EDI Integration with NetSuite for Commerce

It can be decisive and necessary for both new and established companies to bring their products to market.
In this article, we will illustrate how Alta Via can integrate NetSuite and retailers by using Ecosi as an EDI service provider.
EDI is an old system but still important if you want to sell your products. Here are some of the retailers that use EDI:

  • EDEKA, REWE, DM, Rossmann, Kaufland (and many others in Germany)
  • MONOPRIX (France)
  • El Corte Inglés (Spain)

Implementing the processes efficiently in NetSuite

It is fundamental that the process structure in NetSuite is implemented efficiently. This means that the ordering, delivering, and invoicing transactions need to be created efficiently, quickly, and error-free. This is particularly important in the area of Fast Selling (Moving) Consumer Goods.

We were able to process +8000 orders per day for a project without any complications and without reaching NetSuite’s performance limit. The volume of transactions in the commerce marketplace is most likely well below this value, but processes running in parallel such as an online shop or 3PL integrations need to be taken into consideration as they also consume resources.

ORDER, DESADV and INVOIC

The exchange of three messages is essential for the implementation:

  • ORDER: The order needs to be received and processed by the ERP system.
  • DESADV: The recipient is informed about the delivery.
  • INVOIC: The invoice is transmitted.

 

In all three cases, ECOSIO acts as the transmitter between the retailer and NetSuite, although the traditional EDI communication channels are redirected to a modern web service. NetSuite is in a passive mode in the ordering stage, which means it is waiting for the retailer’s order to be placed. In the delivery and invoicing stages NetSuite reacts by sending delivery and invoicing lists to the retailer at regular intervals.

When creating the order customer data such as headquarters, warehouses and branches are usually required. This is a prerequisite in order to deal with the plethora of agreements regarding pricing and discounting. For this reason we have developed the “Alta Via Ready for Commerce Bundle” that is not dependent on EDI integration, but is a concise extension to have for dealing with the requirements of commerce.

When deliveries are registered, the item structure becomes important. Manufacturers and distributors need to agree with the retailer which packaging units need to be transferred, and it must also be clear how the delivery dates and times are agreed upon.

There are further agreements that need to be considered when invoices are transmitted. An invoice may require only one tax rate when it is transmitted, so for orders with mixed tax rates an invoice for each rate needs to be created. It might also be required to show amounts with four decimal places and this is where the “Alta Via Ready for Commerce” Bundle helps to map out the agreements with the retailer.

ECOSIO – a reliable middleman

The ECOSIO service is also capable of mapping out certain business processes. We have reached an agreement with ECOSIO that all business logic resides exclusively in NetSuite and that ECOSIO functions solely as the facilitator. This concept guarantees that users will always know in which system the processes need to be maintained. 

The Alta Via Adaptation Bundle for B2B

In the “Alta Via Ready for Commerce Bundle” we have combined features and packaged them into a standard solution that allows the requirements for Europe’s large retailer’s to be mapped out. In combination with EDI NetSuite becomes the single hub and avoids having to work in and maintain distributed systems.

If you would like more information please contact us at: info@altavia.de