Electronic Kanban (E-Kanban) System Explained

What is the Kanban system? Kanban is a Just in Time (JIT) concept where restock orders for more inventory are sent only when current inventory is empty or low. In practice, the customer has two bins of the required product. When one bin is empty or running low, the other bin is used while a restock order is sent and fulfilled by the supplier. .   What are the benefits of this system vs. forecast-based MRP? A traditional forecast based MRP system, where material [...]

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EDI Integration with 3PL Warehouses

EDI Messages for 3PL Warehouse Integration In our earlier post 3PL Inventory Synchronization we discussed the importance of ERP synchronization and accurate inventory information in ERP. In this article how to use EDI technology to integrate to 3PL warehouses EDI EDI is the most popular integration format used by businesses today. 3PL Integration also can be easily achieved using EDI EDI Messages for 3PL Integration EDI X12 940 : Ship Order This message is used to inform the 3PL about outbound customer shipments. This message will [...]

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3PL Inventory Synchronization

3PL Inventory and Synchronization to ERP In current supply chain world, 3PL (Third Party Logistics) is an important component. Supply chain operations are outsourced to another company. Inventory related operations like Shipping, Receiving and some times value added services like Packaging are outsourced to the 3PL Operations Performed by 3PL Typically a 3PL will perform the below operations for the customer Receiving Inbound shipments from Suppliers and other warehouse Ship outbound shipments to Customers based on Ship advice from suppliers Value added services – Minor assembly, [...]

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EDI Integration with Oracle Cloud SCM

EDI Integration for Oracle Cloud EDI Process for Oracle cloud Oracle Cloud aka Oracle Fusion Supply Chain Modules are being widely used by many companies to manage their customer order process. Many of these customers will be sending orders through EDI (Electronic Data Integration). It is necessary that the EDI processing is automated through integration. This post explains how this EDI integration can be achieved. Methods of Integration Oracle Collaboration Messaging Framework (CMK) – supports only XML format. It will need effort to [...]

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Avoiding Amazon Vendor Central Chargebacks

Every Vendor Central (VC) supplier is familiar with the frustration of receiving a chargeback and seeing deductions from their payment. Due to the immense effort required to list and market a listing on Amazon, it’s important to limit or prevent these chargebacks from occurring. WHY CHARGEBACKS HAPPEN There are various reasons as to why a chargeback happens. To prevent this, it’s important to understand them so you know what to monitor. SHIPMENT FULFILLMENT: Shipping Outside the Ship Window: If a supplier ships after the ship window, [...]

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The Benefits of Implementing an EDI Solution

    What is EDI?   Electronic Data Integration, or EDI, is a system by which data, such as purchase orders or invoices, are able to be processed and responded to by various electronic systems, rather than by manual processing by humans. Some EDI messages include EDI 850 – New Purchase Orders, and EDI 727 – Supplier Routing Request.   The Benefits of implementing EDI   The main benefit of implementing a comprehensive EDI solution is that many platforms, such as Amazon VC, require suppliers to be [...]

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Amazon FBA vs Direct Fulfillment

What is Amazon Direct Fulfillment? To better aid suppliers, Amazon offers Direct Fulfillment facilities to selected vendors, along with the traditional FBA (Fulfillment by Amazon). To join this program, vendors must already be in the traditional program, and must fill out an application. Normally, FBA is a system by which vendors ship their products to an Amazon Distribution Center, from where Amazon manages all shipping and returns to the individual customers. Amazon issues bulk order at the beginning of each week. Suppliers [...]

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Freight Carrier Invoice Automation – Use EDI

Freight Carriers Large Freight Carriers like ABF, Bax Global, BNSF Logistics and many other Freight carriers provide Electronic Data Integration(EDI) as an option to automate the documents exchange with them. This improves data processing speed and accuracy. It also helps to reduce human data entry errors and time consuming manual process. Documents for automation with EDI The below documents can be automated with Freight Forwarders using EDI Load Tender (Pickup Request) – EDI 204 Carrier Invoice – EDI 210 Bill of Lading – EDI 211 Shipment [...]

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Smart Supply Chain – What is it and why do you need it?

The Importance of a Connected Supply Chain Most companies rely on traditional processes to ensure the gap between demand and supply is as small as possible. These include forecasts and purchasing plans, which are used to order the necessary materials on time. To factor in some variation, companies may have a distribution plan in place, all of which come together to give the customer a precise delivery window. This entire process, however, is prone to delays and miscalculations, all of [...]

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Why Forecasting is Important in the Supply Chain

What is Forecasting? Within a supply chain, forecasting is the prediction of what to expect in the short and long term for inventory, orders, production, etc. The most common forecast is MRP or Material Requirement Planning. This takes into account customer demand, and looks into supply details like Bill of Lading, and sourcing info to give valuable information on inventory and how best to fulfill orders. Due to the variable nature of a supply chain, forecasts are not always exact, [...]

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