The Electronic Commerce Program is being developed in support of Dofasco's commitment to "continuous improvement". The program will simplify the information flow between Dofasco and our Customers by facilitating changes to routine processes and supporting a closer, more flexible business relationship.
In this chapter we explain the elements of the program, the planned implementation strategy and our roles and responsibilities.
Strategy Statement
The markets traditionally served by Canadian Steel producers have changed dramatically in the last few years.At Dofasco, we strive for quality by being the best we can be at everything we do.The aim of our marketing efforts is to focus on opportunities for continuous improvement in the quality of our products and service to our Customers.Some of the key changes in the steel producers' markets have been a tightening of relationships between Customer and supplier, dramatic shortening of the time between order and expected shipments, and significant increases in the expectations of quality, not only in products but in services as well.Increasingly the only effective way of meeting these demands is to fully support relationships with Electronic Commerce.
Dofasco will have high quality, comprehensive and fully competitive Electronic Commerce relationships with Customers.
Dofasco's Overall Strategy
The Electronic Commerce program supports Dofasco's aim for continuous improvement in the quality of our products and service to our customers.- provide timely, accurate information
- conduct business transactions electronically
- quality and customer service.
Timely, Accurate Information
Basically, this means that both parties will strive to provide accurate information.Dofasco and Customers will provide "event driven" communication as much as possible.Business transactions
Initially Dofasco plans to implement transactions that relate to Receiving and Shipping orders.In subsequent stages, we will extend our transactions to include Purchase Order and Shipping Schedule information.Quality and Customer Service
Streamlining processes and reducing costs go hand in hand with quality and customer service.Operating electronically allows Dofasco and Customers to respond faster.
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Implementation Strategy
Dofasco will meet with it's Customers individually to customize an Electronic Commerce implementation plan that suits the business needs of both the Customer and Dofasco. When the business procedures are defined, the technology will be deployed that meets those business needs.EDI
Dofasco has several years experience with EDI and are capable in using this tool to enhance the business process.Electronic Mail
All of Dofasco's Commercial Department have E-Mail accounts, so our staff can take full advantage of this method of exchanging information.This connection provides a secure and reliable method for business communication.Fax
Dofasco originated faxes can be generated manually or automatically to paper output or machine readable format. Customer originated faxes can only be received via traditional FAX machines.Web
Dofasco has developed a secure customer area on its internet site.This area will provide our customers with easy access to up to date business information.top
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Business Cycle Overview
The transactions in the traditional "paper" business cycle have been partially replaced with electronic transactions.The following section describes the current business cycle, the paper-based cycle, the electronic cycle and the transaction sets.
The Current Business Cycle
The current business cycle for the most part is a paper-based environment.
The Paper Transactions
There are numerous paper transactions in the current business cycle.Some
of them are explained here in the sequence they occur.
Receive Order
Purchase orders state the requirements of the material to be purchased.Currently, Dofasco receives a purchase order from the customer through several alternatives, fax, paper mail, phone, EDI or WEB.The information is manually entered into the Dofasco order system.Receive Order Release
Order releases state the customers requirements for defined time periods.This document allows Dofasco to know what has to be produced and when.Currently, Dofasco receives a material release from the Customer through several alternatives, fax, paper mail, phone or EDI. The information is manually entered into the Dofasco order system.Acknowledge Order
An Order Acknowledgment is triggered when an order is released to production.Currently, Order acknowledgements are automatically printed and mailed to customers.Order Status
Order Status reports can be in the form of a ready status report which notifies the customer that material is ready to be picked up.This is currently faxed as an image or text file or through EDI.Assemble Load/ Prepare Bill of Lading
When the Customer's material has successfully completed all phases of quality testing, the material is grouped into loads and a bill of lading created. This action triggers the sending of test reports and prepares Customs documentation which is manually faxed to the carrier or Customs Broker.Invoice
The shipment of steel acts as the trigger to initiate the invoice process.Some of Dofasco's Customers prefer to make payments based on an Advanced Ship Notice (ASN) eg.The Evaluated Receipts program.The invoices are either sent by paper mail or through EDI.Payment process
Dofasco currently receives payments via cheque.In order to keep track of outstanding invoices, a monthly statement is printed and supplied to each customer via paper mail.top
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The Electronic Business Cycle (Phase 1)
The Phase 1 business cycle is a mix of electronic and paper-based transactions...
The EDI transactions
There are 7 transactions sets in Phase 1 of the electronic business cycle.They are explained here in the sequence they occur in the cycle.Material Planning Release(830)
Dofasco receives Material Planning Releases which identify the Customer's steel requirements on a daily, weekly and/or monthly basis.This information is used to update Dofasco's internal system.Text Report (864)
Order status reports can be in the form of a Text ready status report which notifies the customer that material is ready to be picked up.Report of Test Results (863)
When the Customer's material has successfully completed all phases of quality testing, the material is grouped into loads and a bill of lading created.This action triggers the sending of the Report of Test Results.Advanced Ship Notice (856)
As material leaves Dofasco or its agent, an Advanced Ship Notice is sent to the Customer.This will provide timely and accurate information on the details of the shipment.Advice (824)
This transaction is used to provide a report on the results of an application system's data content edits.Receiving Advice (861)
Provides the notification of the receipt of goods and services, in this case the steel shipment.Invoice (810)
The shipment of steel acts as the trigger to initiate the Invoice process. Some Customers may prefer to make payments based on receiving the 856 - ASN. This being the case, Dofasco requires an 824 - Application Advice and possibly a 861 - Receiving Advice.(See above)top
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Roles & Responsibilities
For a business relationship to be successful, the roles and responsibilities of each trading partner must be clearly understood.In this section, we list the roles and responsibilities of Dofasco and the Customer to support the electronic business cycle.Roles
Each party should:* Be able to receive and send business documents via EDI, E-Mail, Fax or WEB.
* Take steps to ensure that the documents and data sent are accurate, complete and timely
Responsibilities
Commitment To Electronic Commerce
Dofasco and the Customer may agree to exchange business documents electronically whenever it makes good business sense.Business Commitment
Dofasco and the Customer will use either a commercial Value Added Network (VAN), Public internet or the Advanced Network eXchange (ANX).User ID on a VAN
Dofasco and the Customer may establish a User ID with a commercial VAN to identify its company.The presence of this User ID in any electronic interchange will be sufficient to verify the source of the data and the authenticity of the document. Both parties will notify each other of any changes in the VAN relationship immediately.ANX
Dofasco and the Customer may wish to establish a link using a private internet service such as the Advanced Network eXchange (ANX).For more information see the ANX.com website.Archiving
Electronic transaction sets must be archived.The length of time for archiving is still to be determined.Original Documents
Electronic documents or printouts of them, shall constitute an original when maintained in the normal course of business.Implementation Guide Maintenance
Dofasco will provide Customers with updates to the EC Implementation Guide.Data Accuracy
It is the responsibility of the sender to ensure all data sent is correct and valid.997 - Functional Acknowledgment
A Functional Acknowledgement (997) must be received and will be sent by Dofasco within 24 hours of receipt of any EDI documents.VAN Fees
Each party will pay the interconnection, mailbox and transmission fees for all documents sent to the other party's VAN mailbox.ANX Fees
Dofasco and the Customer are separately responsible for their own ANX fees.For more information see the ANX.com website.top
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