Over the past couple of years, a significant
number of our Vendors have been working with us to improve the
communications process of business information exchange.
Maximizing use of Electronic Data Interchange (EDI) is our key
priority. Cooperative efforts have resulted in increased
accuracy, improved timeliness, and reduced operating expenses.
We are expanding this initiative to all our Vendors.
All Vendors doing business with The Kroger Co. must be able to
receive a purchase order and return an invoice using EDI in the
manner specified in The Kroger Co. EDI Requirements. Krogerís
Regional Accounting Service Center (RASC) will notify
vendors not in compliance, and those Vendors will have 60 days
from the date of the notice to comply. In the event the
Vendor is unable to comply within this 60-day period, Kroger
will charge that Vendor a fee of 1% of the total invoice amount OR $250 (whichever is greater) per transaction to offset
the cost of manual processing purchase orders and/or invoices.
In addition, Vendor will have 90 days from Kroger's receipt of
goods to successfully transmit an EDI invoice for that
transaction. Any invoices not transmitted within the 90-day
period (manually or using EDI) will be subject to an additional late invoice fee of 1% of total invoice amount OR $250 (whichever is greater) per transaction. Acceptance of a purchase
order from The Kroger Co will signify consent to this term of
Vendors and brokers may be receiving purchase
orders, or sending invoices via EDI, or this process may be
manual. Our hope is that all our Vendors have a functioning
solution already in place to support this initiative. If this is
not the case, you will find some very affordable solutions here
on our website, under
Getting Started. This resource will help you evaluate
different methods and providers proven to be reliable in working
with us. We do not require you to use any specific EDI solution
or software. Please submit the Kroger New EDI Partner form on
our web pages to begin migration.
EDI 997 - A functional acknowledgment (FA) is
required for EDI data interchange. An acknowledgement is the
transmission of a Functional Acknowledgment Transaction Set
(997) to the original sender to indicate the status of the
transmission with respect to standards adherence. This
functional acknowledgment does not imply acceptance of the
contents of the associated transaction sets.
Our goal is to improve our business relationship and continue to
remove unnecessary costs from the supply chain. We appreciate
your prompt attention to this initiative.