E-Supplier - pro.integration.siemens-energy.com

IT creates business valueUnrestricted © Siemens AG 2017

E-SupplierInformation for the EDI exchange with Siemens

Unrestricted © Siemens AG 201713.11.2017Seite 2 S. Hillenbrand /GS IT SCM CDI, November, 2017

IT creates business value

Contents

Title Page

Overview EDI 3

Supported message types and business processes 4

Paradigm Shift for Purchase to Pay (P2P) 5

What is the change for the P2P process 6

What will be better? What will be improved? 7

Benefit of the EDI usage for suppliers 8

Siemens Communication protocols and EDI formats 9

Siemens EDI formats - examples 10

EDI setup process 11

Contact 13



Overview EDI

The Siemens group pursues the global goal to design its order, supply and accounting processes to be of the highest quality, safe, environmentally friendly, economical as well as transparent and strives to increase the mutual benefit of e-commerce between itself and its partners.

Defintion

•Industry standards (e.g. xCBL, Rosettanet)

•Sector dependent standards (e.g. Odette in automobile industry)

•Sector independent standards (e.g. ANSI X12, UN/EDIFACT)

Types of EDI standards

Preamble

The term Electronic Data Interchange (EDI) refers to the electronic exchange of structured business data between different data processing systems with the help of defined standards

Which EDI standards does Siemens use?Based on its international presence and cross-sector business fields, Siemens has defined UN/EDIFACT (Siemens EDIFACT standard) as a corporate standard for EDI. In addition Siemens uses SAS (Siemens ANSI Standard) and an XML-Standard (DIN5XML) in the electronic data exchange



Supported message types and business processes

Message types Business processes

• Purchase Order (ORDERS)• Purchase Order Change (ORDCHG)• Order acknowledgement/confirmation (ORDRSP)• Dispatch Advice/Shipment notification (DESADV)• Invoice/Credit Note (INVOIC)

• Delivery Schedule Response (DELRSP)• Delivery Schedule/ Delivery Forecast (DELFOR)• Inventory Report (INVRPT)• Self Billing invoice (SBI)

• P2P (Purchase to Pay)

• Delivery Schedule process

• Consignment stock process



Paradigm Shift for Purchase to Pay (P2P) – Siemens is pushing EDI rollout with its suppliers

2015 2017

Time axis not scaled

2020+

Manufacture

Industrialization

e2e Digitalization

• Individual connections• < 20% PO transactions digitized

• End-to-end Focus (Order to Invoice)

• Professionalized Onboardingof suppliers

• > 80% of transactions digitized• Interfaces with key business

processes

ESI + Team /



What is the change for the P2P process?End-to-end solution is covering transactions from Order to Invoice

Today• High manual effort• Error-prone processes

Critical Process Steps with Media Discontinuity and high Risk of Errors

Ordervia Mail / email / Fax

Manual Entry

Manual Change in

Systems

Change requestvia email / Phone / Fax

Invoice print & send

by Mail

confirm via email / Phone / Fax

Invoice scan, OCR, verify

Data mismatch -> Payment delay

Order Confirmation

Tomorrow• e2e digitized P2P• Efficiency & Speed

Order Order Change

Dispatch Advice Invoice

5 e-messages

ESI + Team /



What will be better/ what will be improved?

LeverageEfficiency

Speed Working time , 3 - 39min less manual effort per process

Quality Accurate Data and Master Data, eliminate error of manual data entry

Transparency Full process transparency as pre-requisite for improvement

Compliance accurate, transparent information enables compliance & security

Standardization Simplified procedures, streamlined checks, process security

Agility Transparency enables better prod. scheduling, SC planning, inventory mgt

Performance Measurement Better Supplier Performance Evaluation via higher data quality

CO² Footprint Eliminate printing, paper, envelope, postage

Control

ESI + Team /



Benefit of the EDI usage for suppliers

Strategic relevance

Supplier

Strategic relevance of the supplier for Siemens is increased

Agility & Transparency Process- and responsibility transparency is increased

AutomationReduced manual effort as well as error sources all along the

Purchase-to-Pay Process reducing lead time, cycle time, working time, response time Faster Execution

Financials

Faster payment receipt with electronic invoicing

Reduction of process costs

EDI with Siemens is free of charge

ESI + Team/



Siemens Communication protocols and EDI formats

Communication protocols

Siemens Corporate Service EDI/EAI

SupplierSiemens buyer

*Catalog integration ispossible via OneSRM

AS2/HTTPS/SFTP/FTP2/OFTP2/OpenFT

SES / SAS / DIN5XML

1 SES (Siemens EDIFACT Standard, Directory D.10A)

2 SAS (Siemens ANSI X12 Standard)

3 DIN5XML (proprietary XML format, based on segment names of SES)

1 AS2

2 HTTPS

3 SFTP

4 FTPs

5 OFTP2 (via TCP/IP)

6 OpenFT

Message formats

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwih1pbE7KnXAhVM1xQKHZ9JCf8QjRwIBw&url=https://www.techinasia.com/sap-startup-focus-acceleration-program&psig=AOvVaw1QEvvUmxZml3ppCo0ZaJO8&ust=1510054215708808

http://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5lJX466nXAhVI6xQKHUK9CKEQjRwIBw&url=http://iconshow.me/computer-icon-6&psig=AOvVaw17Evlct2zZDMuCX_YXwgS5&ust=1510054050543888

http://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5lJX466nXAhVI6xQKHUK9CKEQjRwIBw&url=http://www.iconarchive.com/show/small-n-flat-icons-by-paomedia/device-laptop-icon.html&psig=AOvVaw17Evlct2zZDMuCX_YXwgS5&ust=1510054050543888

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwizifvg7KnXAhXEbRQKHTD2DZYQjRwIBw&url=https://www.iconexperience.com/g_collection/icons/?icon=shopping_cart&psig=AOvVaw1p_8tK1JILP584DIxQprp0&ust=1510054285776425

http://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjM3eCY7anXAhVBPRQKHcZADZ4QjRwIBw&url=http://www.densify.com/resources/case-studies.html&psig=AOvVaw2ckJHhOmXxKaW5Rqh-zzJz&ust=1510054345507209

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiA7vip76nXAhVF2xoKHdcQD20QjRwIBw&url=https://www.iconfinder.com/icons/399414/chemical_links_connection_connections_link_scheme_molecule_network_web_icon&psig=AOvVaw2UW0xzxJRhIfGpVd4m1I79&ust=1510054977386814

http://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGh-fq76nXAhWMfRoKHcfUCHIQjRwIBw&url=/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://www.openkm.com/&psig=AOvVaw0UP_00sCsfCj8W2kn_vXOm&ust=1510055098424318&psig=AOvVaw0UP_00sCsfCj8W2kn_vXOm&ust=1510055098424318

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiA7vip76nXAhVF2xoKHdcQD20QjRwIBw&url=https://www.iconfinder.com/icons/399414/chemical_links_connection_connections_link_scheme_molecule_network_web_icon&psig=AOvVaw2UW0xzxJRhIfGpVd4m1I79&ust=1510054977386814

http://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGh-fq76nXAhWMfRoKHcfUCHIQjRwIBw&url=/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=https://www.openkm.com/&psig=AOvVaw0UP_00sCsfCj8W2kn_vXOm&ust=1510055098424318&psig=AOvVaw0UP_00sCsfCj8W2kn_vXOm&ust=1510055098424318



Siemens EDI formats - examples

SES DIN5XML SAS



EDI setup process

1

2

3

4

5

Siemens and the supplier agree to electronically process order and invoice processes; Result: EDI Agreement is signed

Supplier receives kickoff information incl. “SES docu” account for message guidelines download from CS EDI

Set-up of the communication via defined file transfer protocols between CS EDI and supplier (exchange of technical parameters and testing of connection)

Provision of test messages (Siemens --> Supplier) by Siemens purchasing department via CS EDI

Supplier sets up a mapping for the agreed message types (inhouse mapping or via service provider hired by supplier)

Responsible: Siemens purchasing department and supplier

Responsible: Siemens CS EDI

Responsible: Siemens CS EDI and supplier

Responsible: Siemens requesting unit provides first test messages; Siemens CS EDI routes message to the supplier

Responsible: supplier or supplier’s service provider; Siemens CS EDI provides support and explains Siemens specific details



10

EDI setup process

7

8

9

Review of syntactic accuracy of the message by CS EDI (error protocols will be provided to the supplier)

Review of content accuracy of the message by purchasing department/accounting department of Siemens

End-to-End testing between Siemens and supplier, testing full message set

10Scheduling Go-live after successful testing between Siemens purchasing department, CS EDI and supplier

6 Supplier sends test messages for agreed message types (possibilities: order response; invoice; dispatch advice)

Responsible: supplier

Responsible: Siemens CS EDI

Responsible: Requesting Siemens unit / Accounting

Responsible: Requesting Siemens unit and supplier

Responsible: Requesting Siemens unit, Siemens CS EDI, supplier



Contacts

Siemens AGInformation TechnologySupply Chain Management

Siemens Corporate Service EDI/EAI

Otto-Hahn-Ring 6

81739 Munich, Germany

Telefon: +49 (89) 636-48888 (-48883 from December 1st, 2017)E-Mail: [email protected]

Message guidelines can be ordererd before EDI agreement issigned via email

E-Supplier - pro.integration.siemens-energy.com

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