EDITEL Journal EN 2/2022

editelJOURNAL

EDI FOR ALL?

EDI for all?

All it takes is a web-based supplier portal that makes exchanging data with clients a breeze for all participants. ISS Austria shows how it is done.

Hubcaps on the road

Zanini relies on Electronic Data Interchange to ensure that every single cap finds its way to the right car at the right time.

The world in a cup

CAFE FREI is one of Hungary’s most successful coffeehouse chains. Thanks to EDI, its products are now available in grocery stores.

ARTICLES IN THIS ISSUE

EDITORIAL IN BRIEF

One for all, all for one!

What do a small bakery and a global food services provider have in common? They both use the same technology to exchange business documents: EDI. Do you wonder how this is possible given their different technical environments? A supplier portal makes it happen: it incorporates every single business partner into digital business transactions. This allows even the smallest of companies to exchange their orders, invoices, and despatch advices using a computer, tablet, or other device as if they were an international corporation with a fully integrated EDI solution. Read the cover story to learn about the portal‘s user friendliness and the complexity behind it, as exemplified by ISS, one of the largest providers of facility and food services.

The large variety of industries where EDI is used illustrates that it is a technology for everyone: the coffee expert CAFE FREI, the cosmetics producer INGLOT, the packaging company Model Pakiranja, and the international automotive group Zanini all rely on this technology.

On a side note, have you noticed that our EDITEL Journal now has a new look? In an effort to make our customer magazine more reader friendly, we made the format smaller and more manageable and the layout more straightforward. I hope we achieved just that. In the spirit of sustainability, we now also use certified paper produced in a climate-neutral process. Our declared goal is to make the EDITEL Journal “one for all” now and in the future.

Happy reading, Gerd Marlovits

First-time EDI users will probably encounter terms that require a bit of explanation. In this blog post, we would like to highlight a few technical terms that are very important in the context of national and global supply chains.

Mag. Gerd Marlovits CEO

© Petra Spiola

© CAFE FREI

EDI FOR ALL?

Yes, it is possible! All it takes is a web-based supplier portal that makes exchanging data with the client a breeze for all participants.

ISS Austria shows how it is done.

Under the ”taste‘njoy” brand, ISS Austria, the international market leader for facility services, has also been offering premium employee catering since 2017. ISS offers this F&B concept at more than 20 locations throughout Austria, including a restaurant open to the public in Vienna. Last year, for instance, a total of 1.8 million meals were prepared directly on the clients‘ premises. To make that happen, “we need a lot of fresh and high-quality ingredients from selected suppliers,” said Martin Rainer, Category Manager Food & Beverage at ISS Austria. These suppliers are very diverse, which means they also have different IT environments. For the exchange of data – in the catering industry, this is primarily done with the article catalog (PRICAT) – ISS was looking for a solution that fit all needs, “with the goal of communicating with all business partners in a common language,” Mr. Rainer explained. For the company‘s procurement of goods, ISS Austria has been relying on an EDI solution by EDITEL which is directly integrated into its ERP system. This solution was introduced last year. It instantly made it a breeze for ISS

to exchange data with business partners who already had an existing EDI connection. An equally adequate solution for all those suppliers who do not use EDI for technical or financial reasons, mostly because they are small businesses, was found in collaboration with EDITEL: a supplier portal!

Getting on the same page

“A supplier portal makes it easy and cost-effective for every single business partner, whether they are EDI-ready or not, to participate in digital business processes,” said Markus Zens, an application analyst at EDITEL who specializes in the development of such solutions. While the web-based portal is easy to use for suppliers since it only requires Internet access, attention to detail is needed when setting it up. Ultimately, all specific client needs have to be taken into account. According to Mr. Zens, the most important thing is “definitely userfriendliness. This means that the portal needs to be so straightforward and visually appealing that users know immediately where to enter what information.” In the case of ISS, article

Benefits of a supplier portal:

n Ideal solution to reach smaller, non-EDI-ready companies via EDI

n Inexpensive

n Electronic handling of the entire order-to-cash process n User-friendly

n Adapts to the company-specific environment

Screenshot supplier portal.

data were the main challenge: “Every supplier had a different understanding of the item input form, depending on whether the pricing was previously done in kilos, units, or for a bulk pack. This had to be clarified so that suppliers and clients have the exact same understanding of an item‘s price”, said Mr. Zens. This required ISS and EDITEL to make individual arrangements with specific suppliers during project implementation. Drawing on years of experience, Mr. Zens therefore recommends analyzing all processes and ideally standardizing them “before implementing a supplier portal, which eliminates possible mistakes before they happen.” At ISS, executives are positive that the effort pays off: “Once this has been done right, all we have to do is maintain article data,” said Martin Rainer.

How it works

In the first phase introduced this summer, 15 suppliers of ISS Austria started using the new portal, exchanging orders (ORDERS), despatch advices (DESADV), and article catalogs

(PRICAT) exclusively in a digital format. “Our processes are much faster now because all paper handling and related manual entries are a thing of the past,” said Harald Denk, Head of Country IT at ISS Austria, in a first reaction. Mr. Denk is also very pleased with the solution‘s technical background: “Installing and maintaining this portal involves zero effort for our suppliers or us. All data are transferred in a secure environment.” Martin Rainer thinks that the goal, “namely to find a fully functioning solution that all suppliers are happy to use,” was achieved as well. In his opinion, this is ultimately a result of “the good collaboration with EDITEL,” especially “the entire team‘s subject-matter expertise and flexibility,” as he emphasized. ISS Austria has already set more goals for the future: the company plans to exchange invoices (INVOIC) via the supplier portal and is considering connecting other business areas, including suppliers from its facility management business.

www.issworld.com

About ISS Austria

ISS Austria is the market leader for facility services. With roughly 7,000 employees, the company offers a comprehensive portfolio of services for office and industrial buildings as well as airports and healthcare facilities in the following areas: cleaning (hygiene solutions), technical (building services), food (employee catering), security (security solutions) & support services (reception and internal support), workplace (workplace design), and IFS (integrated facility services). In 2021, ISS Austria achieved roughly EUR 280 million in sales at a total of 13 locations.

© EDITEL Austria

© ISS Austria

f.l.t.r. Martin Rainer, Category Manager Food & Beverage and Harald Denk, Head of Country IT

EDI IMPLEMENTATION AT INGLOT

INGLOT is a Polish cosmetics manufacturer with a wide range of cosmetics available all over the world. Since 2019, the company has been successfully using EDI communication implemented by EDISON SA.

Launch of EDI communication

In 2019, INGLOT started working with EDISON SA in an effort to implement Electronic Data Interchange to allow for communication with its business partners. The client‘s in creasing expansion into foreign markets made this move quite necessary. INGLOT products can be seen more and more frequently in numerous drugstores and retail chains in Poland and abroad. Larger business partners require standardized files and efficient communication and ultimately see EDI as a key business development tool. The joint project included the following activities: launching EDI communication, especially in the field of foreign connections, integration with the ERP system through the use of Connector 3.0, and implementation of the translation maps service. How exactly was the implementation done?

Translation maps

The process began with the integration of EDI into the ERP system. The fact that a reputable cosmetics manufacturer was using a proprietary file format turned out to be quite a challenge. This required adjusting to the client‘s environment and developing appropriate translation maps. Simply put, Electronic Data Interchange translation maps allow files to be automatically converted from format A to format B. As a result, the transfer of documents from recipient to recipient and vice versa is seamless, and converted files are accepted by both parties‘ systems. The EDI operator is also responsible for document validation, i.e., the technical verification of sent messages. As a systems supplier and EDI operator, EDISON completed and implemented translation maps for Polish and foreign clients of INGLOT for all defined types of messages. This makes the exchange of documents in appropriate formats smooth, quick, and disruption-free.

ERP and Connector 3.0 integration

For Electronic Data Interchange between INGLOT and its business partners, the Connector 3.0 app is used. The app enables data transfer between entities. In other words, communication mechanisms are implemented with any business partner, regardless of what EDI system they employ and what communication channels and message formats are used. Importantly, the Connector app is in no way “tied” to the INGLOT system. This is crucially important for the security of confidential data or risk of hacking attacks. And most significantly – the EDISON app allows INGLOT employees and its business partners to work using their own IT systems.

–iStockphoto.com

© fizkes

administration, accounting, logistics, and sales teams.

Benefits

In summary, the following benefits were achieved: meeting requirements of business partners, optimization of the production process, cost reduction, shortening of shipping and order processing time, elimination of the risk of errors, and guaranteed data processing security. During several years of collaboration, no problems in the field of EDI communication have occurred. The project is continuously developed, and currently focuses on the brand’s local audiences.

www.inglotcosmetics.com

About INGLOT

One of the most popular Polish cosmetic brands, INGLOT was established in 1983 in Przemyśl. The company bears the name of its founder – Wojciech Inglot. Currently, makeup enthusiasts can find INGLOT products in nearly 90 countries and over 800 locations worldwide – from London‘s Oxford Street and Times Square in New York to the Grand Canal Shoppes in Las Vegas. The brand pairs modern technology and research with intense colours. The INGLOT portfolio includes products known to have revolutionized the approach to makeup, such as the unique Duraline or one of the world‘s favorite gel eyeliners. The brand is on the PETA list of cruelty-free companies. Vegan products, certified by the internationally recognized organization V-Label, make up over 60 percent of its product range.

Based in the Czech city of Kadaň, Zanini produces radiator grilles, brand emblems, trim strips, and hubcaps in a total of nine countries on three continents. As of today, every fourth hubcap sold worldwide was produced in one of the factories operated by the Spanish family-owned group. The company is a supplier to almost all carmakers in the world. Michal Drozdík, IT manager at Zanini in the Czech Republic, comments on the use of EDI: “Each and every day, we process an extremely large amount of information, which is why we need to avoid any unnecessary data entry. After all, any manual intervention represents a potential source of error. Therefore, a strong partnership for Electronic Data Interchange (EDI) is key for us.”

According to Mr. Drozdík, the business partners‘ many different specifications were quite a challenge: “Some of our business partners use Web EDI solutions, while others communicate via VAN connections, and yet others choose to integrate EDI solutions into their ERP system.” In addition, the exchange of business data in the automotive industry is particularly complex. At Zanini, for instance, roughly 60 different EDI message types are exchanged in EDI operations with 20 business partners, including electronic delivery forecasts, delivery call-offs, and invoices.

Making EDI systems compatible

Zanini CZ has been working with EDITEL in the area of Electronic Data Interchange for many years. For example, the flow of information between Zanini and car manufacturers such as Toyota, Hyundai, Kia, Nissan, Stellantis, Renault, and Suzuki is already fully automated and runs via EDITEL. In order to handle logistics processes more efficiently with presuppliers as well, the Czech company intends to step up its collaboration with EDITEL.

EDITEL‘s CEO Gerd Marlovits still sees significant potential for taking business relations to the next level: “Zanini, with its many customers around the world, exemplifies the great benefits EDI has brought to the automotive industry,” he said. Given the current dynamics in the automotive sector, these two partner companies believe they are well equipped for all exciting tasks ahead. Product cycles in the automotive industry are shorter than ever and the shift towards e-mobility means that ever-new generations of vehicles need to be integrated into existing production structures. As a result, partners have to be connected to the supply chain on an ongoing basis. EDITEL has many years of international expertise doing just that. “Together with Zanini, we want to actively shape these emerging and increasingly complex ecosystems. At the same time, ensuring reliable Electronic Data Interchange is a top priority for us,” Mr. Marlovits emphasized. www.zanini.com

About Zanini

Zanini is a family business and was founded in Spain in 1965. The company specializes in the development and production of plastic components for the automotive industry and is now a world leader in the production of plastic wheel covers. The production facility located in Kadaň, Czech Republic, was built in 2006 and is state of the art. It meets all quality requirements as well as the current European standards and environmental protection specifications.

Every year, Zanini produces roughly 90 million hubcaps for the global automotive industry in the Czech Republic. The Spanish family-owned business relies on Electronic Data Interchange to ensure that every single cap finds its way to the right car at the right time.

THE WORLD IN A CUP –CAFE FREI AND EDI

Many people cannot do without coffee. CAFE FREI is one of the most successful coffeehouse chains in Hungary and wanted to bring its specialty coffees to supermarket shelves. The company achieved this goal with the help of EDI.

What sets CAFE FREI apart is the fact that it offers high-quality coffee specialties from all over the world at affordable prices. The company‘s products are available at their cafés as well as at large retail stores, allowing consumers to enjoy the “taste of the world” in the comfort of their homes. Therefore, it was key for the company to supply large supermarket chains, which in turn required the company to go digital. Up to this point, CAFE FREI sent orders and invoices the traditional way by e-mail and mail. “Since we implemented EDI, a lot of things have become easier,” said Mariann Holman, administrative manager at CAFE FREI. “As we expand, we are seeing the need to implement an Electronic Data Interchange system. EDI enables us to provide quick and reliable services to our partners.”

Another reason for the decision to digitize corporate processes was the increasing expectation from business partners to use EDI.

The first step towards digitization was the collaboration with kifli.hu, who is a partner with its own system. Retail chains Auchan and SPAR soon followed, and the company is currently in the process of introducing the system at TESCO retail chain. This responds to the need to record data in the company‘s own system as well as in the partner‘s system.

CAFE FREI understood that making processes more efficient is key. This is where EDITEL came in. Orders and invoices are now exchanged between business partners exclusively via EDI, making manual entries redundant.

Support by EDITEL

CAFE FREI and EDITEL Hungary started working together in February 2022. The company uses the Navision ERP system and EDI was integrated into it to allow for seamless communication.

Ms. Holman had years of experience with EDI systems and is very pleased that she was able to convince her colleagues that the transition was worth the effort. Mariann Holman on working with EDITEL: “We received a lot of help from EDITEL right from the beginning, for example for getting a GLN number,” she said.

Today, CAFE FREI uses the EDI communication solution by EDITEL for data exchange with the company‘s major partners and for legally compliant data archiving. Business processes now run faster and more smoothly, which had a positive effect

on employee satisfaction. Last but not least, having an EDI connection is also highly useful for working with new business partners.

www.cafefrei.com

About CAFE FREI

CAFE FREI was founded by two friends: Tamás Frei and Tamás Langár. The company‘s product range includes coffee, pastries, hot chocolate, health drinks, teas, as well as a variety of other homemade products in unique flavors. The first CAFE FREI coffeehouse opened in Hungary in April 2007 and the franchise network is constantly growing. The company has evolved into the largest coffeehouse chains in Hungary and has a staff of more than 300 employees.

What sets the company apart is the fact that it purchases all coffee directly from certified growers and that environmentally friendly packaging is used.

The company has its own roasting and packaging facility, where green coffee imported from almost 20 countries is roasted.

PROVIDING PREMIUM PACKAGING WITH THE HELP OF EDI

The Model packaging company revolves around all things packaging and is part of the Model Group corporation based in Switzerland.

The Model Group is a fourth-generation family business managed by Daniel and Elisabeth Model. The company is active in various locations throughout Europe and has more than 4,600 employees in all major markets: Switzerland, Germany, Austria, France, the Netherlands, Belgium, Luxembourg, the Czech Republic, Poland, Slovakia, Ukraine, and Croatia. All subsidiaries have been structured to allow them to focus on processes, have their own sales and development teams, and a high degree of decision-marking autonomy. The company turned to EDITEL to improve business processes and increase efficiency. EDI transactions with clients have now been introduced. As a first step, e-invoices and the e-archive for the Slovenian client Gorenje d.d. were activated. Other clients will follow soon.

With an EDI solution integrated into the users’ own ERP system, they will achieve maximum efficiency in the supply chain. This frees up valuable resources, especially for growing companies, which they can use to focus on their core business in the future.

Benefits of EDI integration:

n Automated flow of information

n No manual data entry

n Reliable processing thanks to high data quality

n Increased efficiency in all areas

n Interface for eXite®, the EDI platform by EDITEL

n Integrated e-invoice service

n Audit-proof digital archiving

n Business monitoring

n 24/7 support services by EDITEL

EDITEL offers a wide range of EDI solutions that facilitate the seamless integration of B2B processes. Depending on our clients’ needs, our integration solutions are available as managed EDI services (submIT, outsourcing option) or as an internal solution (edisuITe).

EDI has been designed to achieve the highest possible degree of process automation through integrated data exchange while avoiding physical and paper-based business transactions.

www.modelgroup.com

About Model Group

Model Group develops, manufactures, and supplies smart, innovative, and high-quality packaging and display solutions made of solid and corrugated cardboard. Model Group employs around 4,600 people in 15 European locations. Otto Model started producing industrial cardboard in the 1930s. In the US, he bought a round screening machine that was used to produce cardboard products.

In the 1950s, the demand for corrugated board increased thanks to its low weight and stability compared to other packaging and transport materials. The company also specializes in the production of corrugated board. In 1991, Daniel Model joined the company and took the opportunity to take over a factory in the Czech Republic, which was the first step towards internationalization. Today, manual paper manufacturing is done only at selected stages in the production chain. Instead of individual sheets, the company focuses on the industrial production of paper on large rolls.

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: Isabella Rath, Anja Jung, Gerhard Böhm; Proofreading: Dagmar Jenner, www.texterei.com Layout: www.creativedirector.cc Printing company: Print Alliance HAV Produktions GmbH; 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.