EDITEL Journal EN 1/2024

VIENNA | PRAGUE | BRATISLAVA | BUDAPEST | ZAGREB | KRAKOW

editelJOURNAL

CORPORATE MAGAZINE OF THE EDITEL GROUP

VIDA: Transforming EU VAT for the Digital Age

Interview with Tomasz Kuciel

The head of the ViDA Competence Center at EDITEL talks about ViDA and the Polish path to e-invoicing

EDI in the pharmaceutical sector

EDI systems are revolutionizing Slovakia's pharmaceutical sector, enhancing efficiency and accuracy at UNIPHARMA

A crown for Karnerta

EDI enables simpler processes and improved business relationships at food producer Karnerta

ARTICLES IN THIS ISSUE

3

5

Interview with Tomasz Kuciel

The head of the ViDA Competence Center at EDITEL talks about ViDA and the Polish path to e-invoicing

EDI in the pharmaceutical sector

EDI systems are revolutionizing Slovakia's pharmaceutical sector, enhancing efficiency and accuracy at UNIPHARMA

EDITORIAL

Gerd Marlovits CEO

10

11

Data security and smooth process flows

EDITEL has once again undergone the "ISAE 3402 Type II" audit

EDI integration at Polish fittings expert

EDITEL Polska's EDI integration helps PSA Group manage its extensive network of wholesalers and stay competitive

IN BRIEF

EDI in trade logistics

The interaction between suppliers and the large daily data volume pose challenges for retail logistics.

Europe is a necessity

“The unity of Europe was a dream of a few. It became a hope for many. Today, it is a necessity for all of us,” said German Chancellor Konrad Adenauer 70 years ago. When we look at the European Union today, it is often referred to as a “bureaucratic conglomerate.” This overlooks the fact that we owe the longest period of peace in European unification.

It is also often overlooked that the EU's proposals usually aim to simplify administration. For example, the EU directive proposal “VAT in the Digital Age” (ViDA) intends to reduce administrative burdens and costs for companies and cut red tape. The goal is system more efficient, simpler, and more resistant to fraud, and to reduce competitive and efficiency are two characteristics that have always marked solutions from the world of Electronic Data Interchange (EDI).

Of course, the implementation of the ViDA directive will bring challenges in terms of data security and process workflows. These are challenges for which EDITEL is well prepared, as recently confirmed by the successful completion of the “ISAE 3402 Type II” audit. In this issue, we also report on client projects at UNIPHARMA, one of the largest players in the Slovak pharmaceutical market, the renowned Austrian food producer Karnerta, and PSA in Poland, which serves a total of 53 wholesalers via EDI.

Happy reading, Gerd Marlovits

© Petra Spiola

© Karnerta

INTERVIEW WITH TOMASZ KUCIEL

Preparing

for ViDA: why e-invoices are just the tip of the iceberg

The current EU legislative proposal "VAT in the Digital Age" (ViDA) aims to adapt the VAT system in the EU to the digital age. It affects all companies across all sectors, particularly in the cross-border movement of goods and services.

The new directive aims to reduce the administrative burden and costs for companies, cut red tape in the B2B internal market and simplify tax obligations. Another goal is to combat tax fraud. On the one hand, ViDA will bring simplifications, e.g., through one-stop-shop procedures (a VAT number from any EU country is sufficient to be able to do business in all countries in the future). On the other hand, there are also new digital reporting obligations for cross-border sales (e-reporting) and the mandatory issuing of so-called e-invoices. All companies are potentially affected, as ViDA also includes optional national reporting obligations.

The Belgian EU Council Presidency has included ViDA in its list of priorities. Although the mandatory implementation of e-reporting and e-invoicing is planned to take effect from January 1, 2028 at the earliest, it requires long-term planning, particularly with regard to (digital) supply chains and ERP systems.

“We are already very well prepared. Structured invoices are an essential part of our expertise and we have been working with them since the 1990s.“

Tomasz Kuciel, head of the ViDA Competence Center at EDITEL

Tomasz Kuciel, head of the ViDA Competence Center at EDITEL, shares in an interview how companies can best prepare for this.

Mr. Kuciel, what impact will the EU's proposed ViDA have on the settlement of crossborder B2B transactions?

First of all, it is important to understand that the main objective of the ViDA agenda and the national programs already implemented in Italy, Hungary, and Poland is not e-invoicing, but e-reporting. The aim here is to combat VAT loopholes and tax carousel fraud. While Austria and Germany recently

recorded a VAT gap of 2.8 percent, this amounts to 10.8 percent in Italy and as much as 36.7 percent in Romania (as of 2021). The initiative aims to make the VAT system more efficient, simpler, and more resistant to fraud, while at the same time reducing distortions of competition. The ViDA agenda envisages the introduction of electronic reporting of all cross-border transactions in real time by 2028 – possibly by 2030. In addition, electronic invoicing based on structured data will be established as the standard procedure for domestic transactions. According to estimates, the abolition of old reporting obligations in the EU could lead to cost savings of around EUR 35 billion within ten years.

Will companies still be able to send PDF invoices by e-mail in the future? How will electronic invoicing evolve?

Electronic invoices, and in particular the data to be reported to tax authorities, must be structured, i.e., in XML or EDIFACT format, as we know it from the world of Electronic Data Interchange (EDI). Only e-invoices that contain the required information and are issued, transmitted, and received in a structured electronic format that enables automatic and electronic processing of the content will be accepted. PDF invoices sent by e-mail will no longer be treated as e-invoices in the future. The ViDA agenda will thus become a catalyst for digital B2B and B2G data exchange.

How is EDITEL preparing for this?

Based on our many years of experience with e-invoices, we have set up a competence center for ViDA in the EDITEL Group to support our clients in the long-term and forwardlooking planning of the switch. We are already very well prepared. Structured invoices are an essential part of our expertise and we have been working with them since the 1990s. In Poland, for example, we developed a comprehensive solution for integration with the national system for electronic invoices (KSeF), although the introduction of KSeF was recently postponed by the government by two years to February 1, 2026. We also offer access to the European PEPPOL network (Pan-European Public Procurement OnLine): we are a certified access point, which is relevant for B2G e-invoices to public administrations in all EU countries and partly for B2B connections.

Which e-reporting and e-invoicing models are currently being discussed?

Various e-reporting and e-invoicing models are currently being evaluated. One variation of ViDA are systems for continuous transaction control (CTC) in which transactions are to be reported to tax authorities digitally and in real time. Some countries rely on a centralized model in which an invoice is first sent to the tax authorities, checked by them and only then formally sent to the invoice recipient. This approach is favored by Italy, Serbia, and Poland. Hungary, on the other hand, uses the "Real-Time Reporting Model" (RTIR), in which only certain invoice content has to be reported to the authorities in real time. The invoice itself is sent directly to the recipient. Despite the EU's standardization efforts, different approaches exist.

What services does EDITEL's ViDA Competence Center offer and how are affected companies specifically supported?

An invoice is more than just a request for payment – it is the final step in a complex series of business communications. An e-invoice is therefore the tip of the iceberg, under which lies a multitude of processes, ranging from the order to the delivery confirmation. Equipped with this extensive process expertise, the EDITEL Group supports all forms of national e-invoicing models. This means that with just one single connection to EDITEL, companies have access to all their business partners, regardless of their e-invoicing standards or the systems they use. This enables secure and efficient communication, both within and outside the EU. We enable seamless integration with CTC systems across the EU and beyond. Companies are welcome to contact us at any time with questions about ViDA.

E-mail us at: info@editel.pl

© Rafał Sztyk

Tomasz Kuciel, head of the ViDA Competence Center at EDITEL

EDI GAINS GROUND IN THE PHARMACEUTICAL SECTOR

In today's world, information technology continues to evolve and has become indispensable in the pharmaceutical sector. EDI systems are essential for the efficient handling of transactions and communication processes. EDITEL SK plays a key role in supporting the digitalization and automation of processes.

EDI is transforming the pharmaceutical sector and enhancing its performance. This development is also evident in the EDI projects of Dr.Max, the largest pharmacy chain in Slovakia, and UNIPHARMA, one of the largest pharmaceutical distributors. These EDI implementations ensure that orders, dispatch advices, and invoices are processed faster and more accurately. This has a positive effect on the speed and quality of services for end clients.

EDI implementation at UNIPHARMA by EDITEL

Following the successful EDI implementation at Dr.Max, where electronic invoicing processes were actively implemented, UNIPHARMA is focusing on expanding these services. Currently, a pilot project is underway with Hama Plus s.r.o., which includes the management of business documents. To take digitalization processes to the next level, continuous

collaboration is key. Efforts are also being made to use the archiving system provided for UNIPHARMA for archiving documents outside of traditional EDI communication, thus offering a comprehensive solution for electronic document storage.

UNIPHARMA – one of the largest pharmaceutical distributors in Slovakia

"Our collaboration with EDITEL has opened the door to a new era of digital transformation at UNIPHARMA. Today, it's more important than ever to ensure that our operations are as efficient as possible and our processes are optimized. EDITEL has provided exactly that. The implementation of the EDI solution was a real turning point for us – not only have we streamlined our internal processes, but we also expect a significant improvement in communication with our suppliers and clients," explains Ľudovít Danko, IT director at UNIPHARMA.

Accelerating the entire process

“One of the key outcomes of our collaboration with EDITEL is the significant acceleration of the entire order and invoicing process. Automation reduces the margin for error and increases the accuracy of transactions.“

In addition to technological benefits, the EDI implementation also supports strategic decision-making. More accurate trade data are available, allowing for better planning and forecasting of future trends. This is especially crucial in the fast-paced pharmaceutical industry, where rapid adaptation to changes is vital.

"The introduction of EDI goes beyond technology; it is ultimately about transforming our business processes. With ­EDITEL's support, we have become more flexible and competitive. This collaboration not only helps us keep up but also stay ahead of the competition," says Ľudovít Danko, emphasizing how digitalization and modern technologies are shaping the future of UNIPHARMA in the complex and heavily regulated pharmaceutical industry.

About UNIPHARMA

UNIPHARMA is the first Slovak pharmacy joint-stock company and has been one of the largest distribution companies in the Slovak pharmaceutical market for many years. The company's main activity is to distribute medications to all public and hospital pharmacies as well as health facilities throughout Slovakia, operating around the clock from three modern trade and distribution centers located in Bojnice, Bratislava, and Prešov. UNIPHARMA’s strategy, which is notably led by its clients – pharmacists – aims to maintain its position as the strongest distributor with the most extensive assortment on the Slovak pharmaceutical market and to continue building a multidimensional pharmacy distribution network.

www.unipharma.sk

A CROWN FOR KARNERTA

Successful EDI integration into the new SAP system ensures simpler processes and ultimately improved business relationships at the Carinthian food producer Karnerta.

At Karnerta, a crown is not just in the logo. The Klagenfurtbased company also promises "royal" enjoyment with its products, which range from sausage and meat specialties to fresh pasta from their own production and fish. In addition to eight exclusive specialist stores in Carinthia, East Tyrol, and Styria, Karnerta also supplies clients from the hotel and catering industry throughout Austria via six other branches. Regionality, quality and knowledge of the origin of its products are highly valued at Karnerta, "for which a close relationship and partnership-based approach with our suppliers are essential," explains Kevin Schönfelder, IT team leader at Karnerta. ­Karnerta can definitely claim a crown for the "technical" collaboration – ensuring that the processes for these good business relationships work so well: in the course of the switch to SAP S/4HANA last year, the entire EDI processing was revamped with the support of EDITEL. "This was an important

step that has made our processing of customer orders much faster and more reliable, which also ensures better customer relationships," says Mr. Schönfelder.

Professionally mastered

The smooth transfer of over a thousand (end) clients to a new IT system landscape during ongoing operations was a very challenging task. In addition, existing EDI processes also had to be transferred to the new system. Naturally, everything had to start with a thorough analysis of the existing processes. All of these processes, some of which were customer-specific, were then mapped in EDI mappings, creating a key prerequisite for the switch to SAP S/4HANA. The magic formula for the phase immediately before the go-live: test, test, test! Mr. Schönfelder saw "the extensive coordination of all test

activities as a particular challenge for EDITEL. This was the only way to ensure that there were no nasty surprises on day X." With such a far-reaching project, there were naturally "one or two hurdles to overcome," which, according to Kevin Schönfelder, "were always managed quickly and effectively thanks to the commitment of everyone involved." When working with EDITEL, he particularly emphasized "the professional approach and high level of expertise with which the EDITEL team supported us with advice and assistance throughout the entire project phase." According to the client, this resulted in "nearly seamless integration."

IN BRIEF

n EDI integration as part of the switch to SAP S/4HANA

n Consolidation of various EDI interfaces into a centralized one

n Implementation of ORDERS IN, ORDERS OUT, DESADV OUT, INVOIC OUT, e-invoice to the federal government (BUND/BBG)

n Extensive test phase

n Smooth switch during ongoing operations

n More efficient and profitable business processes

n Further connection of clients and suppliers planned

n Assistance and support from EDITEL during the entire project phase

A crowning step

For Mr. Schönfelder, a particular advantage of the new system is that "administration has become much easier thanks to the standardized data transfer, which ultimately ensures ­efficient processes and reduced costs. It is also much easier to connect new business partners." For this reason, Mr. Schönfelder is planning to bring more clients and suppliers on board. This represents another "crowning" step into the future for Karnerta, as they aim to fully leverage the opportunities of digitalization.

About Karnerta

Founded in 1954, the Klagenfurtbased company Karnerta is an important producer and supplier for restaurants, hotels, commercial kitchens, and food retailers. With a product range of meat, pasta, and fish, the company and its 255 employees serve eight exclusive specialist stores in Carinthia, East Tyrol, and Styria as well as six other branches throughout Austria. Above all, Karnerta stands out for its long tradition of master butchers, creative and innovative product ideas, and the consistent processing of Austrian raw materials.

© Karnerta

TRANSFORMING THE MEAT INDUSTRY WITH EDI FOR GREATER EFFICIENCY AND FRESHNESS

Traditional ordering methods may soon be inadequate. They are time-consuming and prone to human error. Companies are looking for new solutions that will save time and money.

The meat industry faces unique operational challenges, primar ily related to the need to respond quickly to market demands. Due to the short shelf life, it is necessary to ensure the continui ty of the supply of fresh products on an everyday basis.

Are paper forms and phone orders a thing of the past?

In today’s meat industry, traditional ordering methods such as filling out forms or ordering over the phone are thing of the past. Although they have been the primary means of communication between manufacturers, distributors and re tailers, they do have several drawbacks. They are time-consu ming for both sellers and buyers and prone to errors that can cause delivery delays or inaccuracies in order fulfillment. In the face of increasing market demands, consumer expectati ons and the need to ensure maximum operational the traditional approach is becoming increasingly inadequate. As a result, the search for new solutions that can revolutionize the meat industry’s ordering and delivery processes is becoming not just an optimization option, but a necessity to adapt to rapidly changing market conditions.

The potential of EDI technology under human control

© industryview – iStockphoto.com

operations, but rather supports them and allows for the smooth implementation of new solutions.

Modern approaches to doing business in the meat industry increasingly include the use of technology such as Electronic Data Interchange (EDI). EDI automates the exchange of information between different IT systems at different companies in a standardized format, eliminating the need for manual data entry. This speeds up and improves communication between business partners.

Implementing an EDI system is a process that requires careful planning. It involves determining the types of messages that will be used in daily operations. It is also important that the integration process does not disrupt the company's current

In the meat industry, EDI technology has the potential to transform traditional business processes by automating the exchange of documents such as purchase orders and invoices. As a result, users can increase operational efficiency and minimize the risk of errors that can disrupt supply continuity. It is important to note, however, that despite automation, the ultimate control of the EDI system remains in the hands of humans. This ensures that all transactions take place according to established procedures and guarantees the consistency and reliability of the data.

A solution for everyone

Today, EDI is primarily used by large retail chains that have recognized the opportunities to automate and digitize their processes. However, EDI is not just limited to the big players in the market. The benefits of this technology can be leveraged by

companies of all sizes, facilitating collaboration regardless of their market position or size.

Integrating EDI with ERP systems is no problem. This enables better management of resources within the company, from production to delivery, making EDI a useful tool in the quest to optimize operational processes. In the meat distribution industry, where buying groups often operate, EDI fits perfectly into the model of communication both with suppliers and within the group.

Twenty years ago, many companies were in a similar position to the meat industry today – at a crossroads between traditional methods of communication and the need to integrate modern technology. Back then, most contacts were based on telephone orders and manually completed forms. The transition to EDI wasn’t easy, but today it’s standard procedure and it’s hard to imagine the construction supply chain without it. Companies that have taken this step have gained a significant competitive advantage, while those that have not embraced EDI have been left behind.

Evolution, not revolution

The introduction of EDI in the meat industry is not a revolution, but rather an evolution. It is a gradual adaptation of modern tools that support development and increase efficiency, without losing sight of the tradition and stability that have always been the foundation of this sector. The meat industry is demonstrating its ability to adapt while maintaining its core values of providing quality products efficiently and responsibly. Compared to other FMCG sectors, the meat industry has been more cautious in adopting modern supply chain management technologies such as EDI. This caution seems to stem more from a commitment to best practice rather than any real technical limitations. However, with increasing market demands and the need to ensure the freshness of meat products, there is no reason why the industry should not benefit from Electronic Data Interchange. The introduction of EDI, even on a small scale, could be the beginning of a complete digitalization and process automation journey, which in the long run could increase the competitiveness of companies operating in the meat sector.

DATA SECURITY AND SMOOTH PROCESS …

... flows are top priorities for EDI provider EDITEL

"ISAE 3402 Type II" – an audit for the internal control system

Data handling is increasingly becoming a matter of security and trust. To give their clients peace of mind regarding responsible data handling, EDITEL relies on objective audits. Since it is widely known that at the EDI service provider EDITEL everything revolves around electronic business documents and their exchange, “security and trust are a top priority for us,” explains Gerd Marlovits, EDITEL’s CEO. “After all, every year we process approximately 400 million transactions from more than 20,000 companies via the EDI network eXite, and all of them need to be protected.”

EDITEL guarantees a fail-safe infrastructure as well as security features and control mechanisms that are updated and improved on an ongoing basis to meet state-of-the-art technology standards. Following the “Trust is good, control is better” mindset, EDITEL periodically undergoes external audits to prove data security. For Gerd Marlovits, this is an important step to “show that we are fully transparent, which increases our clients’ trust in our services.”

As in previous years, EDITEL once again underwent the “ISAE 3402 Type II” audit and successfully passed it. This audit was performed by Grant Thornton, an independent auditing and consulting firm, and confirmed that EDITEL has flawless internal processes. The audit included a review of the quality of all services provided to clients: IT security and operations, software development quality (change management), customer support services and the implementation of GDPR requirements. In the final report, Grant Thornton confirms that ­EDITEL Austria GmbH has fully met all audit specifications. The “ISAE 3402 Type II” audit revolves around periodic reviews, which makes it a sustainable tool for certifying highlevel security and performance during daily operations. According to Gerd Marlovits, it is “highly relevant for EDITEL to review and optimize these processes on an ongoing basis. Our successful “ISAE 3402 Type II” audit report underscores our efforts of setting the bar very high when it comes to our security environment.”

EDI INTEGRATION AT POLISH FITTINGS EXPERT

Polskie Składy Armatury (PSA) has been active for 20 years and today includes 53 wholesalers across Poland. Thanks to long-standing collaboration with over 130 suppliers, PSA is an attractive partner in the Polish market with extensive experience in the water, wastewater, and gas industries.

The main goal of the PSA Group is to increase market competitiveness and to offer PSA members and associated companies the most attractive purchasing conditions from renowned manufacturers in the water, wastewater, and gas sectors. The decision to implement EDI was a logical step. Automating supply chain processes is a key success factor among business partners.

Customized EDI solution

In the initial phase of the project, experts from EDITEL Polska conducted an analysis of the customer’s needs. This allowed them to develop customized solutions. The implementation for the PSA Group was not a standard process. The group consists of 17 companies, each with its

own IT system. A total of 13 implementations were necessary – one at the group level and 12 for the individual member companies. Most companies in the group utilized a fully automated solution – a complete integration of the ERP system with the EDI infrastructure using special software from EDITEL Polska. Another way to achieve full integration is through the use of APIs. In some cases, it was necessary to use a portal solution (Web EDI), which enables the use of EDI communication immediately and without having to prepare any IT systems. The Web EDI solution can be used wherever the IT system needs to be adapted for full integration –until then, the portal solution allows the use of EDI communication. All companies in the group also have access to the electronic invoice archiving service.

EDI solutions from EDITEL Polska are designed to integrate with any ERP system. This was particularly important given the technological diversity within the PSA Group.

About Polskie Składy Armatury

DPolskie Składy Armatury was founded in 2004 and now comprises 53 wholesalers in 13 provinces of Poland. PSA continuously expands its product portfolio to meet the expectations of PSA members and to adapt to market requirements regarding the quality of the products offered. The goal is to increase market competitiveness and to offer PSA members and associated companies the most attractive purchasing conditions from renowned manufacturers in the water, wastewater, and gas sectors.

www.grupa-psa.pl/en

Owner and publisher:

EDITEL Austria GmbH, 1040 Vienna, Brahmsplatz 3; T: +43 (0)1/505 86 02; E: info@editel.at; W: 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: Gerd Marlovits

Editorial staff: Anja Jung, Gül Altay

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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.

Publication frequency: twice a year in English language with a circulation of 150 copies. The EDITEL Journal is also published in German, Czech, Slovak, Hungarian, Croatian and Polish languages. All issues are available as e-papers at www.issuu.com/editel_group.