Updates on Net Pricing Exchange Methods

IDEA wants to help you choose the best method to electronically exchange net pricing with your trading partners. We offer four methods that are currently being utilized by many in the industry including B2B document exchange with the EDI 845 - the recommendation for EDI-capable trading partners.

Here are your options and things to consider while choosing your method:

B2B Document Exchange
The Special Price Authorization document (EDI 845) allows you to send all your net pricing information to a trading partner through a traditional electronic data interchange (EDI) process.

Steps in the Process:

  1. The supplier transmits an EDI 845 to Industry Data Exchange (IDX)
  2. IDX routes the document to the appropriate trading partner
  3. The trading partner receives the EDI document in their IDX mailbox

Requirements and Considerations:

  • The sender and receiver must be EDI capable
  • Kilocharacter charges are incurred (take advantage of the IDX July 4th promotion to save big on these charges!)

Recommended for:
Manufacturers and distributors who are EDI capable

Benefits:

  • Increases efficiency, reduces errors and use of redundant tasks
  • Increases ROI for those who have invested in EDI
  • Can be used for all methods of net pricing including: unit pricing, multipliers, into-stock, rebates, job-specific special price authorizations

“We use the EDI 845 for both into-stock and ship & debit SPA agreements for over 120 locations. This method syncs our into-stock pricing with our vendors ensuring more accurate purchase orders. This then drives efficiency in the processing of EDI invoices. Receiving our SPA’s via the EDI 845 ensures precision in items picked up by our SPA system and in our dollars claimed. The EDI 845 has a multitude of benefits for both us and our vendors.” said David Keck, Programmer Analyst, Crescent Electric Supply Co.

IDEA EDI to Flat File Translation
This method gives you the option to send net pricing to trading partners who are not EDI capable. This gives you more flexibility in the types of net pricing you exchange and provides a way for non-EDI capable customers to receive confidential pricing files through IDX.

Steps in the Process:

  1. The supplier transmits a simplified EDI 845 document to IDX
  2. IDX translates the data in the EDI 845 document into a simplified Flat File format (SPA v1.06)
  3. IDX delivers the Flat File to the trading partner’s IDX mailbox

Requirements and Considerations:

  • The supplier and receiver must be an IDX customer
  • Facilitates use of a EDI 845 for sender
  • The receiver does not need to be EDI capable
  • EDI 845 fields must match simplified Flat File fields
  • Kilocharacter charges are incurred (take advantage of the IDX July 4th promotion to save big on these charges!)

Recommended for:
Manufacturers who wish to use the EDI 845 document with distributors who are not EDI capable

Benefits:

  • Increases efficiency, reduces errors and use of redundant tasks
  • Increases ROI for those who have invested in EDI
  • Standardized Flat File for those not capable of EDI
  • Can be used for all methods of net pricing including: unit pricing, multipliers, into-stock, rebates, job-specific special price authorizations

Industry Data Warehouse (IDW) Storage
This method gives you the option to load a Simple Net Flat File into Industry Data Warehouse (IDW) for a specific trading partner.

Steps in the Process:

  1. The supplier loads pricing data into IDW for a specific trading partner using the Simple Net Flat File format
  2. The trading partner extracts the net price sheet from IDW during their normal download process

Requirements and Considerations:

  • Item-specific unit pricing only, no job-specific
  • Data is stored in IDW along with other pricing data
  • The sender and receiver do not need to be EDI capable
  • No kilocharacter charges are incurred
  • May require manual processes by sender and receiver

Recommended for:
Manufacturers who use unit pricing only or are not capable of EDI to meet the request of their distributors who want net pricing from IDW

Benefits:

  • Facilitates the standardized exchange of item-specific net pricing through IDW for those distributors who prefer to receive all pricing through IDW

IDEA FTP Net Pricing Solution
This method gives you the option to send net pricing to trading partners who are not EDI capable without storing it in IDW. This gives you more flexibility in the types of net pricing you exchange and provides a way for IDW customers to receive confidential pricing files directly in their IDW FTP folder. (Note - this file is not appended to IDW downloaded files).

Steps in the Process:

  1. The supplier transmits a simplified EDI 845 document to IDX with a special IDEA assigned Net FTP ID
  2. IDX translates the data in the EDI 845 document into a simplified Flat File format (Net FTP v1.0)
  3. IDX delivers the Flat File to the trading partner’s IDW FTP folder

Requirements and Considerations:

  • The supplier must be EDI capable
  • The receiver must be an IDW customer
  • Only Net Into-Stock – no job-specific special price authorizations
  • Facilitates use of EDI 845 for sender
  • The receiver does not need to be EDI capable
  • Net price data is not stored in IDW
  • Unit price or multipliers can be sent
  • No kilocharacter charges are incurred

Recommended for:
Manufacturers who wish to use the EDI 845 document with distributors who are not EDI capable

Benefits:

  • Increases efficiency, reduces errors and use of redundant tasks
  • Increases ROI for those who have invested in EDI
  • Standardized Flat File for those not capable of EDI
  • No kilocharacter charges incurred

How to get started using methods described above:

  • Watch IDEA’s president and CEO, Bob Gaylord discuss your net price options and submit your response at www.highvoltageideas.com
  • Request an IDW Net Pricing training session with .(JavaScript must be enabled to view this email address)
  • Contact your account manager for consultation and to get set-up – extra perk: you can use the ongoing IDX July 4th promotion to save on the B2B document exchange and IDEA EDI Flat File Translation methods!

If you have additional questions about these four methods contact the Standards Director, .(JavaScript must be enabled to view this email address) at (647) 722-3406.