Académique Documents
Professionnel Documents
Culture Documents
Session 9
Learning Outcomes 2-3 Describe the use of VANs (Value Added Networks) for EDI
Topics
Review of Last session Group Report Lecture
Value Added Networks, VANs Advantages of using the internet for
b2b
Topics Discussed
The purchase process of b2c The purchase process of b2b Activities of professional buyer Different company purchases Risks Electronic Transactions Electronic Data Interchange
CRITERIA 2-3
VANs may be operated by large companies for efficient supply chain management with their suppliers, or by industry consortiums and telecom providers.
Creation of VAN
A VAN is created when a network provider leases communications lines from a common carrier (such as a telephone company), enhances them by adding services and improvements that facilitate businessto-business application integration, and then resells the network connection and services to others for a fee. Company-created Third Party
Functions of VANs
1. 2. 3. 4. 5. 6. provides EDI transaction services, security, document interchange assistance, standard message formats, communication protocols, and communication parameters for EDI.
Diagram
VAN
Diagram
Client 1
VAN
Client 2
Client 3
WSN Diagram
Transaction Standards
ANSI ASC X12 (American National StandardsX12) X12 is a standard that defines many different types of documents, including air shipments, student loan applications, injury and illness reports, and shipment and billing notices. The ANSI (American National Standards Institute) assigned responsibility for development of EDI standards to the ASC (Accredited Standards Committee) X12 organization in 1979.
PRODUCT/PRICING TRANSACTIONS
Price Sales Catalog Price Authorization Acknowledgement/Status Specification/Technical Information Request For Quotation Response To Request For Quotation Electronic Bid Form 832 845 841 840 843 833
ORDERING TRANSACTIONS
Purchase Order Purchase Order Acknowledgement Purchase Order Change Purchase Order Change Acknowledgement Order Status Inquiry Order Status Report Contract Award 850 855 860 865 869 870 836
SHIPPING/RECEIVING TRANSACTIONS
Shipment Information (Bill of Lading) Receiving Advice Non-conformance Information-Disposition Transaction, Cause/Correction
FINANCIAL TRANSACTIONS
Invoice Freight Invoice Payment order/Remittance Advice (EFT) Lockbox Financial Information Reporting
CONTROL TRANSACTIONS
Functional Acknowledgement Application Advice Trading Partner Profile
Transaction Standards
UN/EDIFACT UN/EDIFACT (United Nations/Electronic Data Interchange for Administration Commerce and Transport) is an international set of EDI standards that are published by the United Nations Trade Data Interchange Directory (UNTDID). The standards include syntax rules and implementation guidelines; message design guidelines, directory sets defining messages, data elements, and code sets, among other definitions.
PRODUCT/PRICING TRANSACTIONS
Price Sales Catalog Price Authorization Acknowledgement/Status Specification/Technical Information Request For Quotation Response To Request For Quotation Electronic Bid Form PRICAT ATHSTS PRDSPE REQOTE QUOTES --
ORDERING TRANSACTIONS
Purchase Order Purchase Order Acknowledgement Purchase Order Change Purchase Order Change Acknowledgement Order Status Inquiry Order Status Report Contract Award ORDERS ORDRSP ORDCHG ORDRSP ORSSTA ORDREP --
SHIPPING/RECEIVING TRANSACTIONS
Shipment Information (Bill of Lading) Receiving Advice Non-conformance Information-Disposition Transaction, Cause/Correction Trading Partner Profile IFTMCS RECADV NONCON PARTIN
FINANCIAL TRANSACTIONS
Invoice Freight Invoice Payment order/Remittance Advice (EFT) Lockbox Financial Information Reporting
CONTROL TRANSACTIONS
Functional Acknowledgement Application Advice Trading Partner Profile
Transaction Standards
Open-EDI The ISO (International Standards Organization) and IEC (International Electrical Committee) are developing an EDI reference model under a joint committee called Open-EDI.
The goal of Open-EDI is to allow electronic transactions among "multiple autonomous organizations" that may or may not have any prior business relationships.
Rationale
Many enterprise buying organizations find that managing their supply base can be very challenging and expensive if to maintain their own site. Point-to-point communications in multiple technologies required by different suppliers are expensive and time-consuming to manage. Buyers can utilize transaction capabilities for reliable translation and delivery of business documents using trading networks.
Charges
Set-up Fee ($5,000 to $10,000) Monthly Fee ($100 to $ 1,000) Consumables ($1,000 to $10,000) Per Kilobyte used ($0.50 to $1.00) Per transaction (% of transaction) Subscription fee ($2,000 to $ 10,000) Maintenance Charges (20% of set-up)
UN Rules
To ensure the validity and enforceability of transactions completed through the use of EDI, Section 2.6 requires trading partners to store and retain:
(a) the Messages communicated (both sent and received) and (b) records relating to those Messages.
Those records may include histories or logs of the communications as well as databases containing extracts of certain portions of the Messages.
UN Rules
The record storage requirements which may be specified in the Technical Annex should be developed based upon the commercial or legal requirements under which each party conducts its affairs. The objective is to provide the necessary requirements which can best assure each trading partner that both required and desired records will exist when needed. National laws and regulations may differ considerably regarding the readability, durability or integrity of electronic records.
UN Rules
No specific time requirements or storage formats are indicated; however, trading partners are encouraged to specify details regarding both matters, in order that the appropriate records can be recovered for review in the event of any future disagreements or disputes.
Otherwise, the Agreement imposes no restrictions on the internal procedures used by a party to comply with the requirements of Section 2.6.
Third Party
VANs responsibility 3rd party data storage Buyer and seller hard and soft copies
Criteria 2-4
Advantages
a standard communication network across the world which can be used for b2b between buyers and sellers, avoiding the costs charges by VANs Security making it accessible to organisations enabling a more competitive global marketplace. Other developments
Security
Network layer security IPsec Protocol Electronic mail security (E-mail) Pretty Good Privacy (PGP) Multipurpose Internet Mail Extensions (MIME) Firewalls
Accessibility
Global Access 24 x 7 access Any terminal Authorized Person
Competitiveness
Strategic alliances Up-to-date/ minute decisions Fluctuating prices and terms Expedient delivery of services
END OF SESSION