Welcome to PHOENIX CONTACT

EDI with Trading Partners

eCommerce Department Phoenix Contact, Inc 586 Fulling Mill Road Middletown, PA 17057 Ph: 717-944-1300, x-3717 Fx: 717-944-2953 [email protected]

EDI – What exactly is it? Electronic Data Interchange (EDI) is the computer-to-computer exchange of business data in standard formats.

- Information is organized according to a specified format set by both parties, allowing a "hands-off" computer transaction that requires no human intervention or rekeying on either end. All information contained in an EDI transaction set is, for the most part, the same as on a conventionally printed document. - Most Mid-size and Large companies are already using eCommerce in some way (web services, file exchange or traditional EDI). In some industries EDI became a essential requirement. - Robust EDI system is capable of processing and generating hundreds of thousands transactions per day. Most of the processes on ERP, WMS and CRM system can be complimented and automated with different types of EDI transaction for each stage of business processing. Source: http://sterlinginnovationgateway.com/2008/03/take-a-deeper-look-at-edi-to-get-more-out-of-your-b2b-investment/

EDI - How Does It Work? To be able to process EDI-Data it is necessary to have ... 1.) Software that is able to create files out of business documents. 2.) Software which is able to translate/convert EDI files to ERP Format and ERP files to EDI format as well as to manage Trading Partner EDI Profiles 3.) Secure method for sending/receiving files.

Examples of Secure Communication Methods utilized by Phoenix Contact Value Added Networks (VAN) [cost per character count] GXS (GE) Global Exchange Services IBM (Sterling) Point to point connections: AS2 (Applicability Statement 2) [software and licensing cost only] sFTP (Secure File Transfer Protocol) [no licensing cost].

Step 1: Trading Partner transmits EDI 850 PO to Phoenix via VAN or AS2.

Partner Mailbox @ Partner VAN

Trading Partner

Our Mailbox @ IBM VAN

AS2 sFTP

EDI Order from Trading Partner Step 2: The PO arrives at Phoenix in Partner specific EDI File Format and has to be translated/converted into our ERP format so it can be understood. UNB+UNOA:1+SLR-TIM+4017918000004:14:HU+060620:1515+5++ORDERS UNH+1+ORDERS:1:921:UN:ED3' BGM+220+EBR173970+9' DTM+137:20060619:102' NAD+SE+345P11100016::92' NAD+BY+SOLECTRONTI::92' NAD+DP+TIREB0::92' CUX+2:EUR:9' LIN+1++SCH1CNR004883:BP::92' PIA+1+19 08 03 3:VP::91' QTY+21:28800:PCE' FTX+LIN+3++RoHS compliant component required' PRI+CAL:0.73:CT::1:PCE' RFF+LI::1' SCC+1' QTY+21:28800' DTM+2:20060623:102' LIN+2++SCH1CNR004883:BP::92' PIA+1+19 08 03 3:VP::91' QTY+21:30250:PCE' FTX+LIN+3++RoHS compliant component required' PRI+CAL:0.73:CT::1:PCE' RFF+LI::2' SCC+1' QTY+21:30250' DTM+2:20060714:102'

Trading Partner ID Order Date Date Trading Partner PO Number Trading Partner Item No. Quantity Planned Delivery Date

Unit

"ENV"|"O0606271"|SOLECTRONTI|20060619|1433|"EBR173970"|"EDP"|"ORDSGL"|"105" "HDR"|"O0606271"|SOLECTRONTI|"EBR173970"|20060619|||"UO=/AGK="|"CR="|""|""|"" "LIN"|"O0606271"|SOLECTRONTI|"EBR173970"|1|"BP"|SCH1CNR004883|28800|20060619|20060623|20060623|pcs|""|""|""|""|""|""|"" "LIN"|"O0606271"|SOLECTRONTI|"EBR173970"|2|"BP"|SCH1CNR004883|30250|20060619|20060714|20060714|pcs|""|""|""|""|""|""|"""

EDI Order Confirmation Step 3: Phoenix generates an order confirmation, translated from our ERP format back into the Trading Partner specific EDI format. UNB+UNOC:3+4017918000004:14:HU+SLR-TIM+060718:1054+1' UNH+1+ORDRSP:1:921:UN:ED3' BGM+231+116740' DTM+137:20060714:102' RFF+ON:EBR173970' DTM+171:20060619:102' NAD+BY+SOLECTRONTI::92' NAD+SE+345P11100016::92' CUX+2:EUR:9' LIN+1++SCH1CNR004883:BP::92' PIA+1+1908033:SA' IMD+F++:::MC 1,5/ 5-G-3,5 PIN 8,6‚ PRI+AAA:0.73:CT::1:PCE' RFF+LI::1' SCC+1' QTY+113:28800:PCE' DTM+67:20060721:102' LIN+2++SCH1CNR004883:BP::92' PIA+1+1908033:SA' IMD+F++:::MC 1,5/ 5-G-3,5 PIN 8,6‚ PRI+AAA:0.73:CT::1:PCE' RFF+LI::2'SCC+1' QTY+113:30250:PCE' DTM+67:20060714:102' UNS+S' UNT+28+1' UNZ+1+1'

Trading Partner ID Trading Partner PO Number Order Date Trading Partner Item No. PxC Item Number PxC Item Description Price Unit Quantity Planned Planned Delivery DeliveryDate Date

SA1|23520060714000|201503|235|ORDRSS|PXC|231||20060714|0808||SA1_END SA2|23520060714000|201503|EBR173970|0|116740|20060619|20060714|DDU|060|0|EUR||301|UO=/AGK=|CR=|DP|ZZ|IP|IZ|60|0|0|||ES|HU6|||20060714|0|0|0|0|SA2_END SA5|23520060714000|201503|EBR173970|1|BP|SCH1CNR004883|1908033|MC 1,5/ 5-G-3,5 PIN 8,6|0.73|pcs|1|28800|20060807|ES|VAT|20060619|20060721|1|21024|SA5_END SA5|23520060714000|201503|EBR173970|2|BP|SCH1CNR004883|1908033|MC 1,5/ 5-G-3,5 PIN 8,6|0.73|pcs|1|30250|20060807|ES|VAT|20060619|20060714|2|22082.5|SA5_END

EDI Order Confirmation Step 4: Phoenix Contact transmits the EDI 855 PO Confirmation back to the Trading Partner via VAN or AS2.

Our Mailbox @ IBM VAN

Partner Mailbox @ Partner VAN

AS2 Trading Partner sFTP

Further messages work the same way Purchase Order Purchase Order Confirmation

Trading Partner

Phoenix Contact

Advanced Shipment Notification*

Invoice POS Data** * The Advanced Shipment Notification (ASN) is a more advanced EDI document that should only be attempted AFTER successful implementation of the PO, PO Confirmation and Invoice documents. ** POS Data can also be sent as an email attachment without the need for EDI. This references the preferred practice of sending the data via EDI. This should only be attempted AFTER successful implementation of the PO, PO Confirmation and Invoice documents.

Current Phoenix X12 EDI Transaction Sets Inbound Transactions (to Phoenix):  810 – Invoice  823 – Lockbox  824 – Application Advice **  830 – Planning Schedule  844 – Product Transfer  846 – Inventory Advice

Outbound Transactions (from Phoenix):

 850 – Orders

 856 – Adv. Ship Notice  857 – Shipment and Billing Notice  997 – Functional Ack.

      

852 – Product Activity Data 855 – Order Acknowledgment 856 – Adv. Ship Notice 860 – P.O. Change ** 864 – Text Message ** 867 – Point of Sale 997 – Functional Ack.

 810 – Invoice    

820 – Remittance Advice 846 – Inventory Advice 849 – Response to Product Transfer 850 – Orders

 855 – Order Acknowledgment

•

Transaction Sets denoted in BOLD RED are the documents Phoenix Contact initiates with new EDI trading partners before moving on to other, more complex transaction sets.

•

** Print only.

Persons needed for an implementation of Trading Partner EDI  Phoenix Contact:  Business contact (initiates contact with Trading Partner)  Sales dept.  Technical contact  IT dept (Ilia Chlaifer)

 Trading Partner  Business contact (purchases from Phoenix)  Purch. Dept.  Technical contact (resp. for the ERP system or resp.only for EDI or a person from an EDI service provider)

Tasks for the implementation (Partner) • Please fill out the EDI questionnaire. • Upon receiving your completed forms we will contact you to discuss your EDI Specifications such as Transaction Mapping and Communication Platform. • We would agree on the initial set of transaction we would be configuring (most likely Order and Order Confirmations are configured first). We will also ensure you are able to meet our basic Ordering Requirements. • If applicable – we would need the following additional master files: 1. your EDI Ship-to location master list 2. your Customer Part/SKU cross-reference list with the Phoenix Part numbers 3. any specific Vendor IDs or other requirements for data feedback

Tasks (Continued) • Once all technical questions have been clarified, Phoenix Contact sets up the EDI relationship as well as Communications Setup for non-VAN communications. At that point we will request a test Purchase Order from you • After verifying EDI Configurations and Communications Setup are working your Test Order will be passed to QA Instance of our ERP and verified by our Order Processing Team. Upon which the outbound test transactions would be generated to match your order. We would be able to provide a PDF printouts of those documents for your validation. • Once testing is complete we would agree on a GoLive date. Upon verifying we have received first production order from you, and you have received our data feedback we would consider GoLive complete, unless you’d like to follow up with any additional transaction testing • We will confirm we have valid EDI contact info on file to update our Production Address Book with your EDI Contact information.

Why Implement EDI? Benefits of EDI include:  Reduced cycle time (faster order processing)  Better inventory management (order status supplied faster)  Increased productivity (less labor intensive)  Reduced costs (reduced overhead to process ALL docs)  Improved accuracy (less human intervention = less errors)  Improved business relationships (reduced costs for BOTH)  Enhanced customer service  Increased sales (availability of EDI is a selling point)  Minimized paper use & storage (further reduced overhead)

EDI Savings vs Manual How much is really saved using EDI? - According to a U.S. Treasury report, the average cost to process a paper invoice is 22.5 times higher than the cost to process an electronic invoices (this includes the cost of fixing invoice problems caused by manual entry errors). - A 2007 research study conducted by the Aberdeen Group concludes that it costs 74 – 89% more to process the average paper invoices than the average EDI invoice. Source: http://sterlinginnovationgateway.com/2007/09/latest-analyst-research-reveals-the-true-costs-of-manual-processing/

EDI – The Numbers Summarized

Source: http://sterlinginnovationgateway.com/2007/09/latest-analyst-research-reveals-the-true-costs-of-manual-processing/

Welcome to PHOENIX CONTACT

EDI with Trading Partners Thank you for your attention ! Please direct any questions to: eCommerce Department Phoenix Contact, Inc 586 Fulling Mill Road Middletown, PA 17057 Ph: 717-944-1300, x-3717 Fx: 717-944-2953 [email protected]