Orange County Convention Center Orlando, Florida | May 15-18, 2011

Third Party Logistics and EDI Session 2511 Susan Delaney, OSI Group, LLC Corey Herchenroder, CONTAX

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[ CONTAX – Corporate Bio ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Real Experience. Real Advantage.

Privately Owned, Founded in 1991 ~ 100 Employees SAP fluency for 20 years SAP Business Objects Partner SAP Channel Partner Awarded 2010 Pinnacle Award Some Active Clients Include:

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[ OSI Group Background ƒ The OSI Group, headquartered in Aurora IL, is a global leader in food processing. ƒ The company has 47 processing facilities located in 17 countries and have over 10,000 employees dedicated to providing food solutions for some of the world's leading food companies. ƒ Core products include beef, pork, poultry, pizza and produce ƒ OSI is a world-class food manufacturer offering global solutions for product innovation, product development, and custom process engineering with a strong and proven focus on food safety and operational excellence. ƒ 9 US plants on SAP ƒ 2 more US facilities projected to start SAP implementation project in 2012 - multiple 3PL possibilities

Real Experience. Real Advantage.

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[ Learning Points How OSI set up EDI with it’s Third Party Logistics Providers ƒ Introduction to EDI ƒ EDI from a Logistics Viewpoint ƒ EDI from an EDI Viewpoint

Real Experience. Real Advantage.

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[ EDI (Electronic Data Interchange) ƒ EDI means to exchange information between a sender and a receiver. Both communication partners need to speak the same language to understand each other. ƒ The language for EDI is comprised of the file formats and description languages used in the EDI data files. In the simple case of exchanging plain data files, the partners need to agree on a common file format. ƒ From SAP IDoc Book

Real Experience. Real Advantage.

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[ 3PL Reasoning ƒ Third Party Logistics (3PL) is using an outside party to take care of all or part of your product distribution. If you are a small or medium company, you may not want to develop a logistics function. You may not want to invest in the facilities or the systems needed for logistics. Or your customers may require you to use a 3PL to save them transportation costs and allow them to mix products from multiple vendors at one location. ƒ A 3PL can perform the management function of warehousing, order fulfillment, distribution, customs and inbound/outbound transportation.

Real Experience. Real Advantage.

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[ OSI 3PL Environment ƒ OSI has a batch-managed environment. Every pallet has an ID that is a combination of the year, day, and time the pallet came off the production line. ƒ OSI has three 3PL’s we currently exchange EDI with: ƒ Large foodservice customer wanted one pick-up point for multiple vendors products. ƒ Grocery chain wanted two pick-up points (East, Midwest) for multiple vendors products. ƒ Major quick service restaurant wanted a single pick-up point in the Midwest for multiple vendors products.

Real Experience. Real Advantage.

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[ Software/Consulting Environment ƒ SAP ECC 6.0 ƒ Sterling Gentran for Windows EDI Mapping/Translation Software ƒ Sterling R/3 Extension for SAP ƒ Sterling AS2 Software (B2B) ƒ Sterling VAN Mailbox ƒ Consulting: CONTAX ƒ CONTAX has vast knowledge of both SAP and Gentran software

Real Experience. Real Advantage.

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[ Document Flow Outbound . Stock Transport Order

Sales Order

Outbound Delivery

Outbound Delivery

IDoc

IDoc

Gentran Map Conversion to 943

AS2 or EDI Van Real Experience. Real Advantage.

Gentran Map Conversion to 940

AS2 or EDI Van 9

[ Document Flow Inbound AS2 or EDI Van

Gentran Map Conversion from 944 to IDoc

IDoc

STO Delivery - MIGO Real Experience. Real Advantage.

AS2 or EDI Van

Gentran Map Conversion from 945 to IDoc

IDoc

Delivery - PGI 10

[ Transactions ƒ Current OSI EDI transactions used for the 3PL businesses: ƒ Outbound: ƒ 943 – Outbound stock transfer delivery of product to 3PL to create warehouse inventory. ƒ 940 – Outbound delivery information for customer shipment info to ship directly from 3PL.

ƒ Inbound: ƒ 944 – Inbound confirmation of stock receipt from 943. ƒ Automatically creates a MIGO transaction in SAP.

ƒ 945 – Inbound confirmation of customer shipment details ƒ Automatically PGI’s the customer delivery

ƒ Each customer’s file format is different in our environment.

Real Experience. Real Advantage.

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[ SAP IDocs ƒ An IDoc (interchange or intermediate document) is an SAP data container for one business object (delivery, order, etc) which determines the IDoc type. IDocs are an ASCII file format to exchange data between computers. ƒ Outbound ƒ IDoc DELVRY02 + extension ZLIVRY02 for both 943 and 940 ƒ Message Type SHPORD ƒ Used SP partner for 943 and SH for the 940

ƒ Inbound ƒ IDoc WMMBID02 for 944 ƒ Message Type WMMBXY

ƒ IDoc DELVRY03 for 945 ƒ Message Type SHPCON

Real Experience. Real Advantage.

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[ 943 IDoc to EDI Map Example ƒ Example of 943 STO delivery

Real Experience. Real Advantage.

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[ Starting Point – Transaction WEDI ƒ Provides EDI Menu Path

Real Experience. Real Advantage.

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[ Master Data ƒ There is a great deal of communication with your EDI partner on master data, EDI standards, and field definition. You need to agree on what data gets populated in every field and what sequence that data follows. ƒ Your terminology may mean something different to your partner.

Real Experience. Real Advantage.

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[ Material Master Data ƒ We have provided our material master data and the customer-material information record for our end customer to the 3PL so they can translate the EDI and distribute correct shipping paperwork that the customer can understand. ƒ We relay this master data information via email since there are less than 15 material numbers involved for each location. ƒ You can send this master data information via an EDI message if your material master environment is different.

Real Experience. Real Advantage.

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[ OSI LE Structure ƒ We have identified each of our 3PL’s as storage locations attached to the manufacturing plant from which product is being supplied. When we do an STO, we identify the manufacturing plant as the header plant and the 3PL at the item level with the same plant number but the 3PL storage location. ƒ We do get customer order changes after a delivery is created for one of our 3PL’s, so we need to be able to change our deliveries. If the product has not been received at the 3PL, any further shipment of the product gets an error and cannot be processed.

ƒ Other companies identify their 3PL as a warehouse. ƒ Once a WHSE is set up as “External” then no goods movements are allowed without the third party confirmation.

Real Experience. Real Advantage.

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[ Storage Location ƒ Two of the plants using these transactions are not WM plants so have no warehouse identified. ƒ Storage location configuration is done at OX09. ƒ Be sure to fill out the address of the 3PL in config so it appears on the STO and also on the delivery documents.

Real Experience. Real Advantage.

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[ WE20 Transaction ƒ Partner Profile set-up is required for communicating messages. ƒ ƒ ƒ ƒ

Bank Customer Vendor Logical System

ƒ Identify IDoc types, message types, RFC vs. file transfer ALE. ƒ Identify EDI standard and version.

Real Experience. Real Advantage.

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[ Customer Set-up ƒ WE20 requires set-up for each vendor, customer, bank, and logical system

Real Experience. Real Advantage.

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[ WE60 IDoc Type

Real Experience. Real Advantage.

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[ WE21 ƒ Port Definition is used to define a file port to pass information back and forth from EDI to SAP.

Real Experience. Real Advantage.

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[ OMKY ƒ ALE is used to define a direct application link between EDI and SAP.

Real Experience. Real Advantage.

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[ Output

Master Data - EDI Trigger for Deliveries

ƒ Output determination triggers this EDI. ƒ LAVA delivery output can be copied to create new EDI outputs. ƒ Can trigger at the same time as your B/L ƒ Requirement of PGI to trigger - or ƒ Without requirement of PGI

ƒ Multiple EDI partners in one delivery is possible with multiple outputs. ƒ Output medium is 6 for EDI with a dispatch time of 4 if triggering needed immediately.

Real Experience. Real Advantage.

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[ Daily Monitoring WE02 – We all want green lights

Real Experience. Real Advantage.

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[ WE02 Error Correction ƒ You can use WE02 to do error correction. ƒ Double click on the paper icon on the left of the segment with the error. ƒ Menu path Data Record > Display > Change

Real Experience. Real Advantage.

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[ WE19 ƒ Error correction can also be done here by drilling into the header or each line and correcting the data.

Real Experience. Real Advantage.

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[ Status Monitor For ALE – BD87 – Reprocess Without Correction

ƒ Select red light item and hit process button - no data correction can be done here. ƒ If successful, turns yellow/red lights into green lights in WE02.

Real Experience. Real Advantage.

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[ Inbound IDoc Example ƒ Item of a 944 inbound receipt of stock

Real Experience. Real Advantage.

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[ EDI Confirmations ƒ When we send a document outbound to the partner from our mapper, we always get an EDI message type 997 confirmation back into our mapper. When we receive a new document from the 3PL, we always send a 997 back to them. The 997 EDI transaction verifies you received a specific EDI message. It does not confirm any specific details from within the original message. ƒ There are other types of EDI messages that require a detailed confirmation back but that is not applicable with these transactions.

Real Experience. Real Advantage.

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[ Warehouse Inventory Cycling Reports ƒ The 947 EDI message is a warehouse inventory cycling report. We have not implemented this with any of our 3PL’s yet. We do receive a PDF report with this data. ƒ Most 3PL’s have various reports they can email you daily, including an inventory report.

Real Experience. Real Advantage.

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[ Best Practices ƒ

If you are in a batch managed environment, be sure to assign your batch numbers in the STO PO. That way, when an error is made by the 3PL upon receipt confirmation, you will get a specific error message at the batch level. If you only assign the batches on the delivery, SAP error messaging is not specific and this creates a lot more work and creates an environment for errors to get into SAP.

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Make sure your plant double checks their inventory and verifies customer shipment accuracy daily.

Real Experience. Real Advantage.

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[ Key Learnings ƒ EDI lessens data entry but definitely needs to be checked in detail on a daily basis from an EDI perspective, a plant inventory perspective, and a customer invoicing perspective. ƒ You may need to customize your IDocs to bring in fields that are available in SAP but not in your IDoc. ƒ SAP has their IDoc which you then need to translate to EDI. This requires mapping of which IDoc field data corresponds to the EDI standard field that you have agreed upon with your customer. ƒ Depending on what system your 3PL uses, you might need to provide header data at the item level. ƒ There are various types of standards for EDI that you may need to communicate with. Real Experience. Real Advantage.

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[ Contacts ƒ Susan Delaney, OSI Group ƒ SAP Business Analyst Sales/EDI ƒ [email protected]

ƒ Corey Herchenroder, CONTAX ƒ Managing Director ƒ [email protected]

Real Experience. Real Advantage.

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ƒ Thank you for participating. Please remember to complete and return your evaluation form following this session. For ongoing education in this area of focus, visit www.asug.com. SESSION CODE: 2511

Real Experience. Real Advantage.

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