Zeidon Distribution - Metals (ZDM)

ZDM is a comprehensive, integrated system for managing the business of a metals distributor and/or small manufacturer. It is built specifically for the metals business on top of standard and widely used hardware/software platforms. It is e-business enabled for processing business-to-business transactions and is built on a logical software base that encourages customization of business function.

ZDM includes a wide range of functionality from Customer Resource Management through Inventory Management and Accounting. It supports this through a completely integrated system of components that eliminates redundant processing and data entry and ties all the business pieces together in a unified whole. Business functions in one area automatically flow and generate business functions in related areas. The related functions are tied together in a way that allows flows to be retraced for historical evaluation.

ZDM is a system specifically directed at the metals distribution and small manufacturing business. Inventory information includes metals certification data that can be selected and formatted on customer documents. Metal heat information is tracked through the various receiving, processing and shipping functions to provide full traceability of all metals activity. Complex product codes are avoided as products are identified by a set of flexible characteristics, with additional identification criteria stored in inventory lots, groups of individual product items with similar criteria.

ZDM is built on a logical, application development platform that anticipates the variability of functionality that is standard across the metals industry. Though there is much common functionality across the industry, there are also many differences that provide important competitive advantage, as each company attempts to carve out a unique position among its competitors. ZDM’s logical foundation allows a customer to realize the advantages of customized functionality at packaged product prices.

ZDM runs on the widely available and inexpensive Intel platforms, running various versions of Microsoft Windows and SQL Server. These standard hardware/software platforms are the easiest systems in the industry to manage and their popularity encourages the availability of a range of system administration options.

ZDM is particularly architected to support e-business, especially the business-to-business functionality expected to provide the backbone of supply chain networks. Though e-business has been slow to develop in the metals industry, its eventual adoption is sure and all distributors need to prepare for its implementation.

Key BenefitsBuilt for the metals industryInventory information is organized around product specifications that are directed to the characteristics of a company’s products, such as thickness, metal finish or form (e.g., round bar, flat bar, plate). Complex product codes are thus avoided and inventory access follows the needs of the business. Individual product items are further grouped together into Inventory Lots by additional common characteristics, such as metal length and heat number. When inventory is received, it is common for items with the same heat number to be considered an Inventory Lot. This facilitates analyzing inventory to meet customer requirements.

Inventory Lots can be tied to metal certification data that follows product items from the Lot as they are processed and sold, printing out on pertinent documents along the way. Metal heat information is tracked through the various receiving, processing and shipping functions to provide full tracing ability of all metals activity. Certifications can be scanned into the system for online access as needed.

Inventory can be stored in multiple physical or logical locations. Inventory Transfer functionality allows inventory to be moved/shipped between locations. Inventory at a location can be owned by either the host company, a customer or a supplier. The physical locations can be at a host company site, a customer site or a processor site.

Enhanced quality control mechanisms are built into the system through complete forward and reverse traceability of lots, receiving documents, and activity records.

Comprehensive and Integrated

Customer ManagementCustomer Management is the entry and presentation of information for managing customer relationships. Information includes the basics such as multiple addresses and phone numbers, personnel characteristics, tax data and credit terms that are to be applied to all orders. In addition, it includes customer activity within the system, such as: Current and historical sales quotation Current and historical sales order Current and historical shipments Current and historical invoices Credit history Outstanding receivables Special price offerings An historical list of all system activity

Information is organized for easy retrieval of common information, but also allows a full evaluation of all pertinent customer information within a single set of windows. Customers can be accessed through both regular and alternate names, with a customer being allowed any number of alternate names. ZDM tracks and gathers information from every transaction automatically. That means that with no additional effort, all customer interactions are available to all team members, organized in a meaningful way.

ZDM tracks very detailed financial history on a customer to create a profile to aid in decision making. The information available can also be printed and used as a credit reference on behalf of customers. Some of the data maintained per month is: highest payable amount, number of new orders, value of new orders, average days to pay, amount paid on time and amount paid late. Customer information is presented through many online interfaces and standard reports. However, many ad hoc requirements for information can appear as need arises, which is addressed through the ZDM Logical Query Facility.

Supplier ManagementSupplier Management is the entry and presentation of information for managing supplier relationships. Information includes the basics such as multiple addresses and phone numbers, personnel characteristics and contract data. In addition, it includes supplier activity within the system, such as: Open and historical purchase orders Open and historical vouchers (Supplier Invoices) Historical payments against vouchers Information is organized for easy retrieval of common information, but also allows a full evaluation of all pertinent supplier information within a single set of windows. Suppliers can be accessed through both regular and alternate names, with a supplier being allowed any number of alternate names.

Quotes and Sales OrdersProcessing customer requests for ordering products is handled by creating Quotes and Sales Orders. A Quote is actually a sales order "in-progress", meaning the information gathered in putting together a Quote is a subset of the information gathered for a Sales Order.Quotes are created for a customer and are queued in an open folder of outstanding Quotes. Quotes can be removed from the open folder, but are still maintained with the customer for historical purposes. In fact, all Sales Orders are kept as historical quotations with the customer for the Sales Order.

A Quote becomes a Sales Order by adding additional information, particularly a purchase order number from the customer. Any Quote, including an historical Quote can be turned into a Sales Order by simply updating the existing Quote with the additional information and releasing it. A blanket Sales Order can be handled by creating a Quote and then releasing it each time the customer requests a delivery.

A Sales Order is made up of one or more line items. Line items on the same Sales Order can include product items that will be shipped from different inventory locations. They can also include line items with a combination of status and processing types as follows. Immediate Ship Items – These are the normal line items where there is inventory to fulfill the request, which will be put together and shipped as quickly as possible. Drop Ship Items – These are line items where there is not sufficient inventory in stock to fulfill the request. In this case, the request will be filled by shipping the item directly from a supplier to the customer. Blind Ship Items – These are line items to ship on behalf of the customer to their customer directly. Awaiting Stock Items – These are line items where there is not sufficient inventory in stock to fulfill the request, but product inventory is expected to be delivered and the Sales Order line item will be queued for handling when the inventory stock arrives. Awaiting Processing Items – These are line items where the product to be sold must be created by a Process Order, which will create the inventory stock from other inventory stock. The Process Order may be performed either internally or externally. Scheduled Ship Items – These are line items where the customer is ordering the product well in advance for shipping as of a particular date.

The sales force has immediate access to inventory status and scheduling. This allows the sales force to check inventory levels, quote prices, and even enter orders while the customer is on the phone. Increased efficiency in customer service means closing more deals. From the Sales Order screen, the user is one click away from the inventory levels, expected arrival of open orders and production scheduling.

The sales force also has immediate access to customer history. This allows the sales force to see immediately what this customer has ordered in the past, in what quantities, and the price they paid. They can also see what other customers have been willing to pay quickly and easily, assisting the sales person to set a profitable, but competitive price.

Purchasing and ReceivingWhen a Purchase Order is entered, the supplier, line item, cost, expected date, etc. become part of the receiving queue. Then, when inventory begins to arrive, the automatically created Receiving Slip serves as a double check to ensure that what was ordered is what is received.

The inventory can be entered directly into the system on the shop floor or back in the office, whichever is appropriate for the business.

Line items can be ordered in any unit of measure. When they are received, the quantities are validated against the Purchase Order. Line items remain open until all the inventory is received or the line item is marked complete. There are also Note sections so that any special information about an inventory item can be entered and made available to all other users of the system. Blanket orders can be maintained and deliveries applied to the purchase order as they arrive.

When the voucher (bill) is entered, it is validated against the delivery to ensure accurate information. This is all done online to reduce or eliminate wasted warehouse or office time tracking down books, papers, and various checklists to validate the information. Vouchers are entered against the purchase order to ensure accurate costing. Vouchers from other sources (such as freight companies and processors) can also be applied to a delivery to further ensure accurate costing.

As deliveries are received, the quantity expected are updated to reflect, in real time, what is happening to the line items. If the total inventory delivered for a line item is under or over the expected weight or quantity, that item can be marked complete and the receiving closed for that purchase order line item.

Fully Integrated Accounting

With fully integrated accounting, transactions are posted in real time. This eliminates the need to export/import transactions to some other accounting software. With integrated data, finding, reporting on, and interpreting information is more accurate and up to date.

Vouchers entered into ZDM, with or without a Purchase Order, go directly to Accounts Payable. Invoices update Accounts Receivableas they are posted in the system. This means that invoices can go out as quickly as shipments.

The integrated accounting can handle multiple currencies for remote offices in other countries, for suppliers billing in other currencies, or for invoicing back to customers in the local currency. Recurring Payables can be created to automatically generate at particular times. Monthly obligations do not get overlooked since they are created in the Payables List based on the schedule. A full set of reports is available including a Balance Sheet and an Income Statement.

Logical Query to ALL information

In the process of automating the operational functions of the metals business, a great deal of valuable information has been collected. Much of this information is presented through normal online interfaces and standard reports. Still, there is much additional information whose need has not been anticipated in advance and which will be desired as new business requirements arise.

ZDM Logical Query provides a query system that is both powerful and easy to use. Whereas other query systems have limited access to data or require a knowledge of the physical characteristics of data, ZDM Logical Query can be used against ALL data stored in ZDM. It is used through a logical interface that hides the characteristics of physical data and presents logical data through pictorial representations that enhance understanding of the data and any query against it.

ZDM Logical Query simplifies the handling of complex information by separating the definition of data used in a query and the query, itself. The definition of data is called a query view and defines a pictorial representation of logical data within the context of particular business information. For example, "sales data of products for selected customers" is a business context against which many queries might be formed and would be defined as a Query View. A logical query is defined against a Query View and specifies the data selection criteria and presentation information for answering a particular business question against the logical view of data.

ZDM supports a range of skill sets for users of the system. Some users will have very little understanding of their business data and can only execute, or slightly modify and execute, preformatted queries. Other users will have enough understanding to format queries from preconceived Query Views. A few users will have a full grasp of the logical data in ZDM and will create data views for themselves or others as the need arises.

These characteristics are best described through an example. Consider the problem where a user needs to evaluate what customers have ordered certain kinds of products. In particular, the user wants to evaluate the business activity that is being generated by certain types of users that order specific products. A Query View to provide this kind of information is represented in a diagram. Note that the query utilizes the data and selected relationships between Customer, SalesOrder, OrderLineItem and Product.

The entities (Customer, SalesOrder, etc.) represent groups of characteristics (attributes) for a single, logical "thing", similar to a record or a row in a table. The relationships (the lines between two entities) represent a logical correlation between those entities, without reference to how those relationships are implemented physically. The diagram presents a visual representation of the data and relationships within a particular query context. In this case, the context is evaluating sales information for selected customers.

Many queries can be made against this view, but we will consider one where the user wants to see the sales activity since March 31 for all Customers who are "fabricators" and have bought either “Angle” or “Coil” products during the period. There are two parts that need to be defined in this query:

1. What data is to be selected.

2. Of the selected data, what data is to be displayed on a user interface.

The query window represents a flat view of the attributes from the Query View that are part of this query, either as part of the selection criteria or as a part of the information being presented. Those attributes checked will be presented as output on a report, the requested output medium for this query. Only Customers will be selected who have a Type of "fabricator" and have bought "Angle" or "Coil" during the period. Only SalesOrders will be considered that were placed after March 31.

The result of the query is shown in the following report. The query can be saved and later restored for execution with or without modification.

Deployed on standard computer industry technologies

ZDM runs on the widely available and inexpensive Intel platforms with all current versions of Microsoft Windows and SQL Server 2000. These standard hardware/software platforms are the easiest systems in the industry to manage and their popularity encourages the availability of a range of system administration options.

Built on a logical software foundation

ZDM is built on a logical, application development platform that anticipates the variability of functionality that is standard across the metals industry. Though there is much common functionality across the industry, there are also many differences that provide important competitive advantage, as each company attempts to carve out a unique position among its competitors. ZDM’s logical foundation allows a customer to realize the advantages of customized functionality at packaged product prices.

eBusiness Ready

Although the metals industry has not been an early adapter of e-business technologies, the Internet will make an impact on this industry as surely as on any other. That impact will show itself in two areas.

Business-to-business (b-to-b) computing is the communication of information between businesses over the Internet. In the metals industry, this will include all of the major business transactions currently handled through documents or telephone calls, such as inventory status requests, product orders and invoices. The technical standard for such communication is XML, though there is no current logical standard for the data content of such business transactions.

Customer-to-application computing is the communication of information between a customer and an application (e.g., ZDM) over the Internet. The customer makes queries and enters business transactions through a browser interface that is supported by the application. Here, too, XML is becoming the technical standard.

ZDM was built in anticipation of Internet computing. The logical architecture underlying ZDM looks at all data in a manner compatible with the technical XML standard. In fact, any of the logical data definitions, represented pictorially in tree diagrams, can automatically generate XML data from other forms of data in the system.

ZDM is particularly directed at creating the b-to-b interfaces that are required for communicating with a variety of suppliers and customers over the Internet. Since no single, logical standard exists for defining the data content of business transactions, a b-to-b system must be capable of easily supporting many external formats to internal transactions.

Step by step help online

Our online help system makes the entire set of user documentation available to all users at any time. What makes the ZDM help system unique is its scenario based approach to help. Not only is there the step by step instructions on how to perform specific tasks, but there also is a comprehensive list of "what if" questions that are focused on running the business, not the computer. Scenario based help enables the user to perform functions consistently no matter how infrequently they are done.