Electronic Business

to Business
Strategy

•Streamline Kmart’s overseas direct sourcing process

•Improve operating efficiencies for both Kmart and our
Suppliers
•Leverage Kmart’s existing Australian local compliant
trading processes
•Develop common Kmart platform for international
Electronic Trading

2
Objectives

•Drive cost effective receiving and distribution

•Increase speed of communication and responsiveness
•Significantly improved data integrity throughout the
international supply chain
•Improve receiving integrity within our Australian network
•Improved merchandise distribution and speed to market

3
What is Electronic Business to Business

ƒRemoving manual processes and paper (where possible)

and replacing them with an electronic data exchange.
ƒGeneration of Purchase Orders (PO’s) and Purchase
Order Changes (POC’s) with Allocations via Electronic Data
Interchange (EDI).
ƒGeneration of an Advanced Shipping Notice (ASN) for
international direct sourced goods to established Kmart
electronic trading standards.
ƒThe labelling of merchandise to a pre-defined global
standard to allow minimal human intervention when
receiving / sorting shipments at DC’s.

4
What Will We Change

•An electronic copy of the purchase order will be sent to

your electronic trading EDI mailbox.
•An ASN will be required to be sent to Kmart prior to
delivery to the freight forwarder.
•Will apply only to Kmart’s “early” or “pre-shipment”
allocated orders.
•Minor changes have been made to the way the current
purchase orders are e-mailed/faxed. Refer to slide 8 -
Email/Fax Purchase Order’s.
•There are no changes to invoicing / shipping
documentation requirements.
5
Future Process Flow Overview
Supplier Freight Forwarder

4.. 5.. 6..

Apply Pack
Ship
Labels Goods

6.a.
ASN
ASN

PO 3..
PO 2.. 7..
Pack
Gateway WMS
Pack
Det.
Det.

2.a
TSI

1. PO and POC 6.b. ASN

Management
Matching

6
Future Process Diagram
SUPPLIER FF

Topcall /fax /email

and stock
EDI order
Kmart places a order
with international supplier picks and packs labels and creates ASN Dispatches to FF FF

FF dispatches stock

EDI

Kmart DC scan receives

EDI

Sends ASN

Palletises and
dispatches to stores

Kmart DC

7
 Email/Fax Purchase Order
Kmart Australia Ltd ORIGINAL PAGE: 1 OF 3
ABN 73 004 700 485 ly DATE: 01/05/07
Changes to Top Call Order:
800 Toorak Road Tooronga
1 on
e
Victoria Australiaag3146 DEPARTMENT : 001
f P 4111
Telephone 61-3-9829 MINOR DEPARTMENT : 001
o
ple
Facsimile 61-3-9829 6860 ORDER NUMBER : 215589K “7 Day Delivery Window”
m
Sa DLV NOT BEFORE
DLV CONS DATE
:
:
29/05/07
05/06/07 introduced for delivery of a
REQUESTED BY USER : T24TTH
CUBIC MEASURE : 0.006 M3
shipment to a Consolidator
SUPPLIER NO SUPPLIER
87654321 TL TOYS HONGKONG PTY LTD
RM 1301 13FL PART B PENINSULA CTR
67 MODY RDDY RD
TSIMSHATSUI New Message indicating where
JAPAN
TERMS: FIS/FIW-FREE STORES OR W/H ALL STS cartons are to be labelled
*** NOTE: CARTON LABELS AND ASN TO BE PRODUCED BY SUPPLIER. and by who
Note !!!! - Order for Priority delivery. Refer to DLV CONS DATE above (Deliver to
Consolidator Date).

Please ship quantities as specified to each port, subject to our normal terms
unless otherwise advised.

All orders are subject to the Standard Supply Agreement for Overseas Suppliers New Message indicating a PO
("The Agreement"). By accepting this order, you agree to be bound by the
Agreement and any conditions in this order. This order is deemed to be
is to be given priority
accepted unless notified in writing of non acceptance within 24 hours.

Refer to our website http://et.colesgroup.com.au/brands/kmart/SupplierHandbook for

further details relating to payment, documentation, labeling, shipping marks,
cases, packing requirements and other special requirements marked with an X
below.

PACK: 1 TOTAL QTY : 100

OUTER PACK: 1 UNITS
New Message indicating Hanger
KEYCODE: 30086944 TESTA1 TESTA1 FLAT PACK
COLOUR: BLACK SIZE: SIZE 6 type to be used where
COST PER UNIT - HOME COST: 23.0000 GST TAX: 10.00%
HANGER: TH43_AC16_BH62_AC16_AC66 CURRENCY : ECS
applicable
INNER PACK ------------------APN------------------
1 UNITS 30086944 TESTA1

* IMPORTANT: MERCHANDISE MUST BE CHECKED FOR CORRECT BAR CODE SYMBOL

BEFORE SHIPPING
Insert foot note if required 8
ASN Requirements

•Conventional e-mail / fax PO and POC plus an EDI order will

be raised by Kmart
•100% integrity required in packing process
•Advance Shipping Note (ASN) is required before the delivery
is sent to the Freight Forwarder
•ASN must reflect the physical delivery:
9By product European Article Number (EAN)
9By Carton / Serial Shipping Container Code (SSCC)
•One ASN required per PO per container
•9999 SCM labels (SSCC) maximum per ASN
9
X-Dock and the ASN

•Kmart will match and validate the ASN against the order to
ensure we are able to receipt the delivery
•Any ASN variances to the PO are posted to Kmart systems,
reducing the re-order cycle
•Compliant orders are packed into separate containers and
prioritised for receipt / flow through our automated DC's
•Scan receiving is used to process the SSCC's
•The quantity received will be cross checked against the ASN
details via the unique carton identifiers / SSCC

10
Kmart Standard Supplier Carton Label

FROM : Supplier CARRIER :

Address Con No :
B/L No :

TO: K Mart DC 9344 FOR: K Mart

Woodlands
1001
Burwood Hwy
Braeside VIC 3287
SSCC Burwood VIC 3218
PO123456789112 PO123456789112
3 8765432198799999 3 PO123456789112
PO123456789112

AD Merchandise
QR
Description
DDMM

(421) 0363287 (90) 1001

A6
105mm x 148mm
(00) 387654321987999993 or nearest equivalent
11
The Kmart e-B2B Testing Process

•Full simulation of process including: EDI PO and POC, ASN

and Label
•No merchandise to be delivered on test orders
•Suppliers must be active partners in the process by:
9meeting all deadlines
9ensuring achievement of full compliance
•Formal accreditation confirmed via the Supplier Liaison Team
(SLT) testing / sign off

12
Kmart e-B2B Platform

•Is a key element of Kmart’s supply chain strategy

•All suppliers will eventually need to be able to trade under the
common e-B2B Kmart platform
•No part accreditations
•On line resources and supplier registration on:
http://et.colesgroup.com.au/

13
Key Contact List

•Spiro Stamatelatos +61 3 9804 1926

•Jason Zheng (Nth China) +8621 2308 6226
•Joyce Lan (Sth China) +852 2732 3077
•Peter Wilde +61 3 9829 4582
•Damian Lucia +61 3 9829 4613

email: firstname.surname@colesgroup.com.au

14
Questions