NAED NATIONAL ASSOCIATION OF ELECTRICAL DISTRIBUTORS Recommended Best Practices SUPPLY CHAIN SCORECARD: Electronic Measures Table of Contents Electronic Communications saves Time and Money Electronic Purchase Orders 4 Electronic Invoices 6 Commonplace Electronic Opportunities IDEA Participation & Usage 12 Appendix A: Additional Electronic Documents 8 15 What You Can Do 18 This Recommended Best Practices for Electronic Measures is designed to facilitate a dialogue among individual distributors and the manufacturers that supply products to them for the purposes of making the supply chain evaluation process more efficient and reducing the costs for all parties involved. It is not intended to express any views regarding individual distributors or manufacturers business decisions. All distributors and manufacturers will continue to make their own independent decisions regarding all matters affecting competition. Information outside the scope of the designated categories (e.g., manufacturer pricing and payment terms, promotional allowances, etc.) has been omitted from this document. However, individual distributors are free to discuss these subjects in separate dealings with individual manufacturers. Why Measure Supply Chain Performance? What gets measured, gets done. Better metrics lead to better decisions and better outcomes. NAED distributors who measure supply chain performance report better relationships with channel partners, reductions in operating expense, and above average return on the time and effort invested. Furthermore, measuring supply chain performance can make processes more efficient, lower the cost of doing business together, and give the channel a sustainable competitive advantage in delivering value to end-customers. In fact, using purchasing-related EDI transaction sets, such as the EDI 850 Purchase Order and EDI 810 Invoice, can save channel partners more than $50 per transaction. Vision for NAED s Supply Chain Scorecard NAED s Supply Chain Scorecard is more than a report handed out at booth sessions. It is a disciplined, ongoing, and strategic business tool used to enhance efficiency, improve performance to end-customers, and drive results. It also enables distributors and manufacturers to identify issues, develop action plans, and hold each other accountable for results. Industry benchmarks, similar to the Performance Analysis Report (PAR), will be developed once a critical mass of distributors (approximately 100) measure supply chain performance.
Electronic Measures Electronic measures include electronic orders, electronic invoices, EDI transaction sets and IDEA participation. Strategic Measures Electronic Measures Electronic Orders (EDI 850/852) Electronic Invoices (EDI 810) Additional EDI Transactions IDEA Participation IDEA Membership Product & Published Price Data Product Life Cycle flags Enriched Catalog Data and Images Assessment of Data Quality Performance Measures 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 2
Electronic Communications Saves Time and Money RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS Current Situation There is no better time to encourage the usage of electronic communications between electrical distributors and manufacturers than the present. Electronic communications streamlines and improves business processes by reducing the expenses associated with routine business transactions including purchase orders, invoices, SPA claims, P.O. acknowledgements, ship notices/manifests, receiving advice/acceptance certificates, product transfer/resale reports, and shipping container labels. All parties involved distributors, manufacturers, and end-customers win with electronic communications through better product availability, increased inventory turns, and better cash flow. The proven format for exchanging standard business documents electronically is Electronic Data Interchange (EDI). Developed in the mid-1980 s, implementing EDI is not technically complex, just time consuming. Once set up, EDI requires little or no human intervention. EDI is a quick, fast, and painless way to do business. Furthermore, channel partners without the desire to develop EDI capability can still enjoy many of its benefits by using the Industry Data Exchange s IDX web forms and flat file capabilities. Another form of electronic communications is password protected websites. Providing access to information 24/7/65 increases process efficiency and responsiveness to end-customers. Unfortunately each manufacturer s website has different log-in IDs and password requirements, necessitating multiple IDs and passwords. This creates security issues for distributors and manufacturers when distributor personnel change employment. Most importantly, electronic communications initiatives require the people leading information technology (IT) efforts at distributors and manufacturers to communicate and coordinate tasks. Unfortunately, IT personnel often work in a vacuum with little or no interaction or understanding of the goals, roles, information requirements, and contributions of their channel partners. Allowing IT personnel to communicate directly will facilitate the implementation of electronic communications industry-wide. RECOMMENDED BEST PRACTICE To eliminate the manual input into individual business systems and reduce costs for all parties involved, the task force recommends: Distributors and Manufacturers: Make implementation of electronic communications a priority in your business. To ensure electronic communications receives the attention it deserves, include information technology (IT) personnel in annual strategy and joint business planning meetings with channel partners. Provide your channel partner with contact information for the appropriate information technology (IT) personnel in your organization. Manufacturers: Endeavor to standardize log-in IDs and password requirements for your password protected website. Consider participating in single log-in solutions. Electronic communications save time, reduce costs, and improve service to end-customers. 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS
Electronic Purchase Orders Current Situation Distributors send purchase orders to manufacturers through a variety of methods U.S. Mail, telephone, fax, email, online order entry, flat file, and through Electronic Data Interchange (EDI) with the EDI 850 Purchase Order or EDI 852 Product Activity Data if participating in Vendor Managed Inventory (VMI). Purchase orders entered online require distributors to manually re-key data unless an upload feature is available. Purchase orders received via mail, telephone, fax, and email must be interpreted and manually re-keyed into the manufacturer s business system. This additional manual labor increases operating costs and the opportunity for human-error, which can result in shipping errors, invoice errors, and returned goods. Purchase orders entered electronically via EDI and flat file, however, provide accurate information with an audit trail. Purchase Order Percent by Line Item 100 75 50 85 86 8 88 78 9 94 95 96 89 92 9 25 0 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Manual Online EDI, VMI, or Flat File Purchase Order Percent by Dollars 100 75 50 76 79 77 8 72 95 95 91 94 88 94 91 25 0 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 4
Recommended Definition RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS Electronic Purchase Orders Purchase Orders received via Electronic Data Interchange (EDI), flat file, Vendor Managed Inventory (VMI), and/or online entry. RECOMMENDED BEST PRACTICE To eliminate the manual input into individual business systems and reduce costs for all parties involved, the task force recommends: Distributors and Manufacturers: At a minimum, adopt file formatting congruent with the EDIPro 850 Purchase Order for orders of manufacturer stock items. (If participating in Vendor Managed Inventory, the EDI 852: Product Activity Data serves as an electronic purchase order). Consider developing mechanisms to allow entry of project orders via EDI too. Distributors: At a minimum, enter Purchase Orders for manufacturer stock items electronically through Electronic Data Interchange (EDI), Vendor Managed Inventory (VMI), or flat file. Distributors and Manufacturers: Measure the percent line items and dollars entered electronically monthly via EDI 850. (If participating in Vendor Managed Inventory, the EDI 852: Product Activity Data serves as an electronic purchase order). Please advise your channel partner if you consider the current level of electronic order entry adequate, if it needs improvement, or if it is unacceptable. To increase electronic order entry, ask your channel partners the following questions: Is your company set up to receive the EDI 850 P.O.? Is your company set up to receive the EDI 850 P.O.? *If No, When will the EDI 850 be set up? *If No, When will the EDI 850 be transmitted? EDI 850 Purchase Order EDI transaction that is an electronic version of a paper Purchase Order. (Distributor Manufacturer) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 5
Electronic Invoices Current Situation Manufacturers send invoices to distributors in a variety of methods mail, fax, email, flat file, and Electronic Data Interchange (EDI). Invoices received via mail, fax, email, and downloaded from a vendor s secure website in an Adobe Acrobat.pdf format must be interpreted and manually re-keyed into the distributor s business system. This additional manual labor increases both operating costs and the opportunity for human-error, increasing the cost of doing business together. Invoices provided electronically via EDI or flat file, however, provide accurate information with an audit trail. Invoice Percent by Line Item 100 75 50 25 0 6 6 59 48 50 44 65 22 12 9 6 49 47 5 42 75 85 91 94 88 94 91 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Manual Online EDI, VMI, or Flat File Invoice Percent by Dollars 100 9 56 55 59 57 42 9 0 21 14 14 75 50 25 9 40 9 41 5 59 68 78 85 85 90 96 0 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 6
Recommended Definition RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS Electronic Invoicing Invoices received via Electronic Data Interchange (EDI), flat file, Vendor Managed Inventory (VMI), and/or downloaded from the vendor s secure website in an importable format. RECOMMENDED BEST PRACTICE To eliminate the manual input into individual business systems and reduce costs for all parties involved, the task force recommends: Distributors and Manufacturers: Adopt the IDEA Standards for required (and required condi- tional) information per IDEA s EDIPro 810 Invoice for EDI and flat file invoices. Manufacturers: Submit invoices electronically through Electronic Data Interchange (EDI) or flat file. Distributors and Manufacturers: Measure electronic invoices by percent of line items entered and percent of dollars entered by month. Please advise your channel partner if you consider this level of electronic order entry adequate, if it needs improvement, or if it is unacceptable. EDI 810 is an electronic invoice. To increase electronic invoicing, ask your channel partners the following questions: DISTRIBUTORS ASK MANUFACTURER: Is your company transmitting the EDI 810 Invoice? Is your company set up to receive EDI 810 Invoice? *If No, When will the EDI 810 be transmitted? *If No, When will the EDI 850 be set up? EDI 810 Invoice EDI transaction that is an electronic version of a paper invoice. It communicates the specific items, price, and quantities shipped and the amount that must be paid. (Manufacturer Distributor) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 7
Commonplace Electronic Communication Opportunities RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS Current Situation The electronic exchange of data strengthens partnerships and enables new and lower-cost ways of doing business together, regardless of size or location. It reduces labor costs by replacing the labor-intensive, errorprone manual exchanges of information via paper, fax, and/or phone with software resident in business systems. The opportunity for human-error is also minimized, allowing the time currently spent fixing errors to be redirected to developing and enhancing relationships with end-customers and increasing service levels. The EDI 855 Purchase Order Acknowledgement allows distributors to notify end-customers if material is going to be late and the time to develop contingency plans. The SPA process is streamlined with the use of the EDI 845 SPA Quotation, EDI 844 SPA Credit Request, and EDI 849 SPA Credit/Discrepancy. Efficiencies can be realized in receiving materials with the EDI 856 Ship Notice/Manifest, EDI 861 Receiving Advice/Acceptance Certificate, and the GS1-128 Shipping Container Label. The use of the EDI 852 Product Activity Data and EDI 867 Product Transfer and Resale Report give manufacturers information about actual product demand, allowing factories to be scheduled more effectively. The EDI 820 Payment Order/Remittance Advice allows distributors to make payments electronically. RECOMMENDED BEST PRACTICE To eliminate the manual input into individual business systems and reduce costs for all parties involved, the task force recommends: Distributors and Manufacturers: Expand the use of EDI transactions beyond electronic purchase orders (EDI 850/852) and electronic invoices (EDI 810) to improve supply chain efficiency, reduce costs, and make the process of doing business together more efficient. 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 8
To increase EDI transaction set usage, ask your channel partners the following questions: Is your company set up to receive the EDI 820? *If No, When will the EDI 820 be set up? Is your company transmitting the EDI 820? *If No, When will the EDI 820 be transmitted? EDI 820 Payment Order/Remittance Advice EDI transaction used to receive remittance advice and send payments to vendors. (Distributor Manufacturer) Is your company set up to receive the EDI 844? *If No, When will the EDI 844 be set up? Is your company transmitting the EDI 844? *If No, When will the EDI 844 be transmitted? EDI 844 Product Transfer Account Adjustment (also known as SPA Credit Request) EDI Transaction used by a distributor to request credit for transactions covered by a manufacturer s preauthorized SPA Quotation. (Distributor Manufacturer) Is your company transmitting the EDI 845? *If No, When will the EDI 845 be transmitted? Is your company set up to receive the EDI 845? *If No, When will the EDI 845 be set up? EDI 845 Price Authorization Acknowledgement/Status (May also be known as a SPA Quotation, but there are other uses including price quotations) EDI Transaction used by a manufacturer to provide a distributor with pricing or a specific SPA quotation. (Manufacturer Distributor) Is your company transmitting the EDI 849? *If No, When will the EDI 849 be transmitted? Is your company set up to receive the EDI 849? *If No, When will the EDI 849 be set up? EDI 849 Product Transfer Account Adjustment (also known as a SPA Credit/ Discrepancy) EDI Transaction used by a manufacturer to issue a SPA Credit or a SPA Credit Discrepancy Notice in response to a Distributor SPA Claim Filing. (Manufacturer Distributor) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 9
To increase EDI transaction set usage, ask your channel partners the following questions: Is your company set up to receive the EDI 852? *If No, When will the EDI 852 be set up? Is your company transmitting the EDI 852? *If No, When will the EDI 852 be transmitted? EDI 852 Product Activity Data EDI transaction that reports the movement of material in and out of a supplier consigned inventory on a daily or weekly basis, depending on the need. (Distributor Manufacturer) Is your company transmitting the EDI 855? *If No, When will the EDI 855 be transmitted? Is your company set up to receive the EDI 855? *If No, When will the EDI 855 be set up? EDI 855 Purchase Order Acknowledgement EDI transaction that is an electronic version of a phone call, fax, or hard copy of a purchase order acknowledgement. NOTE: The EDI 855 can also be used in conjunction with the EDI 852 Product Activity Data as an initiation of a VMI Order. (Manufacturer Distributor) Is your company transmitting the EDI 856? *If No, When will the EDI 856 be transmitted? Is your company set up to receive the EDI 856? *If No, When will the EDI 856 be set up? EDI 856 Ship Notice/Manifest EDI transaction sent when product is shipped that is an electronic version of a printed packing slip. (Manufacturer Distributor) Is your company set up to receive the EDI 861? *If No, When will the EDI 861 be set up? Is your company transmitting the EDI 861? *If No, When will the EDI 861 be transmitted? EDI 861 Receiving Advice/Acceptance Certificate EDI transaction used to notify the trading partner of the initial receipt or verified receipt quantity for a shipment of goods. (Distributor Manufacturer) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 10
To increase EDI transaction set usage, ask your channel partners the following questions: Is your company set up to receive the EDI 867? *If No, When will the EDI 867 be set up? Is your company transmitting the EDI 867? *If No, When will the EDI 867 be transmitted? EDI 867 Product Transfer and Resale Report EDI transaction used to (1) report information about product that has been transferred from one location to another (inter-branch transfer and/or transfer from a Regional Distribution Center to a branch); (2) report sales of product to an end-customer; and/or () report lost orders, i.e., demand beyond actual sales. (Distributor Manufacturer) Is your company transmitting the GS1-128? *If No, When will the GS1-128 be transmitted? Is your company set up to receive the GS1-128? *If No, When will the GS1-128 be set up? GS1-128 Shipping Container Label Scannable packing list. A GS1 128 lets the receiving department know what is in the shipment without having to open the cartons. NOTE: Used in conjunction with the EDI 856 Ship Notice/Manifest, when a shipment with a GS1-128 is received, it is scanned and the contents of the shipment are electronically matched in the receiver s computer. This streamlines the receiving process by eliminating the manual entry of data. (Manufacturer Distributor) NOTE: Please see Appendix A for additional Electronic Communications Capabilities but are not discussed elsewhere in this White Paper. 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 11
IDEA Participation and Usage Current Situation The Industry Data Exchange Association (IDEA) was founded in March 1998 as a joint venture of the National Association of Electrical Distributors (NAED) and the National Electrical Manufacturers Association (NEMA) to provide a central repository for delivering product and pricing information throughout the electrical industry. While use of IDEA is vital to improving the exchange of business information within the electrical distribution channel to reduce costs for all parties involved, participation and usage needs to be improved. The components of IDEA participation for manufacturers are: Membership in IDEA Providing product and distributor published price data to the Industry Data Warehouse (IDW) Furnishing Product Life Cycle Item Status Codes to the IDW Supplying enriched catalog data (including images) to the IDW The quality of the data in the IDW NOTE: Some distributors may also want individual item net into stock pricing in the IDW. The components of IDEA participation for distributors are: Membership in IDEA Use of the product and distributor published price data in the Industry Data Warehouse (IDW) Use of the Product Life Cycle Item Status Codes to better manage inventory and returns Use of enriched catalog data (including images) in the Industry Data Warehouse (IDW). Recommended Definition Product Data The minimum information electrical distributors require to add a product to their business systems. It includes, but is not limited to, information such as UPC/GTIN; brand name; catalog/part number; invoice description; catalog description; country of origin; Vendor Product Group codes; distributor in-to stock cost; UNSPC; unit of measure; package quantities; stock status; returnable flag; minimum order quantity; and case weight. Product Life Cycle Item Status Code Status code used to manage product life cycles in the Industry Data Warehouse (IDW). The most common Product Life Cycle Codes used by the IDW are: A=Active item for sale; P=Planned for obsolescence; O=Obsolete product; D=Delete; and K=Pricing not available in the IDW. (Source: IDEA Standards for Product Life Cycle Management, May 2009). Enriched Catalog Data The minimum information electrical distributors require to include a product in their online storefront. Enriched/Catalog Data includes, but is not limited to, information such as GTIN/UPC; stock status; URL for specification sheets; URL for technical drawings; URL for Material Safety Data Sheets (MSDS); price group information; package dimensions; item weight; URL for brochures, and URL for product images. 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 12
RECOMMENDED BEST PRACTICE RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS To eliminate the manual input of product and pricing information into individual business systems and reduce costs for all parties involved, the task force recommends: Distributors and Manufacturers: Both channel partners should be members of IDEA. Manufacturers: Use the Industry Data Warehouse (IDW) as the central repository of product, distributor published price data, Product Life Cycle Item Status Codes, and enriched catalog data (including images). Establish a disciplined internal process for replacing data in the Industry Data Warehouse (IDW) whenever changes are made to product data and/or new products are introduced. Send exception reports when changes are made to your data in the Industry Data Warehouse (IDW). Refresh all your company s data in the Industry Data Warehouse (IDW) no more than quarterly. Continually improve the quality of your company s data in the Industry Data Warehouse (IDW). Distributors: Endeavor to use the Industry Data Warehouse (IDW) as your source of product, distributor published price data, Product Life Cycle Item Status Codes, and enriched catalog data (including images). 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 1
To improve IDEA participation and usage, ask your channel partners the following questions: Is your company a member of IDEA? *If No, When do you plan to join IDEA? Is your company a member of IDEA? *If No, When do you plan to join IDEA? Is your company s product and distributor published price data available in the IDW? *If No, When do you plan to provide it to the IDW? Does your company provide Product Life Cycle Item Status Codes to the IDW? *If No, When do you plan to provide it to the IDW? Does your company provide enriched catalog data with products images to the IDW? *If No, When do you plan to provide it to the IDW? Does your company use my product and distributor published price data available in the IDW? *If No, When do you plan to begin using it? Does your company use my Product Life Cycle Item Status Codes available in the IDW? *If No, When do you plan to begin using it? Does your company use my enriched catalog data and product images available in the IDW? *If No, When do you plan to begin using it? What steps is your company taking to improve the quality of your data in the IDW? NOTE: Some distributors may also want to ask, Is your company s individual item into stock net pricing available in the IDW? 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 14
Appendix A: Additional Electronic Communications Documents RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS The following is a listing of electronic communications opportunities available to the electrical industry not mentioned elsewhere in this white paper. Is your company transmitting the EDI 214? *If No, When will the EDI 214 be transmitted? Is your company set-up to receive the EDI 214? *If No, When will the EDI 214 beset up? EDI 214 Transportation Carrier Shipment Status Used to report the status of a shipment to the shipper, consignee, or third parties, from pickup to final delivery. (Manufacturer Distributor) Is your company set up to use the EDI 812? *If No, When will the EDI 812 be used? Is your company set up to use the EDI 812? *If No, When will the EDI 812 be used? EDI 812 Credit/Debit Adjustment Used to request or notify a trading partner of an adjustment. An EDI 812 identifies and contains the details and amounts covering exceptions, adjustments, credits, or debits for goods or services. (Distributor Manufacturer and/or Manufacturer Distributor) Is your company transmitting the EDI 824? *If No, When will the EDI 824 be used? Is your company set up to receive the EDI 824? *If No, When will the EDI 824 be used? EDI 824 Application Advice Used to report at the functional group or transaction set level the results of an application system s data content edits of transaction sets; used to report acceptance, rejection, or acceptance with change of the transaction set. (Distributor Manufacturer and/or Manufacturer Distributor) Is your company set up to receive the EDI 80? Is your company set up to receive the EDI 80? *If No, When will the EDI 80 be set up? *If No, When will the EDI 80 be transmitted? EDI 80 Planning and Forecasting Used to transfer forecasting or material release information in the form a simple forecast. This forecast includes the buyer s authorization for the seller to commit resources, labor and materials, or a forecast used as an order release mechanism (which can eliminate the need for discrete purchase orders). (Distributor Manufacturer ) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 15
Is your company set up to receive the EDI 840? *If No, When will the EDI 840 be set up? Is your company transmitting the EDI 840? *If No, When will the EDI 840 be transmitted? EDI 840 Request for Quotation Used to solicit price, delivery schedule, and other information from potential sellers. The EDI 840 can be used for a limited list of parts versus an entire catalog. (Distributor Manufacturer) Is your company transmitting the EDI 84? *If No, When will the EDI 84 be transmitted? Is your company set up to receive the EDI 84? *If No, When will the EDI 84 be set up? EDI 84 Response to Request for Quotation Used to respond to the EDI 840: Request for Quotation and provides price, delivery schedule, and other information. (Manufacturer Distributor) Is your company transmitting the EDI 857? *If No, When will the EDI 857 be transmitted? Is your company set up to receive the EDI 857? *If No, When will the EDI 857 be set up? EDI 857 Shipping and Billing Notice Used to reduce EDI costs when shipment and purchase order accuracy is high by combining the EDI 856 Ship Notice/Manifest and EDI 810 Invoice. (Manufacturer Distributor) Is your company set up to receive the EDI 860? *If No, When will the EDI 8610 be set up? Is your company transmitting the EDI 860? *If No, When will the EDI 860 be transmitted? EDI 860 Purchase Order Change Request Used (1) by a buyer to request a change to a previously submitted purchase order; or (2) by a buyer to confirm acceptance of a purchase order change initiated by the seller or by mutual agreement of the two parties. (Distributor Manufacturer) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 16
Is your company set up to use the EDI 864? *If No, When will the EDI 840 be used? Is your company set up to use the EDI 864? *If No, When will the EDI 840 be used? EDI 864 Text Message Used to transmit messages, contracts, explanations, or other one-time communications in a human readable form, i.e., for people, not computer processing. (Distributor Manufacturer and/or Manufacturer Distributor) Is your company transmitting the EDI 865? *If No, When will the EDI 865 be transmitted? Is your company set up to receive the EDI 865? *If No, When will the EDI 865 be set up? EDI 865 Purchase Order Change Acknowledgement Used to convey acceptance or rejection of changes to a previously submitted purchase order by the seller or to notify the buyer of changes initiated by the seller to a previously submitted purchase order by the seller. (Manufacturer Distributor) Is your company set up to receive the EDI 869? *If No, When will the EDI 869 be set up? Is your company transmitting the EDI 869? *If No, When will the EDI 869 be transmitted? EDI 869 Order Status Inquiry Used to request information about all or part of a purchase order or for all or part of the items on order, whether shipped or unshipped. (Distributor Manufacturer) Is your company transmitting the EDI 870? *If No, When will the EDI 870 be transmitted? Is your company set up to receive the EDI 870? *If No, When will the EDI 870 be set up? EDI 870 Order Status Report Used in response to the EDI 869: Order Status Inquiry, to report on the current status of a requirement forecast, an entire purchase order, selected line items on a purchase order, selected products/services on a purchase order, or purchase orders for a specific customer in their entirety or on a selection basis. This transaction set can also be used to report on the current status of single or multiple requisitions. This transaction set may also be used to update the supplier s scheduled shipment or delivery dates. (Manufacturer Distributor) 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 17
What You Can Do Please help us leverage the collective knowledge of the industry by giving us your feedback! Share your insight and input with the Supply Chain Scorecard task force by calling NAED Member Services toll free at 1.888.791.2512 or emailing memberservices@naed.org. Additional tools from NAED s Supply Chain Task Force are available for download at http://www.naed.org/supplychainscorecard/ 2012 National Association of Electrical Distributors RECOMMENDED BEST PRACTICES FOR ELECTRONIC COMMUNICATIONS 18