XML Results with Hal Leonard
West Music Feedback
06/17/08

Time:
1. Manually Faxing PO 2-3 min
2. Uploading PO – 1 min 32 sec
3. XML – 2 sec (only one button to hit)

Materials:
1. Manually Faxing – cost of paper and ink
2. None
3. None

Notification:
1. Manual – wait for confirmation of receipt
2. Uploading – notified at end of procedure
3. XML - Notified immediately if upload successful and PO marked.

Confirmations/Errors:
1. Manual – wait for confirmation of receipt
2. Uploading – know immediately if there’s an error and retail prices
3. XML – a little delay as rep needs to access records and sometimes a delay to
send error report to vendor rep or confirmations to rep.

Shipping:
1. Manual – extra day for some vendors to enter PO and then go to warehouse.
More prone to discrepancies due to vendor entry.
2. Uploading – automatically goes to vendor warehouse. Discrepancies reduced
to warehouse errors.
3. XML – order goes directly to warehouse. Discrepancies reduced to warehouse
errors. I haven’t seen an increase on receipt dates for this as of 06/17/08.

Current Issues with XML:
1. Can’t dropship
2. Delayed Confirmations
3. Delayed notification of errors

Reflection: Using XML has saved me multiple steps at processing an order, which is the primary reason why I find it beneficial. It also saves on errors and gets it directly to the publisher warehouse.

XML Results with Hal Leonard
Hal Leonard Feedback
06/19/08

Time:
1. Manually Entering PO: 1-8 minutes (depends on length of PO)
2. Uploading PO – 1 minute – just need to make changes to order (if required) and process confirmation after order is sent to Winona.
3. XML – 30 seconds – need to process confirmations when notifications are received.

Materials:
1. Manually Faxing – cost of paper and ink
2. None
3. None

Notification:
1. Manual – get email with PDF of order.
2. Uploading – get email when order uploaded, notified by mainframe when order is entered in the system and can be updated.
3. XML – get listing each day of XML orders placed the day before by HL order number (not vendor PO)

Confirmations/Errors:
1. Manual – need to generate report after order goes to Winona (after 12:00 or 4pm). Subject to ordering errors by dealer (supplying wrong numbers) or by vendor during order entry (keying errors)
2. Uploading – only errors on HL end come from missing discount changes if needed. Dealer responsible for order entry. Confirmations generated same way – after order goes to Winona.
3. XML – Notification of orders is delayed one day, but confirmation can be generated at any time after notified (order is already in Winona).

Shipping:
1. Manual – subject to the time order gets entered into system. Generally sent to warehouse within 24 hours.
2. Uploading – automatically goes to warehouse at either noon or 4pm. Discrepancies reduced to warehouse errors and/or discount adjustments when needed.
3. XML – order goes directly to warehouse. Discrepancies reduced to warehouse errors. Downside: HL rep not able to change order manually – needs to call warehouse and have them make adjustments. XML works best for orders needing no changes.

Current Issues with XML:
1. Can’t dropship yet
2. Delayed Confirmations – still has to be manually generated by HL rep.
3. Catalog division can’t XML due to discount exceptions that need to be applied to every order. HL has made as many automatic adjustments as possible at present moment, but more are needed before ordering can become completely hands-free.

HL Rep Reflection: Using XML from a vendor perspective is basically the same as uploading. I like it because it automatically goes to the warehouse and I don’t have to worry about most orders. I don’t like it when I need to make adjustments to orders and have to contact the warehouse to do that. I also don’t like having to generate confirmations – this is not an automatic process and it often gets put off to the end of the day, and doesn’t get done when I am out of town. This is not good customer service! We need to find a way to make that happen automatically.

However, from a customer service standpoint, if it makes it easier for West Music to place orders, I am all for it. The system will improve as we work on it, and it is leaps ahead of faxing/emailing orders for hand-entry.

Technology is beginning to get a foothold in the MI Industry for the independent and regional chain stores. In the past few months, the users of Tri-Technical Systems AIMsi software have transmitted over 3,000 electronic orders to MI suppliers. Those suppliers received over 70,000 line items that did not have to be manually entered into their computer systems. Electronically submitted orders are increasing each month as our users "get on board" and suppliers implement the processing on their end.

Retailers embracing this new technology are benefiting from faster fulfillment because their orders are going directly into the suppliers' system. The orders are not sitting in a bin or an e-mail box waiting for someone to manually enter them. Retailers are also finding that errors are virtually eliminated; there's no longer the chance that the supplier will make typos in the product numbers from a fax or e-mail. Retailers also benefit from the immediate order confirmation from the supplier.

Suppliers with the ability to receive electronic orders from Tri-Technical Systems include J. D’Addario, Kaman, Musicorp, Roland, Conn-Selmer, Chesbro Music, Hal Leonard, Alfred and Lorenz.