EDI in Cloud ERP Session ID:

10112

Prepared by:
Deloitte Consulting LLP
Abhijit Joshi
Clarifying EDI Capabilities of Guru Krishnamoorthy
Oracle Cloud ERP Sitaram Goli

22nd April 2018

Remember to complete your evaluation for this session within the app!
Agenda

• Introduction

• Cloud: Business continuity with EDI

• EDI breaches with Oracle Cloud applications

• Solution: Incorporating EDI in Cloud

• EDI Disruptors

• Your takeaway
About Authors
Guru Krishnamoorthy
• More than 18 years in consulting for clients on process standardizations and transformations
across various industry verticals – life sciences, energy, pharma, banking, insurance, services,
manufacturing and consumer products
• Has won commendations from executive management for helping them improve operations with
automation, affecting business growth, and maximizing profits through strategic transformations
• Led several B2B, B2C, partner information interchange initiatives, and automation using Oracle
middleware and packaged applications
• Served as an adviser to known industry disruptors and innovators in managing e-commerce.

Sitaram Goli
• More than 12 years of professional consulting experience
• Extensive experience in Lead to Cash and Order to cash, in TMT and Manufacturing
• Implemented multiple on-prem and cloud transformation projects using Oracle products
• Led multiple B2B and SCM transformation projects
About Authors
Abhijit Joshi
• More than 13 years in Consumer products and consulting experience
• Extensive experience in Order to cash, Procure to pay, inventory management in TMT
and Manufacturing
• Led multiple end-to-end global transformation and implementation project in JD Edwards
• Leading multiple strategic Oracle SCM Cloud initiatives
Introduction
Introduction
EDI centric organizations – keeping pace with advent and maturity of Cloud

4 Cloud Installations – EDI Dilemma

3 B2B
Disruptors
Are the new planned investments right for
us? Long term, ROI, pace of change

2 Wide adoption of
Partner
Change Mgt
How will we manage this large changes to
partner communication and interfaces

1 Cloud applications

Improved functionality with

Infrastructure
every release
Packaged applications: Evolution of
software as a service (SaaS)
Years of investment (technology, people,
protocols) towards automation of business
processes using electronic interchange
Investments
Organizations with significant business
Business
Operations
Operations enabled with EDI – Can they
switch to Cloud applications?

Advances in middleware, protocols, B2B,

Webservices… EDI still reigns
Business continuity with Cloud Applications
What makes an EDI-centric organization

Customers
Suppliers
Order management,
pricing, shipping, Procurement,
invoicing, payments receiving, inventory,
managed using EDI Invoice, and payments

Organizations – Core
operations on EDI:
• More than 30% EDI customer
Orders
• Significant electronic
purchases for core operations
• Electronic communication
with logistics partners
• Scalable electronic
infrastructure

Logistics Partners Third Party

Transportation, freight Statutory information,
management, shipping export requirements,
notices, planning tax, catalog
Electronic data exchange (EDI)
Automation of communication in e-commerce and ERP
• EDI is one of the most important subsets of e-commerce.

• When EDI and ERP are used in accord, it enables a host

of demonstrated benefits, including greater supply chain
visibility, faster order processing, and reduced lead time.

• For the scope of this presentation, we have picked some

of industry’s most common EDI processes to demonstrate
the integration approach for trade with customers and
suppliers.

Transaction set Description Data flow

EDI-850 Purchase order (PO) Inbound

PO
EDI-855 Outbound
acknowledgement

EDI-810 Invoice Outbound

Select customer business interfaces
Commonly used Outbound and Inbound customer EDI we will evaluate in later sections
EDI 850 – Inbound Customer PO
Creates a sales order in ERP system

1
PO Data from
2
EDI Translator
3
Capture data and
customer create Sales Order

EDI 810 – Outbound Customer Invoice

Send invoice to the customer

3
Invoice received
2 1
EDI Translator Extract Invoice data
by Customer from Oracle Cloud
Oracle Cloud
Applications
Capabilities
Oracle Cloud applications integration capabilities
B2B information interchange options
• Oracle Cloud R13 – rich facilitating integration
methods. Following are integration approaches for
EDI-based communication:

• Inbound integration options

– File-based loader (FBL) (Excel)
– Web services/REST Application Program
interface (API)
• Collaboration Messaging Framework (CMK)

• Outbound integration options

– Web services/REST API
• Collaboration Messaging Framework (CMK)
– Oracle BI Publisher for transactions
– Oracle Transactional Business Intelligence
(OTBI) for balances and consolidation
Oracle Cloud
Applications EDI
breaches
Customer Perspective: Gaps with EDI
Terminology, ignorance, change management, and continuity of primitive enablers
• Data base tables are not directly accessible.

• No clear architecture on handing standard EDI

communication.
Business Partner Interface
• Structure
• No predefined EDI structure. • Automation
• Standards

• Data visibility on managing staging errors.

Business to Consumer
• True miss – EDI processors to accept information into
applications.

Business to Consumer enablers

• Web commerce
Perceived issues – best understood by • Shopping cart
• Security

discussing specific examples

EDI – Cloud solve
Reliance on middleware, Cloud application APIs, Webservices
• Data base tables accessibility is addressed with exposure to file-
based-loaders and easily utilized Webservices and application APIs.

• EDI architecture: Oracle SOA Cloud Service includes Oracle B2B

that abridges the process of developing external integrations across
interfaces and managed file transfer (MFT) protocols.

• Predefined structure: Oracle B2B supports numerous standards on

EDI document structures across various industry verticals. This is
leaps ahead of the rigid table structure that modern ERP’s provided.
See Appendix for list that includes EDIFACT, X12, HL7 etc.
Processor
Access
• EDI processors: Instead of reliance on batch process that Tables Admin
processes data of a table, we rely on Application APIs.
Structure
Protocol File
Manage
Still have questions? – let’s discuss specific examples
Cloud Solution for
Inbound EDI
Oracle Cloud solution – Inbound
Inbound sales order capture – Representing EDI 850
• How to Import the sales order

• Data collection and validation

• Centrally managed orchestration policies

• Predefined integration with downstream applications

• Methods to capture the sales orders:

– File-Based-Loading (FBL)
– Web methods/ API
– Collaborate messaging Framework (CMK)
Oracle Cloud Inbound solution using FBL
FBL more commonly used when real-time interface is not a necessity
• Steps to implement the FBL

• Exhaustive list of order create fields

• Scheduler jobs to import data to process tables

• What Oracle provides

– Link to template repository (refer appendix)

• Template is provided in the appendix

Trading Third Party Open Sales order

File Transfer
partner tool interface table tables
Oracle Cloud solution: Inbound – Web Services
Web services can be used for both interfaces
• Web services can be invoked by third-party
applications from different platforms.

• Invoke SCM Cloud SOAP Webservices.

• Cloud Webservices are also referred as ADF

services

• You can use OrderImportService OR

ReceiveOrderRequest Webservice

• Oracle repository provides detailed information

regarding how to create sales order using SOAP
approach. Step-by-step order creation approach
using SOAP UI.
Cloud Solution for
Outbound EDI
Oracle Cloud solution: Outbound with BI Publisher
Example of Outbound electronic transaction – Representing EDI 810
• R13 Cloud uses BI Publisher as a reporting tool.
• Used to extract the data and import in to the third-party system
• “e-Text” these templates are specifically for EDI and electronic funds transfer (EFT) information.
• Report run on the scheduler
• File can be extracted and loaded on designated path
Oracle Cloud solution using CMK
Approach can be used for both inbound and outbound EDI
• Automates the message flow to Order
Management.

• Reply with an advance shipment notice after

shipping successfully finishes

• CMK converts the source orders to a CSV format

that Order Management supports

• CMK uses a Webservice to upload these CSV files

to a Universal Content Management folder
SOA Cloud service solutions
Traditional EDI issues addressed with post-modern enablers
• Costs: Managing EDI on-premise has infrastructure and
talent costs. Support for
Multiple Varied
Transfer Industry
Protocols
• Complex mapping rules: Rigidity with structure and Standards

mandates require complex mapping rules created that can Lower TCO with
increase maintenance overhead. Cloud-based EDI
Outsource management
managed services
• Rigid data format: Single structure that supports varied with iPaaS
Range of
industries adds to rigidity in conforming to standards. connectors and
adaptors to
support Oracle
Shorter cycles on
• Protocols differ by industries: Translation and messaging upgrades and
and connected
applications
protocols vary across industry causing custom logic on maintenance of
EDI infrastructure
envelope information.

• Diverse EDI Standards: Standards are not standards as

there are varied formats used by customers not limited to
EDIFACT, X12, HL7, and RosettaNet.
Conclusion
Adopting Oracle SaaS applications – Business can continue!
• Electronic document interface will continue to instill standards with
APIs in Oracle Cloud packaged applications. APIs /
Adaptors

• Business Partners: Cloud customers will instigate changes to

business partners to adopt new technology and more efficient protocols
Multiple Varied
in transactions. Formats Standards

• Specialization: Industry verticals will continue to influence messaging

specifics that will require constant updates to middleware document
formats. Network Files /
Protocols Transfers

• Cloud EDI: Customers will adopt cloud-based EDI to shelve the IT

organizations from costly maintenance of infrastructure and in-house
investments in people managing EDI.

• Oracle Cloud applications adoption: EDI will not be a bottleneck for

customers planning transition to Oracle ERP applications.
 abhijoshi@deloitte.com

Session ID:
10112

Remember to complete your evaluation for this session within the app!
Appendix
• Repository link FBL

• http://docs.oracle.com/cloud/latest/scmcs_gs/OEFSC/Import_Sales_Orders_305258851_fbdi_16.htm#305258
851

• Follow the below link to simulate submitting an order into DOO using a SOAP UI Tool

• https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=39357030452271&id=1520525.1&_adf.c
trl-state=mjtcpbz2t_142

• FBL order entry template

Microsoft Excel
Macro-Enabled Worksheet
EDI Disruptors
Newer concepts and innovations in technology that bring significant shift
in electronic business transactions
• Partner portals: Cloud systems have extended the capabilities of on premise systems to efficiently provide
portals to accommodate many of the traditional EDI activities like supplier invoice keying, purchase order
response, or RFx (RFI, RFQ, RFP), customers can apply cash to specific invoices.

• Web-based EDI: Automates administration aspects of managing EDI, i.e. storage, back-ups, search
functions, and helps reduce the hassle of installations, while providing a scalable, robust, end-to-end
integrated solution. 3rd parties such as TrueCommerce is one such enabler for Oracle.

• Trading network popularity: Increasing use of partner networks (i.e., Supplier and customer networks)
allows for standards in interfacing Oracle Cloud to trading networks like Trancepta.

• Oracle CX Cloud and Cloud commerce: Ease of providing store fronts and punch cards as a clear choice of
sales channel for any type of customer (core operation buy, services, or other purchases). These offerings
disrupt the traditional way of requesting information, comparing, and placing order. Catalog management,
pricing, contracts, promotions, payment and financing are all enabled within these portals.

• Third party translation services: Having trading partners register through a third party that helps manage
much of the translations for EDI requests. Third parties such as 1EDIsource and SPScommerce, provide
these services to various industry verticals.
Oracle SOA Cloud Service
Application integration for Oracle ERP Cloud and connected applications
• Oracle SOA Cloud Service is delivered as an integration platform-as-a-service (iPaaS) in the Oracle Cloud.

• Enables you to rapidly provision new integration environments with just a few clicks.

• Administrators and developers can spend more time on value‐added tasks.

• Integration touch points include to payroll web services, integration to internal applications leveraging run-
ready adapters that exist for EBusiness Suite, SAP, JD Edwards, PeopleSoft, and many more.

• Functionality within SOA Cloud Service that enables these demonstrated benefits includes process
orchestration, loose coupling of services with an enterprise service bus (ESB), managed file transfer,
business‐to‐business electronic data interchange (EDI) integration, Managed File Transfer (MFT) and more.

• Provision, develop and deploying your APIs and integration projects and provide real-time analytics as you
transition to Digital Business.

• The EDI Adapter provides a comprehensive platform for the implementation and management of business
processes utilizing EDI and its related standards.
Protocols Supported in Oracle B2B
Oracle B2B supports numerous industry-standard e-commerce protocols,
as defined for a range of industries
Protocol Type Protocol Protocol Type Protocol
Document protocol • Custom (user-defined) Transport protocol • AQ
• EDI EDIFACT, all versions • Email (SMTP 1.0, IMAP 1.0,
• EDI X12, all versions POP3)
• HL7, all versions • File
• RosettaNet PIP business • FTP and SFTP (SSH FTP)
documents • HTTP (HTTP 1.0, HTTP 1.1) and
• OAG HTTPS (HTTPS 1.0, HTTPS 1.1)
• Positional flat file (includes SAP • JMS
iDoc) • TCP/IP
• UCCnet Message exchange protocol • AS1-1.0, AS2-1.1
• Custom (non-XML) • MLLP-1.0
• NCPDP Telecom • ebMS-1.0, ebMS-2.0 (ebXML
• EDIEL Messaging Service)
Packaging protocol • MIME 1.0 • RosettaNet-01.10, RosettaNet-
• S/MIME 2.0, S/MIME 3.0 V02.00
• SOAP • Generic File-1.0
• XML digital signature (XMLDSig) • Generic AQ-1.0
• XML encryption (XMLEncrypt) • Generic FTP-1.0
• Generic SFTP-1.0
• Generic JMS-1.0
• Generic HTTP-1.0
• Generic Email-1.0
• Generic TCP
Oracle B2B Samples
Steps to help create guidelines, design B2B transactions, deploy / monitor trading partner
agreements
Samples are available for the following document types:

• 1Sync
• Custom XML
• EDI EDIFACT
• EDI X12
• HL7
• RosettaNet

You can download the samples from the Oracle SOA Suite samples site at http://java.net/projects/oraclesoasuite11g/pages/B2B
Enterprise connectivity
Oracle’s portfolio of adapters continues to expand rapidly
• CRM/CX Application Adapters—Manage customer data and interactions
• ERP Application Adapter—Collect, store, manage, and analyze data from many business activities
• Financial Adapters—Work smarter, increase efficiency, and reduce back-office costs with standardized
processes
• Supply Chain Management Adapters—Innovate quickly, execute rapidly, scale your value chain
• HCM Adapters—Define and communicate employee performance expectations
• On-Premises Application Adapters—Create integrations and exchange messages between on-premises
applications and Oracle Integration Cloud Service
• SaaS Application Adapters—Create software as a Service (SaaS) application integrations
• Social/Productivity Adapters—Create, update, share, or exchange information with various social
networking sites
• Technology Adapters—Interact with file systems, FTP servers, Java Message Services (JMS), database
tables, REST resources, Webservices, and other technologies
• Custom Adapter Development—Create custom adapters using the Cloud Adapter SDK