There are generally four distinct “entities” or “parties” involved in a commercial transaction as follows: (1) Bill-To is the entity that will be paying this invoice, generally the buyer. (2) Bill-From is the entity that is billing the invoice, generally the seller. (3) Ship-From is the entity that is transporting the goods or providing the services (generally the carrier). (4) Ship-To is the entity that receives the product or service on behalf of the buyer (generally the end-user, as in drop-shipments. To illustrate the above, here are a few examples:
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The ANSI ASC X12 810 standard provides the data contents of an invoice transaction set. The invoice
transaction set provides for customary and established business and industry practice relative to the billing for
goods and services provided. While the standard specifications provide a rather complex code to describe an EDI invoice data elements, here is an attempt at providing a simplified version of the main data elements, and their meaning:
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The supply chain according to Laudon and Laudon (2000) is a collection of physical entities linked together into processes that supply goods or services from source through consumption. The physical entities in the supply chain consist of suppliers, manufacturers, distributors, retail outlets, and consumers. To have effective supply chain management a business must integrate all these entities into one cohesive process. E-Business can bring that benefit to a business supply chain by permitting the business and its managers to communicate and collaborate among all areas inside the supply chain ultimately giving the business a competitive advantage.
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A field run ticket is a paper record completed by the purchasers or transporters representative documenting how much crude oil was removed from an oil well location. There is a company called Oildex which provides a service called RunTicket Connect. This service allows companies to import run tickets, summary statements, and tank tables directly into existing accounting software systems, or they can download them into a spreadsheet, eliminating the need for hand keying. This results in time and cost savings.
Continue reading Run Tickets and Who’s who
March 11, 2011 was a very bad day for Japan and for humanity as a whole. A massive earthquake of magnitude 8.9, one of the worst in Japan’s history, followed by a deadly tsunami was catastrophic for the country and its people. It swept away everything on its way damaging buildings, highways, airports, ships, industrial hubs, almost anything on the ground including huge loss of life. The reported death toll estimated to be more than ten thousands, thousands are still missing and millions are displaced and will be evacuated. The economic loss is still to be estimated and fear is that it could well pass more than hundreds of billion (in USD). The trauma and turmoil has not ended yet as the atomic power plants are badly damaged and explosions have happened resulting in leakages & radiation. If further explosion happens then the radiation might reach other parts of the Japan as well which are not affected by earthquake. This reminds the vulnerability of human civilization irrespective of how prepared a country like Japan is. No matter how much science progresses, science alone cannot save humanity.
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In my previous blog on freshness across supply chain, I had promised to further dig down and extend the various definition and methods by which it can be achieved but I will write about that little later. I chose a new topic which is knocking the door to transform the business and technology, i.e. cloud computing and its usage and impact on future supply chain applications & systems.Cloud computing is a virtual, service-oriented, location independent computing architecture which provides on demand servers, computing resources, software and storage just like an electricity grid. Customers using cloud services do not own the physical infrastructure and hence avoid capital expenditure and other overheads. They pay as they consume resources and fee is charged only for the used resources.
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The competitiveness of organizations across the industry sectors depends not only on the cost effectiveness and the improved service levels always but often on the degree of freshness of the products sold to customers. This is mostly applicable to the industry sectors like consumer foods, healthcare, infant formula etc. The freshness of goods largely indicated by the difference of the current date and the expiry date of the product. The more the difference, the product is more fresh and vice versa. Most of the informed consumers try to look for the dates before they buy and many a times they choose not to buy the items in the store because the same item is found fresher at some other store. Different consumer would have different requirement for the same product depending on their consumption rate and the frequency of the purchase. Typically this phenomenon is observed at the very end of the supply chain where consumers transact before the actual consumption happens.
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Due to the economy melt down a lot of industries are analyzing their processes to eliminate unnecessary process steps, cut cost, reduce inventories, manage the resources at hand and for proper process improvement. There are 10 tips that can help to achieve maximum and positive results listed below: Continue reading Ten Top Tips Towards Process Improvement
Definition: Inventory Management is an enterprise-wide discipline concerned with the identification and tracking of Inventory Information Services (IIS) inventory and production line assets. Its three main areas of concern are:
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The approach to sales and operation planning differs from company to company, even within similar industries. In this article, I would like to discuss basic, high level principles of S&OP and why every organization, big or small needs to make it an integral part of their management strategy.
Continue reading Sales and Operations Planning: How do YOU do it?