Implementation of EDI in METRO Group Russia
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1 Implementation of EDI in METRO Group Russia Stand: Alexey Komissarov Moscow, ECR Conference
2 1 Content METRO Group overview EDI Status in METRO Group Russia Usage of DESADV Usage of INVOIC E-INVOIC with TAXCOM Sales / Inventory Reports via EDI Next steps in EDI
3 International presence in 31 countries 2 Germany Metro C&C 122 Real and Extra 597 Media M./Saturn 353 Kaufhof 126 Others 309 Austria Metro C&C 12 Media M./Saturn 31 Others 18 Belgium Makro C&C 10 Media M./Saturn 14 Kaufhof 15 Bulgaria Metro C&C 8 China Metro C&C 37 Croatia Metro C&C 6 Czech Republic Makro C&C 12 Denmark Metro C&C 5 As of December 31, 2007 France Metro C&C 89 Media M./Saturn 25 Greece Makro C&C 8 Media M./Saturn 7 Hungary Metro C&C 13 Media M./Saturn 20 India Metro C&C 3 Italy Metro C&C 48 Media M./Saturn 88 Japan Metro C&C 3 Luxembourg Others 2 Moldova Metro C&C 3 Morocco Makro C&C 7 Netherlands Metro C&C 16 Media M./Saturn 27 Poland Makro C&C 26 Real 50 Media M./Saturn 42 Portugal Makro C&C 10 Media M./Saturn 7 Romania Metro C&C 23 Real 14 Russia Metro C&C 39 Real 10 Media M./Saturn 11 Serbia Metro C&C 5 Slovakia Metro C&C 5 Spain Makro C&C 34 Media M./Saturn 48 Sweden Media M./Saturn 8 Switzerland Media M./Saturn 18 Turkey Metro C&C 11 Real 11 Media M./Saturn 3 UK Makro C&C 33 Ukraine Metro C&C 18 Vietnam Metro C&C 8
4 3 METRO Group structure METRO AG Cross-divisional service companies
5 4 Business processes in Retail 3. Transport instruction 7. Arrival notice 6. Transport status report Logistics 1. Price/Sales Catalogue 2. Order 4. Despatch advice 5. Receiving advice 8. Invoice 9. Remittance advice retail/ wholesale customer 11. Multiple credit advice 10. Payment order BANK
6 5 EDI in METRO Group Russia 2009 ORDERS purchase order DESADV delivery advice, waybill RECADV receiving advice 73% 10% 10% INVOIC tax invoice 1% 2008-Q4 SLSRPT sales report INVRPT inventory report 1% 1% 2008-Q Q4
7 6 Business processes in METRO Group for EDI Pdf-file, fax Order Manual entry Waybill Manual entry Printout Receiving act Printout Manual entry Supplier Manual entry Invoice Printout Payment
8 7 EDI messages implemented in METRO Group ORDERS DESADV RECADV Supplier INVOIC No more manual processing!
9 8 DESADV despatch advice
10 9 Goods reception process overview Supplier sends truck with goods Truck arrival Reception of waybills Manual entering of core waybill data to ERP Waybill number Waybill date Quantity per article Country of origin / Customs declaration number for import articles (!!!!) Count and acceptance Manual entering of accepted quantities to ERP Issuing of documents
11 10 Goods reception process overview with DESADV Supplier sends truck with goods and DESADV Truck arrival Reception of waybills Manual entering of core waybill data to ERP Waybill number Waybill date Quantity per article Country of origin / Customs declaration number for import articles (!!!!) Count and acceptance Manual entering of accepted quantities to ERP Issuing of documents and RECADV
12 11 EDI DESADV Benefits: Planning of future orders based on DESADV info Elimination of manual data entry to ERP-system during good receiving Improvement of goods receiving FTE costs reduction Challenge: 90% suppliers using WEB-EDI DESADV manual creation on supplier s side Dirty Master Data first clean, then use Change processes in Stores
13 12 EDI DESADV Status: Implemented in 2007 Start of mass using Q Q % of deliveries with DESADV ~40 Suppliers (from ECR only Coca-Cola; KRAFT, P&G in Test) Targets: Suppliers should implement classic EDI integrated with ERP system Classic EDI gives real improvements to SCM process 35% of deliveries with DESADV in Q Open questions: Suppliers are blind to see benefits from DESADV What is bottle-neck to start with DESADV
14 13 INVOIC tax invoice
15 14 Tax invoices processing in METRO ~ invoices per year Phase Collection of tax invoices from suppliers Manual entering of core date invoice date, number, supplier, GR#, total sum, total vat Manual entering of article information in case of discrepancy between invoice and goods reception (10% of all invoices) Archive Losses Post delays Risk of document loss Time Mistakes Time Mistakes Storage space Document search Low efficiency, high costs
16 15 Tax invoices processing in METRO Ways to optimize document processing: 1. EDI INVOIC 2008-Q Q4 Usage of EANCOM standard Parallel document flows paper + e-invoic No digital signature yet (but already planned) Electronic archive helps to search and analyze 2. E-INVOIC with TAXOM 2009-Q Q3 Project initiated by government Digital signature Usage of proven TAXCOM technology Usage of inhouse standard for the pilot phase Parallel document flows paper + e-invoic for the pilot phase
17 16 EDI INVOIC parallel solution Invoice control SAP Supplier EDI-INVOIC Paper invoice legal check paper archive
18 17 Tax invoices processing in METRO ~ invoices per year Phase Collection of tax invoices from suppliers Manual entering of core date invoice date, number, supplier, GR#, total sum, total vat Manual entering of article information in case of discrepancy between invoice and goods reception (10% of all invoices) Archive Losses Post delays Risk of document loss Time Mistakes Time Mistakes Storage space Document search + Reduction of manual input by ~85% - Need to receive and store paper invoic
19 18 Tax invoices processing in METRO Ways to optimize document processing: 1. EDI INVOIC 2008-Q Q4 Usage of EANCOM standard Parallel document flows paper + e-invoic No digital signature yet (but already planned) Electronic archive helps to search and analyze 2. E-INVOIC with TAXOM 2009-Q Q3 Project initiated by government Digital signature Usage of proven TAXCOM technology Usage of inhouse standard for the pilot phase Parallel document flows paper + e-invoic for the pilot phase
20 19 E-INVOIC with TAXOM Reason Direction of Russian government from 11-Nov-2008 КА-П Project target Alteration of RF tax legislation in order to legalize electonic documents (in particular tax invoices) Participants TAXCOM METRO Cash & Carry ООО «ВТО ЭРКОНпродукт» ООО «Бутербродная компания» ЗАО «АФИША Индастриз» ООО «Торговая Компания «Русьимпорт» Moscow tax inspectorate NN 4, 6, 10, 15, 43 etc.
21 20 DESADV / INVOIC Benefits For Supplier Improvement of goods reception procedure (faster, error-free) Reception of RECADV (METRO case) Faster processing of invoices by METRO, no delays in payment due to long processing Reception of SLS/INV RPT (METRO case) For Retailer No manual processing of waybills in Stores Improvement of goods reception procedure (faster, error-free) Improvement of invoice control procedure No more manual input of invoices to system No manual processing of mismatched invoices by invoice control
22 21 EDI SLSRPT/INVRPT Supplier SLSRPT daily POS data INVRPT daily goods movement data BI system Forecasts Planning Control Out-of-stocks
23 22 METRO targets for 2009 ORDERS 85% INVOIC 15% DESADV 35% SLSRPT 5% RECADV 35% INVRPT 5%
24 23 Collaboration with METRO Group in EDI We are looking forward for active and strategic thinking suppliers and retailers to collaborate with METRO Group in EDI Send questions and proposals to E D + 7 (495)
25 24 Contact Alexey Komissarov Supplier Collaboration Manager METRO Group Buying RUS 71 G Leningradskoye Shosse , Moscow, Russia Phone: +7 (495) Alexey.Komissarov@metro.com.ru Web:
26 25 Communication between METRO and Supplier EDI-Provider Supplier Outsourcing of EDI services METRO EDI Center Protocol AS2, X.400 Supplier
27 26 METRO Group Russia EDI Providers
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