Introduction

One of the most costly problems facing the Electronics Industry is the necessity to accommodate the Business-to-Business (B2B) requirements of different industries. For example, automotive and aviation customers use different standards: AIAG X12 and 1SYNC (formerly RosettaNet) standardized XML tags. Second, data must be transmitted securely through the Internet conforming to the EDI INT AS2 standard. Your company must comply readily and without compensation to these challenges. DCS can help you link certified customers and vendors to your ERP system quickly, economically, and thoroughly. After training, your company will become self-reliant, with DCS available to assist.

Overview

Manufacturers relentlessly focus upon process automation to continually reduce costs. Since back-office order/forecast processing, shipment, and billing systems in today’s ERP systems such as SAP, Oracle Applications, JDEdwards, MAPICS, and Dynamics GP & AX are designed for this new level of complexity it is time to consider process automation. This is done sequentially: break the improvements into small tasks, do and learn, then do another. Since your existing EDI system like can process X12, EDIFACT, 1SYNC, and delimited files your tasks are then of adaptation.

With the emergence of more robust ERP and EDI systems came the complexity of greater demands from America’s large companies.

• Some demands were kluged using XML and manual processes. These are easy to identify and improve.
• Others demands, such as transport services offered by FedEx and UPS or purchasing discounts achievable with automation are the next logical money saving steps.
• Consignment or vendor managed inventories shorten cycles and lower inventory levels.
• Web interfaces can be readily converted to time saving EDI. And, some lower volume documents can remain as Webforms. The conversion cost is low because large companies offering Web interfaces also have rugged EDI interfaces.
• RFID technology is emerging as a replacement for bar codes. The biggest EDI challenge in implementing RFID will the creation of a “perfect” pallet level Shipment Notice (ASN, 856), which contains the number of the RFID attached to the pallet.
• PIPs are Partner Interface Processes that define the way in which companies do business. PIPs cover most of the business processes between trading partners and define three areas; when in the process communication is required, what will be "said" during the communication, and the rules for the conversation. RosettaNet is an interface between trading partners only. XML is used and the tags are standardized.

Promoting responsiveness to reduce time and detect demand so that orders can be committed to, produced and fulfilled in a JIT environment, is one of the many benefits of e-commerce.

The current blizzard of paperwork: phone calls, emails, and spreadsheets illustrates the challenge. Very large companies have a much higher count of interactions and higher cost of operation; so they have moved readily to 1SYNC (formerly RosettaNet) and other standards. Small companies that desire to do business with large companies must comply even though there is no direct benefit. For example, Change Orders that arrive quickly and without error are truly beneficial. The benefits are significant:

• Costly last minute order changes
• Disrupting expedited shipments
• Surprise deductions from your invoices will be severly reduced

Another effective use of EDI is to automate Accounts Payables.

Conclusion

When you put together all of hard work you should come up with a viable way to better compete in the electornics marketplace. Combining upgraded ERP and EDI systems will bring a more contiguous flow to your supply chain, less excess inventory and a better bottom line. DCS can help you get from where you are now to where you want to be. Our DCS Process™ ensures improvements will be thorough and quick. Your next step is to email us to set your Free Assessment.

Read a success story about an electronics supplier.