A thesis on implementation of ebxml on readymade garments industry

By
Swati Mazumder
Class Roll: 1325
Examination Roll: 141131
Session: 2012-2013

Supervised By
Dr. Md.Zahidur Rahman
Professor
Department of Computer Science and Engineering,
Jahangirnagar University,
Savar,Dhaka-1342.
Presentation outlines:
• A brief of e-commerce.
• Impact of e-commerce.
• Objective
• Why ebxml?
• Implementing ebXML in the readymade garments industry
• EDI(electronic data interchange method)
• EDI and its application in business field
• Implementing EDI.
• Questions to Ask Yourself before Initiating An EDI Program.
• 7 Benefits of Selecting One EDI Provider
• Easy EDI for Odoo
• How do odoo invoice work
• Screenshots from my work
E-commerce:
• E-commerce is a transaction of buying or selling online. Electronic commerce draws on technologies such as
mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management systems, and automated
data collection systems.
• E-commerce businesses may employ some or all of the following:
• Online shopping web sites for retail sales direct to consumers
• Providing or participating in online marketplaces, which process third-party business-to-consumer or
consumer-to-consumer sales
• Business-to-business buying and selling
• Gathering and using demographic data through web contacts and social media
• Business-to-business (B2B) electronic data interchange
• Marketing to prospective and established customers by e-mail or fax (for example, with newsletters)
• Engaging in pretail for launching new products and services
• Online financial exchanges for currency exchanges or trading purposes
Impact of E-commerce:
• Impact on markets and retailers:
E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. The
power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential
customers and suppliers. Thus, switching barriers and switching costs may shift.
• Impact on supply chain management:
e-commerce has a more sophisticated level of impact on supply chains: Firstly, the performance gap will be eliminated since
companies can identify gaps between different levels of supply chains by electronic means of solutions.
• Social impact:
E-commerce has numerous social benefits: one, the cost of running an e-commerce business is very low when compared with
running a physical store; two, there is no rent to pay on expensive premises; and three, business processes are simplified and
less man-hours are required to run a typical business smoothly. In the area of law, education, culture and also policy, e-
commerce will continue to rise in impact. E-commerce will truly take human beings into the information society.
• Payment system :
has been widely accepted by consumers and merchants throughout the world, and is by far the most popular method of
payments especially in the retail markets.Some of the most important advantages over the traditional modes of payment are:
privacy, integrity, compatibility, good transaction efficiency, acceptability, convenience, mobility, low financial risk and anonymity
Objective:
• To analysis how to use B2B e-commerce in readymade garments sector..
• To improve collaboration with customers, partners, and suppliers by reducing
integration time and expense, compared to existing systems.
• Reduce inventory and transaction costs and improved supply chain efficiency.
• Increase revenue via expanded distribution channels and short time-to-
market for new value-added services, by enabling public discovery of existing
assets.
• Enhance customer service levels by allowing customers and trading partner
access to core systems.
• Generate new revenue opportunities through creation of private trading
networks.
Why ebxml?
• Electronic Business using extensible Markup Language, commonly known as e-
business XML, or ebXML it enables enterprises of any size in any global region to
conduct business using internet.
• The ebXML value proposition is that it provides the business semantics management
and the standard technical infrastructure for communication between businesses.
• An open XML-based framework, ebXML can fundamentally change the nature of the
relationship between business and systems people.
• The ebXML solution can generate new revenue opportunities through creation of
private trading networks.
• the XML data structure is extensible and the transmission cost is less over a public
Internet-based network.
• The XMLmodel is open to changes and is flexible for supporting dynamic business
processes.
Implementing ebXML in the readymade
garments industry
• A major part of the implementation program will be to encourage
trading partners basically readymade garments industrialists to do
business electronically via ebXML.
• To facilitate them working with trading partners to develop new
business practices helps ensure support for ebXML.
EDI(electronic Data interchange method)
• Electronic data interchange (EDI) is an electronic communication method
that provides standards for exchanging data via any electronic means.
• By adhering to the same standard, two different companies or organizations,
even in two different countries, can electronically exchange documents
(such as purchase orders, invoices, shipping notices, and many others).
• EDI implies a sequence of messages between two parties, either of whom
may serve as originator or recipient. The formatted data representing the
documents may be transmitted from originator to recipient via
telecommunications or physically transported on electronic storage media.
• EDI can be formally defined as the transfer of structured data, by agreed
message standards, from one computer system to another without human
intervention.
 EDI and its application in business field

• Business requirements for ebXML are partly derived from EDI, it helps to understand the
business background for EDI.
• XML presents some technicaladvantages over EDI.
• ebXML was started in 1999 as an initiative of OASIS and the United Nations/ECE agency
CEFACT. The original project envisioned and delivered five layers of substantive data
specification, including XML standards for:
• Business processes
• Core data components
• Collaboration protocol agreements
• Messaging
• Registries and repositories
Benefits:
• Cost savings: Expenses associated with paper, printing, reproduction, storage, filing,
postage and document retrieval are all reduced or eliminated when you switch to EDI
transactions, lowering your transaction costs by at least 35%.
• speed and accuracy:EDI can speed up your business cycles by 61%. Exchange transactions
in minutes instead of the days or weeks of wait time from the postal service.
• Improves data quality: delivering at least a 30—40% reduction in transactions with errors—
eliminating errors from illegible handwriting, lost faxes/mail and keying and re-keying
errors.
• Automating paper-based tasks :allows your staff to concentrate on higher-value tasks and
provides them with the tools to be more productive.
• Shortening the order processing and delivery times: means that organizations can reduce
their inventory levels.
• EDI provides a common business language that facilitates business partner onboarding
anywhere in the world.
EDI
EDI replaces postal mail, fax and email. While
email is also an electronic approach, the
documents exchanged via email must still be The EDI process looks like this — no
handled by people rather than computers. : paper, no people involved:
• Business partners – The exchange of EDI documents is typically
between two different companies, referred to as business partners or
trading partners. For example, Company A may buy goods from
Company B. Company A sends orders to Company B. Company A and
Company B are business partners.
Paper-based vs EDI Transaction Process:
In the paper-based method, the
following process typically occurs:
• In the paper-based method, the following process
typically occurs:
• The inventory system automatically notifies the buyer to
place an order, or, after querying the inventory system,
the buyer determines that an order needs to be created
• The buyer enters data onto the screen of a purchasing
system to create the PO, prints and mails it
• After several days, the vendor receives the PO and
manually enters it into the sales order system
• The vendor prints an invoice and encloses it with the
shipment and/or sends it separately by mail
• The buyer manually enters the invoice into the Accounts
Payable system.
• The exchange of paper documents can add a week to the
process. If there are errors caused by manual data entry,
the time can be greatly increased.
Now comparison with the EDI process:
• The buyer’s procurement system, which
utilizes EDI software, automatically generates
and sends an EDI-formatted PO when
inventory reaches the critical level
• Within minutes the vendor’s sales order
system, utilizing EDI software, receives the
EDI PO, notifies the shipping department to
ship the goods and generates an EDI invoice
to be transmitted directly to the buyer’s
accounts payable system
• The EDI process can be completed within
hours.
Implementing EDI:
• Calculating the cost of an EDI implementation is very important in
order to ensure that it will deliver real financial and business benefits
to your company.
• Two approaches can be taken with EDI:
• In-house or
• working with a third-party EDI provider
Approaches of EDI:
In-House
A few very large organizations have created their
own EDI networks. This has the advantages of
internal management, control and security but it is
not something to be undertaken lightly. To build
own EDI system, at a minimum, you’ll need to
invest in:
• EDI software
• Communications software
• EDI transmission methods
• Mapping and translation software
• EDI and mapping specialists
• Ongoing upgrades, support and maintenance
EDI Provider/VAN:
• there are different pricing models available from third-party
providers that you will need to review. Although your final choice
will, of course, consider price, you should also consider key
business factors such as:
• The number of your partners who are enabled on the providers’
networks already
• Whether the provider covers the range of geographies you
require
• The levels of support and training they are able to provide to
support you and your trading community
• The range of options that they can provide to enable you and all
of your trading community to do EDI.
• Based on this, providers offer a variety of subscription models
that you can select from, such as:
• Pay-as-you-go
• Monthly
• Annual subscription
Questions to Ask Yourself before Initiating An EDI Program.

General:
• Is the ability to better satisfy supplier, customer and/or vendor requirements important to your business?
• Are an increasing number of business partners deploying EDI? Are they pressuring you to become EDI-
capable?
• Is your business under pressure to improve business performance while controlling costs?
• Would being EDI-enabled help you improve and shorten your time to market or increase your ability to
enter new markets?
• Would being EDI-enabled make you a more attractive proposition to new customers in existing or new
markets, geographies, industry sectors? Level the playing field with bigger competitors?
• Would more efficient Accounts Payable and Accounts Receivables positively affect your cash performance
and the way you work with customers and suppliers?
• Is sustainability and corporate social responsibility a growing issue for your business? Is a reduction in the
amount of printing undertaken and paper used an area of focus for you?
About your business transactions:

• Which are your most paper-intensive business transactions?

• Which of your business transactions involve the most business
partners?
• Which of your business transactions are most time-intensive or time-
sensitive?
• Which of your business transactions would most easily become EDI-
capable?
About your partners:

• Which of your business partners have the highest volume of

transactions?
• Which business partners do you want to have a long-term relationship
with?
• Which of your business partners already use EDI? If they do, which EDI
solution/network do they use?
• Do your business partners have the right technical prerequisites for
EDI?
• If they are overseas, is the communications environment robust
enough?
About implementing EDI:

• Do you have senior management buy-in for EDI?

• Can you create a multi-discipline EDI Steering Committee?
• Do you have the correct level of technical and business analysis experience
in-house?
• Will you develop your EDI system in-house or select a third-party EDI
provider/VAN?
• Which type of EDI is right for your business?
• Will you need to train and support your business partners through the
implementation process?
• Do you have a chosen business partner to pilot the EDI implementation with?
About your EDI service provider/VAN:

• What are the business benefits of using one B2B/VAN provider?

• Does the VAN provider have a global reach?
• Are a number of your business partners already using the same VAN provider?
• Does the VAN provider offer a range of value-added services, such as business
partner onboarding or advanced management information services?
• Does it offer support and training options for you and your partners?
• Is it a member of EDI industry organizations or international standards bodies?
• Will the VAN provider give you a roadmap to show how it will remain at the
technological forefront?
• Can it offer flexible pricing models that best meet your business requirements?
7 Benefits of Selecting One EDI Provider
• Reduce your costs
• Using one EDI provider will reduce your communications and administration costs compared with supporting multiple providers.
• Pay for what you use
• A single provider will provide a price for your total transaction volume on a subscription or ‘pay as you go’ model. Voted one of the world’s
leading cloud service providers, OpenText ensures you pay only for the amount of service you use.
• Extend your network
• It is much easier to add a new customer because your process is similar in each instance. You are effectively shielded from the EDI standards
and technologies as this becomes the provider’s responsibility.
• Improve your management
• Managing a single EDI Services Provider is significantly easier and more effective. You have a single contract for your EDI service, the same
service levels across your business and a single point of contact for service and support.
• Increase your automation
• Ironically, using multiple B2B/EDI systems means that many companies may still end up keying in content from business documents manually
because they don’t have integration between all systems. Remember, this is the one thing that EDI was meant to remove! A single B2B/EDI
provider allows you to readily automate key processes through seamless integration with your ERP and other back-end systems.
• Extend your capabilities
• A major weakness of the multi-Service Provider approach is that you have no visibility across your entire B2B/EDI operations. An unwanted
result of this is your EDI providers can’t effectively deliver the value-added services that can drive business productivity and customer
satisfaction.
• Future-proof your investment
• Of course, your chosen EDI providers should invest in the underlying technologies to enable future service capability. However, small
companies can’t match the capabilities and resources of the large global B2B/EDI players who use technology as competitive advantage and
can deliver new services and technologies to market competitively.
Easy EDI for Odoo
• easyEDI for Odoo is the first standard solution for integrating true EDI into
Odoo (OpenERP).
• No matter which EDI format is used easyEDI will support those needs.
• easyEDI for Odoo (OpenERP) supports EDIFACT, X12, TRADACOM and a long
range of business specific standards.
• For Odoo (OpenERP) an App that is just needed to install into Odoo
(OpenERP). When the App has been installed there is a simple setup
procedure and you are ready to use EDI through easyEDI.
• easyEDI for Odoo works with both incoming EDI and outgoing EDI. easyEDI is
a SaaS so all setup and processing of EDI happens on our server. You don’t
need to know anything about EDI to use easyEDI for Odoo. easyEDI suports
all the common EDI documents such as orders, dispatch advices, invoices etc.
• Incoming EDI (eg. you receive an order)
• When an order is received from a customer the EDI file is received on server
where it will be converted to a file suitable for easyEDI for Odoo. The file is
delivered to you and the easyEDI for Odoo App automatically imports the
order into your Odoo (OpenERP). email notification can also be sent every time
you receive an order.
• Outgoing EDI (eg. you have to send an invoice)
• Once you have delivered the goods you just have to raise an invoice in Odoo
(OpenERP). The easyEDI for Odoo App will then automatically export the
invoice into a file which is uploaded to our server where it is converted to the
EDI format your specific customer uses and is delivered to the customer either
through VAN, ftp or any other means your customer prefers. All you have to do
is raise the invoice then easyEDI for Odoo takes over and takes care of the rest.
Odoo invoice
Odoo invoice
Odoo invoice
Screenshot from my work:
Thank you