Alza introduces electronic data interchange (EDI) from CCV4. May 2015
Brno, April 28, 2015 – The biggest Czech online retailer fully launched the process of introducing electronic communication EDI (Electronic Data Interchange) for more efficient exchange of business documents with its suppliers. In addition to accelerating and streamlining the exchange of business documents, this innovative process also allows for substantial savings with regards to the environment.
Alza’s introduction of electronic documentation includes invoices (INVOIC), orders (ORDERS) and deliveries advice (DESADV), the electronic equivalent of a paper delivery note. In the first phase, which lasted for less than two months, it was possible to seamlessly engage 30% of suppliers, representing more than 50% of orders and over 40% of supplier invoices that were, in this short time, converted from paper to electronic format via ORION EDI solution from CCV Information Systems.
Alza.cz selected ORION EDI based on many years of experience of CCV Information Systems in the area of electronic invoicing and electronic exchange of documents and the related number of references form large customers. From the position of the leader in internet sales, it chose the domestic leader in the field of EDI servic
Paper documents for e-shop suppliers are rapidly disappearing
For a long time, electronic exchange of data in the Czech Republic was a domain mainly for fast moving consumer goods, DIY and automotive industries. However, in the past two years, CCV Information Systems helped to introduce EDI communication to important customers with hundreds of their suppliers in new industries. Successful projects of digitization of commercial and logistic documents have been realized in new areas of modern commerce, such as e-shops. Considering the dynamic development of this sector, it is understandable that the sales grow alongside the number of business documents exchanged by these firms with their suppliers. In the case of Alza.cz that is at the forefront of this innovation process, this is especially true.
‘Automatic exchange of business documents via EDI has become almost a necessity for us. We have hundreds of suppliers, therefore we welcome accuracy and speed provided by the structured exchange of data realized directly between different company systems. Initially we perceived the development of DESAV message as the most promising, but currently I would like to highlight the impact on the electronic processing automation itself. All of this, together with reduction of costs, which are associated with these processes’ says Rudolf Žůrek, Director of Logistics, Alza.cz. The goal for 2015 is to extend electronic communication to other key commercial partners and convert 80% of documents into electronic data exchange.
A common language for 100% coverage of business and logistics processes
Repeatedly confirmed by practice is the fact that the full potential of EDI can be realized by involvement of the largest possible number of suppliers and using as many EDI messages as possible.
‘I am very pleased that by their approach to the digitization of documents, Alza is setting direction also for other partners in the market, who have yet to discover the numerous possibilities and advantages of using EDI. Another step in the right direction, is also a consideration to introduce other EDI messages such as ORDRSP, which confirms the order, and in which the supplier tells the customer with regard their order, which goods will or will not be delivered, and informs of any changes,’ says David Reichel, Director of eBusiness division of CCV Information Systems.
However, the potential of EDI is greater still; EDI communication represents a standard, which helps to connect also other business processes, as confirmed by David Reichel: ‘EDI is a common language between systems. I cannot think of a single commercial or logistics process, which could not be assisted by EDI; and we register more than a hundred of these. From exchange of information about business counterparts through information about products, supply and demand, buying and selling, logistics, transportation, tax amendment documents and refunds to payment information. It depends purely on which specific processes a company needs to manage and link electronically.’
For complete identification within the EDI communication, Alza.cz will rely on the benefits of global standards GTIN (Global Trade Item Number) and GLN (Global Location Number). In the form of a barcode on goods, the well-known GTIN specifically identifies all products; GTIN identifies every link in the supply chain (including all warehouses, shops and other branches) and its specific location.
CCV Information Systems has been operating in the market since 1992. The company is a key player in the domestic market in the area of information systems. It is based in Brno (CCV Business Solutions division and CCV eGovernment), with additional offices in Opava (eBusiness division CCV) and in Slovakia (CCV Information Systems). It provides comprehensive deliveries for development of logistics solutions and implementation of WMS systems (CCV Warehouse) and enterprise information systems (Microsoft Dynamics). It specialises in solutions for electronic invoicing, reliable storage, electronic data interchange (EDI consolidation centre Orion) and paperless circulation of business documents.
About Alza.cz, Inc.
Alza is the leader in the Czech and Slovak online markets with twenty years of experience. In 2005, as the first online store in history, Alza reached a billion-crown turnover threshold. Every year, Alza reinforces its leading position. In 2014, it had a turnover without VAT equal to CZK 11.5 billion and processed over 4.8 million orders. Daily visits of website Alza’s website exceed 400 thousand users. The company is the market leader principally due to unbeatable availability of goods in stock, wide range of products and above -standard sales and after sales service. Only thanks to Alza, customers can now visit the first Apple Store in Central and Eastern Europe. Alza won a number of prestigious awards for its business accomplishments, for example, the Shop of the Year 2011-2014, MasterCart Retailer 2012 and 2013, and in the category of online retail, The Best E-commerce application of 2014, and many others.