"X5 Retail Group" connected more than 40% of the suppliers to electronic document management in only 4.5 months

Retail Group X5 after the large-scale ERP project based on SAP started the project on automation of data exchange with suppliers based on the ECOD platform.

The retail chain stores of X5 Retail Group (manages retail networks "Pyaterochka", "Perekrestok", "Karusel") start the project on implementation of EDI technology. Electronic Data Interchange - Electronic Data Interchange – the technology designed to simplify, and in the long term – to replace external paper document flow between the organizations. The project will be implemented based on the ECOD platform by CORUS Consulting company.

As Igor Zelenko, the head of sales of department told TAdviser. ECOD, so far EDI remains niche technology, on the one hand, because the offer of integrators in this segment is limited, with another – as it is difficult to calculate benefit from implementation of EDI. "Nevertheless, the technology is in demand for those companies which feel that bottlenecks arise at them in external document flow. Usually it occurs on condition of a big flow of documents, or to transfer is information capacious documents, for example, of certifications on products", - he told.

When sending and obtaining files an EDI system allows to eliminate the person at a stage of acceptance of incoming documents: it is not necessary to digitize the e-mail or the fax because information already got to a system, is checked, and only then the employee begins to work with it. The simplest example such is an invoice.

According to Igor Zelenko, the greatest interest in the EDI systems is shown by retail. Now from "KORUS" more than 6 thousand companies across all Russia use EDI service, using the ECOD platform they exchange more than 1.5 million electronic documents a month.

Tasks and project objectives

EDI project task in Retail Group X5 - reduction of errors and manual transactions when processing external electronic events and, certainly, acceleration of the process of vendor interaction and partners. "The company sets the task that all our trading partners could take advantage which is offered by technology of Electronic Data Interchange", - Ekaterina Ishevskaya, the commercial director of X5 Retail Group said. An EDI system will work together with the ERP system of X5 of Retail Group based on the SAP solution.

Ultimate goal of implementation of technology in the company is decrease in indicators of out-of-stock and reduction of warehouse stocks.

Commissioning

Since February 1, 2011 input of EDI in commercial operation and connection of all suppliers of the company to a new data exchange system starts. According to X5 Retail Group company, some of the first will automate divisions in Central Federal District, and further and in other regions of the country. "An EDI system will work together with the ERP system of X5 of Retail Group based on the SAP solution", - the commercial director of the company Ekaterina Ishevskaya said.

Within end-to-end testing of EDI the largest producers – suppliers of the retailer were connected to a system: Yunilever, VBD, Grain House, Kimberly Clark, L'Oréal, Ferrero and many others.

"The project on implementation stages, but results and rates is struck. Dynamics of connection of partners of retail chain stores "Retail Group X5" reaches 50-100 companies a week. Earlier at connection to EDI we could provide only 10-30 new companies a week", - Zelenko Igor, the head of sales department of Corus Consulting CIS company told.

"In many respects it is connected with active actions of the most retail chain stores which show interest and enthusiasm in an implementation project of electronic document management. Also it is connected with expansion of our department helping suppliers of "X5" to be connected to ECOD EDI".

On July 20, 2011 announced Corus Consulting CIS what the number of the clients connected to the system of external document flow of ECOD with "X5 Retail Group" exceeded 1000. Besides, the total quantity of clients of the company reached 6500.

Integrators

Implements the X5 Retail Group project together with Corus Consulting, Exite and Edisoft and each of the companies the part in this project is assigned. Each contractor is responsible for the block of work – connection to EDI of a certain number of suppliers of X5 Retail Group network.

Chief executive of Edisoft Anton Sverdlov: "Our task in the project consists in connection of a part of suppliers of the retail company to EDI. The special software will make possible exchange of electronic documents between the companies".

The Corus Consulting the EDI project for X5 Retail Group participates since the end of 2010, since the first stage – determination of the conceptual solution and parts of the project. Representative Korus Konsaltinga Asya Vlasova: "We advised retail chain stores regarding the analysis of capacity of data transmission channels. It was necessary to hold also stress testing of communication channels in connection with high volumes of the planned number of assignable documents".

Representatives of Corus Consulting CIS also note that "Retail Group X5" – the first of retail chain stores which switched to the electronic settlement reconciliation statement and the price list (electronic display of the price annex to the delivery agreement) in Russia and in 1-2 quarters it is possible to expect a total failure from paper versions of these documents, thanks to the electronic signature.

During 2011 the EDI technology will be consistently implemented on all objects of the company – in distribution centers and in shops of all formats.

"Except such documents, usual for the Russian market, as Order (ORDERS), "The answer to order" (ORDRSP), "Shipping notification" (DESADV), "The notification on receiving" (RECADV) and Account (INVOIC) at this project there are such document types as "The report on a remaining balance" and "Sales statement", "Settlement reconciliation statement", "The directory of goods" and "Information on the partner" - the representative of Exite told.