June 09, 10 Сотрудничество в области EDI: повышение эффективности бизнеса через Технологии обмена данными EDI Collaboration: Increase your Business Efficiency through Technology Benefits Andrey Busygin Nestle Rossiya LLC 2-4 June 2010 6-th ECR Forum Moscow, Russia
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June 09, 10
Сотрудничество в области EDI: повышение эффективности бизнеса через Технологии обмена данными
EDI Collaboration: Increase your Business Efficiency through Technology Benefits
Andrey BusyginNestle Rossiya LLC
2-4 June 20106-th ECR ForumMoscow, Russia
Presentation prerequisite
2
EDI concept has been widely used in Russia. However the electronic order doesn’t mean the electronic data interchange.
• Learn how to save million dollars at the touch of a button?
• Using EDI messages DESADV and RECADV to improve logistic operations.
• Using EDI with Distributors.
What is EDI?
3
What is EDI?
4
EDI Theory
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EDI responsible to :
- Decrease routine or manual work
- Speed up information exchange
- Improve quality of the data (no double entry)
- Set common business process with your partners and contractors
Each pallet has unique number SSCC (Serial Shipment Container Code ) Receipt process happened pallet by pallet : with RF terminals or with preliminary printed list.
Standard steps during goods receipt on customers side with SSCC usage:1. To take out first pallet from the truck and scan SSCC bar code.2 .RF terminal retrieve and display content of the pallet 3. Whs clerk to compare physical quantity of goods on pallet with RF figures 4. To enter difference or confirm quantity via RF terminal.5. To move pallet to the main storageThen with rest pallets all steps repeat again.
If no RF terminals then quantity confirmation clerks do afterwards in the WMS based on captured results (from paper)
EDI – Goods receipt simplification with DESADV and SSCC
!
Obvious benefits :1. Need only one pallet place to unload whole truck 2. Content of the pallet comes with DESADV message in advanceе with all attributes: shelf life , Batch code, Material codes, Quantity and many rest useful information.3. Whs clerk responsible just to check quantity and confirm it via RF terminal. 3. Time saving.4. No mistakes.5. Possibility to send RECADV and provide Prove of Delivery (POD) .
Requirements:For sender : ability to create new unique SSCC for mixed pallets during picking
process.Receiver: Ability to work with DESADV and SSCC.!
EDI – Goods receipt simplification with DESADV and SSCC inside
Existing process contradictions :1. Based on Russian legislation seller obliged to provide customer paper based
Invoice-facture during 5 working days.2. Invoice-facture should reflect the same quantity as was confirmed by customer. 3. No way to issue clear Invoice –facture in advance without customer’s quantity
confirmations.
Obvious benefits become available with RECADV:• Clear Invoice-facture creates based on RECADV message right after customer
confirmation• In case differences appropriate reason codes goes to supplier for analysis• EDI INVOIC message could dispatch to customer in few minutes.
Famous GAPs.• No way to use e’signed INVOIC as legal (due to this fact seller still responsible to
provide customers with paper based Invoice-Facture)• Extra cost to delivery printed documents to the customers.
!
EDI – Clear invoicing based on RECADV
We are waiting legally allowed e’signed INVOIC usage. ECR working on it.
Other benefits : roaming
Customer 1
Nestle Rossiya
1. All ECR-RUS VAN providers provide free of charge roaming
2. It is enough to have one link with one VAN and it guaranty EDI with anyone from network
3. Number of EDI companies rapidly growing
Other companies used EDI via other VANs
Customer 2
EDI is mutually beneficial process EDI still your competitive advantage and very soon it become regular All investments to EDI returns back with direct and indirect benefits and
savings. Effective business processes, less human resources involved, pepper savings , time savings, less number of mistakes, no double entry..
EDI require high discipline within Master data. EDI will be your horror in case chaos within the Master data and in information systems.
Respect GS1 standards. Respect ECR-RUS EDI messages standards GDSN – master data synchronization technology of the nearest future. EDI is like mobile communication – ones you taste it then you can’t live
without it. EDI – it is not “nanotechnology” EDI is not extremely expensive Then more transactions you do then higher EDI efficiency Attract your partners into EDI