Using EDI in OTM to Improve Carrier Performance Page 1

Jennifer Norris, EDI Project Manager RockTenn, Inc.

Using EDI in OTM to Increase Carrier

Performance

Using EDI in OTM to Improve Carrier Performance Page 2

RockTenn Overview

Using EDI in OTM to Improve Carrier Performance Page 3

RockTenn Overview

RockTenn is one of North America’s leading integrated manufacturers of corrugated and consumer packaging. We are committed to creating and delivering value by:

♦ Providing superior products at very low costs

♦ Investing for competitive advantage

♦ Optimizing economies of scale

♦ Improving processes and reducing costs

♦ Seeking acquisitions that improve business

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RockTenn Overview

Based in Norcross, GA., RockTenn has approximately 26,000 employees at approximately 210 operating facilities in the United States, Canada, Mexico, Chile, Argentina and China. In North America, we are the: ♦ 2nd largest producer of containerboard

and corrugated packaging ♦ 2nd largest producer of clay-coated

recycled paperboard ♦ 2nd largest producer of folding cartons ♦ Largest display manufacturer ♦ Largest preprint linerboard producer ♦ One of the largest paper recyclers

Using EDI in OTM to Improve Carrier Performance Page 5

What is EDI?

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EDI – Electronic Data Interchange

EDI Stands for Electronic Data Interchange. It involves using computer technology to exchange information or data electronically between two organizations, called Trading Partners. EDI is a set of standards that define common formats for the information so it can be exchanged. There are three major steps involved in the communication of EDI data: Mapping Transforms an EDI document into

another format

Translation Accepting inbound EDI data or creating an outbound data file for transmission

Communications Actual transmission of the EDI transaction

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EDI – Electronic Data Interchange

EDI 204 Tender Offers EDI 990 Tender Response EDI 997 Acknowledgment EDI 214 Shipment Status Records

– AA - Estimated Pickup Date and Time

– AB – Estimated Delivery Date and Time

– X3 - Arrived at Pickup Location

– AF - Departed Pickup Location

– X1 - Arrived at Delivery Location

– CD - Departed Delivery Location

We currently exchange:

Using EDI in OTM to Improve Carrier Performance Page 8

Benefits of EDI

Lower costs Higher efficiency Improved accuracy More supply chain visibility Enhanced security Greater management of information

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EDI – Electronic Data Interchange

Outbound EDI204 Tender Offer

Other software provider

WebMethods(EDI) converts XML into X12 format outputs to FTP server

The FTP server puts the file in a folder

to be picked up by the carrier.

Direct connect

or

EDI tender is sent out from OTM

The EAI layer converts the data to XML

format.

Carrier

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Example of EDI Data

Outbound EDI data : 204 (Tender Offer)

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EDI – Electronic Data Interchange

Inbound EDIElectronic Data Interchange

Carrier sends tender response or shipment status

The FTP server puts the file in a folder to be picked up by WebMethods.

Direct connect

or

Other-software provider

WebMethodsconverts X12 to XML and sends to OTM

Tender response and shipment status posted to OTM

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Example of EDI Data

Inbound EDI data : 214 (Shipment Status)

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EDI Configuration in OTM

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External System

Create External System: An external system is any remote system where you can store and/or use OTM data. Use the External System Manager to define the outside source where you want to forward records.

1. Create an ID

2. Enter URL for HTTP/HTTPS

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External System

3. Attach XML Profile ID and XML Element ID

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Creating EDI Contact

4. Insert newly created external system to contact

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Creating EDI Contact

5. Add Com Method ID and give it a rank of ‘1’

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EDI Configuration in OTM

♦ Send requirements and standards ♦ Confirm connection type ♦ Discuss what you will be exchanging ♦ Involve the CSR/dispatcher ♦ Agree on expectations ♦ Discuss any reporting ♦ Exchange contact information for support

For a successful implementation:

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EDI Testing

Things to verify before going live in production:

1. Notification CSR is notified of 204 by either internal email or pop-up

2. Response time Check the polling cycle time of when the carrier receives the transaction and you receive response

3. Rate Check to see if CSR can view the base/spot cost and surcharges

4. Comments Confirm CSR can see important comments (ex: TWIC card required or ‘hot shipment’)

5. Multi-stops Make sure CSR can see all stops on the shipment

6. Tender response Confirm that tender moves to next carrier when declined

7. Withdrawal/cancel Confirm that CSR receives cancellations or withdrawals in a timely manner

8. Training Make sure CSR is trained in using EDI

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How to Drive Performance

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Driving Performance

Carrier Performance

Review

Carrier accepts load

Carrier sends required statuses

Shipment reports pulled/scorecards

generated

Measure compliance %

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RockTenn SSM Requirements

SSM COMPLIANCE

AA – Est PU

AB – Est Del

X3 – Arrive at PU

AF – Departed

PU

X1 – Arrived at

Del

CD – Departed

Del

Require all six (6) statuses on all shipments Carriers are held to a standard of 95% compliance Compliance = all six (6) statuses for 95% of all shipments in a given time period Provide each carrier with a weekly scorecard Bi-weekly carrier performance reviews

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Shipment Event Details Report

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Shipment Event Details Report

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Increasing Carrier Performance

Provides statistical view of SSM% week-to-date, month-

to-date, year-to-date

Charts SSM% over the course of the year

Lists exceptions - shipments and what statuses were

missed

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Qlikview - Carrier Scorecard

Week-to-date compliance % Month-to-date

compliance % Year-to-date compliance %

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Qlikview - Carrier Scorecard

Exceptions – shipments with missing status messages

Each week, we work with those carriers who are underperforming (compliance % less than the target) Data integrity issues may be uncovered Continue to work with each carrier until the SSM compliance is 95% or better

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Questions

Q & A