EDI Program and Requirements

Vendor Replenishment Program

Introduction

Enterprise Vendor Replenishment program refers to the process by which store demand and replenishment data is electronically exchanged between Kroger and a supplier. Kroger provides the supplier on a daily basis with specific item information such as the UPC number, store demand, distribution center balance on hand and on-order, and out of stocks. The supplier uses this information to determine the replenishment quantities for the Kroger distribution centers and sends this information back to Kroger as a purchase order.

In order to complete the exchange of data with ease and accuracy, Kroger has adopted the EDI 852 and 855 Transaction Sets in both the UCS and X12 Standard. This will provide the control and uniformity that Kroger requires for this important data exchange with its suppliers. The following pages of this document explains the requirements and details associated with the 852 and 855 Transaction Sets.

  • Kroger will provide the supplier with up to two years of weekly movement history on their items for the distribution centers on the VENDOR REPLENISHMENT program. This can be used for the suppliers forecasting and replenishment system to assure a smooth transition to the program.

  • Peyton will provide the supplier with one year of weekly movement history on their items for the distribution centers on the VENDOR REPLENISHMENT program. This data will be provided only on a IBM3480 Tape in EBCDIC format. This can be used for the suppliers forecasting and replenishment system to assure a smooth transition to the program.

  • 875-850 "Turnaround Document". The setting up of this document should be discussed with a Kroger Procurement staff member during the set up of the VMI program. The "turnaround document" will be sent with a C=Confirmation code in the G5001 for the 875, and a 06=Confirmation code in the BEG01 for the 850. The Turnaround PO, will send back to our VMI vendor all of the information Kroger receives and process from the vendors 855, in addition to the pricing information we have in our system. This process will provide an extremely valuable tool to help our VMI vendors better manage orders and inventory.  It will provide vendors with a "copy" of the purchase order created in our buying systems from 855 sent from vendors. VMI Vendors will see the purchase order just as the Procurement Teams sees it ,and just as the Kroger Distribution Center sees it. How will the "Turnaround Document" help our VMI relationship?

  • Provide verification that your 855 was received and that a purchase order was created in our Procurement systems.  A 997 Functional Acknowledgement is automatically sent from our EDI system when the 855 is accepted by our EDI system.  However, that does not mean that the 855 purchase order was actually created in our Procurement systems.  If you receive the Turnaround Document, you will know that a po has been created in our procurement systems and that Procurement and the DC can see the po in the system. Also it provides a verification that all items on your 855 are on the 875-850 Turnaround:  This is particularly helpful with regard to new items and becomes even more crucial as we continue migration from UPCs to GTINs.

  • Provides verification that Kroger has the correct cost in our system for each item:  Pricing errors can be detected and resolved prior to the shipment’s arrival at the DC, thus preventing receiver errors, which lead to invoice deductions.  This becomes even more crucial as we continue to accept EDI Cost Changes. We encourage you to discuss the turnaround document with your EDI department / provider.  We feel the 875/850 turnaround document is an excellent opportunity to improve our VMI relationship.

  • Effective June 6,2007 Kroger implemented a change to the EDI 852 record. The change involved the addition of certain Promotional Contract Start and Stop Dates  (contracts that are active already or will be active within the next 6 weeks). The purpose of sending Promotional Contract Start and Stop Dates for “Off Invoice” and “Bill-back deals” is to help ensure products that have deals coming up are ordered at the correct times so Kroger gets the correct cost associated with the promotion. Kroger anticipates this will help in the reduction of deductions and post audit deductions.  As the VMI analyst writes orders, these dates should be used to help assist in the decision as to the correct timing (orders need to be placed within the promotional start and stop dates) that buys should be made in order to support the upcoming promotions. There can be other promotional contract types, but they will not be part of the 852 because these are based on DC Shipments or Store Scans.  If you have any business related questions as to this information please contact your Kroger Co. buyer.  If an adjustment is needed to the dates of the contract these requests should be directed to the appropriate Category Manager.

     

Before start-up of the Kroger. VENDOR REPLENISHMENT program, there are various merchandising and operational issues that Kroger will need to discuss with a supplier. Final decisions concerning the VENDOR REPLENISHMENT program will be determined by each Enterprise Division.

Vendor Replenishment Processing Requirements

  1. Initial Setup

    1. The vendor will contact a Kroger Division

      • Negotiate the merchandising strategy

      • Determine the Products for Replenishment

    2. The Kroger marketing area will :

      • Provide item history data

      • Schedule tentative dates for the pilot and production phases for the respective vendor.

    3. The Vendors must :

      • E-mail Form - A completed partner set up form to edi@kroger.com for a Just-in-Time number (JIT #) to begin the VMI process. 

  2. Pilot Phase

    1. Product activity data.

      1. The Enterprise EDI Team will add the vendor profile in EDI.

      2. The buyer at the Enterprise Division will set up the vendor to receive product activity data for the replenishment items.

      3. The vendor will transmit the functional acknowledgment within the guidelines for the EDI standards.

      4. Product activity data will be sent to the vendor for maximum of six weeks.

      5. EDI questions or problems will be forwarded onto the Enterprise EDI Team or can be e-mailed to  (edi@kroger.com).

      6. Questions regarding specific UPCs, inventory levels or the data in general will be forwarded onto the pilot Division Buyer (ex. not getting all of the items, wrong UPC numbers being received).

    2. Purchase order acknowledgment.

      1. The vendor will transmit test purchase orders to the Enterprise Division for a period of one week.

      2. The Enterprise Buyer will verify receipt of the purchase order and delete it from the On-Line Purchasing system. The purchase order must be deleted the day it is received.

  3. Production Phase

    1. Kroger Enterprise will send the 852 Product activity data.

    2. Vendor will send the 855 Purchase order acknowledgment. The Vendor and the Buyer should estimate the number of PO#'s required and the Buyers should update the system accordingly.

VENDOR REPLENISHMENT SENDING REQUIREMENTS

1.      Date clarification for outbound 852 (Product Activity Data) 

·         The reporting date of the data is sent in the XQ segment.

·         The reporting of promotional order start and stop dates is in the ZA QK, G95, and DTM segments for items that have deals in the Kroger systems. This information will be sent daily until the deal expires.  

 

2.      The purchasing systems at the Kroger Division will transmit a range of purchase order numbers to all Vendor Replenishment Vendors.

·         A separate range of numbers will be provided for each Kroger division. 

·         The purchase order numbers should be used in sequence within the week they are assigned. Any remaining numbers at the end of the week need to be purged from the VMI vendors system.

·         If the Vendor finds they are running low on purchase orders they should contact the appropriate Buyer at the Division.  That Division can generate additional numbers in the weekly run, transmit extra ones, or provide an emergency purchase order number if necessary.

·         The process of the VMI Vendor’s purging left over purchase order numbers each week and only using the current week’s assigned range, is vitally important to the success of the entire VMI process for the Kroger divisions. 

 

3.      Kroger will send Functional Acknowledgments for every document received.

·         The vendor must track the acknowledgments.

·         An acknowledgment verifies receipt of the EDI document, but does not guarantee that the Purchase Order has been loaded to the Division purchasing system.

·         Validations are done at the Division level for duplicate purchase order numbers and invalid UPC's.  

 

4.      The purchasing system for Peyton will transmit a range of purchase order numbers to all Vendor Replenishment Vendors in the XPO segment of Monday’s 852 data.

·         A separate range of numbers will be provided for each Peyton warehouse.   

·         The purchase order numbers should be used in sequence within the week they are assigned.  Any remaining numbers at the end of the week need to be purged from the vendor’s system. 

·         If a Peyton Vendor finds they are running low on purchase orders for a particular week, they should contact Holli Gronas at 513-387-1183or holli.gronas@kroger.com for additional numbers. 

·         The process of Peyton Vendor’s purging left over purchase order numbers each week and only using the current week’s assigned range is vitally important to the success of the entire VMI process for Peyton.   

Please note:

Peyton Only: If a VMI vendor sends in an 855 with a due date of zero, the PO will load to the Peyton system, but will be purged over night and be gone the next day.

Kroger Only: If a VMI vendor sends in an 855 with a due date of zero, the Kroger system will calculate a due date from the “order date” by adding the vendor’s lead time. 

PROBLEM SUPPORT for Vendor Replenishment

Kroger would like to provide prompt support for the Vendor Replenishment Program. Please call the appropriate contact at the Enterprise Division, if you can not reach your contact at the appropriate Division then contact the appropriate person at the CSC EDI Team or E-mail (edi@kroger.com). To facilitate this, the problems have been categorized. Identify the problem before making a call.

Data Problems:

Please contact the Division directly if the query is related to any of the following:

  • UPC's, dates, Quantities

  • PO's not reflected in the Inventory data

  • Need to start receiving data from another KMA

  • PO Ranges exhausted

  • PO not on the Buyer System

   Peyton: Holli Gronas 513-387-1183  holli.gronas@kroger.com.

   All other Divisions: Sherry Hamblin 513-387-1238 

   sherry.hamblin@kroger.com

 

If the problem is related to any of the following:

  • Did not receive the Product Activity Data ( 852)

  • Did not receive a Functional Acknowledgement for the 855 sent

  • Communication Information

  • Version upgrade

...Please contact the CSC EDI Team Contact with the following information:

  • Communication  ISA ID

  • Transaction Set ID - 852 / 855 / 997

  • Division to which the problem is related

  • Vendors JIT# assigned by Kroger for 852's (Sent on the N9 Segment)

  • Company name

  • Control #