Editel Journal 2/2017 EN II by EDITEL Group

editelJOURNAL 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

ZAGREB

EDITORIAL

Continuous change

AUTOMOTIVE: JUST-IN-TIME WITH EDI The French-Japanese joint venture, TPCA, with its registered office in the Czech Republic shows how suppliers can be linked efficiently and in real time.

ike all other industries, the automotive industry is under considerable cost pressure. One of the options for automotive manufacturers to reduce operating costs is to lower their stock and to arrange for suppliers to deliver straight to the production lines. TPCA (Toyota Peugeot Citroën Automobile Czech s.r.o.), based in Kolín, Czech Republic, chose this path since it was established in 2002, when TMC, the world’s largest automotive manufacturer, and PSA Groupe, the European market leader, signed a cooperation

agreement, and since TPCA started manufacturing cars in 2005. EDI, a highly useful tool, has already become an inherent part of the automotive industry because it helps ensure smooth supply to the production lines, e.g. in the JIT (just-in-time) system. In addition, EDI also helps prevent shortages in the component delivery process. The automotive manufacturer TPCA has decided to make its EDI state-of-the-art and to introduce a new design. EDITEL was chosen to carry out the demanding adjustments after

ECR Infotag 2017 – the highlights https://ecr-austria.at/infotag/

In the spirit of consistency, let me take this opportunity to announce yet another change: since I will be retiring next year, I am herewith handing over this editorial to Gerd Marlovits (shown in the picture above) who will be my successor as the CEO of EDITEL Austria (see press release under „In Brief“). Thank you for your loyalty throughout the years. I wish you successful business now and in the future and happy reading.

Retail in Detail/ Effective innovation http://www.blueevents.eu/cs/konference EDITEL Austria has new managing director as per January 2018 https://www.editel.eu/news/latest/article/new-ceo

GS1 Austria Healthcare Day 2017 https://www.editel.eu/news/latest/article/g s1- healthcare-day-1

Follow us! 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 Croatian for our international clients. To download the Journal as an epaper, please visit www.editel.eu/ press/ publications. If you have any suggestions, please contact us at info@editel.at

Peter Franzmair

ARTICLES IN THIS ISSUE PCA 1 TSmooth supplier onboarding InMorebriefnews from EDITEL PCA – Part II 2 TSmooth supplier onboarding Hi-Lex Customized Web EDI portal for suppliers EDITEL - Teledin Cooperation among EDI experts

IN BRIEF Retail Summit 2018 Hledání rovnováhy na novém trhu http://www.retail21.cz/cs/

Does technology need to be consistent or adaptable if it is to prepare businesses for the Mag. Peter Mag. Gerd future? EDI, which has been Franzmair Marlovits an inherent part of sophisticated supply chains for decades, is in the privileged position to embody both these qualities. The wide range of products presented in this issue of EDITEL Journal highlights this duality. Among others, there are articles about “traditional” EDI projects in the consumer goods industry, e.g. at the Czech company Beskyd Fryčovice (see page 4). To learn how EDI can support your Supply Chain Finance, read the article about an Austrian project on page 3. A project with the packaging business packit! in Upper Austria showcases how Electronic Data Interchange can increase efficiency and save money even during upstream activities of the procurement of goods process. You will find that article on page 3. We are excited to report about EDITEL’s activities in the automotive industry. In addition to completing projects for renowned manufacturers and suppliers such as TPCA, Hi-lex and Alpine, EDITEL teamed up with the expert EDI business Teledin. Thanks to the collaboration with this experienced partner, EDITEL will be pooling expertise in this area.

lpine Hungary 3 ALaunch of an EDI initiative at packit! Austria Upstream More efficiency in the supply chain e-discounting Supply Chain Finance in Austria Fryčovice 4 B Ceskyd zech retailer promotes EDI Slovnaft e-invoicing improves customer service LABAŠ Slovak retail expert optimizes processes

editelJOURNAL Corporate Magazine of the EDITEL Group

IN BRIEF eamless migration of the old EDI solution S into the new eXite® EDI system of EDITEL I ntensive communication and support with the onboarding of 250 suppliers. I ncreasing the quality and know-how transfer in customer support Implemented message formats: E DIFACT DELJIT (Just-In-Time delivery call-off) EDIFACT DELFOR (Delivery call-off) EDIFACT INVOIC (Invoices) ODETTE DELINS (Delivery call-off) EDIFACT DESADV (Delivery advice)

winning the tender as the new EDI provider for the automotive manufacturer TPCA in 2016. “The service range, the potential and the professional approach of EDITEL during the entire tender process, coupled with 22 years’ experience in EDI project implementation, have met and exceeded our expectations,” says Aleš Höfner, General Manager of TPCA. The creation of a state-of-the-art web EDI portal with a very attractive design in line with the requirements of TPCA was one of the challenges EDITEL tackled during its collaboration with TPCA. The same was true for the implementation of certain gradual improvements. The use of the web portal has made the exchange of logistics documents as well as other business documents much easier for all TPCA

suppliers. Other than the web portal, traditional EDI communication channels are available to suppliers to transmit traditional automotive document formats, such as EDIFACT DELJIT, EDIFACT DELFOR and ODETTE DELINS ORDER. The seamless onboarding of suppliers was also an integral part of the migration process from the original EDI provider to EDITEL. TPCA relied on the Partner Management service by EDITEL for this very purpose. “EDI is an essential part of the automotive sector, which will continue to evolve, especially in the logistics and warehouse management processes. We have learned a lot about PDF invoicing from EDITEL during this successful project. We plan to look into this in the future,” said Milos Bares, project team member at TPCA,

ABOUT TPCA The automotive manufacturer TPCA (Toyota Peugeot Citroën Czech s.r.o), with its registered office in Kolín, Czech Republic, is a joint venture between Toyota Motor Corporation (TMC), Japan, and PSA Groupe, France. With a total of 2400 employees and annual sales of CZK 41 billion, TPCA is the third-largest automotive factory in the Czech Republic.

stressing the importance of Electronic Data Interchange (EDI). EDITEL will once again be the partner of choice. n http://www.tpca.cz/

EDITEL AND TELEDIN JOIN FORCES TO OFFER STRONG AUTOMOTIVE INDUSTRY EXPERTISE

EVERYTHING UNDER CONTROL

i-Lex, an automotive supplier, works with approximately 60 different suppliers at its Hungarian manufacturing plant. With many of these suppliers, Hi-Lex has longterm agreements for recurring delivery volumes and the same product, while other suppliers receive only one-off orders. In an effort to keep a good overview and to quickly and easily identify delivery volumes for specific suppliers, Hi-Lex wanted to find a transparent and controllable option for its supply chain. To achieve just that,

ABOUT HI-LEX Founded in 1946, the Japanese HiLex Group employs a total of 16,000 employees worldwide. Hi-Lex is an automotive supplier in the areas of window openers, door modules and cable systems, among others. Most of its manufacturing plants are located in Asia as well as in North and Central America. Hi-Lex Hungary Kft in Rétság produces mostly window openers as well as push-pull cables for different applications in the automotive industry.

IN BRIEF

I ntroduced a transparent tool to control supply chain processes Developed a customized Web EDI solution Implemented message formats: Delivery schedule messages (DELFOR) Orders (ORDERS) Purchase order responses (ORDRSP) Despatch advices (DESADV) Makes orders easier to track Allows the user to handle long-term and one-off suppliers differently Makes financial planning more efficient

EDITEL has developed a customized Web EDI solution which makes it possible, among many other things, to differentiate between long-term suppliers and one-off orders, relying on specific message types. This makes orders easier to track and it also allows the company to handle long-term and one-off suppliers differently, e.g. when it comes to payment terms and contractual specifications. n www.hi-lex.co.hu

ust in Time: delivery, flexibility, innovation, and short response times are the most important drivers of the contemporary automotive industry. Other requirements include a strong demand for quality, reliable delivery and transparent logistics processes. A decisive competitive advantage is the well-coordinated electronic and standardized exchange of logistics information (EDI) among automobile manufacturers and their suppliers (TIER 1-3). EDITEL and TELEDIN, two leading EDI providers in the region of CEE, have now bundled their know-how to offer businesses in-depth EDI expertise of three decades. It is a significant step forward in broadening its capabilities

to provide advanced EDI solutions for the automotive and manufacturing industry in the CEE region. The Director of International Operations of EDITEL, Tibor Šata, strongly believes in this cooperation and the new potentials this new basis shall bring. “Thanks to our collaboration, existing and future clients will benefit from more than 30 years of experience in EDI, combined with state-of-the-art EDI solutions,” he said. Jiří Tomášek, the Managing Director of Teledin, agrees: “We look forward to this new opportunity of working together with EDITEL on new exciting projects and also helping our existing clients to further enhance their EDI practices.” n www.editel.cz

editelJOURNAL Corporate Magazine of the EDITEL Group

OBJECTIVE: CONNECTING ALL SUPPLIERS TO EDI

peeding up order processing, improving data quality, having straightforward and reliable data– these are just some of the many good reasons why Alpine Electronics will increasingly rely on EDI when working with its suppliers in the future. At the Hungarian location of Alpine Electronics, the company has started exchanging messages with approximately 20 suppliers. These messages include orders (ORDERS), despatch ad

IN BRIEF

lpine launched an initiative to A share information about EDI and its many advantages when working with its suppliers. Major benefits include: Decreases transaction costs for logistics-related processes Improves data quality Speeds up order processing Increases transparency and traceability The objective: connecting all suppliers to EDI

ABOUT ALPINE ELECTRONICS INC Alpine Electronics, a Japanese corporation, is one of the world’s leading manufacturers and providers of audio, navigation and multimedia systems for automobiles. In addition to offering company-branded de vices, Alpine also creates customized products for renowned OEM business partners in the automotive industry. Alpine has a worldwide presence with more than 50 subsi diaries and a large network of manufacturing plants and research and distribution businesses. The Hungary-based manufacturing plant serves all European countries.

vices (DESADV) and inventory reports (INVRPT). “Our goal is to have all supplier processes performed electronically,” said Eva Varga-Borsath, Logistics Specialist at Alpine Electronics Hungary. To reach that goal, Alpine Electronics has launched an initiative informing its suppliers about EDI and encouraging them to use it. These efforts started at the annual conference in July 2017, which focused, among others, on EDI and its major potential for productivity increase. EDITEL assists Alpine by sharing its expertise and ensuring that additional suppliers are added to the system without a hitch. n

ONE STEP AHEAD WITH UPSTREAM EDI Based in Upper Austria, the packaging company packit! is proof that EDI can be highly effective in upstream logistics processes.

he term “upstream“ means that upstream or preliminary suppliers are included in the value chain. This is achieved via Electronic Data Interchange (EDI) and GS1 identi fication standards. One of the pioneers in this area is the food manufacturer Spitz, who now relies on EDI with its suppliers at the upstream stage. packit!, a packaging business based in Upper Austria, is among the first to benefit from these new opportunities. This is how it works: after placing an order (ORDERS), Spitz receives a fully automated purchase order response (ORDRSP) from packit! as a confirmation. Thanks to an electronic despatch advice (DESADV) with integrated SSCC (Serial Shipping Container Code), the merchandise

ABOUT PACKIT! Established as a management spin-off in 2000, packit!, headquartered in Waldneukirchen in Upper Austria, specializes in the industrial production of packaging made of offset laminated corrugated cardboard. packit! offers a full range of services, from development to offset printing at the in-house printing facility as well as the actual manufacturing of packaging products, from reel-to-sheet lamination and cutting to gluing and logistics.

http://www.alpine.hu

IN BRIEF s an upstream supplier, packit! A is a pioneer in the area of upstream EDI Implemented message formats: Orders (ORDERS) Purchase order responses (ORDRSP) Despatch advices (DESADV) Improved data quality without any system inconsistencies Swift and correct merchandise delivery to clients Seamless traceability

can be traced without any system inconsistencies. This translates into dramatically increased efficiency, improved data quality and faster processing. For packit!, a company that had previously not used EDI, the benefits are plain to see: orders no longer have to be entered manually, which saves considerable amounts of time and money. “Our close collaboration with EDITEL, Spitz and our ERP system provider during the implementation phase made the retrieval process very straightforward. We are now ready to implement the system with other clients as well,” said Manuel Schiffel, project manager at packit!, who is pleased with the new EDI infrastructure. n

EDITEL AND ERSTE BANK COOPERATE IN SUPPLY CHAIN FINANCE PROCESSES

DITEL and Intermarket Bank AG, a specialized subsidiary of Erste Group and Sparkassen focusing on Supply Chain Finance, have signed a collaboration agreement to offer a new and attractive approach to factoring. It is an ideal solution called “e-discounting,” which helps make invoicing processes, including Supply Chain Finance, fully automatic and more efficient. “The most important benefit of e-discounting is the perfect combination of two worlds in an existing

electronic solution: the electronic transfer of invoices in EDI format and the immediate conversion of accounts receivable into liquidity,” said Patrick Götz, Sales Board Member of Intermarket. “Electronic invoices will save businesses time and money and will also considerably increase transpa rency in corporate supply chains,” added Peter Franzmair, Managing Director of EDITEL. n https://www.editel.eu/ solutions/e-discounting

BENEFITS I mproved liquidity, better balance sheet image More efficient invoicing and accounting Reduces mistakes and costs less time and money Increased transparency and control Outstanding invoices will be paid immediately Higher equity ratio

editelJOURNAL Corporate Magazine of the EDITEL Group

EDI NOW PRESENT AT SLOVAK GAS STATIONS

LOVNAFT, a.s., based in Bratislava, is a refining and petrochemical company with an annual processing volume of six million tons of oil. Since 2004, SLOVNAFT, a.s. has been part of the largest oil corporation in Central Europe, group MOL. In addition to offering production, storage, distribution and wholesale of petroleum products, the company operates the largest retail network in the Slovak Republic, with a focus on motor fuels and lubricants. In addition, the company provides comprehensive services to motorists.

MORE EFFICIENT BUSINESS PROCESSES WITH EDI

This year SLOVNAFT, a.s. launched an EDI project in line with the MOL Česká republika, s.r.o.´s approach, where EDI is already in use. As a first step, the project was oriented towards receiving EDI invoices, but during implementation it was expanded to include orders and despatch advices, which will increase the efficiency of supplier-customer processes. The preparation phase for the entire project lasted several months and included the integration of the central information system SAP as well as a pilot phase with a selected group of suppliers prior to the official launch. The rollout that will include all other suppliers will start soon and all 253 gas stations operated by SLOVNAFT, a.s. will be on board. Roman Rybanský, Head of Enterprise Application Management, Information Technology, SLOVNAFT, a.s., commented on the collaboration with EDITEL: “One of our EDI partners in the pilot phase was our exclusive logistic partner, who is also a supplier, PF Distribution a.s. This company provides a large share of the products we offer to our customers at our network of gas stations. This test run showed us that the project was ready to go live. Thanks to the professional work provided by EDITEL, I am convinced that we will very soon achieve the expected results.” n

he Czech company Beskyd Fryčovice, a.s., established in 1969, is a company with a long-time presence on the food and retail markets. The company’s range of products includes packaged potatoes and processed potato products, refrigerated vegetables and vegetable mixes. Beskyd Fryčovice currently communicates with 12 partners using EDI (Ahold, Makro, Billa, TESCO, Globus, KFC and Rohlik.cz) to exchange orders, despatch advices, invoices, inventory reports (ORDERS, INVOIC, DESADV, APERAK, COMDIS, AUTACK, INVRPT, CONTRL) etc. EDI communication translates into strong and effective business relationships with key customers, including wholesale and retail chains. The company’s senior economist, Jakub Štegner, comments on this technology: “EDI is highly beneficial to our contract-based processes with our existing as well as our future clients. Our business processes, particularly the ordering and invoicing, became more efficient thanks to the implementation of EDI. We issue almost 5,000 orders, more than 600 invoices and 500 despatch advices every month, and EDI has helped us save an estimated 16 hours per month.“ n

www.slovnaft.sk

www.beskyd.cz

TRADITIONAL RETAIL PLAYER STREAMLINES PROCESSES THROUGH EDI

ABAŠ s.r.o. has been active as a food wholesaler on the Slovak market for more than 20 years. It also operates a network of nearly 30 company-owned stores and another 800 franchise stores all over the Slovak Republic operated by Potraviny Fresh s.r.o. It is one of the biggest Slovak food retail chains. Given its revenue, it competes with large international retail players on the

domestic market. The EDI project went underway in 2017 with comprehensive outsourcing services provided by EDITEL, a local team of consultants and the support of our suppliers’ information systems. Currently, the order and delivery of goods processes rely on EDI. In addition, a fully paperless invoicing system was implemented. At present, more than 60 major international and local suppliers are connected via EDI and the ultimate goal is to connect 150 to 200 of the company’s biggest suppliers. “We see EDITEL as a strategic partner and also as our first choice given its comprehensive EDI expertise. We were looking for a partner that would offer us added value, especially when it comes to provided services for us and our most important business partners. To us, EDI translates into tangible benefits in our contractual processes with existing suppliers as well as with new ones. Thanks to the launch of EDI, our business processes have become more efficient and faster, especially the documentation process,“ said Štefan Labaš, the CFO of LABAŠ s.r.o. n http://www.labas.sk http://www.freshobchod.sk

IMPRINT ISSUE 2/2017 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 M.A., Anja Jung Proofreading : Dagmar Jenner, www.texterei.com Translations: English: Dagmar Jenner, www.texterei.com Czech: Martina Pokorná Hungarian: Katinka Czigány Croatian: Nataša Burič, Marija Lunjek 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.