Electronic commerce tools and technologies are essential in the development of world class electronic processes within Raytheon Company. Raytheon encourages the use of electronic trading partner relationships throughout the entire Business-to-Business (B2B) environment. Suppliers and other Trading Partners are encouraged to work with Raytheon to build an electronic commerce relationship.

What Is Electronic Commerce?

Electronic Commerce is the exchange of business data between the computers of trading partners without manual intervention. This exchange between business partners is referred to as Business-to-Business or B2B.

All forms of business communication consist of three parts:

  • A business document (purchase order, invoice, shipping notice)
  • A data format (order form)
  • A method of transportation (USPS, email, Internet)

Electronic commerce is comprised of these same parts, with these qualifications:

  • The business transaction is constructed and processed by a business software application.
  • The data format is standardized, or translated into a common format, between sender and receiver, so all data can be accurately identified by both partners' business software applications.
  • The data is transported electronically from the sending application to the receiving application, without any further manual processing.
  • There are significant benefits to both parties, in speed, accuracy of data and lower operations cost or cash transactions.

Raytheon currently exchanges business documents electronically with many trading partners. Is your company one of them? It should be!


How Does Electronic Commerce Work?

The data portion
After a business case is established for doing electronic commerce with a trading partner, the process starts with a Trading Partner Agreement (TPA) between Raytheon and the trading partner. We agree upon the documents to be exchanged, the data format to be used, the method of transportation, and the timing of the information exchange. The TPA addresses document content only to the extent of the data elements that must be transmitted within a document to be transmitted between the parties (e.g., ship-to address is a required field). It does not address the business content (e.g., ship-to-address must contain fully-spelled out street names). The trading partner and Raytheon may also have other agreements that cover this business content. A TPA does not alter or affect these other agreements in any way.

Raytheon’s corporate Electronic Commerce (Enterprise Solutions Integration Services) team will make the necessary preparations on the Raytheon side to process the documents without human intervention. They work with the Raytheon application personnel to create electronic business document(s), such as a purchase order or an invoice, for a business application. Document data is passed from the business application to the corporate electronic commerce processing center. From there, the document data will be converted into the agreed electronic format and distributed to the trading partner. Electronic documents submitted by the trading partner will be converted from the agreed electronic format into the application system’s required format and distributed to the business application for processing.

The communications portion
When Electronic Data Interchange (EDI) is used, Raytheon Company will route the electronic documents to another party (the Value Added Network or VAN) through which the trading partner will obtain the documents. After retrieving the document, the trading partner's electronic commerce software or service will convert the data from the standard format into the format needed by their own application.

For non-EDI data formats communication methods in use include File Transfer Protocol (FTP) . Encryption of the data and/or the entire transmission is commonly utilized with this form of communications.

The key to efficient electronic commerce is to input the pertinent business data only once. Electronic commerce software does the rest of the work. Data is transferred from our business application to our trading partner's application with no manual intervention steps to slow the process.

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