EDI FOR CONTRACT MANUFACTURERS

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1 EDI FOR CONTRACT MANUFACTURERS B2BGATEWAY AUGUST 19, 2015 NORTH AMERICA // +1 (401) EUROPE // +353 (0) AUSTRALIA //

4 Integration With Back End Office Systems 5 Global EDI Standards 6 GS1/UCC-128 Labels 7 Customer Service 8 B2BGateway Fact

2 TODAY S AGENDA & PRESENTERS 1 What Is EDI? 2 Where Does EDI Fit Into The Marketplace 3 How Does EDI Help The Contract Manufacturer? 4 Integration With Back End Office Systems 5 Global EDI Standards 6 GS1/UCC-128 Labels 7 Customer Service 8 B2BGateway Fact Sheet 9 B2BGateway Trading Partners 10 Top 5 Advantages of EDI 11 B2BGateway EDI Connect App 12 B2BGateway Contact Information Roger Leyden Director of Global Business Development at B2BGateway Aggie Grabowska Digital Marketing Executive

data between organizations by electronic means It is used to transfer electronic documents such as

3 WHAT IS EDI? IT SOUNDS SIMPLE EDI (Electronic Data Interchange) is defined as the structured transmission of data between organizations by electronic means It is used to transfer electronic documents such as Purchase Orders, Invoices, Advance Shipping Notices (ASNs), and many more from one computer system to another, ie from one trading partner to another trading partner RETAILER EDI USER RETAILER

BUT IT CAN BE VERY COMPLEX Each trading partner specifies their required communication method and which documents they require to complete EDI transactions This can make the EDI process very complex

4 BUT IT CAN BE VERY COMPLEX Each trading partner specifies their required communication method and which documents they require to complete EDI transactions This can make the EDI process very complex as illustrated below AS2 AS2 Server AS2 Software X-12 Ver 5010Encryption Software Annual Licensing Software Certification Consultant Fees VAN Van Software Mailbox Setup Mailbox Fees X-12 Ver 4040 Mapping Tools Modem Phone Consultant Fees FTP FTP Server FTP Software Software Credential X-12 Ver 4010 Mapping Tools Consultant Fees EDI USER FTPS FTPS Software Encryption Software Software Certificate X-12 Ver 3040 Mapping Tools Consultant Fees

5 B2BGATEWAY MAKES IT EASY AS2 VAN FTP AS2 Server Van Software FTP FTPS Server Software AS2 Software X-12 Ver 5010Encryption Annual Licensing Software Certification Consultant Software Fees Mailbox Setup Mailbox Fees X-12 Ver Mapping Modem Consultant FTP Software 4040 X-12 Ver Tools Mapping Phone Consultant Fees Encryption Software Software Credential 4010 X-12 Ver Tools Mapping FeesConsultant Software Certificate 3040 Tools Fees EDI USER FTPS

6 WHERE DOES EDI FIT INTO THE MARKETPLACE? X12 Format (CONTRACT MANUFACTURER) (ONLINE RETAILER) (BOX STORE RETAILER) (HIRING COMPANY) (SHOPPING CART) (THIRD PARTY LOGISTICS) 810 Invoice 850 Outgoing PO / Incoming SO 852 Product Activity Data 846 Inventory Inquiry 855 PO Acknowledgement 856 Advanced Ship Notice 860 Purchase Order Change 940 Warehouse Ship Order 945 Warehouse Ship Advice 830 Planning/Scheduling

7 HOW DOES EDI HELP THE CONTRACT MANUFACTURER? Being EDI compliant can help communications with Contract Manufacturers in the following ways: Send Orders and send receive Invoices electronically to/from Contract Manufacturer Be updated regularly with levels of stock currently available from Contract Manufacturer Receive Advance Ship Notices (ASNs) from Contract Manufacturer to let you know when and where goods will arrive Allows you to send forecasting documents such as the EDI 830 to the contract manufacturer, thus allowing them to plan accordingly and meet your needs Removes the need to manually re-key data, eliminating potential for human error Speeds up supply chain communication and helps all trading partners have complete visibility into their entire operations and third party add-ons such as 3PL s

8 EDI 830 FORECAST SCHEDULE DOCUMENTS An EDI 830 Forecast Schedule is a document the hiring organization sends to inform the manufacturer of their projected product needs The 830 Forecast Schedule document may be used in a number of different ways, such as: (i) A simple forecast (ii) A forecast with the trading partner s authorization for the contract manufacturer to commit to future resources such as labor or materials (iii) A forecast that is also turned into a firm Purchase Order Not all 830's, however, can be used to create a Purchase Order, just trading partners with 830's that have release capabilities The 830 forecasts weeks or even months in advance so you would only want to create orders that have a firm commitment and ignore the probable orders until a later date when they become firm or agreed

9 INTEGRATION WITH ERP/WMS/OMS SOLUTIONS

10 POPULAR GLOBAL EDI STANDARDS ANSI X12 Developed by American National Standards Institute (ANSI) in 1979 Most popular EDI transaction set in North America Transaction sets given numeric values, eg PO = 850, Invoice = 810 etc Multiple standards within X12, 4010, 4030, 5010 etc EDIFACT Developed by the United Nations (UN) in 1986 Most popular EDI transaction set outside of N America Mostly used in Australia and Europe Transaction sets given names PO = ORDERS, Invoice = INVOIC, etc Multiple standards within EDIFACT Most popular current standard is D96A Tradacoms Developed by the United Kingdom Retail Sector in 1982 Had been most popular EDI Transaction Set in UK but is now being over taken by EDIFACT Still used today by UK retailers but is slowly being phased out and replaced by EDIFACT subset Eancom

11 POPULAR GLOBAL EDI STANDARDS ANSI X (PURCHASE ORDER) ISA*00* *00* *08*925485US00 *08*472103RI *141106*1211*:*00501* *0*P*> GS*PO*925485US00*472103RI* *1211* *X* ST*850*0001 BEG*00*SA* ** CUR*BY*USD REF*DP*00003 REF*MR*0003 REF*PD*JANFEAWK51 REF*IA* FOB*CC*OR*CHICAGO IL IL ITD*05*15*****65 DTM*038* DTM*037* DTM*063* PID*S*08*VI*FL TD5*O****RETAIL LINK/ BB N9*L1*SPECIAL INSTRUCTIONS MTX**NO PRETICKET MTX**==============================IF MULTIPLE DESTINATIONS HAVE MTX**THE SAME SHIP DATE, PLEASE SHIP TO FURTHEST DESTINATION MTX**FIRST AND CLOSEST DESTINATIONSLAST MTX**CALL FOR DELIVERY APPOINTMENT 48 HOURS IN ADVANCE MTX**==============================SUPPLIER WILL SHIP ALL MTX**MERCHANDISE IN ACCORDANCE WITHTHE CURRENT SHIPPING AND EDIFACT ORDERS (PURCHASE ORDER) UNB+UNOA: : : : ORDERS UNH+1+ORDERS:D:96A:UN:EAN008 BGM+220+LM T+9 DTM+137: :102 DTM+64: :102 NAD+DP ::9++BALLYMUN PBL LOC ::9 NAD+SE ::9++OLD IRISH CREAMERY CHEDDAR NAD+BY ::9++TESCO STORES LTD LIN :EN PIA :IN:92 IMD+F++TU:::OAK SMOKED CHED 200G QTY+21:82000 QTY+59:12000 LIN :EN PIA :IN:92 IMD+F++TU:::CHEDDAR WITH CHILLI 200G QTY+21:81000 QTY+59:12000 LIN :EN PIA :IN:92 IMD+F++TU:::CHEDDAR WITH CRANBERRIES QTY+21:81000 QTY+59:12000 TRADACOMS ORDHDR (PURCHASE ORDER) STX=ANAA: :UK LTD :SUPPLIER PLC : ZZ0014 +ORDHDR+B MHD=1+ORDHDR:9 TYP=0430+NEW-ORDERS SDT= : SUPPLIER PLC+THE FACTORY:ANYSTREET:ANYTOWN:ANYSHIRE:AN1 9ZZ CDT= BOOTS UK LTD+BEAUTY & PCARE:1 THANE RD:NOTTINGHAM NG90 1BS FIL= MTR=6 MHD=2+ORDERS:9 CLO= :D82 ORD=Q :: N OLD= : TOOTHBRUSH FIRM OLD= : TOOTHBRUSH MED OTR=2 MTR=7 MHD=3+ORDERS:9 CLO= :D82 ORD=Q :: N OLD= : TOOTHBRUSH SOFT OTR=1 MTR=6 MHD=4+ORDTLR:9 OFT=2 MTR=3 MHD=5+ORDHDR:9

GS1-128 LABELS In today s business environment, GS1-128 (formerly known as UCC- 128) labels have become a necessary part of the criteria for large format retailers in automating the supply chain with

12 GS1-128 LABELS In today s business environment, GS1-128 (formerly known as UCC- 128) labels have become a necessary part of the criteria for large format retailers in automating the supply chain with their suppliers GS1-128 labels are an outer label affixed to each carton and/or pallet and provide information about a particular shipment This label will alert the trading partner about shipment information such as who the vendor / supplier is, carton content, store ship to location, etc, and is a mix of both human readable as well as scan able information The GS1-128 label on every carton is scanned at its destination location (eg trading partner central warehouse) and information usually is tied to an Advance Ship Notice (ASN) that has already been transmitted via EDI to the trading partner from the supplier

CUSTOMER SERVICE B2BGateway has been providing excellent customer service to all of our clients and we will continue to do so in the future B2BGateway has developed

Pacific Region: Asia: MA and RI Shannon, Ireland Sydney, Australia Jinan, China Available Support Setup phase dedicated project manager Rapid Response Team available

13 CUSTOMER SERVICE B2BGateway has been providing excellent customer service to all of our clients and we will continue to do so in the future B2BGateway has developed two new teams to help clients with setting up and maintaining their trading partner relationships International B2BGateway Office Locations: North America: Europe: Pacific Region: Asia: MA and RI Shannon, Ireland Sydney, Australia Jinan, China Available Support Setup phase dedicated project manager Rapid Response Team available for when issues need immediate attention Support is available 24/7 all year long and in your time zone These support features are included in the monthly fee at no extra cost

14 B2BGATEWAY FACT SHEET B2BGateway has been doing EDI since 1999, offering EDI and supply chain integration solutions to thousands of clients across the globe Here are some other interesting facts about our EDI experience: GS1 Accredited EDI Solution Provider B2BGateway processes over $30-billion dollars in client / TP transactions each month Thousands of client / TP partner relationships worldwide

15 TRADING PARTNERS B2BGateway currently supports over 25,000 EDI relationships and presently works with hundreds of trading partners See our full list of Trading Partners across all verticals at wwwb2bgatewaynet/tradingpartnersasp - New trading partner relationships are added daily

TOP 5 ADVANTAGES OF EDI Greater Accuracy by removing need to re-key data B2BGateway offers cloud-based, fullyintegrated EDI and automated supply chain solutions to thousands of clients across the

16 TOP 5 ADVANTAGES OF EDI Greater Accuracy by removing need to re-key data B2BGateway offers cloud-based, fullyintegrated EDI and automated supply chain solutions to thousands of clients across the globe Integration with supply chain tools such as ERP, WMS, 3PL Greater Speed through electronic communication Our solutions, which remove the need to rekey data, are widely used in Wholesale Distribution, Retail, Manufacturing, Third Party Logistics (3PL), Automotive and Government industries Faster Payment from your Trading Partners Environmentally Friendly - reduce reliance on paper B2BGateway was recently recognized as a 2015 Supply Chain Pro to Know by Supply & Demand Chain Executive Magazine

17 EDI CONNECT APP EDI Connect App is designed to facilitate instant access to information about support services offered by B2BGateway It is very successful, visual and simple tool for reporting and getting a quick overview of your trading partner relationships B2BGateway clients are able to view company information and contact support engineer with one click They can also view transaction report details, filter results by date, document number and trading partner name

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THANK YOU FOR WATCHING Call USA: Call Europe: Call Australia: Web: Email: +1 401 491

19 THANK YOU FOR WATCHING Call USA: Call Europe: Call Australia: Web: (USA) (EU) (AU) wwwb2bgatewaynet Sales@B2BGatewayNet

HANG TIGHT WE RE ALMOST READY

HANG TIGHT WE RE ALMOST READY S a l e s @ B 2 B G a t e w a y N e t / / + 1 ( 4 0 1 ) 4 9 1-9595 YOUR GLOBAL EDI NETWORK PARTNERING WITH B2BGATEWAY EDI INCREASE YOUR OFFERINGS AND REVENUE STREAMS B2BGATEWAY