EDITEL Journal EN 1/2020 by EDITEL Group

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EDITORIAL

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Paperless times

Never before has the word „paperless“ been as important as it has been in recent months. People had already been used to having access to relevant documents and Gerd Marlovits printing them at their convenienCEO ce. The transition to working from home, where perhaps a low-performance home office printer or scanner or even none at all were available, heightened the need for “paperless work.” This is especially true for work directly tied to ensuring liquidity, e.g. invoicing for SMEs. Read our lead article on page 1 to learn about the opportunities inherent to EDI.

TELEWORKING: ARE SMEs SAYING GOODBYE TO ALL THAT PAPER? The use of paper documents is still common practice, especially at SMEs (small and medium-sized enterprises). This creates a huge challenge in these newfound times of teleworking also because correspondence is sent to business addresses. “Currently, many businesses are rethinking the paper-based processes they had relied on for years. What they are looking for are mostly easy solutions for digitizing invoices,“ said Gerd Marlovits, CEO of EDITEL. Automatically generated PDF invoices and online invoicing portals are oftentimes the first step into the world of Electronic Data Interchange (EDI).

hen two big companies do business with each other, invoicing is quite easy because they rely on Electronic Data Interchange (EDI) via the international data hub eXite. ”One case in point is that digital documents are transferred automatically into the accounting system where they can be processed by staff members. This is usually a location-inde-

pendent process, which can also be done at people‘s home offices since many companies have secure VPN access to their systems,“ said Gerd Marlovits, CEO of EDITEL. Things are different at companies that still have paper-based processes. ”To process physical business documents, one obviously needs to be physically present,“ Mr. Marlovits added.

IN BRIEF Reliable data exchange via the data hub eXite www.editel.eu/edi-solutions/edi-communication When are you “EDI-ready”? www.editel.eu/is-it-time-for-you-to-upgrade-your-edisystem

Secure storage and immediate retrieval of business-relevant information www.editel.eu/edi-solutions/digital-archiving

They run the gamut from invoicing to the federal govern ment (page 2), digitalization of in-house pharmacies at veterinary clinics (page 3) to invoicing at a frozen goods manufacturer (page 3). EDI is also an asset when sophisticated approaches such as blockchain technology (page 4) are involved. In addition, EDI solutions are ideal for small and medium-sized businesses who are first-time users as well as for SMEs who have „outgrown“ their Web EDI solution (page 4). The quest for using less paper is palpable across all industries and sectors and we might see progress sooner than expected. Happy reading, Gerd Marlovits

ARTICLES IN THIS ISSUE eleworking 1 TElectronic Data Interchange trumps paper documents n brief IOther news from the EDITEL Group eleworking - Continued 2 TElectronic Data Interchange trumps paper documents XRechnung Electronic invoices to the German federal government CZ joins EtheDITEL Automotive Industry Association of the Slovak Republic TAM 3 AEDIRGEbetween manufacturers of animal drugs and veterinarians EVITA F e-invoicing for the quick-freezing industry technology 4 Bforlockchain logistics processes EDI W Theebbackbone of business growth

EDI services and benefits for all industries www.editel.eu/industries 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, Slovak, Hungarian and Croatian for our international clients. To download the Journal as an epaper, please visit www.editel.eu/ editel-journal. If you have any suggestions, please contact us at info@editel.at

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Automated invoices via PDF In the wake of the corona crisis, digitalization as a prerequisite for teleworking has moved into the center of attention in recent months. Business processes might come to a halt, orders might not get processed or invoices might not get issued because employees aren’t in the office – a situation that may continue even after the crisis. ”That’s why it is hardly surprising that many companies are trying to turn vice into virtue, meaning that they are trying to digitize paper-based processes as swiftly and efficiently as possible so that documents can be accessed from anywhere. Invoice recipients, for example, are relying more than ever on PDF invoices instead of hard copies,“ said Mr. Marlovits. As an alternative, online portals (so-called Web EDI portals) are used,

especially to give SMEs the opportunity of accessing orders, viewing invoices, and sending them directly to their clients. This helps avoid late payments while increasing liquidity on the supplier side and ultimately ensures a smooth supply chain.

tion. ”Simply said, this includes receiving, accepting, and authorizing invoices as well as archiving them as legally mandated. We can build on existing interfaces and manage the digital invoicing flow as desired by the client,“ Mr. Marlovits added.

EDI integration allows for structured data exchange

The right combination makes all the difference

“E-mailing PDF invoices instead of sending paper invoices is definitely a great first step towards a digital invoicing process. Smart solutions are available which allow users to track the transmission process, among other things,“ said Mr. Marlovits. However, as a next step, it makes sense to exchange structured data, meaning data in EDI formats, in order to benefit from other advantages associated with full integra-

XRECHNUNG: DEADLINE FOR ELECTRONIC INVOICING TO GERMAN AUTHORITIES REMAINS UNCHANGED*

For government contractors (suppliers and invoice issuers), the most important deadline for e-invoices submitted to public authorities in Germany is 27 November 2020*. After then, the only legally accepted format will be the XRechnung format that includes only structured data. The easiest, fastest and most secure way of

BRIEF OVERVIEW: E-INVOICING TO GERMAN AUTHORITIES M andatory for service providers effective 27 November 2020*, earlier voluntary start is optional A pplies to jobs from government agencies of EUR 1,000 net and higher I nvoice data must be converted to the XRechnung format I nvoice submission to the authorities handled by EDITEL

doing this, especially if transaction volumes are high, is the fully automated transfer via the PEPPOL network that will be supported by all public authorities in Germany. EDITEL offers its clients access to German authorities via PEPPOL. Upon request, we will also take care of invoice checking, conversion to XRechnung format, and automatic invoice transfer. “Austrian businesses should now make sure they get technical access to the new electronic XRechnung system, or else the German federal government will no longer accept their invoices after 27 November 2020*,“ said Gerd Marlovits, CEO of EDITEL. n * As per currently available information

editel.eu/edi-solutions/ e-invoice/xrechnung

The decision for an invoicing portal, PDFs via e-mail or a fully integrated EDI solution will depend on the client‘s environment and needs. ”One thing is for certain: in order to have all business partners on the same digital page, a combination of different approaches will be the way to go,“ said Mr. Marlovits. Any retail company‘s supplier structure in itself offers a wide range of options. The situation is similar for lar-

ge manufacturers who supply many clients in different industries. ”A hairdresser will have different needs than a chain of drugstores. The right combination makes all the difference. Ultimately, all approaches complement each other to form a comprehensive concept,“ said Gerd Marlovits by way of summary. Whether it is a result of the recent crisis or a general trend towards digitalization: the paperless office, which admittedly will never be fully paperless, is gradually becoming a reality. EDI as an ”enabling technology“ will play an increasing important role, not only in times of teleworking. n editel.eu

EDITEL SK IS NOW A MEMBER OF THE AUTOMOTIVE INDUSTRY ASSOCIATION OF THE SLOVAK REPUBLIC

e are pleased to announce that EDITEL SK is now a full member of the Automotive Industry Association of the Slovak Republic (ZAP SR; see box). ”Our main goal is to shape the future economic development in such a way to ensure that priorities, tendencies and competitiveness in the Slovak manufacturing industry are aligned with global economic events. We are happy to welcome our new member EDITEL, an international service provider in the field of Electronic Data Interchange that specializes in supply chain processes and related services for clients in all industries, including the automotive sector,“ said Viktor Marušák, manufacturers and subcontractors division at ZAP SR. Mr. Marušák added: ”In recent years, EDITEL has been very active in the automotive sector and ZAP SR membership is the next logical step. Upcoming developments such as e-mobility, digitalization, autonomous management, and the reduction of CO2 emissions translate into new challenges for the automotive industry. The same is true i.e. for global invoicing in the field of EDI. We believe that EDITEL’s expertise and experience on the CEE market will be a great asset for ZAP SR.“ ”This step opens up many new possibilities for growth and digitalization in the automotive industry. EDI is a key component of successful automotive manufacturing processes that focus on automated processing. With

a single flexible platform, we can communicate with our business partners, monitor the flow of exchanged documents, speed up the production cycle and ultimately ensure smooth and transparent JIT (just-in-time) or JIS (just-in-sequence) operations,“ said Štefan Sádovský, CEO of EDITEL SK. n zapsr.sk/english/

ABOUT ZAP SR The Automotive Industry Association of the Slovak Republic (ZAP SR) is a voluntary association of legal entities (such as businesses, cooperatives, and other entities) that work in the automotive industry. It was established on 22 June 1993 in Bánovce nad Bebravou when the founding agreement was signed by 14 organizations. As of today, the association unites 161 legal entities, maintains multiple domestic and international contacts, and cooperates with other like-minded associations.

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IN BRIEF I mplementation of the legal requirement that came into effect on 1 January 2019 that required veterinarians to operate their in-house pharmacies electronically

se of the EDITEL platform for comprehensive U handling of electronic despatch advices for veterinary clinic’s electronic in-house pharmacies ompilation of best practice examples for the C entire industry (standardized despatch advices including batches, expiration dates, identifications) RGE TAM and EDITEL are the main points of A contact for the rollout

A PAW-TASTIC SOLUTION The EDI service eXite is the platform of choice for the automated exchange of despatch advices between manufacturers of animal drugs and veterinarians.

ince 1 January 2019, veterinarians have been required to run their inhouse pharmacies electronically. The objective of ARGE TAM (see box) was to find a standardized and cost-efficient solution for everyone in the animal drug industry including retailers, manufacturers, and resellers that would be accessible to everybody in the industry (veterinarians, pharmaceutical companies, and software providers for veterinarians). For the implementation of such a solution, ARGE TAM turned to Electronic Data Interchange (EDI) and the professional support of EDITEL.

To find a straightforward yet efficient solution, ARGE TAM relied on the entire range of services provided by EDITEL: creating an industry standard with all stakeholders (manufacturers, software providers for veterinary clinics), using an independent and centralized exchange hub as well as the additionally needed technical services (data integration). This solution allows pharmaceutical companies to automatically send electronic despatch advices to veterinary clinics in a standardized format, including all relevant information. It does not matter what systems the manufactu-

ring partners and the veterinary clinics use. EDITEL ensures full compatibility among all participating partners across the entire industry. Arno Edlinger, the president of ARGE TAM, is positive that all partners benefit from this solution: ”Veterinary clinics can incorporate product-relevant batch numbers or best-before dates at the click of a mouse, while it helps manufacturers comply with legal requirements more efficiently,“ he said. Many manufacturers (including Boehringer-Ingelheim, MSD Animal Health, Virbac, Covetrus, Bayer, Jacoby GM Pharma) and veterinarians are already successfully using this

ABOUT ARGE TIERARZNEIMITTEL In 2003, retailers, manufacturers, and resellers in the Austrian animal drug industry teamed up to create the working group “Arbeitsgemeinschaft Tierarzneimittel (ARGE TAM).“ This was the first-ever joint platform for all businesses in this industry. The working group‘s goal is to preserve the interests of its members in all industry-related issues. ARGE Tierarzneimittel places special emphasis on coordinating its public statements, bundling its consulting expertise, and giving joint responses to public authorities.

solution, which is available for users of veterinary software products Jason Network, Proagrar, CHD Electronic Engineering, Net4vet, and VetShark. n wko.at/branchen/handel/ arzneimittel-drogerie-parfuemerie/information_arge_tierarzneimittel.html

E-INVOICING IN THE FOOD INDUSTRY F EVITA HUNGARY Zrt. is one of Hungary’s largest companies in the quick-freezing industry. Based in Székesfehérvár with approximately 200 employees, the company keeps its competitive edge by evolving on a continuous basis and by implementing marketing activities. The company decided to switch to fully electronic invoicing processes as part of this strategy. On average, FEVITA issues between 19,000 and 20,000 invoices per year to more than 500 clients. Prior to the implementation of the project, the food company used to issue those invoices the traditional way, i.e. in hard copies, which is an expensive and labor-intensive process. Also, it was not in line with the ideal of a paperless office that helps protect the environment. The company’s joint project with EDITEL Hungary started in the fall of 2019 and was concluded in January 2020. During the process, two types of invoicing options for clients were developed. One option is the

connection to the EDI system, in which case the data exchange takes place directly within the system. The second option – for all the smaller customers who do not use EDI – involves downloading the invoice by clicking on a link provided in an e-mail (PKI – electronically signed). Judit Szemerei, CFO at FEVITA, recalls the early difficulties: “One of the biggest challenges was invoicing in multiple modules. This is why we changed the methodology later on in the process (close to the deadline) because we found it easier to provide the invoice image from the ERP system with all its data than to let the business partner´s system be prepared for creating several types of invoice images,” she said. While some clients initially struggled to embrace the new system, in just a few weeks it allowed for much swifter and more transparent business transactions, saving the company both time and money and significantly lowering employees’ workload. Thanks to e-invoicing, the sales-

related document is sent to business partners sooner, which in turn means that the data is processed faster and more efficiently. It also speeds up invoice authorization processes. Since significantly less paper is used and printers are used much less frequently, the office overhead is considerably lower. Ultimately, sending e-invoices is a much more cost-efficient solution than sending invoices in the mail. ”With the use of e-invoicing, a company that issues documents with many positions can save hundreds of thousands of HUF or even millions per year,“ Judit Szemerei added. “EDITEL Hungary was our partner

of choice even before the introduction, and everything worked out beautifully. We knew what we wanted and we got it, the system is up and running and we are very pleased about it,” she said. Looking forward, the company plans to digitize all invoice-related documents (delivery notes, certificates of receipt, etc.) and encourages more people to switch to EDI. “It is yet another step towards more efficient and swifter communication,” Judit Szemerei concluded. n fevita.hu/en

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BLOCKCHAIN IN LOGISTICS Logistics processes are changing at lightning speed and everybody is talking about blockchain. Is it just a hype or the beginning of a revolution? Read the answer to this and other questions in our interview with Alexander Schaefer, CIO at EDITEL Austria GmbH: In your opinion, how relevant is the topic of blockchain for EDI services? Blockchains have been widely discussed for a long time. During the initial hype, blockchains were heralded as the solution to just about everything. It was especially the logistics industry, which is at the core of all supply chains, that was supposed to see a true revolution thanks to blockchains. This hype is now over and the blockchain technology has yet to show us what it can really do. As a leading EDI service provider with many years‘ experience, we know how important it is to put technology to the test in real life and to perform comprehensive analyses and tests. After all, our clients are used to our technology being reliable and 100% functional. For traditional EDI services, we currently see no immediate added value in the use of blockchain technology. However, generally speaking, there might be

potential when it comes complementary services.

EDITEL is part of an initiative called ”Blockchain Initiative Logistik.“ What are its objectives? The ”Blockchain Initiative Logistik“ was created by a group of businesses that wanted to prove that consignment documents could be digitized using blockchain technology. These businesses include LKW Walter, DB Schenker, EY, BVL, GS1, and EDITEL while the Vienna University of Economics and Business provides scientific support. So it is first and foremost a digitization project that relies on blockchain as its underlying technology. As we speak, all shipments around the world are still made with paper consignment documents. This brings about problems typically associated with paper documents, including readability, loss, tampering, and

extended storage periods. In addition, handling such paper documents is complex and time-consuming since paper documents typically pass through many hands.

The ”Blockchain Initiative Logistik“ is currently working on digitizing truck consignment documents with the use of blockchain technology. How is the pilot project going? Early on, we had decided that we wanted to swiftly develop a fully functional prototype in the first phase. We have reached this goal in a surprisingly short period of time. This was possible because our team had a true start-up mentality from day 1. The first pilot shipments were recently carried out and everything went smoothly. We were also happy to receive mostly positive feedback from the drivers because they also struggle with all the paperwork.

WEB EDI IS THE BACKBONE OF BUSINESS GROWTH Web EDI is much more than a solution for a great start into the use of EDI. It is also the perfect backbone of business growth, both when it comes to collaboration with new and existing business partners and the technical infrastructure.

t EDITEL CZ, we are pleased to see that our clients expand and grow their business activities. EDITEL‘s services ultimately play a considerable role in this development. Our services and our support always keep up with clients’ changing needs and requirements. One case in point: in recent years, out of 600 Web EDI users across many industries, dozens have switched to fully automated EDI solutions. Web EDI is the perfect choice for small and medium-sized businesses that would like to take the first step towards the electronic exchange of business documents. However, as their business grows, the number of partners and message types increases, or changes to their ERP system are made, Web EDI users oftentimes ”outgrow“ this service. This is when they usually transition to a fully auto-

mated EDI solution that is truly in line with a company‘s specific needs. For their integration solution, most clients choose either our managed EDI service as an outsourcing option (submIT) or our in-house solution (edisuITe). The latter is incorporated into the client‘s existing IT infrastructure. It is a great choice if ample in-house resources are available. Below are some of EDITEL CZ‘s clients who recently successfully switched from Web EDI to an automated EDI solution: M alewo Havířov: a well-established business specializing in baby articles for the Czech market. A GORA DMT: a company with a wide range of services for manufacturers and suppliers in the field of consumer electronics, mobile and smart home technology, etc.

O VUS-podnik živočišné výroby: a Czech farm with 40 years‘ experience in the production of high-quality chicken eggs. TOP LIGHT: a leading manufacturer and importer of indoor and outdoor lighting on the European market. The driver behind the transition was an increasing amount of EDI communication processes at this company and new technical requirements by its international business partners. EDITEL CZ is proud of helping many companies successfully grow their business. Our clients value our wide range of services, their quality, and availability. n

editel.eu/edi-solutions/ web-edi

What projects are next for the ”Blockchain Initiative Logistik“? In the second phase scheduled to start soon we will switch from pilot mode to regular operations. We are also working on integrating this solution into existing applications and processes used by logistics providers and senders/recipients. In addition, we are getting additional partners on board to make this solution more widely available. The industry has shown great interest in this initiative and we are currently in talks with many interested parties, both on a national and an international level. We expect more exciting developments down the road. n Find the full interview with Alexander Schaefer‘s answers to other interesting questions about blockchain at editel.eu/blockchainin-logistics

IMPRINT ISSUE 1/2020 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: Gerd Marlovits Editorial staff: Daniela Paar, MA, Anja Jung Proofreading : Dagmar Jenner, www.texterei.com Translations: English: Dagmar Jenner, www.texterei.com Czech and Slovak: Martina Pokornà, Linda Stanislavová Hungarian: Adrienn Horváth, Bettina Hernádi-Szekeres 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.