X5 Retail Group started the electronic delivery schedule in Pyaterochka retail networks

"The guarantee of availability of an EDI system to retail should be provided at the level of 100%, - the Head of Department of technical support of E-COM company Yulia Ryazanova said. – Otherwise such networks as X5 R.G., SPAR Middle Volga and Tape will not be able just to organize necessary traffic of electronic document management with the suppliers".

2015

Start of the project

On July 27, 2015 the E-COM company announced start in retail network X5 Retail Group of the EDI message ^[1].

"In the mode of reconciliation of the prices this message helps to automate process of approval of commodity specifications between retail network and the supplier that allows to refuse manual entry of changes in price lists and to reduce time for their approval literally to two days, - noted Ilya Chernov, the manager of projects of directorate of IT X5 R.G. - For July 27, 2015 work on connection of partners to technology together with EDI- provider is conducted "E-COM". More than 55 suppliers work with the document today X5. It is already possible to speak about preliminary results - after implementation of PRICAT of an error in the prices decreased by 30%. And at perspective calculations direct economy on transfer of paper and approval of price specifications will make more than 1 million paper a year".

Yulia Ryazanova, the Head of Department of technical support of "E-COM", told: "In tasks on implementation of the document costs, at least, 300 more clients. In the test mode many already felt benefits from use of PRICAT. Automation of reconciliation of a price accelerated process of interaction with partners and lowered costs at approval of data".

At retailers through a certain period of the price change. There is it without notice suppliers, and, as a result, claims for lack of orders are initiated, there are obvious problems of cooperation between the companies.

In addition, the standard circuit of approval of commodity specifications sins with discrepancies which happen at reconciliation of deliveries and their price positions. Each such transaction is processed manually – data on each point are entered in Excel file. As a result process of approval is dragged out by time for months. These are long correspondences on e-mail, discrepancies in data and their adjustment, final signings.

With implementation of PRICAT the scheme of exchange of price data works quickly. Updating happens without long approvals and adjustments. The supplier informs on the new cost of goods and sends at retail PRICAT with already ready prices. The document comes to the accounting system of network, and from it information is unloaded in the database. Thus, everything happens to the help of the automated reconciliation process.

Project Development

On June 3, 2015 Vyacheslav Polikarpov, announced implementation of completions of DESADV (The shipping notification of the supplier) in document flow of shops of retail chain stores.

According to Polikarpov, by means of one EDI document in all outlets can automatically identify the order of X5 with delivery of the partner. Acceptance will happen literally - the scanner on a delivery note barcode.

Testing of the project came to the end at the end of May, 2015 in three accounting systems of X5 at once: SAP, GK and NQ st. In the productive mode the project will be started in cooperation with the accredited EDI providers, including, with E-COM company.

"Completions in DESADV is really unique technology, - Yulia Ryazanova, the Head of Department of technical support of "E-COM" noted. - Thanks to automatic entering of number of the consignment note of the supplier into the document of acceptance X5 afterwards it will give the chance to minimize quantity of errors at identification electronic the account of the invoice of the partner".

The technology will allow retail chain stores to reduce manual transactions of staff of the service centers, to avoid delays with payment of deliveries to partners, and it, in turn, will reduce the number of trials upon receipt of goods. According to Polikarpov, the implemented functionality by the efficiency can be compared to an implementation project of electronic invoices which became a new stage of development of exchange of documents with suppliers in due time.

The volume of electronic documents for 2015 grew by 52%

In X5 Retail Group the volume of electronic documents for 2015 grew by 52% that is confirmed by reports of retail chain stores and statistics of data of the Exite-Evolution system of E-Com company. The head of projects (EDI) X5 Retail Group Vyacheslav Polikarpov explained the reason of growth with the received benefits of business from optimization and process automation due to implementation of new EDI documents.

"For example, at implementation of PRICAT (the directory of goods) reduction of labor costs (man-hours) on approval and 'progruzka' of price specifications in the accounting system of X5 of Retail Group was made by 4.5%, and implementation of return notes of products to direct suppliers (RETDES and RETREC) was reduced by terms of the solution of matters of argument with them on returns on average by 80% (apart from reduction of losses of goods and documents at return of products)" — Vyacheslav Polikarpov specified.

"Tape", in turn, holds a level on processing of deliveries to shops of network using EDI documents at the level of not less than 95% (in November, 2015 this digit reached 96%) that, according to the EDI project manager in Lenta company Sergey Kozlov, not so just in today's economic situation. Such factors as active development of a format of supermarkets by the company, expansion to the cities with the population over 100 thousand people, cooperation with average and small suppliers also have an impact on this indicator.

According to the deputy chief accountant of TD "Duslyk" Natalya Aliullina, for last 2015 the volume of EDI documents between network and suppliers increased six times. Such growth reduced time for acceptance of goods in shop and also the number of the documents provided for replacement. Growth of ESF reached a point of 85% in a total amount of invoices of retail suppliers by the end of the year.

2016: Project Development

274 October, 2016 the E-COM company announced the existing electronic delivery schedule in Pyaterochka retail network from X5 Retail Group.

Show-window of X5 Retail Group, (2014)

Process of approval of diagrams became more transparent and convenient. The separate interface which is adapted for suppliers for work with diagrams online allows to optimize answering interval on a request. A feedback from suppliers showed interest in use of the new instrument of approval of delivery schedules and readiness to work on improvement of technology. Now the project is on a final test stage after which to an online format of work it is going to transfer all suppliers of X5 Retail Group. Sergey Rusyaev, the head on optimization of the movement of goods in X5 Retail Group

Notes