to Seller. 5. Seller sends PO ACK to Buyer with no changes, accepting new PO. 6. Seller sends Buyer an ASN when shipping. 7. Seller sends Buyer an Invoice after shipping. Easily accomplished with automated processes. 17

www. nmma. org/mdx How is the MDX used? 18

How is the MDX used? www. nmma. org/mdx • User Interfaces: – Web Form – Software Integration • Helpful Documentation • Business relationship procedures 19

Web Form www. nmma. org/mdx • Requires high-speed connection to the Internet (cable or DSL) • No software to purchase • Similar to an e-mailbox: – Retrieve and print inbound documents – Data enter and send outbound documents 20

Web Form - Mailbox www. nmma. org/mdx 21

Web Form – PO’s www. nmma. org/mdx 22

Web Form – PO ACK www. nmma. org/mdx 23

Web Form – PO CHG www. nmma. org/mdx 24

Web Form – Invoice www. nmma. org/mdx 25

Web Form – ASN Header www. nmma. org/mdx 26

Web Form – ASN Shipment www. nmma. org/mdx 27

Web Form – ASN Order Level www. nmma. org/mdx 28

Web Form – ASN Pack Level www. nmma. org/mdx 29

Web Form – ASN Item Level www. nmma. org/mdx 30

Web Form – Settings www. nmma. org/mdx 31

Web Form Highlights www. nmma. org/mdx • Purchase Orders can be automatically converted to: – PO Acknowledgements – PO Changes • Saves redundant data entry • PO ACK’s and PO CHG’s can be further edited before sending 32

Software Integration www. nmma. org/mdx • Open platform – any operating system – – – Windows® Unix® AS/400® VAX VMS® HP/UX® • Uses Secure Socket Layer (SSL) File Transfer Protocol (FTP) • Software application independent 33

Helpful Documentation www. nmma. org/mdx The following documentation is available on the MDX web site Downloads page to help you: • Data File Standards • MDX FTP Client • Web Forms • System Integration Overview • Trading Partner Checklist • …. . more to come 34

Data File Standards www. nmma. org/mdx • Used for software integration • Text files • ANSI X 12 EDI version 4010 35

Data File Guidelines www. nmma. org/mdx • Applies to all MDX transaction files • Describes general data file and data record structures characteristics • Data field and data record delimiters • Data field notations • Read before individual transaction file data standards 36

Data Standards www. nmma. org/mdx • One document for each business transaction file (i. e. PO, ASN, Invoice) • Data records and data fields in detail • Data field characteristics (i. e. M/O, alpha vs. numeric, min/max lengths) • Sample data file 37

MDX FTP Client www. nmma. org/mdx • Free Windows®-based secure FTP software • Accompanying user guide • Easy to install and use • Not applicable for non-Windows platforms • Not as flexible as 3 rd party options 38

Web Forms document www. nmma. org/mdx • Contains a screen snap-shot of every web form screen in the MDX • How to maneuver through the MDX • Pushbutton functions for each screen • General web form functionality 39

System Integration Overview www. nmma. org/mdx • Describes trading partner relationship – Customer – Supplier • Trading partner responsibilities • Testing methodology • Business procedure changes 40

www. nmma. org/mdx System Integration Example – Purchase Order Buyer Seller EXTRACT: PO Header PO Detail APPEND: SO Header SO Detail MDX > SSL FTP < 41

Trading Partner Checklist www. nmma. org/mdx • Used to document data field requirements by transaction – Inbound – Outbound • Established by the customer (“buyer”) • Does not vary by supplier (“seller”) 42

www. nmma. org/mdx Trading Partner Checklist – Customer / Buyer • Data record requirements • Data field characteristics • Internal notes only (2 nd copy): – Notate application files and fields for outbound file generation – Notate application files and fields for inbound data file validation & append 43

www. nmma. org/mdx Trading Partner Checklist – Supplier / Seller • Data record requirements • Data field characteristics • Internal notes only: – Notate application files and fields for outbound file generation – Notate application files and fields for inbound file data validation & append • Helps to organize and standardize software programming for multiple trading partners 44

Business Relationship Procedures www. nmma. org/mdx • Once “electronic”, no business commitments or changes via: – Paper – E-mail – Fax – Telephone • Consolidates communications to a single pipeline…. . 45

Communications Consolidation www. nmma. org/mdx • All communications relating to a business transaction are now documented in the MDX • No more searching multiple sources: – E-mail – Phone conversation notes – Fax – Paper / postal mail 46

www. nmma. org/mdx Why MDX? 47

Why is the MDX? www. nmma. org/mdx • Introduce good supply chain practices to the marine industry • Affordable supply chain enablement • Foster growth by helping companies conduct business more efficiently and effectively 48

Good Supply Chain Practices www. nmma. org/mdx • You are trading partners, not trading adversaries • Enable your suppliers by providing tools for success – don’t just dictate rules • Suppliers must grow with their customers needs • Suppliers can often leverage customer requirements for themselves (i. e. barcode labeling) 49

The MDX is affordable www. nmma. org/mdx MDX EDI Transaction charges (per 1, 000 chars) NO Yes, 10’s or 100’s of dollars per month Monthly fees NO Yes, 10’s or 100’s of dollars per month NMMA Member Costs $900 one-time fee, $300 annual, no software to buy Varies extremely, may involve software purchase 50

MDX Business Efficiencies www. nmma. org/mdx • Efficiencies for buyer and seller • Efficiencies via web form or integration • Fosters a better (more efficient) trading partner relationship • Reduce / eliminate manual errors • Speed processing • Can be a competitive advantage 51

Shared Business Inefficiencies www. nmma. org/mdx • Buyers & Sellers can both suffer from: – Lost documents (mail, fax) – Blocked e-mails (spam, anti-virus) – Illegible handwriting – Manual data entry errors – Phone / e-mail tag – Long distance phone charges – Unnecessary follow-up’s – Tasks that waste time (anti “Lean”) 52

Business Growth www. nmma. org/mdx • Internal growth: more efficiencies = more profits • Internal growth: more profits = business expansion / product innovation • External growth: increased sales • External growth: reduce competition (on -shore & off-shore) 53

www. nmma. org/mdx Who uses the MDX? 54

MDX Marine User Community www. nmma. org/mdx • The MDX can be used by: – Accessory Manufacturers – Distributors – Boat Builders – Engine Manufacturers – Retailers 55

Extending the supply chain www. nmma. org/mdx • The MDX can be used by marine companies to conduct efficient e-B 2 B with non-marine industry suppliers • Supply chain enablement within and outside the marine industry 56

www. nmma. org/mdx Benefits of the MDX! 57

Technology Benefits www. nmma. org/mdx • Direct point-to-point electronic communications • No concerns associated with e-mail: – Verify better than "read receipts" which are not available through all e-mail services – Bypass e-mail restrictions such as spam blocking and virus filtering 58

Process & Procedure Benefits www. nmma. org/mdx • • Enable automation with optional system integration Improve accuracy of information Reduce paperwork Eliminate manual data entry errors Eliminate errors due to illegible hand-written characters Eliminate lost purchase orders & invoices Verify shipment receipt faster Eliminate need for follow-up telephone calls: – Increases office staff efficiency – Reduces long-distance telephone bills 59

Supply Chain Benefits www. nmma. org/mdx • Supply chain is internal and external • Internal – Communication between departments • External – Communication to suppliers – Communication to customers 60

Internal Supply Chain Benefits www. nmma. org/mdx • Improve inter-departmental communication – Purchasing – Accounting – Warehouse • Automate cross-validation of MDX documents 61

Document Cross Validations www. nmma. org/mdx • Warehouse receipt should match ASN – Stop & determine / correct mismatch errors • ASN should “match” PO – Except backorders & short shipments – Over-shipments? Wrong items? • Invoice should match ASN; ASN previously matched to warehouse receipt; ASN previously validated to PO 62

External Supply Chain Benefits www. nmma. org/mdx • Verification of business document communications – Content – Transport • Speed business document transport – PO, PO Ack, PO Chg – Invoice 63

Overall Supply Chain Benefits www. nmma. org/mdx • Move closer to Just In Time (JIT) – PO, PO Chg, PO Ack require less transport time – Leaner inventory levels • Replenishment PO automation eliminates manual involvement – Reduces number of supplier PO’s – Catch “close to replenishment” items & order them – Shipment consolidation, reduces freight costs 64

THANK YOU! www. nmma. org/mdx Any questions? 65