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®Integrate. Automate. Succeed.
Trading Partner SLAs: Managing Ten Compliance Risks
Jim O’Leary Jeff Inns
EDI Service Level Agreement (SLA) Compliance
• Mee#ng or exceeding trading partner and internal expecta#ons for EDI performance
• Examples of SLA compliance factors: – Data quality and completeness – Acknowledgement and response #me – Service availability and predictability – Onboarding and change turn-‐around #me
Key Issues
1. Which opera#onal and life cycle factors exert the greatest influence on service level compliance for EDI?
2. What best prac#ces can mi#gate SLA compliance risk and cost?
3. What role does technology play in SLA compliance? Where is human involvement necessary?
Profile: EXTOL InternaFonal
• Provider of business integra#on soMware and services since 1989 • 800 Customers in Transporta#on, Logis#cs, Distribu#on, CPG, Food,
Apparel, Industrial Manufacturing, Health Care, Pharmaceu#cals
• How we’re different: – Hybrid middleware and services solu#on with flexible licensing, deployment,
and management op#ons
– Faster #me to value without sacrificing power or flexibility
– Unmatched customer service and support
4
External Loca-ons, Partners, and Services
On-‐premise Applica-ons, Services, and Data
Ten SLA Compliance Risk Factors
Vendors / Service Providers Customers Cloud / SaaS Applica-ons & Services
EDI Middleware / Service
Enterprise Applica-ons Windows / Linux / VMware
Opera-onal Data
Transac-on Data
Analy-cs Data
Design-‐Fme Tools
Repository
Status / results visibility
EDI Coordinator
Provisioning
Exception handling
Data accuracy And completeness
Service availability Scalability
Change control
Acknowledgements and responses
Work prioritization
Process latency
Poll #1 Which of the following SLA compliance ac#ons have you already taken in your business? (check all that apply)
q Designate execu#ve / senior management accountability for compliance
q Create a wri`en policy with compliance metrics q Monitor and report excep#ons against baseline
compliance metrics q Con#nuously evaluate opportuni#es to automate
compliance q None of the above
1. Data Completeness and Accuracy -‐ Unmanaged
Trading Partner
Transac#on Data Staging
/ Input
ERP / Other Applica-on(s)
SLA Compliance Risks: ❌ Process latency ❌ Manual errors Ø Unpredictable response Ø Penalties Ø Higher processing cost
EDI Middleware
Outbound Transac#on Genera#on
Valid envelopes / headers? Valid syntax? Standard compliance?
EDI Rejec#ons
EDI validation
!
Data completeness? Valid codes? Referen#al consistency? Valid usage? Other applica#on requirement?
Applica#on Rejec#ons
Application -level
validation
!
Multiple error management mechanisms
Slow resolution Of trading partner complaints and
disputes
Multi-step error identification
and diagnosis
1. Data Completeness and Accuracy – Managed
Trading Partner
ERP / Other Applica-on(s)
Valid envelopes / headers? Valid syntax? Standard compliance?
EDI Middleware
Data completeness? Valid codes? Referen#al consistency? Valid usage? Other applica#on requirement? SLA Compliance Benefits:
ü Lower error rate ü Lower process latency Ø More predictability Ø Fewer penalties Ø Lower processing cost
Processing Logs
Rejected Data
! ! EDI +
Application validation
Automated error Notifications
(acks)
Faster resolution Of trading partner
complaints / disputes
Consolidated error
management
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Centralized error detection and diagnosis
2. ExcepFon Handling – Unmanaged
Trading Partner
ERP / Other Applica-on(s)
Valid envelopes / headers? Valid syntax? Standard compliance?
EDI Middleware
EDI + Application validation
! ! Data completeness? Valid codes? Referen#al consistency? Valid usage? Other applica#on requirement? SLA Compliance Risks:
❌ Slow detection ❌ Slow resolution Ø Unpredictable response Ø Penalties Ø Higher processing cost
Processing Logs
Rejected Data
High volume of logs and messages
Onerous error
diagnosis
Limited reprocessing
and resending options
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
2. ExcepFon Handling – Managed
Trading Partner
ERP / Other Applica-on(s)
Valid envelopes / headers? Valid syntax? Standard compliance?
EDI Middleware
EDI + Application validation
! !
SLA Compliance Benefits: ü Timely detection / repair ü Timely response Ø Predictable response Ø Reduced cost
Data completeness? Valid codes? Referen#al consistency? Valid usage? Other applica#on requirement?
Processing Logs
Rejected Data
Configurable error
notifications
Filterable drill-down auditing
Multi-level reprocessing
and resending
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
3. Acknowledgements and Responses – Unmanaged
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Processing Logs
Missing / Late Outbound
Acknowledgements
Missing Inbound Acknowledgements
SLA Compliance Risks: ❌ Uncertain status of
acknowledgements ❌ Undetected errors Ø Response latency Ø Unpredictability
Late Inbound Acknowledgements
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
3. Acknowledgements and Responses – Managed
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Processing Logs
In-process acknowledgement
generation Automatic
reconciliation
Late acknowledgement
detection
Activity Dashboard / Auditing
SLA Compliance Benefits: ü Acknowledgement
compliance ü Efficient
acknowledgement verification
Ø Fewer undetected errors
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Rejected Data
4. Process Latency – Unmanaged
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Non-‐EDI Data
!
! Manual
data entry
Error correction / re-work
Multi-step manual data acceptance
Late fulfillment /
delivery
Personnel Dependencies
SLA Compliance Risks: ❌ Process latency ❌ Processing errors ❌ Unpredictable response ❌ Late/missed delivery
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Processing Logs
Rejected Data
4. Process Latency – Managed
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
On-time fulfillment /
delivery
EDI and non-EDI
data
End-to-end Automation
without manual steps
! ! ! !
Management by exception
SLA Compliance Benefits: ü Low-latency processing ü No / few manual errors ü Predictable response ü Improved visibility ü On-time delivery
Status visibility
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
SLA Compliance Risks: ❌ Information latency ❌ Limited access to alerts ❌ Opportunity for error ❌ Unpredictable response IT
Customer Service
Customer
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
No direct visibility to status, results,
or alerts
5. Visibility to Status and Results – Unmanaged No direct visibility to status, results,
or alerts
5. Visibility to Status and Results – Managed
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
SLA Compliance Benefits: ü Information on-demand ü Alerts and notifications ü Current, accurate data ü Predictable response ü Superior customer
service
IT
Customer Service
Customer eMail Mobile
Dashboard
Direct visibility to status, results,
and alerts
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Direct visibility to status, results,
and alerts
Focus on new business and
critical tasks
Programming)/)Coding)
Unassisted)(Conven3onal))Mapping)
Assisted)(“Automated”))Mapping)
)))))Map)Reuse)
))))Project)Genera3on)
6. Partner and TransacFon Provisioning – Unmanaged
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Runtime Design-time
Lower-level configuration
gates skill and time requirements
SLA Compliance Risks: ❌ Missed customer deadlines ❌ Penalties ❌ Missed business opportunities
Object Reuse
Productivity and Accuracy
u Search for suitable maps or other base objects, If available
v Modify base objects (manually) to suit new requirements
w Repeat for remaining project objects
Provisioning Process:
w Test and rework Modified objects until correct results occur
4
Project Reuse
Object-at-a-time reuse can be slow
and error-prone
PROJECT
6. Partner and TransacFon Provisioning – Managed
Programming)/)Coding)
Unassisted)(Conven3onal))Mapping)
Assisted)(“Automated”))Mapping)
)))))Map)Reuse)
))))Project)Genera3on)
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Runtime Design-time
High-level configuration avoids onboarding delays
Productivity and Accuracy
SLA Compliance Benefits: ü Lower risk of meeting critical
partner deadlines ü Higher quality deliverables
Object Reuse
Project Reuse
u Select a base project
v Create / generate derived project(s) with different partner endpoint(s), connection(s), map(s), etc.
w Configure added / modified objects
Provisioning Process:
w Test and deploy
4
PROJECT
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Project-level reuse is faster and
less error-prone
PROJECT
7. Change Control – Unmanaged
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Runtime Design-time
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Shared Library
PROJECT
SLA Compliance Risks: ❌ Untraceable changes ❌ Unrecoverable work ❌ Service interruptions
Unauthorized changes
Unmanaged merges
Un-versioned changes
Difficult to reverse
deployments
7. Change Control – Managed
Trading Partner
ERP / Other Applica-on(s)
EDI Middleware
Runtime Design-time
Transac#on Data Staging
/ Input
Outbound Transac#on Genera#on
Repository Manager
PROJECT
Access Control
Check-in / check-out,
merge
PROJECT
PROJECT
Versioned changes
Easily reversible
deployments
SLA Compliance Benefits: ü Auditable changes ü No lost work ü Rapid error reversal ü Higher service availability
PROJECT
Slower response times
8. Workload Capacity – Unmanaged
Processing Capacity
Time
Demand
SLA Compliance Risks: ❌ Unpredictable throughput ❌ Unpredictable response ❌ Small / unavailable
recovery window ❌ Missed business
opportunities
Longer processing windows
Delayed transactions
Transactions
Lost transactions
Lost business
8. Workload Capacity – Managed
Processing Capacity
Time
Demand
Add processing node
Add Processing node
Add Processing node
Add resources
SLA Compliance Benefits: ü Predictable throughput ü Predictable response ü Recovery headroom ü Growth opportunities
Add resources
Add resources
Business growth
Increased Market share
Transactions
Strategic value
9. Workload PrioriFes – Unmanaged
Trading Partner 1
EDI Middleware
Trading Partner 2
Trading Partner 3
Trading Partner 4
Trading Partner n …
Enterprise Applica-ons Opera-onal
Data Transac-on
Data Analy-cs Data
Trading Partner 4
SLA Compliance Risks: ❌ Late, unpredictable
completion of high priority work
❌ Potential for lost business ❌ Requires scaling the
entire system or adding supplemental systems
All inputs get identical priority
All workloads get identical resources
9. Workload PrioriFes – Managed
Trading Partner 1
Trading Partner 2
Trading Partner 3
Trading Partner 4
Trading Partner n …
Enterprise Applica-ons Opera-onal
Data Transac-on
Data Analy-cs Data
Trading Partner 4
Tunable resource allocation
SLA Compliance Benefits: ü Timely, predictable
completion of high priority work
ü Lower risk of lost business
ü Tunable response without adding resources
EDI Middleware
Tunable input priority 1 1 2 3
1 2 3
3 3
1 3 3 Dynamic
queue management 1 2
10. Service Availability – Unmanaged – 1
Enterprise Applica-ons Analy-cs Data
EDI Middleware
External Loca-ons, Partners, and Services
Vendors / Service Providers Customers Cloud / SaaS Applica-ons & Services
On-‐premise Applica-ons, Services, and Data
Loss of throughput
Loss of queued work
No queuing of new work
SLA Compliance Risks: ❌ Unresponsive to partner
inputs ❌ Loss of unprocessed
transactions ❌ Delayed processing of
high-priority work ❌ Potential loss of business
Single node architecture with integrated communications and queuing
Opera-onal Data
Transac-on Data
10. Service Availability – Unmanaged – 2
EDI Middleware
External Loca-ons, Partners, and Services
Vendors / Service Providers Customers Cloud / SaaS Applica-ons & Services
Rapid service
recovery
Loss of queued work
Continuous queuing of new work
EDI Middleware
Multi-node redundancy with simple fail-over / restart
SLA Compliance Risks: ❌ Loss of unprocessed
transactions ❌ Potential loss of business
Enterprise Applica-ons Analy-cs Data
On-‐premise Applica-ons, Services, and Data
Opera-onal Data
Transac-on Data
Fail-over
10. Service Availability – Managed External Loca-ons, Partners, and Services
Vendors / Service Providers Customers Cloud / SaaS Applica-ons & Services
Continuous Service
availability
Preservation of queued work
Continuous queuing of new work
EDI Middleware
SLA Compliance Benefits: ü Continuous response
to partner inputs ü No effort required to
recover / restore queued work
ü Reduced risk of lost business
EDI Middleware
EDI Middleware
EDI Middleware
Work Queue Management
Work Queue Management
Enterprise Applica-ons Analy-cs Data
On-‐premise Applica-ons, Services, and Data
Shared Work Queues
Communica#on Proxy(ies)
Opera-onal Data
Transac-on Data
Multi-node redundancy with queue manager fail-over and fault-adapting workload processing
Poll #2 Which of the following are your biggest SLA compliance problems or concerns? (check all that apply)
q Data accuracy and completeness q Timely diagnosis and resolu#on of excep#ons q Managing acknowledgements and responses q Minimizing process latency / manual interven#ons q Self-‐service visibility to status and results q Rapid partner onboarding and changes q Scaling to meet increasing / unpredictable demand q Ensuring on-‐#me comple#on of priority workloads q Maintaining high service availability q Other
Key Take-‐Aways
• Having an SLA compliance plan is essen#al, even if you outsource EDI to a third party
• Anything that can impact design-‐#me or run#me results can affect service levels
• Track SLA compliance against baseline metrics to assess progress over #me
• Iden#fy and minimize manual dependencies to maximize compliance levels
Q&A
Contact:
Website: www.extol.com Email: [email protected] Phone: +1 (570) 628-5500
Ø Download our new white paper at: www.extol.com/onboard