March 26, 2008

No More Net Price Gossip – Know the Facts

Net pricing is certainly a hot industry topic. Many of the questions in rotation are: Is it possible? Is it secure? In which ways can I send/receive this confidential information? What are the new developments? Don’t listen to the gossip – find out the facts from IDEA.

IDEA is continuously working hard to make sure you have multiple ways to exchange net pricing and also choose the best method. While we currently offer two net pricing solutions, a third is being tested for release later this year. The two methods currently available have been in production for years and are currently being utilized by many in the industry.

The two methods you can use today include:

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 v. 4010 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

Recommended for:

All methods of net pricing including: unit pricing, mulitpliers, into-stock, rebates, job-specific special price authorizations

How to Get Started:

Contact your trading partner to initiate the transaction

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:

  • 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:

Item specific distributor net pricing

How to Get Started:

Contact IDW Support at (703) 562-4603

Currently in testing:

IDEA FTP Net Pricing Solution (Beta Testing)

This allows you the option to send Distributor Into-Stock 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 an EDI 845 v. 4010 document to IDX with a special IDEA assigned Net FTP ID
  2. IDX translates the data in the EDI 845 document into a customized Flat File format
  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 Nets 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

*Beta testing and production for this method is completed on a first come, first serve basis

If you would like to participate in beta testing or if you have additional questions about these three methods contact the Standards Director, Mary Shaw at (647) 722-3406.

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