Editel Journal 1/2013 EN by EDITEL Group

editelJOURNAL

1|2013

C O R P O R AT E M A G A Z I N E O F T H E E D I T E L G R O U P VIENNA

PRAGUE

B R AT I S L AVA

BUDAPEST

I S TA N B U L

EDITORIAL Peter Franzmair, CEO Editel Austria

FROM VISION TO REALITY

SERVED ON THE ROCKS Whether it’s ice cream or fresh fish: frozen food and perishable goods reach grocery store shelves within 24 hours of order placement. TKL, a temperature-controlled logistics provider, guarantees this for each and every one of its 650,000 deliveries to customers per year. Without Electronic Data Interchange (EDI), this would simply not be possible. They make for a quick meal and are always readily available: demand for convenience food in grocery stores worldwide is steadily increasing. Frozen food and fresh products are especially popular. Special storage and delivery conditions are needed so the ice cream doesn’t melt and the lettuce doesn’t wilt. Most retail stores rely on external logistics service providers to meet these storage and delivery conditions, which ultimately ensure cost-efficient and reliable procurement of

goods. TKL, an Austrian company specializing in temperature-controlled logistics, frozen food and perishable products, is the business partner of choice for REWE, MPreis and Zielpunkt. On-time merchandise delivery requires more than good equipment. Swift, error-free and transparent order and delivery processes are also imperative. And TKL is able to guarantee just that through Electronic Data Interchange (EDI) via the EDI platform eXite®. Every year, TKL carries out roughly

Anybody who is familiar with eCom activities involving Electronic Data Interchange (EDI) most likely knows that large-scale change takes some time. It can be quite challenging to analyze logistics processes for entire industries, bring all involved parties to the negotiating table, and cover the needs of many different companies and areas with the goal of eventually making things easier for everybody. In order to achieve this goal, it’s essential that standardizing bodies such as GS1 Austria, EDI and ERP service providers as well as companies in different industries work together very closely. What started out as a vision for optimization on a PowerPoint slide eventually becomes a reality. TKL, a temperature-controlled logistics company, leverages this optimization potential. Read the interview with TKL’s managing partner Wilhelm Leithner on page 1 to learn about the company’s 650,000 yearly deliveries to customers and the essential role of EDI in making it happen. Electronic business processes guarantee reliability and efficiency, both for retailers and for manufacturers. Without electronic business processes, it would be impossible to meet the demand for traditionally made bread on the local Slovak market. Thanks to EDI and constant information exchange with EDITEL and its ERP business partners, small local bakeries can deliver their delicious products to large retailers, including TESCO and COOP. It is a real-life EDI success story. The FMCG industry isn’t the only sector that is reaping the EDI benefits. In this issue, you will find articles about activities in the HORECA industry as well as the pharmaceutical and fashion industries in Austria and CEE countries. I hope you enjoy reading this issue of EDITEL Journal! Peter Franzmair

ARTICLES IN THIS ISSUE 1 EDI in the logistics industry

Wilhelm Leithner, managing director of TKL, speaks about meeting logistical challenges in the temperature-controlled logistics industry with the use of EDI.

2 Sanset Gıda, a well-established company, expands its EDI

A QUICK UPDATE EDITEL Austria is moving! Our new corporate address: Brahmsplatz 3, 1040 Vienna. All phone numbers and e-mail addresses remain unchanged. We look forward to hearing from you! Our new EDITEL company video presentation is now available! www.editel.eu REWE International AG and EDITEL Austria spread the word about electronic invoicing in Austria. www.editel.at/en/news/eBilling_2013_EN Falkensteiner Hotels & Residences successfully implemented Electronic Data Interchange with EDITEL and eXite®. www.editel.at/en/news/HGV_Symposium_EN

Sport 2000 and EDITEL: a joint commitment to advancing EDI in the fashion industry: www.editel.at/en/media/publications/videos/EN EDITEL CZ and MAKRO/METRO: an event dedicated to SSCC and e-invoicing www.editel.at/en/news/EDITEL_CZ_MAKRO_ EVENT_EN Leading pharmaceutical companies and Austrian wholesalers jointly compile new EANCOM® guidelines for Electronic Data Interchange. http://www.editel.at/files_at/Press_Release_Pharma_EDI_EN%281%29.pdf

network The company uses EDI to optimize its processes and ultimately expand the firm’s market position.

3 Czech Republic: equal legal status for electronic and paper invoices Electronic and paper invoices now have the same legal status, resulting in an estimated savings potential of approximately 8 billion euro in Europe.

EDITEL CZ supports the HORECA industry Taking procurement of goods operations to the next level with electronic processes: large untapped potential in the HORECA industry in the Czech Republic.

4 EDITEL Hungary celebrates its anniversary

EDITEL Hungary has been optimizing suppply chain processes for renowned companies in the FMCG, DIY and other industries for five years. Small bakeries in Slovakia embrace automated processes Thanks to EDI solutions, small bakeries in Slovakia are now able to sell their traditionally made bread to large retail stores.

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The EDITEL Journal is published as a supplement to GS1 Information in a total of 13,000 copies. It is available in German, English as well as in Czech, Hungarian and Turkish for our international clients. To download the Journal as an epaper, please visit www.editel.eu. If you have any suggestions, please contact us at info@editel.at.

editelJOURNAL 1/2013

ABOUT TKL TKL’s temperature-controlled logistics division employs a staff of 420 at three storage locations and 14 transfer stations throughout Austria. The company-owned vehicle fleet includes approximately 120 delivery vehicles for secondary distribution as well as 60 tractor-trailers for primary distribution. The company annually stores and distributes 124,000 tons of frozen food, perishable products and dried products for clients in retail and food and beverage at its distribution centers.

www.tkl.at

IN BRIEF

+ EDI communication via eXite® + Four million EDI transactions per year + EDI messages + Orders (ORDERS) + Despatch advices (DESADV) + Invoices (INVOIC) + Instruction messages (IFTMIN) + Inventory reports (INVRPT) + Receiving advice messages (RECADV) + Order-picking of 120,000 tons of merchandise per year + 650,000 client orders per year

four million EDI transactions, including orders (ORDERS), despatch advices (DESADV), invoices (INVOIC) and inventory reports (INVRPT) with manufacturers, retailers and other service providers. We’ve interviewed Wilhelm Leithner, managing director of TKL, who gives us insight into this logistical challenge and the high relevance of EDI for his “chilly” business. EDITEL Journal: TKL specializes in temperature-controlled logistics. What is the major difference between you and other logistics service providers? Leithner: At TKL, everything revolves around temperature. We must ensure that a minimum temperature between -24 and -26 degrees Celsius is maintained at all times for frozen food in storage and -18 degrees during shipping. In the case of perishable goods, the temperature must be between +1 and +4 degrees. This requires special equipment. Our truck fleet is equipped with a special platform for two temperature areas. Thanks to a partition wall and two condensers, we can transport

According to Wilhelm Leithner, managing director, EDI is essential for successful merchandise logistics.

frozen food and perishable goods at the same time, which makes sense financially and helps protect the environment. Our satellite-based monitoring system enables us to verify that the right temperature is maintained during the entire shipping process. And this approach is quite convenient for your customers, isn’t it? Exactly. Our specialized storage and delivery processes take a considerable workload off our clients’ hands. Another plus is that not every single manufacturer has to have merchandise shipped to every single retail store, which would be quite an inefficient process. Instead, we consolidate orders, both on the retailer and on the manufacturer side. This allows us to optimize procurement of goods in the areas of frozen food and perishable goods, which ultimately translates into a minimum number of delivery runs with maximum product availability. How exactly does that work? We rely on different logistics models, one of them being the multi-user model for order picking and secondary merchandise distribution, especially for retail clients. That means that BILLA, MPreis, Penny and Zielpunkt all receive merchandise from the same pallet of peas, for example. The merchandise belongs to the manufacturer until it has been delivered to the retail store. We take care of order picking from this pallet for different grocery stores and bill the merchandise cost and our service cost to the retailer. Subsequently,

Every year, TKL fills roughly 650,000 client orders.

we report the merchandise value to the manufacturer. This is where Electronic Data Inter change (EDI) usually comes in… That’s right, and we use EDI not only for invoicing purposes. At TKL, we map all processes electronically, ranging from purchase orders, receipt of goods to delivery and invoicing. Since we have a 24-hour delivery guarantee (and delivery deadlines are even tighter for perishable goods), we wouldn’t be able to do it otherwise. We receive several hundred thousand orders per year and we exchange a total of more than four million EDI messages with our business partners. Just imagine the amount of work involved if we were to do that manually, not to mention the error potential. How do you manage such a high data volume? Reliable IT systems are paramount. For our data exchange processes, we rely on eXite®, an EDI platform by EDITEL. It allows us to reach all our clients with a single connection, which reduces complexity and gives us more bandwidth to integrate the data into our ERP system. In addition to that, our many years’ experience and detailed knowledge about our clients’ needs are also important prerequisites for this high degree of automation, both in terms of quality and quantity. Which logistics services does TKL offer? Manufacturers, for example, can choose additional planning services. Depen-

NEWS TURKEY

SANSET GIDA, A WELL-ESTABLISHED TURKISH COMPANY, RELIES ON AN EDI SOLUTION BY EDITEL

anset Gıda is one of Turkey’s most popular confectionery manufacturers. Its brands include Tadelle, Sarelle and Sagra. The company uses EDI to optimize its processes. The ultimate goal is to expand the company’s market position.

processes, which we currently use only for orders, we have already seen a significant improvement in delivery quality involving our retail clients. As a second step, we will

Atila Kardan, Information Systems Manager at Sanset Gıda’s, explains the benefits of EDI: “Thanks to the integrated use of electronic supply chain © volff - Fotolia.com

ding on the client, we can manage all processes or electronically provide the data the manufacturer needs to replenish merchandise. All manufacturers can use KUNDIS, our logistics platform, to view their latest inventory levels for all articles with estimates regarding time left until inventory depletion and replenishing volume. In addition to storing the products, we usually also take care of all shipping processes. This allows us to optimize transport capacities at different stages, starting from pick-up at the manufacturers’ facilities all the way to the transfer at our central storage facility. Orders are processed via EDI at all times. Which markets and industries do you plan to focus on in the future? We are currently turning our attention to eastern European countries. One reason is geography and the other reason is the fact that it is easy to reach out to companies in this region with our EDI platform, eXite®. In Hungary and Slovakia, we already offer traditional shipping and haulage services for frozen food. In Austria, we see a lot of untapped potential for services in the food and beverage industry. Many manufacturers deliver their products directly to restaurants, catering businesses or hotels, which opens up many opportunities for consolidating merchandise flows and taking logistics efficiency to the next level. Mr. Leithner, thank you very much for this interview. n

implement electronic despatch advices, receipt advices and invoices, which will allow us to optimize the entire procurement of goods process. EDITEL Turkey has been a strong and supportive partner in this project and there is no doubt we will continue our business relationship with EDITEL Turkey for our EDI needs.” n www.sansetgida.com.tr www.editel.com.tr

editelJOURNAL 1/2013

NEWS CZECH REPUBLIC

OPTIMIZING PROCESSES IN THE CZECH HORECA INDUSTRY

EQUAL LEGAL STATUS FOR ELECTRONIC AND PAPER INVOICES

The savings potential associated with the fact that electronic and paper invoices now have equal legal status in Europe is estimated at approximately 8 billion euro. As of 1 January 2013, the EU directive 2010/45/EU also became effective in the Czech Republic. The hotel, restaurant and catering sector has much to gain from Electronic Data Interchange (EDI) in terms of process optimization. EDI takes order management processes to the next level, ensures that master data is always up to date and that inventory is continuously replenished. In addition, EDI can be used for checking invoices automatically. Ultimately, EDI helps save money and greatly improves collaboration processes with business partners. The same holds true for

business partners’ competitiveness. EDITEL CZ helps Czech companies in the HORECA industry implement and use Electronic Data Interchange to make their business processes more efficient. EDITEL’s successful track record in this sector includes projects with Falkensteiner Hotels and Sodexo Austria. n For further information, please contact: info@editel.cz, www.editel.cz

EDI WORKSHOP SERIES ORGANIZED BY EDITEL SK AND COOP JEDNOTA

NEWS SLOVAKIA

A In collaboration with JOOP Jednota, Slovakia’s largest grocery store chain, EDITEL SK organized a workshops series dedicated to supply chain optimization with Electronic Data Interchange (EDI). These workshops were held earlier this year at cities throughout Slovakia. The goal was to inform small and regional suppliers of the advantages and benefits associated with EDI and to encourage them to join the COOP EDI community. The-

se workshops were so successful that additional ones will be organized throughout Slovakia in the second half of the year. n www.coop.sk www.editel.sk

t this year’s e-invoicing seminar, which was organized in collaboration with the law offices of CEAG Ltd., EDITEL CZ’s clients and business partners learned about the requirements defined in the EU directive that creates the same legal status for electronic and paper invoices. The seminar focused on practical solutions for handling electronic documents. In addition, one of the speakers, Barbara Procházková, a lawyer with CEAG Ltd., introduced participants to the legally compliant use of digital signature with time stamp as well as the regulations regarding the archiving of electronic invoices.

ECR CZ RECOMMENDS DIGITAL SIGNATURE There have been no changes in the requirements concerning companies’ obligation to ensure authenticity of the origin, content integrity and readability of electronic documents. At ECR CZ, there is general agreement to stick to the use of digital signature. This process has been used in the Czech Republic and in Slovakia for more than ten years. According to ECR CZ, it is the best way to ensure safe and legally compliant electronic invoicing processes both now and in the future. n For more information, please visit www.editel.cz/en/productsservices/products/e-billing

editelJOURNAL 1/2013

NEWS HUNGARY

EDITEL HUNGARY C ELEBRATES ITS 5TH BIRTHDAY ant Lukoil and Leaseplan, a fleet management company. No matter the company size or industry, we have the right solution for every situation: EDITEL Hungary’s services run the gamut from fully integrated EDI to web-EDI. As an EDI services provider, EDITEL Hungary strives to continue helping its clients optimize and automate business processes via EDI across all industries. n

EDITEL Hungary, EDITEL’s Hungarian subsidiary, is celebrating its fifth year of successful business operations on the local EDI market. Thanks to the EDI services provided by EDITEL Hungary, a large range of companies were able to considerably optimize their supply chain processes: renowned companies in the FMCG and DIY industries, including Alföldi Tej, Élésker, Törley, Penny, Coop Hungary and bauMax as well as large corporations such as the oil gi-

info@editel.hu www.editel.hu

FRESHLY MADE INNOVATIONS Traditionally made bread is usually only available at local bakeries. That’s not the case in Slovakia, where small bakeries deliver their baked goods, accompanied by that magical just-out-of-the-oven smell, directly to large grocery chains. Electronic merchandise procurement processes make it happen.

AFFORDABLE SOLUTIONS FOR PROCESS OPTIMIZATION

lovakia is the place to be for anybody who cherishes the craft of traditional bread. The latest development in the local grocery retail industry will delight all bread enthusiasts: thanks to rising demand, regional and traditionally made bread and related products are no longer limited to bakeries, but are also sold at local grocery stores. It’s highly convenient for consumers and lucrative for small local bakeries. In order for local bakeries to qualify as suppliers for BILLA, COOP and TESCO, they must meet quite a few requirements imposed by these retail companies. One of the basic requirements is the use of EDI (Electronic Data Interchange) to efficiently process the significant order

volume, which results not from large quantities, but from a remarkably high delivery frequency. Local bakeries usually deliver their products to grocery stores two to three times per day, seven days a week. Given the large amount of sales locations, it is easy to see that there is substantial potential for improving processes by using EDI. At the onset, small bakeries had reservations about giving up the manual ordering processes they had used for a long time. A comprehensive information campaign organized by EDITEL SK in collaboration with local providers of ERP systems helped the bakery industry overcome their reluctance and realize the benefits associated with Electronic Data Interchange (EDI).

There was one key success factor that made all the difference: an inexpensive EDI module by EDITEL, which seamlessly integrated into the bakeries‘ different ERP systems. Small bakeries did not have to purchase any additional software, nor did they need to have specialized EDI expertise to meet the requirements of their retail clients. The EDI module enables bakeries to process orders electronically, provide inventory reports, take care of accounting, print labels and GS1 codes and to manage processes automatically. Currently, 70 bakeries throughout Slovakia electronically exchange orders and invoices with their business partners in the retail sector, making sure that their fresh bread is always readily available on grocery store shelves. Thanks to their connection to eXite®, a platform by EDITEL, all small bakeries can exchange EDI data with the entire Slovak retail sector.

Would you like to learn more? Please contact us: info@editel.sk; www.editel.sk

IMPRINT Owner and publisher: EDITEL Austria GmbH, 1040 Vienna, Brahmsplatz 3; T: +43 (0)1/505 86 02; E-Mail: info@editel.at. www.editel.eu

EDITEL Austria GmbH is a wholly-owned subsidiary of GS1 Austria GmbH. The corporate objective of EDITEL Austria GmbH is the electronic data exchange between business partners, the sale of the required software and support services. Management and responsible for the content: Peter Franzmair Editorial staff: Sylvia M. Gerber Proofreading & Translations EN: Dagmar Jenner, www.texterei.com Translations CZ, HU: Petra Vosyková, Mihaly Viszkei Layout: www.creativedirector.cc Disclosure pursuant to Austrian Media Law as amended in March 2009: the purpose of this newsletter is the promotion and support of EDITEL Austria‘s business activities.