Chapter 1 Summary
Table of Contents
The New Business Cycle Summary
Section 1-3 Summary
Commerce / Implementation Guide
DOFASCO and Electronic Commerce
The Electronic Commerce Program is being developed in support of Dofasco's commitment to "continuous improvement". The program will simplify the information flow between Customer and Supplier by facilitating changes to daily processes, and supporting a closer, more flexible business relationship.
In this chapter we explain the elements of the program, the planned implementation strategy and your role and responsibilities as a supplier in that program.
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 Outside Processors.
Basically, this means that both parties will strive to provide accurate information. We realize there will be a continuous process of reducing and minimizing errors. Dofasco and Outside Processors and/or Storage Facilities will provide "event driven" communication as much as possible.
Initially Dofasco plans to implement transactions that relate to Material flow and Material processing. In subsequent stages, we will extend our EDI transactions to include Order and Invoice related functions.
Quality and Customer Service
Streamlining processes and reducing costs go hand
in hand with quality and Customer service. Operating electronically
allows Dofasco and Outside Processors and Storage Facilities to respond
faster to customer needs.
(See section 1-2 for a complete list of transactions)
The transactions in the traditional "paper" business cycle have been partially replaced with electronic transactions.
In this document, we:
When Dofasco's internal steel processing is complete, the coils are sent to a Shipping location and our internal systems are updated. A lineup is created, an OPOR (Outside Processor Order Release) is created to enable shipment of steel and a Commitment list prepared.
This information is faxed manually to the Outside Processor.
Upon receipt of shipment at the Outside Processor, as well as production at the Outside Processor, material is inspected. If it is damaged or non conforming, an Inspection Report is filed with Dofasco. If there is no damage or non-conformance, an Inspection Report is not required.
As steel is processed at the Outside Processor, Dofasco monitors the progress by phone. Production reports are completed by the Outside Processor and sent by fax or courier. These reports are posted to our internal system as received. There can be a gap of 12 to 24 hours after production until the reports are posted.
Bill of Lading
When the Outside Processor completes the processing of steel, they produce a bill of lading. (Ready to Ship Notice.)
The Ready-to-Ship notice triggers the process to notify customers and create the Dofasco bill of lading. Dofasco notifies customers via a faxed or EDI status report and/or by phone. The load tally contains detailed coil information on one or more bills of lading. The trigger for the load tally can be either immediate, or after a customer requests shipment. This action triggers the sending of the Test Report (autofax) to the customer and prepares Customs Documentation, which is manually faxed to the carrier or Customs Broker.
The customer contacts Dofasco or the Outside Processor to arrange pickup by phone.
When goods are shipped, the Outside Processor notifies Dofasco and the information is posted. For customer ASN's (Advance Ship Notice), the Outside Processor phones Dofasco upon shipment and Dofasco triggers the sending of an ASN via EDI. The Outside Processor then faxes the “material-shipped-yesterday” list to Dofasco. This triggers the process of issuing an invoice to the Customer.
As can be seen from the previous description, the current process is not only paper intensive, but also requires that documents be handled numerous times and data be re-entered for each operation. This results in a slower process and increased chances of error, affecting the performance of all parties, and ultimately, the level of service to our customers.
The new electronic process overcomes these drawbacks, by eliminating the paper - and consequently, the manual handling and data transcriptions, resulting in accurate, more timely information.
Material Transfer (Advance Ship Notice) 856*/90**
As material leaves Dofasco, an ASN will be sent to the Outside Processor. This will provide timely and accurate information on the details of the substrate.
Material Receipt 861*/91**
Upon receipt of the steel, the Outside Processor will send Dofasco a confirmation acknowledgment, which will update Dofasco's internal system directly.
Production Reporting 870*/92**
The Outside Processor will send Dofasco Order Status updates as material is processed during the day. The reports will update Dofasco's internal system directly. This will enable Dofasco personnel to have access to accurate and timely order status where an Outside Processor is concerned.
Hold Report 870*/96**
If the steel is defective at the Outside Processor and is held before further processing, the Outside Processor will send Dofasco a Hold transaction.
Release Report 870*/96**
When Dofasco releases the steel, they will send the Outside Processor a Release transaction.
Sometimes it is necessary to reassign steel to different orders. This is handled via a Reapplication transaction. Dofasco will send the Outside Processor a Reapplication advice.
In this transaction, the Outside Processor will reassign steel, based on business rules. The Outside Processor will send a Reapplication transaction. At this time Dofasco does not intend to use this transaction as there has not been a business case identified for its use with the Outside Processor.
Material Transfer (ASN) 856*/90**
Upon the shipment of steel from the Outside Processor, an ASN will be sent to Dofasco.
Inventory Handoff 846*/89**
The Outside Processor will send Dofasco an Inventory
Advice to report a "snapshot" of the material in inventory at a specified
point in time (may include in-transit material from certain Outside Processors/Outside
Storage Facilities). The Inventory Advice will be used by Dofasco
to reconcile all inventories.
* X12 Transaction Numbers
For a business process to be successful, the roles and responsibilities
of each trading partner must be clearly understood. In this document, we
list the roles and responsibilities of the Outside Processor and Dofasco
to support the new business cycle.
The Outside Processor agrees to receive and send the required business documents via EDI, unless specifically waived by Dofasco.
The Outside Processor must use either a VAN or a Direct Link.
User ID on a VAN
The Outside Processor will establish a User ID with a Value-Added Network (VAN) to identify its company. The presence of this User ID in any EDI interchange will be sufficient to verify the source of the data and the authenticity of the document. The Outside Processor will notify Dofasco of any changes in the VAN relationship immediately.
Dofasco and the Outside Processor 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.
EDI Transaction sets must be archived. The lengths of time for archiving has been established to be for a period of 7 years.
EDI documents or printouts of them, shall constitute an original when maintained in the normal course of business.
Implementation Guide Maintenance
Dofasco will provide Outside Processors and Storage Facilities with updates to the E.C. Program Implementation Guide.
It is the responsibility of the sender to ensure all data sent is correct and valid.
997 - Functional Acknowledgment
A Functional Acknowledgment (997) must be received by Dofasco within 24 hours of receipt of any EDI documents.
856 - Advance Ship Notice
The 856 - Advance Ship Notice (ASN) transaction must accurately reflect the contents of the shipment and must arrive before the truck at Dofasco, the Outside Processor or the customer’s plant.
870 - Production Reporting
Production Reporting (870) data must arrive at Dofasco no later than 7:00 a.m. the next business day.
Dofasco will pay the sender interconnection, mailbox and transmission fees for all documents to the supplier's VAN mailbox. Similarly the Outside Processor will be responsible for any interconnection and transmission fees for all documents to Dofasco's VAN mailbox.
Dofasco and the Outside Processor are separately responsible for their own ANX fees.For more information see the ANX.com website.