Hi Everyone,

Recently, we have had numerous prospects ask about AS2 with regards to EDI communication with their trading partner(s).  This prompted me to go looking back through our Blog Archives – I was able to find this informative post by Nazma in Help Desk:

http://www.ebridgeconnections.com/blog/what-is-as2-edi/

Do you have questions, or comments regarding AS2 Communication – feel free to leave a comment below.

Best regards,

Dave Malda.

Good Morning Everyone,

This morning, as I browse back through our Blog and some posts from 2010, 2011 – I noticed a great article series written by our Mike Catalfamo on eCommerce Integration and the best practice process for integrating Sales Orders, Customer info, Inventory Quantities, and Shipping details (tracking #’s etc) to your accounting package.  Here are the 4 parts of this series again:

1. An Introduction to eCommerce and Accounting Package Integration
2. Creating eCommerce Sales Orders
3. Managing eCommerce Inventory
4. Updating Sales Orders and Thoughts on Shipping Info (Tracking #’s etc)

Enjoy the read – Mike and I would both love to hear your feedback on the proposed best practice approaches.

Best,
Dave Malda.

How does EDI work? What is the process? Why do people use it? What are the advantages/disadvantages?

Recently, someone posted these questions on Quora and thought I would post my response here as well.

EDI (electronic data interchange) is a standard data structure that allows companies with differing hardware and software systems to exchange information in a common  format.  EDI is used to communicate a variety of information and is typically used in a supply chain.  It is widely adopted in retail, healthcare, automotive and even by the U.S. Department of Defense.

In my experience, no one does EDI because they want to, they do EDI because a partner in a business relationship mandates it, however it does help save time and money when it comes to communicating business information documents.  Major retailers such as Wal-Mart, Target and Home Depot most commonly use EDI to communicate the following information: Orders to their suppliers (850), Invoices from their suppliers (810), Shipment notices from their suppliers (856). There are also a number of other documents that are used but these three are almost always required in a retail relationship.

There are many different EDI solutions in the marketplace so the process and tools you set up and use can differ but the high level processing steps are the same.

The process flow for you receiving an EDI document is the following:

1. Buyer exports a business document from their back-office system (let’s use a purchase order as the example)
2. The purchase order is converted from the back-office format into EDI using some type of data transformation/mapping software or tool
3. The EDI purchase order data is run through validation software that ensures it is structurally sound according to EDI the standards
4. The EDI data is transmitted to a VAN, or Value-Added-Network (see below) using some communication method (FTP, HTTP, HTTPS) that may be built into the validation software or may be another application
5. The VAN determines how to route the data and either hands it off to a different VAN used by the recipient or it is delivered to the VAN mailbox if the sender and receiver are using the same VAN service.  The data has now crossed the line and is the responsibility of the recipient and their VAN service.
6. The data remains in the recipients VAN mailbox until the recipient’s systems check for and processes the document.

What happens next depends on how you, the recipient have chosen to process your EDI.

6a. Web-Based Solution: If you are not exchanging large volumes of data, you may opt for a web-based EDI solution where you can log in to a web site and see a human-readable version of the EDI data. You log in to a web site to view your EDI data and manually process it as if you had received it via fax or email.  In other words, you need to re-key the data into your back-office system.

6b. Integrated Solution: To truly benefit from EDI, you need to integrate your EDI with your back-office systems which would allow the creation of orders directly into your accounting/ERP system.

If you are doing full integration, you can reverse the steps above starting with #4.  You would download the EDI data from the VAN, run it through your EDI validation software, convert the data from EDI to your back-office format and import it into your system.

Value-Added-Network (VAN): This is a service you can picture as an electronic post office that looks at the sender and recipient and routs EDI data to the proper ‘mailbox’.  You pay the VAN based on the volume of data you do, usually calculated by the kilo-character.  Note that some companies like Wal-Mart and Bed, Bath & Beyond do not use a VAN connection but a direct connection called AS2.  This prevents data transmission charges incurred by the VAN.

Advantages of EDI: faster supply chain due to increased speed of communication of key business documents ,  increased accuracy (especially if integrated), cost savings associated with reduced re-keying errors, fewer people needed to physically handle the documents.

Disadvantages of EDI: reputation for being complex and expensive to set up, VAN fees are variable and can be expensive, business processes may need to change (such as how accounting communicates with your EDI business partner).

Listen to Anthony Pralet, Project Manager from eBridge explain in simple terms how Electronic Data Integration works and the various stages within EDI Integration.

If you have any questions about EDI, please feel free to leave them in the comments section below.

If your EDI trading partner has asked you to transmit ASN documents, it is likely that the UCC/EAN-128 barcode label is also required. The label, usually attached to each carton or the entire pallet, allows the shipping receiver to quickly determine the contents of the carton/pallet in conjunction with the ASN paperwork.  This is done by scanning the SSCC-18 bar code at the bottom of the label.

While it seems reasonable to the trading partner that these labels are used since they speed up shipment verification at the receiving dock, they can be a pain for the supplier to generate, particularly since they contain bar codes that need to match the corresponding ASN document.

The labels are typically 4″x6″ in portrait mode and usually need to be printed on thermal paper.  Let’s look at specifications for two different trading partners, Lowe’s and The Sports Authority.

As you can see, both labels contain the same basic information, the exact layout will vary by trading partner. Additionally, some trading partners are more strict than others about tolerances regarding font size, spacing, paper type, barcode density and so on.

The SSCC-18 (serial shipping container code) bar code is an 18-digit number that is usually found at the bottom of the label. The first 2 digits is the application identifier that identifies the barcode as a SSCC-18, the next digit indicates the container type (0=carton, 1=pallet), the next 7 digits is padded with leading-zeros and identifies the shipper (your company) and never changes, the next 9 digits are always unique per label (at least within a 12-month period) and identify the specific carton/pallet and the last number is a check-digit that is calculated automatically by the barcode software.

In order to ensure that there are no mistakes in creating the barcode and corresponding ASN, it is usually best that one system handles both functions.

The eBridge ASN module allows you to easily create and pack your shipment electronically which also generates the label or alternatively, a file that can be used with your existing label software if you already have the label templates created. The eBridge module will take care of this easily and accurately every time. Carton/pallet numbers are automatically incremented so there is no risk of duplication and all of the other data on the label can be pulled from your accounting system, stored in the eBridge database during the order posting process or entered directly into the ASN module itself.

Trading partners that always require the ASN and corresponding labels include:

• Bed, Bath & Beyond
• Lowes
• Walmart
• Target
• JC Penney

eBridge has almost 20 years’ experience integrating EDI, so let us help take the pain out of your ASN and barcoding requirements. If you have any questions, please leave them in the comments section.

Salesforce pioneered the Software-as-a-Service industry and is the leading CRM solution, which is why I am excited to announce exciting news regarding the eBridge integration connector for Salesforce.

We have enhanced the integration connection to allow greater flexibility, including:

• Access to any objects related to an “Opportunity”, including those that are one or more steps removed. For example, for Opportunity –> Account –> Case, the Case object is not linked directly to the Opportunity but we will be able to ‘tow’ it along when we pull the Opportunity.
• Access custom objects related to the Opportunity.  Salesforce is almost always customized to accommodate specific business processes or workflows and that means adding objects that are not native to the default Salesforce environment.  Now eBridge can access custom objects so we can accommodate your specific business usage of Salesforce!
• Access an unlimited number of user-created fields (maximum was previously 20) on the Opportunity and any of the objects that come down with the Opportunity.  This means we can support an unlimited number of custom fields on the Contacts object, for example, since Contacts is linked to the Opportunity.  Of course all of this true for custom objects as well.

Here is a diagram highlighting the Opportunity object in green and all the related standard objects we can access, in orange.  Don’t forget, if you create a custom object that is linked to any of these, we can access that as well!  Click the image to enlarge.

We are always looking for your feedback on how you would like to integrate Salesforce with your back-office systems so please leave your comments below or on The Core, the eBridge community forum.

Software-based consulting services are tricky. Being involved in the industry for 10+ years, I have made a few observations about the perception most people have regarding the value of time spent by software consulting professionals.

It is well known that lawyers and psychiatrists bill their time by the minute, which no one seems to dispute.  For whatever reason though, many other consultants are not afforded the same understanding.  Perhaps it gets muddy when the company you are working with is selling a product and professional services, in which case the line is blurred in terms of what exactly you are paying for.  Maybe it is because the value of software itself is diminished; after all, I’m sure you have all met someone that has illegitimate (illegal) copy of some popular software package.

Either way, consulting services are about paying for the time of someone with the experience and expertise to help you solve a problem that should have a positive net result for you or your business.  I have delivered literally hundreds of projects and I would have to say that the most important thing is managing expectations.

Like any relationship, a business initiative requires co-operation and effort from both parties or it is likely to fall flat.  Regular communication helps keep things on track, however, keep in mind that communication, regardless of the frequency or type (email, phone, in-house) are potentially all billable against the project.  It is probably best to clarify this with your solution provider so you can mutually agree on how to make the most effective use of the project time.  I understand it could be a bit uncomfortable discussing this, but trust me, it is better for everyone to understand the situation in advance, rather than find out that all the project time was used on conference calls and the project is only half finished.

Here are some common things that I have experienced that needlessly consume project consulting time.  Please understand that this is not meant to be a finger-pointing exercise; there are plenty of situations when the solution provider could do a better job communicating, so with that disclaimer, here we go…

1) Inefficient Communications

• No point-person assigned to the project on the recipients side
• Not answering questions in a timely manner
• Providing incomplete answers or selectively answering some, but not all questions
• Missed or delayed scheduled appointments

Most consultants juggle several projects and if you miss an appointment, the work that was scheduled needs to be rescheduled based on the next available time slot.  In most cases, you can’t show up late to the party and expect to jump to the front of the line.

2) Unrealistic Expectations

• Excessive scope creep
• Unrealistic timeframes
• Expecting the solution provider to manage project components from other 3rd parties.

Changes in scope are almost inevitable.  Realize that changes usually have scheduling and costing implications.

3) Inadequate Preparation

• Production test data is not provided
• Testing scenarios are not outlined ahead of time
• Network/security issues prevent a remote connection
• System passwords were not available when needed

Testing and sign-off are the most important milestones in the project.  The completion of a project should be clearly defined and reviewed throughout the project.  I have seen situations where the solution provider considers the project done but the customer does not, until 3 different training sessions happen or the solution is live for 6 weeks.  This is goes back to managing expectations (which can change many times by the way!).

I will leave you with a popular illustration that sums up things up in an enlightening and entertaining way.

People find EDI intimidating enough on its own and an SDQ (Store Destination Quantity) order adds another twist.  In a previous article, “SDQ Made Easy!“, Andrea Hunter provides a good introduction.  I would like to go into a little more detail in this post.

An SDQ order is an efficient way to order a product that needs to ship to multiple locations.  Since VANs (value-added-networks) charge per kilo-character, I suspect there was some financial basis for this structure since it drastically cuts down on the amount of EDI code needed to communicate the order details.

With non-SDQ orders, the ship-to location would be specified as part of the order header which means everything gets shipped to that location.

Let’s have look at some EDI code from an SDQ order.

…

PO1**41*EA*11.82*TE*EN*9780864115027*CB*14927027

PO4**1*EA

SDQ*EA*92*001*2*009*1*019*8*026*1*045*2*072*1*076*2*084*2*087*2*096*1

SDQ*EA*92*098*2*099*2*126*13*180*2

…

The PO1 line indicates the total item quantity  to be shipped to all the stores (41), item unit of measure (EA for each), price (11.82) and two item codes (one [EN*9780864115027] represents a global code similar to a UPC and the other [CB*14927027] is the buyer’s catalog number) .

In the SDQ order, there the ship-to location code (store number) and quantity breakdown for each store;  store #001 gets 2, store #009 gets 1, store #019 gets 8 and so on.  There can be 10 store/quantity combinations per SDQ line and there are 14 stores so there are two SDQ lines.

…

PO1**41*EA*11.82*TE*EN*9780864115027*CB*14927027

PO4**1*EA

SDQ*EA*92*001*2*009*1*019*8*026*1*045*2*072*1*076*2*084*2*087*2*096*1

SDQ*EA*92*098*2*099*2*126*13*180*2

PO1**37*EA*16.55*TE*EN*6375864126075*CB*25586075

PO4**1*EA

SDQ*EA*92*001*4*010*7*011*2*019*3*040*1*045*9*076*5*084*3*087*1*099*2

…

Now you need to get this data into your back-office system for fulfillment.  You should have each ship-to location set up as an address in your system which helps when it comes time to do an ASN (856) shipping document.  With an integration solution, we can automatically process the data to create one order per ship-to location.  With our example above, we would end up with 14 one-line item orders, all for the same customer but shipping to 14 different locations.

Of course, you probably won’t have just one item on the order so let’s add another line item to the order.

…

PO1**41*EA*11.82*TE*EN*9780864115027*CB*14927027

PO4**1*EA

SDQ*EA*92*001*2*009*1*019*8*026*1*045*2*072*1*076*2*084*2*088*2*096*1

SDQ*EA*92*098*2*099*2*126*13*180*2

PO1**37*EA*16.55*TE*EN*6375864126075*CB*25586075

PO4**1*EA

SDQ*EA*92*001*4*010*7*011*2*019*3*040*1*045*9*076*5*084*3*087*1*099*2

…

If you look carefully, you will see that some stores get both items while other stores get the first item only or the second item only.  The stores in red are the ones that did not order the first item.

So how many orders do we need to create in the back-office system?  18.  For the first item, there are 14 stores and the second order has 4 other stores that only ordered the second item.

Here’s a breakdown by store number (which you can also picture as the number of orders you will have):

001 – both items

009 – first item only

019 – both items

026 – first item only

045 – both items

072 – first item only

076 – both items

084 – both items

088 – first item only

096 – first item only

098 – first item only

099 – both items

126 – first item only

180 – first item only

010 – second item only

011 – second item only

040 – second item only

087 – second item only

Does that help demystify SDQ orders?  I would love to hear your thoughts or experiences with SDQ orders.  Feel free to comment below.

Recently, we looked at some questions you should be asking to help you narrow your choices when seeking a software solutions provider. Now I want to turn the tables and provide some insight as to what is happening on the other side.

Ultimately, the salesperson is trying to determine the following:

1. Fit: Can I offer a solution that solves the major problem(s) expressed by the prospective customer?
2. Budget: Does the prospective customer have an actual budget allocated to pay for the solution?
3. Probability to Close (PTC): How soon can I close the deal?

You are likely to hear some form of the following questions that attempts to get to the root of the three questions above.

• Is there an actual project (or is this a discovery/information gathering exercise)? (PTC)
• What is driving the need for a solution? (Fit) – For EDI, this may be  a new business relationship with Home Depot and for eCommerce it can be volumes that makes manual data entry impractical.
  
• Is this your first time trying to solve this solution? If not, what was your experience previously? (Fit)
• What solutions have you looked at already? (Fit) – It helps to know what you didn’t like about the competition so we can address any gaps in expectations.
• Is there a budget for this project? (Budget)
• Who is the decision maker? (PTC)
• What is the decision making process? (PTC) – It is fine to have 3 or 4 steps in the process but it helps everyone if the sales rep knows about it in advance.
• What is the timeframe for implementation? (PTC) – If the project is 3-4 months out, mention it so the sales rep can prioritize communications accordingly.  The key is getting you the right information at the right times.

In my experience, most prospective customers are trying to obtain a quote for work by providing as little information as possible. This is particularly true when the dreaded “B-word” comes up. Budget is not something most people want to disclose, probably because they feel that the cost estimate will coincidentally consume most, or all the pre-disclosed budget.

As a consumer, I understand the temptation to withhold information to feel in control of the situation, but this approach can result in wasted time for both parties. If you are shopping for a new Porsche and your budget is $15,000, you are wasting your time and the salesperson’s time since your budget is not realistic. Establishing a range is one way to get over the budget hurdle and determine if further engagement makes sense.

The goal is a business relationship that is mutually beneficial to both parties and trust is the foundation of any healthy relationship. Being forthcoming with information will help build that trust and allow things to progress more quickly.

Typically a new EDI partnership will be the catalyst for exploring integration or perhaps you can no longer manually handle multiple sales channels like eCommerce and CRM.  What is driving your need for integration?

A few articles ago, I wrote about effective communication in business and examined the value of asking the right questions. Today I would like to provide a list of some questions that should help you narrow the field of providers when procuring a software project.

I have been in the software services industry for over 10 years and have worked on hundreds of projects, from clarifying the scope of work, through implementation and project wrap-up. I have also been on the receiving end of deliverables and have just about seen it all in terms of what could go wrong during the delivery.

In a future post, I will look at some specific reasons projects go over time and budget, but today I would like to share some key questions you should be asking to help get your project off on the right foot.

Keep in mind that these assume you will have some type of ongoing business relationship with that company, including technical support, upgrades, future product purchases and additional professional services.

Two Guys in a Basement?

Depending on what exactly you are trying to achieve, a freelance consultant may be a great fit for your project, but if you are implementing a project that affects mission-critical data, be wary of a fly-by-night solutions. You may or may not get exactly what you need but consider future changes such as upgrades and whether you will need to start from scratch.

1. How long has the company been in business?
2. How big is the company?
3. Does the company outsource any business functions such as development, delivery or customer service?
4. Can I see a copy of your service level agreement (SLA)?
5. How quickly does your team respond to support queries?
6. Can I speak with references for whom you have delivered a similar project?

Take-away: Ensure the solution provider has the experience and ability to support the solution over time.

Tip: Use Google Street View to see if the company really does operate out of a basement.

Them vs. the World

It is naïve to think there is only one company who can provide you a solution, but it’s your job to find the one that is the best fit for your needs. Some may have the product, but not the industry expertise to ensure success. Also be wary of the jack-of-all-trades; I wouldn’t have my plumber replace a transmission in my car. eBridge are data integration experts but don’t deploy accounting systems or design the eCommerce carts they connect with.

1. Who are your competitors?
2. What do you do better than your competitors?
3. How many customers do you currently have running a similar solution in production?

Take-away: Understanding the competition will help you find the right solution.

Free Printer Anyone?

I suspect just about everyone has had the following experience; give away the hardware, because the consumables is where the real money is made. For example, have you ever purchased a printer, just to find out the ink or toner costs more than the printer itself? You should look past the implementation costs and examine the ROI (return on investment) time-frame.

1. What is the implementation vs. recurring costs (year 2+)?
2. How much time and money is typically needed to upgrade?
3. Are there any ‘hidden’ costs (required hardware or software not already in place)?
4. How is your (software) product licensed (seats/logins, installs, other)?
5. What is your professional services hourly rate? Is there a minimum?
6. How are professional services billed (time spent)?
   • Frequency (monthly, weekly, according to project milestones)
   • What type of work is billable against the project and what is not, (ie. administration)

Take-away: Ask your solution provider to break out the initial project implementation costs vs. the year-two operating expenses.

What has been your experience working with software solution providers? I would love to hear some tips I may have missed.

In my previous article, we started looking at how important effective communication is, specifically in business. We saw how taking the time to ask the right questions can save everyone time and make you look like the professional you are.

Asking the right questions is useless though if you don’t listen to the responses. Stop for a moment and think about the difference between hearing and listening. Is there a difference? Absolutely! Hearing is passive, something which you have you have no control over. You hear a siren or you hear name shouted from across a room. You can ‘tune-out’ ambient noise but you can’t turn your ears off to prevent you from hearing.

Have you ever had a conversation with someone and they were not paying attention to what you were saying, perhaps formulating a response or comment before you finished speaking? What about that person who is constantly checking their phone (or worse, answering it), or is otherwise distracted?

These are good examples of a situation where someone may be hearing but is definitely not listening. How does that make you feel? Do you feel that what you are saying is less important than just about anything else that person could be doing? Are you incented to speak with, or do business with them in the future? How could you trust someone to do something for you if they can’t even take the time to listen?

Listening, is an active endeavor that requires you to be mentally present and focused, not only on the words being spoken but the meaning as well. It means absorbing what the person is saying and taking the time to consider their point of view, and the real meaning is behind the words they are speaking. It never hurts to clarify or rephrase a question or a statement to help ensure there is no misunderstanding.

We all have different life experiences and expectations and generally think that others have the same values and points-of-view that we do, which is not at all true. Further, we should view personal differences as a growth opportunity. It takes a lot of courage to change an opinion or belief and doing so is, at least in part, the result of listening to alternative views.

Have you ever taken a photograph and later realized that the picture doesn’t look like what you were seeing when you snapped the shutter? I know I have. I would hurry to snap the picture without properly composing the scene in the frame, perhaps cutting off someone’s head or not noticing clutter in the foreground. It is also because a camera does not have emotions; it is an inanimate object that captures what is there, not what we think is there. The final image is unaltered by the processing done by our brain that puts feelings into the moment we are trying to capture.

Verbal communication is quite a bit more complicated and in order to receive and interpret the message that is intended, both parties need to be actively participating and engaging with each other.

With the pace of business, coupled with the convenience of technology, it might be easy to excuse yourself into hearing instead of listening, but trust me, there is no excuse. When your turn comes, I know you would appreciate, and expect complete and undivided attention from your audience and would otherwise feel hurt and disrespected. So put down the smart phone, ignore the distractions and focus on what is truly being said by the person on the other end of the conversation.

Do this with your customers and treat them like people instead of dollar signs and you will amass a loyal following. After all, it has been proven in marketing that people buy with emotions. Why else would you choose to pay $5 for a coffee instead of $1.50? It is because there is a connection there that makes people want to be part of something that transcends the product itself.

Remember, take the time to ask the right questions and be a good listener and you will have a good starting point for personal and professional success.

Next time, we will be looking at some questions you should be asking when evaluating vendors for a business solution.

Wondering how much money you can save by integrating your back-office data?  Check out the eBridge ROI calculator and find out, then build your integration solution.