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On May 18, 2009. By Fran, under Industry News, Tech Talk.
The “EDI Label” commonly known as a UCC-128, and now re-branded GS1-128, has always been a natural extension of the EDI process. It provides a link between the digital EDI transaction and actual physical carton or pallet. This link becomes critically important to your trading partner in order to expedite the receiving of goods and the routing to their final destinations. It won’t take long to find out just how critical the integrity of these labels is when you are suddenly bombarded for invalid labeling. If your trading partner has to suffer by manually handling your shipment they will literally make you pay.
The defined layout of this label is almost standard from trading partner to trading partner but there are always exceptions. These special requirements are one of the biggest challenges that the suppliers of the retail industry faces. The format of the label will fit on a standard 4″ wide by 6″ tall label stock. The different sections of the label are often referred to as zones. Your average label will always have zones for the ‘ship from’ and ‘ship to’ addresses along with carrier details.
The main key element is the SSCC-18 (serial shipping container code) commonly located in the bottom zone of the label. This is the code that gets transmitted in the EDI Advanced Ship Notice and can be used to reference the contents of the cartons. Another frequently seen zone containing a barcode on the label is the store number. This aids in the routing of the package once it arrives at a distribution center. There are some trading partners that have unique requirements. There are cases where they have asked for item specific information such as size, color and type. Additional barcoded information is sometimes also requested, such as a purchase order number or UPC number.
As a client support manager, I have seen first hand the common errors that my customers face on a day to day basis. One issue that has shown itself regularly is the reusing of SSCC-18 numbers. Most trading partner will not allow you to duplicate a shipment number within a year to avoid obvious confusion during receiving. There have also been occasions where the customer, after creating their ASN and producing their labels, need to make a change to the shipment and recreate their ASN and often forget to generate new labels with the updated carton numbers. Since there is no link between the physical box and the ASN transaction anymore, the ASN becomes useless and will most assuredly result in chargeback’s.
It is very important that your EDI system be capable of managing labels so that your process runs smoothly from beginning to end.
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On May 7, 2009. By Fran, under Industry News.
Big Love, Less Gifts: Mother’s Day Softer Sales
According to NRF’s 2009 Mother’s Day Consumer Intentions and Actions Survey, Americans will spend an average of $123.89 per person, compared to last year’s $138.63. Total Mother’s Day spending is expected to reach $14.10 billion, which is slightly more than Easter.
Of the four in five Americans (83.3%) who will celebrate Mother’s Day, most people (62.4%) will purchase gifts for their mother and stepmother or wife (21.7%) and scale back on gifts for daughters (8.8% vs. 9.4% in 2008), friends (6.8% vs. 7.1% in 2008) and godmothers (1.6% vs. 2.1% in 2008) in order to save some money.
Retailers understand that people are on strict budgets, even for important holidays. Budget-friendly gift ideas will abound this Mother’s Day but less than the usual for this holiday.
The breakdown of Mom’s gift giving:
$1.9 billion in floral sales
$2.7 billion for special outings such as dinner or brunch
$2.4 billion on jewelry
$1.5 billion in gift card sales
$1.2 billion on apparel
$1.1 million for spa and personal services
$857 million on electronics
$587 million for house wares and garden
$487 for books or CD’s
“No one will forget celebrating Mother’s Day because of the bad economy, but they will put careful thought into what they buy and how much they spend this year.” –Industry insider
Considering our nation is feeling the effects of our current economic issues, Mom still gets VIP treatment. Maybe not every special lady will be showered with flowers, candy and diamonds come this Sunday, but that’s why we love her so. Who, understands more the old adage- it’s the thought that counts, then the value of a dollar, like good old Mom.
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On April 8, 2009. By Fran, under Tech Talk.
Going Green: Small Steps For A Brighter Future
Green technology has become not only a new word in business vernacular, but a foremost priority among both large and small industries. A responsibility to protect the environment has reached global scale: major factory operations harnessing airborne pollutants, offices taking steps to perform paperless protecting national forest resources, supermarket chains offering reusable bags unlike plastic that are not environmentally safe.
Green businesses operate in ways that solve, rather than cause, both environmental and social problems. By adopting principles, policies, and practices that improve the quality of life for their customers, their employees, communities, and environment.
In a recent U.S. survey, 80% of executives say that green IT (information technology) is increasingly growing in importance, and 43% say they consider a vendor’s “greenness” when selecting their suppliers. Giants such as Xerox are now bundling software to help reduce printer waste, IBM has developed a method of recycling, and both Microsoft and WalMart recently introduced plans for eco-friendly technology
Our own green philosophy has emerged not only in the workspace, but on a broader scale. Transactions that would consume volumes of paper are electronic creating a “paperless office”. Not only does this creates a smoother and safe transmittal of important information but greatly reduces waste. No longer is the dreaded file room, overflowing and disorganized but now replaced with electronic documents.
EDI Options: Keeping It Green
I’m happy to report here at EDI OPTIONS has taken a part in the green movement. Our office components, monitors, battery chargers, motherboards, wires & cording that is no longer in use is dropped off at a local “e-cycling” station for safe recycling. Manufacturers, and retailers, who are already aware of the pressing need to better manage these materials, are providing more opportunities to recycle and reuse this equipment. Many computer manufacturers, TV manufacturers, and electronics retailers offer some kind of take back program or sponsor recycling events.
The office is a good start to begin to see things green. The employee kitchen can be the first and easiest way to get into the practice or recycling. Sorters for plastics, metals and Styrofoam will ensure everybody has a hand and get involved. A company can also get a energy audit by contacting the local utility service. This survey tracks energy identifying the sources to prioritize the energy uses according to the greatest to least cost effective opportunities for energy savings.
Find out how your company can go green and support the environment. Celebrate Earth Day on April 22 and learn how you too can get involved.
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On April 7, 2009. By Fran, under Industry News.
Diamond: A natural mineral consisting essentially of pure carbon crystallized with a cubic structure in the isometric system. Its hardness on the Mohs scale is 10, its specific gravity is approximately 3.52, it has a refractive index of approximately 2.42 and it can be found in many colors.
Call it what you may, bauble, rocks, bling – all mean the same thing, but by the end of this month, the definition will officially change. The Responsible Jewellery Council is retracting and rewriting its definition of a diamond to include laboratory-grown stones, to welcome lab-grown diamond producers.
The Gemological Institute of America, the foremost diamond research and grading body, acknowledges that these are in fact diamonds. The synthetic diamonds do have some differences that only a jeweler would be able to detect, such as different growth patterns and a lack of inclusions. Considered flaws, having diamonds without inclusions will never diminish the value. Man made diamonds are still, just a small twinkle of the diamond market and will not be mass consumed like natural stones until a few years from now.
Synthetic Diamond Facts:
- Most of lab-grown diamonds are one carat or smaller, though you can get stones up to 2 carats.
- Colorless stones are rarer in synthetics than in nature, whereas colored stones are rarer among natural diamonds.
The current economic state has shown a major shift in how consumers spend, shop and approach luxury goods, which might be a significant plus for this new market of diamonds. One thing I’m sure will never change, diamonds be it real or lab-created will still and always, be a girl’s best friend!
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On March 5, 2009. By Fran, under Tech Talk.
What is a Liaison?
Webster Dictionary defines liaison as: communication for establishing and maintaining mutual understanding and cooperation.
As the Administrator and Project Manager here at EDI Options, I have personally maintained valuable relationships with Trading Partners (your retailers and other business partners) throughout the years. I personally manage the EDI setup, configuration and testing between the vendors and trading partner, and have done this more times than I can count for all of our clientele. A good liaison builds relationships over time.
I have the type of relationship with major EDI partners like Walmart, Sterling Jewelers and JC Penney that when they hear from me they know that they are in good hands and what they can expect. We have even conducted testing with EDI trading partners when they have upgraded their internal systems to ensure that the functionality remains the same.
Typically duties I perform as a liaison are:
- Contacting the trading partner to initiate the EDI partnership on the vendor’s behalf
- Filling out all paper work pertaining to EDI. If the paper work also requires business information, I will contact the vendor and send them the paper work as well so they can fill in their business portion.
- Send paper work back to the trading partner. I like to do this function as it opens the door for communication between them and myself and it shows them who they will be dealing with.
- Create and setup a VAN (Value Added Network) account (if one does not already exist) as well as add the trading partnership and interconnection with the VAN.
- Delegate, inter-office the tasks needed to be completed in order to start testing. For example, mapping creations, configuration and installation of the partnership on the vendors system.
- Deciding with the trading partner on a testing schedule and timeline for the testing phase.
- I personally contact the trading partner during testing to ensure the quality of the tests is up to par. And I am personally involved in all of the testing that goes on. I maintain a smooth flow of communication so we can get to the end of testing successfully.
- Once testing has been completed, we will instruct/train the vendor on the requirements for sending successful transactions to the trading partner.
- I put an email together to the vendor of the status of the project and what to expect next.
I personally take pride in my duties as I believe I am well liked in the industry, I have a good rapport with the trading partners and I am organized and keep track of progress and outstanding issues. I am always ready with status and can always produce any needed documentation.
Unlike other EDI providers, our customer’s trading partners always hear from the same person(s) and that is how strong relationships and confidence is formed. Personally, I find it to be a good feeling to hear on the other end that they are glad we are the contact, or shall we say liaison for the vendor. Your EDI is in good hands and your trading partners know it.
One of my EDI trading partners that I have worked with for many years is Sterling Jewelers. Marcia Keene from Sterling was nice enough to offer this:
“EDI Options’ staff proves every day that they care about their business because they are responsive and caring. The relationship they have formed with me has resulted in real trust. I never hesitate to recommend this company to anyone who asks for a reference for an EDI provider.” -Marcia Keene at Sterling Jewelers
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On February 13, 2009. By Fran, under Industry News.
A very small flicker at the end of the current economic slump tunnel might just lead some business to higher ground. OfficeMax, looking to lower location rents and warehouse costs with a new concept called Ink Paper Scissors. Three new Ink Paper Scissor locations, smaller in scale to OfficeMax’s warehouse design, contain about two thousand of the chains most popular products for quick get in and go shopping.
“Everyone is looking at smaller footprints now; it’s a big theme right now because traffic is down so dramatically that they can’t afford the inventory and labor for a full store.”-Industry Insider
Industries like fast food have always taken the small scale, convenience style objective by maximizing kiosk locations in malls across the country. Starbucks and Seattle Coffee have been introduced in place like bookstores, airports and hotels to increase their presence in high traffic areas where a larger restaurant would be cost prohibitive.
Applying this concept to other forms of retail could be on the horizon. Staples, Target and other business have opted for the “dollar menu” creating popular products at ninety-nine cents to lure shoppers into quick buy sales. Seasonal items such as holiday novelties, children’s toys and school supplies have done extremely well as this new concept takes hold.
The stigma of dollar store shopping has seen a tremendous upswing in sales over the last year. Besides getting more business from their regular customers, they are also seeing in influx of new customers.
“It’s not where you shop, it’s what you get. It’s the value of what you’re paying for, if it’s the same thing you paying for at Wal-Mart, you might as well as come here and get it at a better deal.”
Chains like Dollar General, Dollar Tree, and Family Dollar are offering popular name products as well as continually working with large manufactures to create special discount brands like you would find in most supermarkets.
Dollar shops have come a very long way from when they started. You can find dozens of popular brands that are not closeouts or damages, but created for the discount market.
Suppliers need to prepare for these trends by refining their logistics process, adjusting for smaller shipments to more locations. The ultimate form of specialization comes in the form of direct to consumer sales with goods being shipped by the vendor directory to the consumer, labeled as if it had come from the retailer. These specialized logistics will be required to compete in this new marketplace.
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On February 3, 2009. By Fran, under Industry News.
The constant wave of economic instability has push retailers into a world wind of store closings, employee downsizing and corporate cut backs. Marked as the second “depression” our country has seen since 1929 with holiday retail sales hitting and all time low since 1969, has the hype caused reaction to make change or overreaction, jumping ship prematurely.
Companies like KB Toys Inc. couldn’t make it through the Christmas season, and many more are expected to file for bankruptcy in the coming months. Circuit City Stores Inc., which filed for Chapter 11 bankruptcy in November, said Friday it will go out of business, closing its 567 U.S. stores. Felines Basement has just announced closings slated for February.
For the last two years, many of the best-run nation’s stores like J.C. Penney Co. had been reducing inventories in response to the consumer spending slowdown. JCrew also planned in advance by cutting down novelty color palettes of garments and focused on basics, what sells and what does not work. The Gap, Neiman Marcus also has also revamped merchandise buying, keeping stock higher on staple items rather than impulse trend merchandise.
“Before cutting, closing and hanging the sign on the front door, we are navigating new territory, predicting that the fundamental shift by consumers to spend less and save more will linger.” – Retail Insider
Overreaction to close up shop might be just poor business direction in some cases. Did Circuit City, KB Toys and so many others hit by the economic tsunami plan far in advance to brave out the coming aftermath?
The good news for shoppers, will find less cluttered stores and merchandise at lower price points. From ordinary groceries and household products to brands and apparel they could only once aspire to have, will become a close reality.
The upsides if there could be any, consumers will find stores less cluttered and see an array of products at lower prices, from ordinary groceries to jeans from brands they could once only aspire to.
The sudden reaction of Macy’s cutting seven thousand jobs to stay afloat is unfortunate. A crisis such as this economic downslide offers only two suggestions. React, cutting staff, offering discounts, reducing unpopular merchandise and keeping a firm hold over a very unwavering time.
The other choice, to overreact, shutting down locations, filing bankrupt, liquidating factories might be too late for some who should have reacted rather before then overreact when it was too late to keep heads above water.
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On January 22, 2009. By Fran, under Industry News.
The old adage has become an important question retailer’s for 2009. Long gone are the days of shop till you drop, focusing more on durability & quality as consumers head into the New Year. Although shopping bags may not be busting at the seams, the luxury market is seeing a trend of the big purchase bearing the weight of weak sales.
Today’s high-net-worth consumers are forgoing novelty for authenticity, making good on luxury retailers exclusive offers & sales. Consumers are making smart choices to spend money wisely on significant purchases like jewelry, vacations, cars and personal goods.
“Luxury shopping is not disappearing, but changing” – says an insider
Don’t expect lines out the door at Gucci, just yet. As the economy worsens, U.S. unemployment has climbed over 7% for the first time since 1993, Consumers will pull back a bit, keeping purchases on big ticket items steady but giving up the four or five smaller non important items.
Quality outfits such as Bloomingdales and Nordstrom’s have been the first to break ground, offering sales on many designer labels. Luxury brands once immune from the sale rack, are slowly introducing luxury to the everyday smart consumer.
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On December 11, 2008. By Neil, under Executive Desk, Tech Talk.
When I speak to company owners that are being asked to enter into an EDI relationship for the first time many times their attitude is to limit the EDI operation to provide simple compliance.
“Just tell me what I need for WalMart, Kmart, JC Penney or whoever to be satisfied so that I can get these initial EDI orders in house and start shipping”
This feeling is more than understandable when the EDI process is seen as hurdle that has to be passed in order to be approved as a vendor. Like some kind of final exam, if I answer all the questions carefully and fulfill enough of the requirements to get a passing grade I can advance to the status of preferred supplier. That level of EDI compliance will indeed satisfy your customer and solidify your relationship as a vendor but will it give you any value? Is it enough for you to just be compliant?
EDI compliance satisfies your customers because the EDI information that you exchange with them feeds their logistics process. EDI data is the life’s blood of modern retail logistics. Automated distribution centers scan and route your packages without any human handling. If your packages arrive without bar codes or associated shipping details those packages are forced to be manually handled or worse yet, rejected and returned. Like any operation that is automated, quickly the old manual methods are forgotten causing significant delay.
How automated are your shipping logistics? EDI information is tailor made for sharing with accounting, shipping, warehouse, and other logistics systems.
Companies that view the EDI process as an opportunity for their own business process improvement have the right idea by keeping in mind the fact that the EDI process in one that will be repeated time and again with new orders and shipments in increasing volume as the retailer relationship matures. Any manual handling in that process becomes a clog in the fulfillment pipeline keeping your goods from the shelves and keeping your operation from being as efficient as possible not to mention the inevitable manual errors that will occur.
As the volume of EDI orders and shipping goes up manual EDI processing brings more costs while automated EDI processing brings more value.
There is no secret formula for success since everyone’s fulfillment process is unique. Off the shelf EDI solutions can give you quick compliance with an inexpensive start up but what are the long term costs? At least 50% of our business is done with companies that are switching their EDI solutions because they are bogged down in manual EDI processing or have a competing EDI solution that is not efficient or automated.
Sometimes a lot of money spent by companies without a lot of forethought results in a lot of time and money wasted. That same time and money spent with a little consultation and consideration beforehand can result in more highly automated, efficient fulfillment operations.
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On December 8, 2008. By Fran, under Tech Talk.
After spending some time with our client support technicians, it seems that in the rush of the holiday season, our clients not only face shorter deadlines and shipping volume but unique EDI issues as well.
At holiday time, clients ship a much higher volume of goods, which can complicate every aspect of shipping logistics. From packing a much higher number of boxes and labeling to creating multiple invoices for stores or distribution centers. Holiday logistics can become exponentially more complex.
“During the holiday season many issues for support are easily fixed with features that are already built into The EC GearBox”-Tech Support
With our sheer variety of EDI capabilities & customization, each client has the ability to attain an automated EDI operation. Within our systems, there are tools for everyday business and tools that might only be used during this season when business traffic is high.
Clients found themselves learning how to easily edit items off an ASN or even delete items, while others use the GearBox reports to track invoices, ASNs or any transaction inbound and outbound that was sent or received from any given time frame even though these activities were easily performed manually during periods of low activity they would be impossible to perform without high level tools.
For business, especially in the wake of current economic challenges, it is imperative to manage every order to insure compete and timely fulfillment. The strength of an EDI system must mimic these goals allowing your EDI operation to be, productive & robust.
An EDI solution that is flexible & powerful is one part of managing holiday volume. Combine that power with knowledgeable staff, backed up by on call support & the result is a solution with all of the necessary tools to tackle a tough holiday season!
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