Digitizing the Order Cycle
- What is meant by “Order Cycle”?
- Perchè Why is it worth adopting an EDI system for the Order Cycle?
- What are the protocols and communication encodings of the Sefin EDI system?
- Is Sefin’s EDI system integrated with electronic invoicing?
- What are the phases of Sefin’s EDI system?
- The distribution chain in the company – Supply chain management
With "order cycle" we mean the set of interactions of a transaction between customer and supplier.
Through the support of EDI (Electronic Data Interchange) systems, it is possible to digitize the entire order cycle by dematerializing the documents that compose it and switch to integrated electronic management of the entire flow (Order, Delivery, Invoicing and Payment)
The types of documents exchanged essentially include purchase orders, order confirmations, transport documents (DDT), invoices, etc. For example, there is the possibility of no longer sending the DDT in paper format together with the goods shipped from the warehouse, but it can be delivered in electronic format and arrive even before the goods themselves, to be preloaded in the warehouse management software, making the control of the incoming goods much easier.
The paper document requires manual data processing, with considerable time and effort spent on data entry activities, and potential possibility for error.
MMS GDI (General Data Interchange), the EDI solution developed by Sefin, allows you to eliminate all manual activities related to the acquisition of the document and its registration in the company management system. With MMS GDI:
- Document management times are therefore reduced
- Errors are eliminated
- Redundant manual activities of personnel are reduced
The electronic documents that the Customer and Supplier exchange are not only of large quantities, but they can have different formats as well. The communications (electronic documents) exchanged through the EDI process use encodings (formats) that define the structure of the message in terms of the fields and records they must contain. If the sender and recipient use different communication standards, a "translation" (conversion) activity is carried out so that the two systems can communicate efficiently.
MMS GDI allows the processing of any type of document and seamlessly integrates with any information and management system. Its high adaptability and reliability derive from years of experience in document management and from the daily management of over 500 active EDI connections between counterparties on all continents.
The standard formats integrated within MMS GDI include the following:
- EDIFACT (in its various versions such as D01B, D98A, D96A, D90.1, etc.)
- vVarious custom formats XML/CSV
- Proprietary formats (Mistral, IDoc, etc.)
The perfectly integrated connections with MMS GDI are:
MMS GDI is not limited to the formats and connection protocols indicated above, but can at any time encode ad hoc paths and adapt to any type of connection. In fact, the Service offers the freedom to link with all its customers and suppliers without binding them to standard paths or protocols. The flexibility of Sefin's service is precisely the result of the international experience achieved over the years.
Following the mandatory nature of electronic invoicing, MMS GDI has also integrated this functionality within the offering. Many companies have seized the obligation of electronic invoicing as an opportunity to digitize the entire order cycle, thus finding a way to recover hidden costs and create new efficiencies.
- The customer places the order through his/her own management system and, as soon as it is approved, sends a file translated into a data format (EDI document) to the supplier, through the defined communication channel.
- • The supplier, once the order has been received, sends an order confirmation to the Customer based on its availability in stock.
- Simultaneously with the shipment of the ordered goods, the supplier issues a transport document (DDT) that allows the preloading of the arriving goods on the customer's management system.
- The supplier will also issue the relevant invoice, with the possibility of grouping multiple DDTs into a single invoice.
MMS GDI is part of a more complex management of the internal distribution process within the company, ranging from the organization of resources and activities related to the final transfer of the product or service to the customer.
The distribution chain also includes logistics activities as a whole, all in order to improve the performance of the production flow and reduce waste. The distribution chain is made up of activities such as Marketing, Provider Relationships, Procurement, Management and storage of raw materials stocks, Production, Management and storage of finished products, Management of purchase orders, Management of deliveries, Return logistics.
With MMS, it is possible to provide for the digital transformation of the supply chain thanks to a portfolio of services for the integration of data from partners, regardless of their location and the category to which they belong. MMS complies with regulatory constraints and manages all types of communications by offering multi-format and multi-channel electronic exchange solutions to digitize and automate the main commercial, logistic and financial processes: EDI, eMail, electronic invoicing, digital replacement storage.