QAD Pitch Report
QAD EDI Part II
Enterprise Material Transfer [EMT]
Introduction to EMT
… Automatically generates Purchase Order
(Supply) based on Sales Order (Demand)
in Intra-Company Producer – Consumer
scenario.
… Automation of document transfer is
achieved through QAD EDI ECommerce.
EMT – Features
• Automatically generates Purchase Orders
from Sales Orders.
• Automatically exports Purchase Orders
through QAD EDI ECommerce.
• EDI Purchase Order is imported in
Manufacturing unit to create Sales Order.
• When an EMT Purchase Order is
modified, the changes are automatically
transmitted to Source Unit through EDI.
EMT – Features
• Sales Order changes are sent to Sourcing
Unit through EDI.
• Supports two material delivery options –
– Direct Shipment : direct shipment from final
supplier to end customer.
– Transshipment : shipment to the original unit
that created Sales Order.
• Integrated with QAD Shipment, Invoicing
and Accounts Receivable modules.
EMT – Standard EMT
• Standard EMT involves a simple two level
relationship between two Business Unit.
– Primary Business Unit (PBU) : Business Unit
that receives and responsible for processing
the Customer’s Purchase Order.
– Secondary Business Unit (SBU) : Business
Unit that receives Primary Business Unit’s
Purchase Order and responsible for full-filling
the PBU Purchase Order.
Standard EMT – PBU & SBU
Customer
Primary Business Unit
Sales Office
Secondary Business Unit
Plant 1
Sales Office responsible
for Forecast, Sales and
Customer Management.
Secondary Business Unit
Plant 2
Manufacturing Units
responsible for
Manufacturing Products.
Standard EMT – Customer to PBU
Customer
PO
Sales Office
converts
Customer PO into
SO.
SO
Primary Business Unit
Sales Office
Secondary Business Unit
Plant 1
Secondary Business Unit
Plant 2
Standard EMT – PBU to SBU
Customer
PO
SO
PBU creates PO
for Item 1 on Plant
1.
Primary Business Unit
Sales Office
PO
SO
Secondary Business Unit
Plant 1
PO
PBU creates PO
for Item 2 on Plant
2.
SO
Secondary Business Unit
Plant 2
Standard EMT – At SBU
Customer
PO
SO
Plant 1 creates
SO (Demand) for
Item 1.
Primary Business Unit
Sales Office
PO
SO
Secondary Business Unit
Plant 1
Plant 2 creates
SO for Item 2.
PO
SO
Secondary Business Unit
Plant 2
Standard EMT – Direct Shipment
Customer
Material Flow
Supply Item 2
Invoice Flow
Invoice
Primary Business Unit
Sales Office
Invoice
Secondary Business Unit
Plant 1
Direct Shipment
Secondary Business Unit
Plant 2
Standard EMT – Direct Shipment
With direct shipment, SBU is authorized to ship the material directly to
the Customer bypassing the PBU. Advance Shipment Note will be sent
to PBU to inform about the Direct Shipment and Customer Invoicing will
be through PBU.
Standard EMT – Transshipment
Material Flow
Customer
Invoice Flow
Invoice
Supply Item 1
Primary Business Unit
Sales Office
Transshipment
Secondary Business Unit
Plant 1
Supply Item 1
Transshipment
Invoice
Secondary Business Unit
Plant 2
Standard EMT – Transshipment
With transshipments, the SBU satisfies the customer demand through
PBU. SBU ships to PBU and PBU in turn ships to Customer.
Transshipment is useful in case of PBU doing any value addition to the
materials shipped.
Standard EMT – EDI Flow
4
Customer
ASN
850
Ack
1
2
SO
855
ASN
Invoice
5
7
856
810
Primary Business Unit
Sales Office
850
Invoice
3
4
810
SO
856
6
Secondary Business Unit
Plant 1
All EDI Documents are from ANSI X12.
EDI Message Flow
•
850 (PO) imported as SO in PBU.
•
PBU sends 855 (PO Acknowledge) to
Customer.
•
PBU sends 850 to SBU.
•
SBU send 856 (Ship Notice/Manifest) to
PBU and to customer in the case of direct
shipment.
•
PBU sends 856 to customer in the case of
Trans-shipment.
•
SBU sends 810 (Invoice) to PBU.
•
PBU sends 810 to Customer.
Change Management through EDI
i.
Any PO change by Customer to PBU and
PBU to SBU will be communicated through
860 (PO Change Request – Buyer initiated).
ii. Any SO change by PBU to Customer and
SBU to PBU will be communicated through
865 (PO Change Request – Seller initiated).
Standard EMT – Business Flow
PBU
SBU
Import/Create Sales Order
EMT PO is created
Export EMT PO
Import EMT PO to create
Secondary SO.
Import Acknowledgement
Export Acknowledgement
Order Changes
Order Changes
Receive PO Change
Allocate and pick
inventory
Receive, process and ship
material (transshipment)
Ship Material to PBU or
Customer
EMT – Uses and Benefits
- EMT enables organizations having supply chain spanning
multiple business units to have streamlined with less manual
intervention.
- Intra-company transactions would not require VAN to transmit
EDI Messages, a simple EDI Sub-system would be suffice.
- Provides Change Management process within QAD to manages
changes to Purchase Orders and Sales Orders involved in intracompany transactions.
- EMT can be used within Trading Partners depending on the
mutual relationships and cohesiveness of the shared processes.