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Quick launch of EDI communication in Fitness store

Current state and problem

The reason for implementing EDI communication in the Fitness store, as with most smaller companies, was the request of one of its key customers. Although the Fitness store management is generally inclined towards technological automation, it was necessary to consider the costs of implementing electronic document exchange in relation to the business margin.

The operator of one of the largest Czech e-shops, Mall.cz, was able to be very convincing with its suppliers thanks to its negotiating power. Most of its suppliers have gradually switched to EDI, which replaces the exchange of conventional paper and PDF documents with structured data.

Proposed solution

The fitness store uses the Money S3 information system. Although there are several EDI extensions available on the market for this system, the company decided to start with the so-called webEDI, mainly because of the speed of launch and also lower acquisition costs. "In the case of webEDI, the acquisition costs were not excessive, we could practically immediately fulfill the request of our important customer and at the same time speed up and refine the work with documents," recalls director Martin Zavadil.

The rapidly growing customers of Internet Mall and Alza.cz soon began to have a significant share of the company's turnover. This led to tight cash flow, mainly due to two reasons: long invoice maturities for these large customers, which the company was not used to with smaller customers, and the wholesale nature of the company, where there is a wide time gap between the purchase (payment) of goods abroad and the money in the account for their sale.

The company's complementary Roger payment service has helped sustain its growth by taking care of financing invoices against key customers. The fitness store can select EDI invoices that it wants to pay in advance and not wait for the standard 60-day maturity. 75% of the volume of these invoices will then be credited to the company's account on the 2nd day after the receivable is assigned, and the remaining 25% will be received after deducting interest when the customer pays.

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Resulting changes

  • As with other companies, immediate overview of business with key customers is essential for management, which can be controlled from virtually anywhere thanks to the ORiON mobile application. The accountant who handles administration sees the benefit primarily in the unified organization and simplification of the entire process, which normally varies from customer to customer and order to order.
  • The biggest advantage and time saving for Fitness Store is the quality of data input into the entire business case when the customer creates an order. The use of GTIN (so-called EAN) codes eliminates the need to manage and update identical product code lists.
  • This minimizes the error rate in entering goods into orders. Errors in orders that previously occurred due to incorrectly entered goods usually spilled over into other documents in the business case, and their resolution cost time, money, and worsened customer relations.

    • “The use of EDI needs to be seen from a broader perspective. Expect change. Thanks to EDI, I can pull up any current statistics on business partners, but above all, I can rely on the service working without any problems within clearly defined limits. I get confirmation that the customer has received the delivery note, that the invoice is in order, etc. Such simplicity that you basically can't achieve in normal business, because you have to keep hammering it into the employee's head: "You're missing a signature here. Did you take over the pieces?" It's endless. There's nothing to discuss with EDI. Period.“

    Martin Zavadil, ředitel

    Velkoobchod

    How we helped

  • EDI communication launched in 1 month
  • The operator of one of the largest Czech e-shops, Mall.cz, was able to be very convincing with its suppliers thanks to its negotiating power. Most of its suppliers have gradually switched to EDI, which replaces the exchange of conventional paper and PDF documents with structured data.

    • PDF for download

    We have described our collaboration in detail in a PDF that you can download immediately

    “The use of EDI needs to be seen from a broader perspective. Expect change. Thanks to EDI, I can pull up any current statistics on business partners, but above all, I can rely on the service working without any problems within clearly defined limits. I get confirmation that the customer has received the delivery note, that the invoice is in order, etc. Such simplicity that you basically can't achieve in normal business, because you have to keep hammering it into the employee's head: "You're missing a signature here. Did you take over the pieces?" It's endless. There's nothing to discuss with EDI. Period.“

    Martin Zavadil, ředitel

    Velkoobchod

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