Thanks to Electronic Data Interchange (EDI) piles of paper created in communications between retailers and manufacturers are a thing of the past now that business partners exchange orders, delivery notes and invoices electronically. 
Data Capture – from paper to PC
METRO Group and most of its suppliers have learned to appreciate the merits of paperless business communications. EDI accelerates processes and boosts quality. Almost 90 percent of suppliers submit their goods invoices to METRO Group via EDI. Thanks to the web applications MEC (METRO Group EDI Center) and EDI TradePortal the retailing group is also helping those suppliers to take part in Electronic Data Interchange for whom the Classic version, i.e. direct exchange from computer to computer, is not feasible. In contrast to Web-EDI extensive software packages have to be installed on both sides to make it work. Internet access is all that is required for the online applications. Suppliers only need to log on to the website with their username and password and can then transmit their invoices electronically.
Paper invoices slow down processing
METRO Group prefers to process its invoices using EDI. But there will continue to be a limited number of suppliers who are either unable or unwilling to adopt EDI. They will continue to send their invoices on paper. Currently invoice data has to be manually entered into the merchandize management system by METRO Group staff. This is not only time-consuming but error-prone.
METRO Group is therefore reviewing new software which can transform paper invoices into EDI invoices. The application is called Data Capture and is currently being field-tested by Metro Cash & Carry Spain.
METRO Group is therefore reviewing new software which can transform paper invoices into EDI invoices. The application is called Data Capture and is currently being field-tested by Metro Cash & Carry Spain.
Data Capture
Let’s assume a METRO Group staff member receives the goods invoice of a supplier on paper. The staff member starts the Data Capture program on his/her PC and scans the invoice with a high-performance desk scanner. The program scans the invoice for relevant data, extracts it from the invoice and translates it into the EDI message language. This means that Data Capture fits the paper invoice into the EDI systems landscape.
Data Capture is a learning system. If the program has translated the paper invoice of a supplier once, it knows the next time it identifies the address exactly where to look for the invoice number, goods items or the total. The system picks out the exact information it requires.
Data Capture is a learning system. If the program has translated the paper invoice of a supplier once, it knows the next time it identifies the address exactly where to look for the invoice number, goods items or the total. The system picks out the exact information it requires.
Business rationale for Data Capture
METRO Group is basing its decision for the group-wide application of Data Capture on three conditions.
- Firstly, the results of the tests in Spain. The sales division Metro Cash & Carry is currently putting Data Capture through its paces in the Spanish field. Since tests started in 2003 the reading rate has been increased to 80 percent.
- Secondly, the retailing group is fully committed to EDI. Electronic communications with suppliers are a top priority. METRO Group is currently in the process of convincing its partners in different METRO countries of the merits of Electronic Data Interchange. After completing the roll-out the retailing group is going to draw a preliminary conclusion and see just how large the group of EDI participants is and how many suppliers are still sending paper invoices. Then a decision has to be taken if investing into the group-wide implementation of Data Capture is feasible.
- Thirdly, service providers are also to be systematically reviewed. Maintenance contractors, agencies and public authorities are still sending in paper invoices. The question is if the volume of paper documents is sufficient to ensure that Data Capture can be implemented cost-efficiently.
Decision in two years
Data Capture is unquestionably a contribution to optimizing the suupply chain. Processing invoices is accelerated and more reliable as invoices no longer have to be entered manually. The fact that Data Capture is a learning system also increases the quality of the process. However, the software comes at a price. Initially METRO Group would like to check in how far the application can be implemented efficiently. In the next two years the retailing group is going to collect facts on which it can base a decision for or against Data Capture.
