Retail chains have clear preference for EDI communication for exchange of business documents11. November 2014
Brno, November 3, 2014 – A significant majority of retail chains operating in the Czech market make a full use of EDI (Electronic Data Interchange) to support their business and logistics processes. Amongst the 30 largest of them, the share represents 77%. The findings have emerged from an extensive research by CCV Information Systems, which has focused on hobby markets, online stores, consumer electronics chains, cleaning products, cosmetics, furniture and home accessories, in addition to the traditional food chains.
The survey results confirm the trend established in recent years, namely that the electronic exchange of business documents via EDI is used increasingly more often, and not only in the retail market. Another example is the automotive industry, logistics, construction and recently also trade with electro and gastronomy service. These findings are supported also by the data from the consolidation centre EDI ORION CCV Information Systems, which last year recorded more than 20% increase in the number of transmitted messages.
Maximizing the number of suppliers and messages
Although there is no doubt about the positive impact of introduction of EDI (for the customer and their suppliers), the greatest potential lies both in maximizing the number of suppliers in EDI communication, and in maximizing the number of EDI messages – receipts. "In addition to regular orders and invoices, buyers try to motivate partners to introduce other notifications, such as confirmation of delivery of goods. The most frequent notifications for buyers are confirmation of receipt or return of goods," says David Reichel, Head of eBusiness CCV Information Systems, and he adds: "Similarly notification messages are often essential, because they inform of possible problems with delivery of goods or with billing. Business complaints via notification COMDIS are also more common. However, other messages, the potential of which has not yet been fully realised, are also monitored; for example a catalogue of goods and prices (PRICAT) or a status of stocks message (INVRPT).”
Another conclusion of the research is that although EDI is already commonplace within most retail chains, it has not yet captured the entire flow of trade, fiscal, and logistic documents. For this reason, these companies have not yet fully realised EDI benefits. Many of them use only the basic documents such as the order (ORDERS) and invoice (INVOICE); for other logistics documents (especially the delivery note DESADV) EDI was adopted by only 40% of the companies of the thirty largest chains.
Globus, Makro and Coop Moravia make use of the most comprehensive communication
Conversely, a number of retail chains which have been most successful in implementing EDI, have already understood and realised the benefits of maximizing the number of suppliers and messages – also to drive significant savings. Among the most successful companies is the retail chain Globus (including DIY stores Baumarkt) with nine EDI messages, followed by chains Coop Morava and Makro (eight messages), Albert, Interspar (part of the Ahold group of comapnies) and Tesco (7 messages). A complete list of retail chains and EDI messages that are used in electronic communication with suppliers can be found here.
The expansion of EDI in Slovakia
Similar research has been conducted by CCV Information Systems in Slovakia, where the number of active retail chains is lower. Despite this, the adoption of EDI communication by retail chains and suppliers has increased significantly. With regards to companies that deploy EDI most actively, the situation is similar to the Czech Republic. At the forefront is the retail chain Metro (known as Makro in the Czech Republic) with eight messages followed by Tesco (7 messages) and COOP Jednota Slovensko, which has a shared EDI strategy but individual teams have employed different approach to EDI communication and therefore use between four and eight EDI messages.