NetSuite Integration with McKesson EDI for Sales Order, Fulfillment, and Invoice Processing

Successfully Implementing NetSuite Integration with McKesson EDI for Sales Order, Fulfilment, and Invoice Processing

Introduction

We recently completed a successful project integrating NetSuite with McKesson EDI (Electronic Data Interchange) for a client in the healthcare industry.

In this blog, we will take you through the journey of this integration, the challenges faced, the approach taken, and the final outcome.

Project Overview

The primary objective of the project was to create a robust integration between NetSuite, the client's ERP system, and McKesson, we aimed to:

• Improve order processing times.
• Ensure error-free data transmission between systems.
• Automate fulfilment and invoicing processes.

The key EDI documents involved in the integration were:

• 850 (Purchase Order): Used for Sales Order creation in NetSuite.
• 856 (Advanced Shipping Notice): To notify McKesson of order fulfilment.
• 810 (Invoice): For invoicing McKesson post-fulfilment.

Challenges

The project presented several challenges:

1. Compliance with McKesson EDI Standards: McKesson has strict compliance rules for EDI documents, it was critical through NetSuite adhered to those standards.
2. Handling Large Volumes of Transactions: With McKesson's significant order volumes, the integration needed to support high throughput without delays.
3. Data Mapping and Transformation: The data in NetSuite needed to be mapped and transformed accurately to the EDI format required by McKesson.
4. Error Handling and Reconciliation: Ensuring that errors handling process with alert system for reconciling discrepancies in orders and invoices was essential.

Technical Implementation

NetSuite SuiteTalk Integration: SuiteTalk Web Services (2024 WSDL) for integration includes : Sales Order Creation, Fulfilment, Invoice Generation, Custom Fields and Mapping (DEA License Number (for certain orders), McKesson-specific SKU codes, Special delivery instructions).

Middleware for Data Transformation

• Data transformation between NetSuite's native XML format and McKesson’s EDI format.
• Error logging and retry mechanisms for failed transactions.
• Real-time monitoring of transactions to ensure that no data was lost or delayed.

Scalability

Given the large transaction volumes, we optimized the solution to handle high throughput. This involved Batch processing of large orders, using asynchronous web services to process multiple EDI transactions simultaneously, Regular monitoring and maintenance of data flow to avoid bottlenecks.

Conclusion

The integration led to several key improvements:

• 80% Reduction in Manual Order Entry: Automating Sales Order creation and fulfilment reduced manual data entry errors and improved processing speed.
• Real-time Fulfilment Updates: McKesson now receives real-time updates about shipments, improving transparency and customer satisfaction.
• Accurate Invoicing: Automated invoice generation and reconciliation ensured faster, more accurate billing and reduced discrepancies.
• Improved Compliance: The integration adhered to McKesson’s strict EDI standards, ensuring smooth communication and minimizing errors.

If you are considering a similar integration or need to optimize your NetSuite processes, feel free to reach out for a consultation. We’d be happy to share our expertise and help streamline your business operations.