editelJOURNAL
FIT FOR THE FUTURE WITH EDI
EDI communication for HOPI
The company manages all its logistics processes via EDI, exchanging millions of messages with its partners every month
Clean solutions for digitalization
Interview about the importance of corporate digitalization with Erich Steinreiber and Harald Denk from ISS Austria
Dr.Max –more than a pharmacy
EDI makes things easier – from electronic ordering and automated batching to completely paperless invoicing
CORPORATE MAGAZINE OF THE EDITEL GROUP VIENNAARTICLES IN THIS ISSUE
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EDI and B2B communication
HOPI manages all logistics services via EDI and relies on the services of EDITEL CZ
EDI serves as a communication link
Kompan
Gerd Marlovits CEO
Of humans and machines
As early as at the end of the 19th century, the fear that machines would replace human labor was omnipresent. However, the writer Oscar Wilde knew the right answer even back then: “Currently, machines are competing with humans. Under the right circumstances, they will serve humankind.” This quote still rings true in today‘s age of digitalization and artificial intelligence. And it applies to EDI as well. After all, it is a technology that tries to find just the “right balance” by automating processes in precisely those areas where it makes sense to save valuable human labor. At the same time, this frees up resources for humans to work in areas that cannot be taken over by machines.
The articles in this issue illustrate how this interaction between people and technology can be put into practice: in the produce industry, for example, manual labor is essential for providing quality products, while in business communication with retailers, many things can be automated and simplified. “The goal is to free up resources so that we can once again focus on our core business, such as product development and customer assistance.” This thought appears in almost all client projects listed here, highlighting the fact that even in this century, technology will by no means replace humans, but will simply support them as needed.
EDI AND B2B COMMUNICATION FOR HOPI LOGISTICS
To manage logistics services, HOPI exchanges about one million EDI messages with its partners every month.
Thanks to its advanced IT infrastructure based on the SAP system, HOPI has full control over its clients‘ logistics operations in their warehouses, including the management of deliveries to clients. For developing EDI and B2B communication with its business partners, the company relies on the services of EDITEL CZ.
Establishing EDI communication with partners is an ongoing project
HOPI introduced its first EDI communication as part of the logistics project CrossDocking for Makro in 1998. Since then, the company has implemented a number of logistics projects in which crossEDI and B2B communication with clients are key. And yet, these requirements differ in the way the data transfer is performed. HOPI addresses these differences by using IBM Sterling B2B Integrator and GENTRAN: servers interfaced with HOPI‘s SAP system, enabling two
PRODAT – Product data
PARTIN – Party information
DESADV – Despatch advice
RECADV – Receiving advice
INSDES – Instruction to despatch
OSTRPT – Order status report
HANMOV – Cargo/goods handling and movement
INVRPT – Information on inventory movements
INVRPT - Information on inventory status
way communication via the eXite Business Integration plat
form or directly via various communication protocols.
n Exchange of article master data and information about partners, including clients
n Management of merchandise received at the warehouse from individual production sites
n Control of the delivery of goods to clients
n Control of internal goods operations within the warehouse
n Information about the inventory
The communication ensures a complete twoway exchange of data, giving clients a full picture of the logistics service provider’s processes in their information system.
“We start the communication process by exchanging key data on our instock products using PRODAT or PRICAT messages. These allow us to identify individual items by GTIN codes and obtain key information on all levels of packaging, from consumer units to pallets. This information helps us with our logistical operations, including information on dimensions, weight, required shelf life from delivery, handling, and storage,” says Michal Durda, Senior IT Analyst at HOPI Holding.
Clients have an up-to-date overview of their inventory at HOPI
HOPI warehouses inform their clients about deliveries of goods via the DESADV message – either in standard or pal
letized form with an SSCC code, e. g., for companies including Makro, Albert, and Rohlík. The despatch advice also contains information about batches and the products‘ expiration dates. After confirming receipt, client receive a receipt confirmation – the RECADV message – which allows them to update their inventory in HOPI.
Complex logistics management
By exchanging HANMOV and INVRPT messages, HOPI clients can manage all warehouse operations, including copacking. These client notifications provide realtime information on the movement of goods, and the creation of the INVRPT status report enables a complete overview of the inventory. This EDI communication implementation allows clients to manage all logistics operations including less common ones such as returns.
EDI implementation is a plus for everybody
The introduction of EDI communication for more than 25 logistics projects at HOPI has made the management of logistics services easier than ever. With hundreds of messages exchanged daily, this fast and errorfree electronic communication system is an essential element for anyone looking for an efficient solution. Clients can now track all logistics operations directly in their information systems. For large multinationals, this means consistent communication with their logistics suppliers in different countries.
www.hopilogistics.eu
HOPI
HOPI, a family business founded in 1992 by František Piškanin, has grown to become one of the most important logistics companies in Central Europe. Today, it has operations in five countries, employs over 5,000 people and owns more than 1,000 vehicles, taking care of complex logistics processes for major clients such as Makro, Metro, Albert, Tesco, Billa, and suppliers including Nestlé, Procter & Gamble, Unilever, and Mondelez, among others. These companies use EDI communication with HOPI to control logistics processes based on GS1 EANCOM or GS1 XML messages.
FITNESS AND FUN
Each and every month, KOMPAN designs, manufactures, and installs more than 1,000 playgrounds or outdoor fitness areas in 90 countries.
While the company installs its own playground and fitness equipment in 30 countries, it entrusts carefully selected highquality agents and partners with this task in other countries. On average, a new playground or fitness area is set up every 44 minutes.
Exercise and fresh air are natural partners
The urbanization of the 1970s entailed, among others, an increase in the number of children attending kindergartens. This went hand in hand with efforts to develop children‘s basic skills and physical, social, cognitive, and creative abilities. Therefore, KOMPAN decided to build a team of children‘s experts – the KOMPAN Play Institute – whose goal was to develop products for children‘s development. Abstract product lines, such as Moments Story Makers, encourage children to explore the world of imagination while facilitating role play and fostering social skills.
Effective logistics is unthinkable without EDI
When designing, building, and assembling playgrounds for children, effective communication with the business partners
who ensure the transportation of the equipment to the exact location is key.
“Currently, we use software for EDI communication that we have installed and operate in our own infrastructure. The software is no longer supported or updated and does not run on the latest operating systems. Which is why we needed to transfer EDI communication to an external provider,” says Tomáš Zich, Production ERP Manager at KOMPAN Czech Republic s.r.o. As a result, Mr. Zich turned to EDITEL for assistance. Among other things, the new software enables the creation of specific EDI messages IFTMIN (transport instructions) and IFTMCS (confirmation of transport instructions), which are transmitted to the logistics company. Ultimately, the main task was to ensure this existing exchange of business documents that simplifies and accelerates the suppliercustomer relationship was replaced by a new, modern, and less complex EDI solution.
“Nowadays, there is no need to maintain and develop such software on your own when you work with EDITEL as a partner,” says business consultant Jan Kouba. “In this case, the eXite PRO platform is a fullfledged EDI solution offered
as a service with minimal requirements regarding the client‘s infrastructure,” he added.
“To address the needs of KOMPAN Czech Republic s.r.o., we ultimately found a mediumsized solution to be the best choice, offering the necessary range of functions and more than sufficient performance for a large distribution node at an attractive price,” Viktor Petráš, Director of Sales and Marketing at EDITEL, explained. Currently, the partners exchange about 10,000 messages per month, but the proposed solution can be easily scaled and expanded to include other business documents such as despatch advices or invoices. “Next time you walk by a children‘s playground, remember that it could have been made a reality with the help of an EDI solution from EDITEL,” says business consultant Jan Kouba.
www.kompan.com
Kompan
Kompan is a world leader in the production of outdoor playgrounds and outdoor fitness equipment. The name “Kompan” is Danish and means companion or lifelong friend (similar to Kumpán in Czech). Playgrounds are closely linked to every child‘s development. The KOMPAN Fitness Institute works with universities to develop products that have a positive impact on physical health.
At the public level, a healthier community makes more economic and environmental sense. Kompan‘s family business and partnerships with top executives enable the company to make the best longterm decisions for visitors, clients, partners, and employees, and most importantly, to look out for and promote the welfare of children.
DIGITALIZATION NEEDS CLEAN SOLUTIONS
This includes, among others, the successful implementation of an electronic invoicing process and, just recently, the implementation of a supplier portal for handling ISS Austria‘s “taste‘njoy” employee catering business as an addition to the integrated EDI solution. In the interview below, Erich Steinreiber, CEO of ISS Austria, and Harald Denk, Head of Country IT at ISS Austria, talk about the importance of corporate digitalization and about working with EDITEL.
Erich Steinreiber, CEO ISS Austria
How relevant is digitalization at ISS?
Steinreiber:
The global ISS world aspires to become the market leader in digitalization in facility management, which is also the focus of our group strategy. We have a clear commitment to make investments this area. Our goal is to set specific trends while better serving our global customer base. In Austria, too, we
want to become more digital, but with a focus on the interplay between people and technology.
Where do you see opportunities for taking further steps towards digitalization in your industry?
Digitalization opens up many new options for us, which ulti
mately creates opportunities for growth. We need to find out where it really makes sense for us to pair the work done by people with digital technologies.
What do you see as the biggest challenge here?
The biggest challenge here is certainly motivating employees: we need to ask ourselves how we can improve people‘s skills so that they are not afraid to rely on new technologies or use them to communicate. This is something we need to take one step at a time. All it takes is human will because the possibilities are already there.
EDITEL has been supporting ISS Austria as an EDI partner in the digitalization of processes for around eight years.
Harald Denk, Head of Country IT, ISS Austria
How would you describe the collaboration with EDITEL?
Denk:
EDITEL has become a very important partner for us, especi ally in the area of interface issues. All joint projects to date have been implemented extremely swiftly, which is not always a matter of course, especially in the IT sector. The experts at EDITEL are highly knowledgeable, especially when it comes to the hospitality industry.
It is a great asset for us that EDITEL‘s employees also know a lot about ERP systems such as Delegate (hospitality ERP system). Since true experts are involved, they can make projects happen in a short period of time.
How important is EDITEL as an interface between you and your business partners?
EDITEL is THE reliable hub between us and our suppliers. While we might be able to solve this with servers we set up ourselves, we lack the necessary expertise as well as the stability of the solution. EDITEL offers exactly what we need: we receive 24/7 assistance by true experts in their field in a highsecurity data processing center, which is something we highly appreciate. After all, we and our partners depend on this chain working at all times. For example, in the early morning hours we order the meat that we want to cook for lunch. If there was a break in the supply chain, we wouldn‘t be able to cook lunch. This means that to a certain extent, we are dependent on this service. So far, we have really done very well with EDITEL as our partner.
Do you have initial feedback from your partners regarding the supplier portal?
from our internal customers (which in our case is the purcha
sing department).
What do you particularly appreciate about EDITEL?
First and foremost, it is certainly their flexibility! For example, projects such as the supplier portal cannot be planned in detail in advance. This is an ”agile framework“ where certain specifications exist, but they are defined as you go. In this respect, EDITEL proved to be very flexible and uncomplicated right from the beginning. And the great thing about it is that everything stays on budget!
Do you see further potential for EDI at ISS?
The catering business is now largely covered. A great option would be to expand the ”technical services“ area. This means, for example, connecting large suppliers of electrical or installation items who are already familiar with EDI.
If EDITEL were a city in Europe, which one would it be and why?
A city where you feel good, safe, and at ease. Probably somewhere in the south, where there is a certain closeness and warmth and where people understand each other. I think it might be a city on Lake Maggiore or Lake Garda.
EVERYTHING UNDER CONTROL …
… with control cabinets by the world‘s leading system supplier Rittal. The collaboration with EDITEL, whose team recently connected the first clients to EDI for Rittal, also went off to a successful start.
Digitalization is anything but a foreign concept for Rittal, as evidenced by the company‘s highly engineered product portfolio: it includes configurable control cabinets, intelligent cooling systems, power distribution systems, machines for control cabinet processing and wire harnessing as well as innovative IT solutions ranging from IT racks to modular data centers. With all these products and solutions, Rittal focuses primarily on providing the very best support for its clients‘ value chains and processes while ensuring the highest possible level of security. If you think about it, this is actually exactly the same goal pursued by EDI technology. It is no coincidence that Rittal has been using this technology in serial production for more than 15 years. Previously, the internal IT department in Germany exclusively managed these processes. Since the total of connected clients now amounts to 30, the department has reached its limits and Rittal Austria turned to EDITEL as an additional EDI service provider for the implementation of additional connections.
The bottom line of the first jointly implemented project, according to Julia Svoboda, who is responsible for EDI processes at Rittal in Austria in the area of organizational development: “This was the fastest and most straightforward EDI connection I have ever experienced!” she said.
A reliable basis
In addition to getting new clients connected swiftly, the priority for Rittal is ultimately on wellfunctioning ongoing EDI operations, because as Ms. Svoboda put it, this “not only ensures errorfree order processes, but also saves an enormous amount of time. This allows our staff to fully focus on customer service.” According to Ms. Svoboda, the fact that everything went so smoothly even with the very first client connected by EDITEL is primarily “a result of our good teamwork. The team at EDITEL stands out for its high subjectmatter expertise, but above all for maximum reliability – which, as we know from experience, is unfortunately not always a matter of course these days.” This is certainly a good basis on which Ms. Svoboda intends to build in the future: “Our clients are only gradually converting their ERP systems, which means that we also have a long way to go when it comes to EDI. We certainly want to continue this journey with EDITEL.”
www.rittal.com
Rittal
IN BRIEF
n Support for EDI connection of clients
n The first major client was successfully connected within a few weeks
n Project coordination: ongoing coordination with Rittal‘s inhouse SAP and clients
n Used message types: ORDERS, ORDRSP (DESADV and INVOIC to follow)
n Assistance and support during the entire project cycle
Rittal, headquartered in Herborn, Hesse, Germany, is a leading global systems provider for control cabinets, power distribution, climate control, IT infrastructure, and software & service. System solutions by Rittal are used in more than 90 percent of all industries worldwide, such as mechanical and plant engineering, the food and beverage industry, and the IT and telecommunications sectors. Founded in 1974, the subsidiary Rittal Austria has grown to include four locations in Vienna, Linz, Graz, and Lustenau.
DR.MAX: SO MUCH MORE THAN JUST DRUGS
To ensure that everything works smoothly and that pharmacies receive sufficient and timely supplies, several players and employees must be involved in the entire process.
Dr.Max moves with the times and modernizes
“It is with respect and pride that we look back at our past and how we have mastered past challenges. We have more than 2,000 employees whose work we value very much, and we are happy to provide highquality healthcare in all regions of Slovakia. It is imperative that we make progress in other areas as well, especially in the automation and digitalization of business processes. All pharmacies are independent and process a large number of incoming invoices on a regular basis. This is why we have chosen to work with EDITEL. EDITEL is active in the same countries as Dr.Max and can be a strategic partner for us in the entire Central European region in the future,” says Juraj Bóna, Director of Finance at Dr.Max Slovakia.
Štefan Sádovský, CEO of EDITEL SK&CZ, adds: “In our initial meetings, we discussed how the entire process works from ordering to billing at the pharmacies. In the pharmaceutical sector, the PharmINFO system has been used for years, especially for processing electronic orders and despatch advices as well as for monitoring current stock levels. Deliveries from pharmaceutical distributors therefore mainly involve the automated processing of invoices, but this is an area that is currently barely covered. In Dr.Max‘s case, roughly 70,00080,000 consolidated invoices are generated annually and due to the expansion of the pharmacy network, that number is expected to increase by about 10% every year.” Mr. Sádovský therefore sees great potential for the automation and digitalization of invoicing processes in the pharmaceutical industry, especially for Dr.Max.
EDI makes many things easier
Dr.Max not only sells pharmaceutical products in its pharmacies, but also thousands of goods through its online store, sourced from about 300 different suppliers from various industries (FMCG, electrical, drugstore, etc.). For these suppliers, Dr.Max wants to cover the entire purchasing and logistics process from electronic ordering to automated batching (despatch advices and receipts) to completely paperless invoicing with an EDI solution by EDITEL. EDI is the most universal tool for connecting such a large number of suppliers. Many of these suppliers from other industries have been using EDI for a long time (drugstores, electronics, sports, etc.), meaning that Dr.Max can start exchanging data with them immediately. “This EDI solution will significantly pare down the workload at the accounting department at Dr.Max and other departments involved in the entire process by minimizing manual interventions and reducing the error rate,” says Štefan Sádovský.
www.drmax.eu
Dr.Max
The history of Dr.Max pharmacies dates back to 2006. Since then, the company has successively opened new stores and introduced innovations to the pharmaceutical industry. In 2009, the company launched a certified private label, which now includes more than 300 products. In 2012, the new corporate headquarters opened in Bratislava. And in 2014, a new online store was launched with the aim of offering products online 24/7. Currently, the company operates a network of over 350 pharmacies and has more than 460 collection points.
Nowadays, pharmacies offer so much more than just drugs. In addition to drugs for the treatment of everyday ailments, clients can also purchase vitamins, dietary supplements, cosmetics, medical aids and even small electronic devices.
“It is imperative that we make progress in other areas as well, especially in the automation and digitalization of business processes.”
Juraj Bóna, Director of Finance, Dr.Max
SWITCHING FROM WEB EDI TO AN INTEGRATED SOLUTION
When does it pay off to switch from Web EDI to an integrated solution?
This problem will sound very familiar to successful business people and experienced executives: as your business grows, you constantly need to add new resources while at the same time professionalizing your processes.
“Web
You might have taken the first step towards electronic order processing or invoicing, but you might be asking yourself: what is the ideal point in time to fully automate all processes, i.e., to switch from an online portal to an integrated solution? Even though Web EDI is the perfect entrylevel solution for
SMEs for semiautomatically processing orders, invoices, or despatch advices with their clients, at some point things must be taken to the next level. Read this article to find answers to a wide range of questions regarding the expansion of your EDI repertoire.
What is the difference between Web EDI and integrated EDI solutions?
Electronic Data Interchange
(EDI) via an online portal can be an easy first step into the world of EDI. However, as the amount of business partners or the document volume increases, it usually makes sense to switch to an integrated solution. While Web EDI can be ac
EDI is the perfect entry-level solution for SMEs for semi-automatically processing orders, invoices, or despatch advices with their clients.”
cessed from any PC with Internet access, it has no integrated connection to your ERP system. However, such a connection is the prerequisite for automatically handling all resource planning processes directly in the ERP system, using a single import/export interface for all business partners. Experts can help handle different data formats and communication channels.
Are there different implementation options?
Depending on your company’s IT infrastructure, two implementation options are available: an inhouse solution or a managed EDI service (also known as “EDI in the cloud”). For the second option, EDI service providers offer a “we got you covered package” that includes all operational processes, connecting new partners, periodic updates, and customer support. At EDITEL, we also believe in having your data processed in Austria, which is good for the regional economy.
Is the sales volume the right indicator for considering an “EDI upgrade”?
To some extent, an increasing sales volume is a sign that existing EDI resources should be reviewed and upgraded if necessary. After all, higher sales usually result in more invoices and other business documents. But another important decisionmaking criterion is the number of business partners that a company would like to reach via EDI.
Should the number of clients be the decisive factor?
The more business partners you have, the higher your clients’ need for EDI will usually be. Sometimes, document volume is the decisive criterion. While handling two orders per week is not a big challenge, if the number increases to twenty, the required effort is far greater, and it might be a good idea to consider having a direct EDI connection via ERP. And ultimately, it is also a question of innovation mindset if a company still wants to record data manually in 2021, even though there are costefficient alternatives.
What is the document volume that calls for a system update?
There is no specific number. For example, if you suddenly went from exchanging 50 invoices per month with different business partners to 500, this would be a clear indication that you should switch to a fully integrated option. Generally speaking, in time of increasing digitalization, it is safe to assume that clients will increasingly expect the use of EDI. Ultimately, investing in an improved EDI solution is investing in the future. You can ex
pect the return on investment to happen soon because an improved EDI system requires fewer human resources while in
creasing quality and avoiding mistakes.
How much will I save by having a “full” EDI system?
Remember: it usually does not make a difference to your business partners whether you enter data for a despatch advice or an invoice manually via an online portal or if data is sent directly from the ERP system. This is by design. What does count are data quality and smooth workflows. While some data need to be recorded manually when using a Web EDI portal, this is not the case for integrated EDI solutions. This frees up resources that are especially valuable for growing companies and that they can use to focus on their core business.
How much does it cost to switch?
For integrated solutions, there will be expenses for the initial implementation. Experience shows that these costs usually pay off quickly. As far as we know, none of our clients has ever regretted switching to an integrated solution.
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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.
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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.
