A retailing company can exchange data electronically on the inside and to the outside world. Internally sales divisions in a retailing group send their sales figures to buying. Electronic data is also exchanged between logistics departments and individual stores so that the store manager knows when to expect a certain delivery of goods. The store manager plans staff to inspect incoming goods and to stack shelves. EDI can also be used for human resources management when submitting and approving requests for leave. Externally, the retailing group communicates electronically with its suppliers but also with service providers and banks. Particularly when communicating with manufacturers EDI offers vital and sustainable optimization potentials – from master data exchange right down to invoice settlement.

Virtually all transactions within a company’s supply chain are covered by corresponding EANCOM message standards. Exchanging master data with EANCOM message formats is a top priority because of its importance for all downstream business processes. Matching retailing and manufacturing master data is essential to optimize store supplies.
In order to ensure that basic white T-shirts are ordered and invoiced without any problems, manufacturers and retailers have to coordinate their master data for these T-shirts. Otherwise, retailers may be supplied with V-neck T-shirts instead of the round neck T-shirts ordered.

Items bear EAN numbers (GTINs) as so-called bar codes which can be scanned. Barcodes create a reference to article information which is held in a merchandise management system. GS1 Germany (formerly the Center for Coorganisation (CCG)), a service and competence center for cross-company business processes in the German consumer goods business, gets retailers and manufacturers around a table to coordinate the implementation and further development of standard article and company numbers. In this case the International Location Number (GLN), EAN codes as well as the EANCOM format characteristics are at the center of attention. METRO Group is actively involved in GS1 Germany and makes a considerable contribution to pushing standards for Electronic Data Interchange.

Retailers determine the quantity of goods required based on actual sales and inventory quantities and this is where EDI also makes an important contribution. Scanner check-outs record sold quantities allowing inventory levels to be monitored continuously. EDI forwards sales data (SLSRPT / INVRPT) straight to manufacturers enabling them to meet market demands by tuning their production capacity. Retailers can reduce their inventories and order electronically using the EANCOM message format ORDERS.

EDI covers goods distribution: from the manufacturer’s production site right down to incoming goods at the central warehouse or the retailer’s stores. Once the supplier has received the order and picked the goods, the retailer is informed with the EANCOM message DESADV about the time of delivery and content of the shipment. Waiting times at loading bays are reduced. Following an internal order check the retailing company confirms and informs the supplier with the EANCOM message RECADV that the goods have been received.

Following successful delivery, the supplier generates an EDI invoice in the EANCOM format INVOIC based on the electronic order and delivery notification. The retailer also checks the invoice electronically. The downstream system automatically recognizes whether there are any discrepancies between the recorded received goods and the EDI transmitted invoice. This would be the case if the listed price differed from the invoice price. Once the invoice has been checked payment is automatically initiated by the accounts department. Using the electronic advice of settlement REMADV the company’s accounts department informs the supplier of the payment date and amount involved.
At present METRO Group is already receiving 94 per cent of its food invoices electronically. The company also uses other EANCOM message formats for internal processes and supplier contacts.