Joint EDI solution in L’Oréal for CZ and foreign branches has brought savings from harmonization of formats26. October 2016
11th October 2016, Brno – L’Oréal, global leader in cosmetics, decided at the turn of this year to unify the whole electronic document interchange and in the Czech and Slovak Republic to harmonize EDI communication also with a Hungarian subsidiary. The harmonization of all input and output formats from an enterprise system SAP has brought not just financial savings but mainly decrease in work expenditure on document processing by internal employees. Owing to the satisfaction with the current EDI provider in the Czech Republic and Slovakia was also for Hungary chosen solution Orion EDI from CCV Information systems.
Reasons for change
L’Oréal has got rich experience with using electronic document interchange EDI, which is a logical necessity given the assortment and customer portfolio width. The solution Orion EDI from CCV Information systems has been in use in the Czech Republic and Slovakia since 2006 when it replaced the services of previous EDI provider, Telefónica O2 Company.
The Hungarian subsidiary had until this year a different EDI provider that notwithstanding communicated in a generally accepted standard UN/EDIFACT, but the conversion from/into enterprise system SAP and its internal format IDoc remained a responsibility of employees of L’Oréal. „These modifications generated considerable costs and often delays of requirements for communication from our important customers,“ comments the original state Oldřich Pola, Data WHS manager in L’Oréal.
Moreover, Hungary was lagging behind in the range of EDI communication that here accounted for only 20 % of the amount of documents and also in the portfolio of used message types that included only order ORDERS.
Interconnection project: step by step
The process of transition of the Hungarian branch to the solution Orion EDI from CCV Information systems was launched at the beginning of 2016. Customers were at first categorized according to the importance from the point of view of turnover and number of documents, consequently interconnected to the new system gradually. That was the aim of L’Oréal Company and the requested safeguard so that in case of any ambiguities, more problems wouldn’t cumulate at the same time. The interconnection, however, was carried out smoothly and the project was in 3 months successfully finished. At the end of this period, L’Oréal was already exchanging electronic documents using consolidation centre Orion with all the Hungarian customers such as DM, Metro, SPAR, Tesco, Auchan, Rossmann or Müller Drogéria and others.
„By unifying the high volume of transmitted and converted documents, we have not only saved hundreds of thousands of forints annually but the change has been also positively received by the users from sales and client service who have acquired a better overview of the documents,“ explains Oldřich Pola, and adds: „Furthermore, owing to the harmonization, a significant time saving has been achieved. The requirements that we used to pile up on our foreign IT service and that were prioritized according to the needs of the whole company are now with the help of CCV Information systems done within days.“
L’Oréal has also got rid of the cares of the document conversions into the enterprise system, which are now solved automatically, and enabled extension of the portfolio of used messages by electronic delivery note DESADV and electronic invoice INVOIC with Hungarian customers, who have already requested their implementation before.