EDI is just the beginning future possibilities and

EDI is just the beginning – future possibilities and further development Bartłomiej Wójtowicz Sofia, 20 th May 2010 Comarch SA

Comarch S. A. – presenters Bartłomiej Wójtowicz ECOD Consulting Director – Central and Southern Europe

EDI and ECOD Solution as a technology to optimize your business and decrease your costs ECOD Operator

Agenda • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform Possible EDI project extension ECOD Platform – case studies Summary

EDI technologies support your business • EDI is the way to improve your business performance and gain competitive advantage since years • EDI is the international trend and standard • EDI projects are relatively easy to implement (Saa. S model) and guarantee fast ROI • ECOD reported in Gartner’s Magic Quadrant

Agenda • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform Possible EDI project extension ECOD Platform – case studies Summary

ECO EU 1 D C 50 ust om e rs ECOD Community CEE 0 7 80 D ECO ers tom s u C Russia 3 000 rs e m o t s u ECOD C Asia region Now openning

ECOD in Bulgaria 1. Presence since 2005 – partnership with Eltrade 2. Implemented documents: • ORDER • DESADV • RECADV • INVOICE 3. Over 400 companies connected incl. retailers: • Baumax • BILLA • Carrefour • CBA Asset Management • Fantastiko • Metro • Piccadilly • Praktiker

Agenda • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform Possible EDI project extension ECOD Platform – case studies Summary

How ECOD platform can change your business? Example of benefits from our customers Retail chain in Ukraine: • Order processing – workload reduced by 32% – Faxes and clarifying the discrepancies • The goods receiving productivity increased by 35% – don't have to key in all the information from the delivery notes and the check of the goods is also faster • 15% workload reduction (45% of invoices are in EDI) – due the reduction of error clarification (checked mostly automatically) in the system and the elimination of the keying of the invoice into our system

How ECOD platform can change your business? Example of benefits from our customers Osram Bulgaria: • 90% time saved (from time needed to exchange the documents) • Order processing (manual entry to the system) – decreased by 85%

How ECOD platform can change your business? Osram presentation on ECOD Conference

ECOD – more documents more benefits NEW DOCUMENT (e. g. SLSRPT, INVRPT, RECADV) YOUR COMPANY ECOD PLATFORM -Transmission - Conversion - Validation - Verification ALL RETAILERS PRODUCERS/ DISTRIBUTORS LOGISTIC PROVIDERS FOREIGN PARTNERS

Agenda • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform Possible EDI project extension ECOD Platform – case studies Summary

ECOD platform – functionalities ECOD Operator is: • The system integration in order to effectively exchange the information and the data (EDI – Electronic Data Interchange) – Verification services of the data sent – Translation of EDI messages – Ensuring the security of the transfer – Technological independence from the business partners systems – Different communication possibilities • Full outsourcing of EDI services and projects • Support in the project deployment (also in mass projects) using dedicated solutions

ECOD platform – functionalities The data exchange on the ECOD Plaform Different communication possibilities – WEB, EC, AS 2, FTP/VPN, . . .

ECOD platform – functionalities The customer characteristics Small number of documents Requirement for fast deployment using the simplest solution Medium number of documents Requirement for automation and integration with ERP Large number of documents and partners Requirement for automation and integration with ERP Solution ECOD WEB ECOD Connector Connections like AS 2, FTP/VPN, . . .

Agenda • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform Possible EDI project extension ECOD Platform – case studies Summary

Step 1: Already using EDI Most producers start EDI projects with retailers from: 1. Getting GLN from GS 1 2. Clearing up product data 3. Exchanging ORDER message => new messages implemented in next steps 4. Using ECOD WEB application 5. ECOD Helpdesk training

Step 1: Already using EDI RETAILER ORDER ECOD ORDER YOUR COMPANY ECOD Platform: - Data Exchange - Validation - Translation - Routing

Step 2: Aware of EDI benefits After starting EDI project the producers: 1. Extend project to other retailers -> over 130 in ECOD 2. Exchange new messages –> ECOD supports more than 50 types 3. Implements e-invoice -> compliance with EU directive 2001/115/EC 4. Choose automatic communication –> interface with ERP system via HTTPS, FTP/VPN, AS 2) 5. Use other ECOD modules –> ECOD Tracker, ECOD Archive, ECOD Data Share

Step 2: Aware of EDI benefits ECOD TRACKER RETAILER 1 RETAILER 2 RETAILER 3 ORDER/RECADV/IN VRPT ORDRSP/DESADV/IN VOICE ECOD DATA SHARE ECOD ARCHIVE ORDER/RECADV/IN VRPT ECOD Platform: - Data Exchange - Validation - Translation - Routing ORDRSP/DESADV/IN VOICE YOUR COMPANY

Step 3: EDI extension for traditional trade (distributors) Most of producers extend EDI into traditional trade: • Distributors send ORDERS, RECADV via ECOD WWW • Producers re-send ORDRSP, DESADV, INVOICE • Producers’ benefits are: – – – EDI with all business partners Faster flow of documents Supply chain optimization Labour cost reduction Better relations with partners

Step 3: EDI extension for traditional trade (distributors) ECOD TRACKER Distributor 1 ECOD DATA SHARE ECOD ARCHIVE Distributor 2 ORDER/RECADV Distributor 3 Distributor 4 ORDERS/DESADV /INVOICE ECOD ORDER/RECADV Distributor 5 Distributor 6 ECOD Platform: - Data Exchange - Validation - Translation - Routing ORDRSP/DESADV/IN VOICE YOUR COMPANY

Step 4: EDI extension for logistic partners RECEIVER ORDER ORDRSP DESADV ECOD DESADV RECADV INVOICE SENDER IFTMIN IFTSTA LOGISTIC PROVIDER RECADV HANMOV

Step 4: EDI extension for logistic partners ORDER RECEIVER PRODUCER RECADV ECOD INVOICE ORDER RECADV DISTRIBUTOR RETAILER

Agenda • • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform – case studies Summary

EDI project possibilities – case study 1 • • EDI improving supply chain to the shops on stations EDI implemented with suppliers and logistic providers On-time deliveries of goods on shelves Better control of ordering process Ca. 25 000 documents exchanged monthly incl. : - Order - ASN (Advanced Shipping Notice) - Confirmation of ASN - Dicrepancy report (difference between Quantity ordered vs. Quantity delivered) - Invoice

EDI project possibilities – case study 1 ECOD TRACKER ECOD ARCHIVE SUPLIER ORDER/Conf. ASN SUPPLIER ASN/ INVOICE ORDER/Conf. ASN ECOD LOGISTIC ASN/ INVOICE IT SYSTEM PETROL STATIONS ECOD Platform: - Data Exchange - Validation - Translation - Routing

EDI project possibilities – case study 1 Statuses prepared according to requirements of one of the customer; checking if its business partners order according to defined schedule • Tick – order must be sent and it was sent • O – oder sent but it was optional • Cross – order not expected but sent

EDI project possibilities – case study 1 • • • EDI improving supply chain to the shops on stations Paper invoices replaced by electronic ones E-invoices archived in ECOD Archive Current flow of documents monitored by Administrator in ECOD Tracker verifies if particular stations order in accordance with defined schedule Notifications/reminders possible

EDI project possibilities – case study 1 • • • EDI improving supply chain to the shops on stations Paper invoices replaced by electronic ones E-invoices archived in ECOD Archive Current flow of documents monitored by Administrator in ECOD Tracker verifies if particular stations order in accordance with defined schedule Notifications/reminders possible

EDI project possibilities – case study 2 Improvement in deliveries to restaurants EDI project with logistics provider Electronic ordering process to improve deliveries Response from logistics provider about delivery possibility New countries and new document types to be implemented in coming months • E-invoice to be considered • •

EDI project possibilities – case study 2 ECOD TRACKER SUPLIER ORDER SUPPLIER ORDER RESPONSE ECOD LOGISTIC ORDER RESPONSE IT SYSTEM ECOD Platform: - Data Exchange - Validation - Translation - Routing RESTAURANTS

Agenda • • • EDI technologies support your business ECOD references and experience How ECOD platform can change your business? Functionalities of ECOD Platform – case studies Summary

Summary What benefits may receive ECOD users? • Improve data exchange and data flow with business partners • Improve data quality and reduce errors • Decrease costs by eliminating paper documents Fast data transmission Higher benefits Competitive advantage Data Quality Lower costs Security Modern technology

Thank you for attention! bartlomiej. wojtowicz@comarch. com