Contents of Section:
Strategy StatementContent

The New Business Cycle - Phase 1

SECTION 1-3
 
 
 
 

Strategy Statement Summary

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. 

1.1 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 Outside Processors.

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1.1.1 Dofasco's Overall Strategy

• provide timely, accurate information
• conduct business transactions electronically
• quality and customer service.

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. 

Business transactions

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. 
 

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 1.1.2  Implementation Strategy

(See section 1-2 for a complete list of transactions) 

1.2 The New Business Cycle - Phase 1

In this document, we: 

• describe the current business cycle
• provide a brief explanation of the paper-based transactions
• describe the Phase 1 electronic business cycle
• provide a brief explanation of each EDI transaction set

1.2.1 The Current Business Cycle

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1.2.2 The Paper Transactions

Lineup/OPOR/Commitment List

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. 

Inspection Report

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. 

Production Report

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.) 

Load Tally

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. 

Shipment Request

The customer contacts Dofasco or the Outside Processor to arrange pickup
by phone. 

Shipped List

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. 

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1.2.3 The Revised Business Cycle (Phase 1)

1.2.4 The EDI Transactions

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. 

 Reapplication 867*/97**

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. 

Reapplication 867*/97**

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 
** COMPORD Transaction Numbers 

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1.3 SECTION 1-3

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. 
 

• Outside Processor/Dofasco roles
• Outside Processor/Dofasco responsibilities 

1.3.1 Roles 

• Be able to receive and send business documents via EDI.
• Take steps to ensure that the documents and data sent are
  accurate and complete.

• Provide material status and production data, as requested by Dofasco.
• Supply processed coils to Dofasco or its customers, as per
  mutual agreement. 

1.3.2 Responsibilities 

The Outside Processor agrees to receive and send the required business
documents via EDI, unless specifically waived by Dofasco. 

Business Commitment

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. 

ANX

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.

Archiving

EDI Transaction sets must be archived. The lengths of time for archiving
has been established to be for a period of 7 years. 

Original Documents

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. 

Data Accuracy

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. 

Transmission Fees

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. 

ANX Fees

Dofasco and the Outside Processor are separately responsible for their own ANX fees.For more information see the ANX.com website.