Results of implementation
What encouraged the company to switch to EDI?
Foxtrot generates more than 100 000 documents every month, which requires significant resources: thousands of hours of employee work, archiving costs, and maintenance of large archive facilities. With the help of the EDI service, we planned to reduce costs.
How did you work with legally significant documents before?
Legal Document Management (LDM) service – allows you to exchange structured (xml documents) and/or unstructured (docx, xlsx, png, pdf, jpg, etc.) documents using a QES (qualified electronic signature).
We started like everyone else: qualified specialists (e.g., accountants) worked on the provider’s platform. Then we tried to implement the same system for working with suppliers.
However, after testing with 10 suppliers for a month, the warehouse asked for additional specialists who could work in this system and deal with documents. It became clear that implementing an EDI was the only solution.
Now all employees work directly in the accounting system, and employees involved in the document flow (accountants, warehouse workers, and accountants) see all documents at any stage of creation.
How do you work with suppliers in EDI?
Our work with suppliers begins with the conclusion of contracts and the placement of orders. We exchange order data with all suppliers exclusively through the EDI system.
In general, we use two schemes of work — short and extended.
In a nutshell, we receive prices from the supplier, which contain codes, product names, prices, quantity, availability, etc. And then we process the order, which involves only 4 documents:
- Order to the supplier;
- Confirmation of the order to the supplier;
- Notification of shipment;
- Expenditure invoice;
The extended scheme is used when we pre-approve a large batch of goods. Only after confirmation by the supplier do we distribute the goods to our delivery locations and receive them according to the schedule.
How did suppliers react to the implementation of EDI?
The implementation of electronic document management with suppliers began in response to their request. Initially, only 4% of suppliers were ready to work under the new scheme.
However, when our procurement specialists got used to it and saw the benefits of EDI, they began to actively recommend it to suppliers. Other counterparties saw that documents were signed on time, on the same day, and the level of trust in the system increased.
Today we are constantly increasing the percentage of suppliers involved, flexibly adapting processes to their capabilities and needs.
What Vchasno opportunities do you use?
We started experimenting with electronic document automation as soon as we implemented EDI.
Vchasno.KEP cloud signatures came in handy when we needed to quickly provide 400 employees with digital signatures.
It was easy to connect additional features, because Vchasno.EDI, Vchasno.EDO, and Vchasno.KEP are well integrated, and we can do this without any distractions. We just built the logic and started working.
Benefits of automating work with invoices
We have automated the process of working with invoices from suppliers and have gained a number of benefits.
Time saving.Employees no longer spend hours checking, entering data, and approving. All the steps reflected in the flowchart could be actions or decision-making time for our employees.
Minimization of errors. Manual work always carries the risk of human error: mistakes in numbers, incorrect filing of documents, loss of important files. Automation minimizes these risks, ensuring accuracy and reliability in working with suppliers.
Cost reduction. Automation allows you to avoid associated costs, such as the return delivery of paper documents.
Transparency and control. All invoices are stored in a single system, which provides full control and access to documents at any time. The ability to track the status of each waybill and the history of changes makes management processes more transparent and predictable.
On future plans
We are implementing a phased development program over several years. Our key goals are to integrate with all EDI providers, automate business operations to fully synchronize them with the accounting system, and create our own archive of legally significant documents.
Another important step will be the introduction of an electronic consignment note (e-CMR). We need not only to automate the creation of the e-CMR, but also to ensure that the route is followed correctly and that all supporting documents are generated at the right time. We have already started this work and plan to complete it in about a year.
What are the specifics of e-CMR implementation?
Ergonomics.One of the key aspects of implementing an electronic consignment note (e-CMR) is the convenience of working at all levels of the process. We strive to create a system that is intuitive and easy to use for everyone. It will also ensure uninterrupted operation in case of force majeure.
Legal outline. Legal coherence between all participants (shipper, consignee, logistics operator, etc.) minimizes risks, increases transportation efficiency, and makes the entire process as transparent and controlled as possible.
Accounting systems. Implementation of e-CMR requires a comprehensive approach to accounting and integration with all counterparties. In particular, up-to-date reference books at each place of work with the e-CMR.
Organizational measures. Creating conditions for effective work means providing all process participants with the necessary resources, tools and access to the system.
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