03 coca cola hellenic business case analysis valdas pakstys

8/8/2019 03 Coca Cola Hellenic Business Case Analysis Valdas Pakstys

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EDI system projectfor Coca-Cola Hellenic

Baltics

Valdas Pakstys

Coca-Cola Hellenic Baltics

Business development manager


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Coca-Cola HBC Coca-Cola Femsa Coca-Cola AmatilCoca-Cola Enterprises

CCHBC is one of 4 Anchor Bottlers inthe World

We are the 2nd

largest bottler in revenue and the 3rd

largest bottler in volumein the world

We operate in 28 countries, 16 of which are part of the EU including 3Baltic Countries

We address the needs of over 540 million consumers

We operate 80 plants


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Tallinn

Estonia

Latvia

Lithuania

Vilnius

6 SALES CENTRES

PLANT

Alytus -PET (0.5l, 1.25l,1,5l & 2.0 L )

6 BRANCHES

Jhvi

TartuPrnu

Valmiera

Jekabpils

Kuldiga

Paneveys

Klaipeda

Kaunas

Alytus

Riga

CCHBC Baltics Sales Organisation


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EDI current situation an possibilities Baltics

Past Current Future

OrdersMD order-> Orderentry to Sales

System

Orders by emails(few Key

chains) = Orderentry entering toSales System

Full automaticway = from order

to order in SalesSystem

Loadingdocuments

Paper document Paper documentEDI + fullelectronicdocument

InvoicesPaper documentfrom each shop

Paper documentfrom each shop

Possibility to sendsummary invoicefor the chain byEDI


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Process for orders/invoices using EDI

Customer

Operator EDI

Customer

Operator EDI

CCH

Coca-ColaHellenic

1) Customer enter

order in own

system

2) Translation to

universal language

EDIFACT or XML

Order pack Order pack Order pack

4) Order automatically

enters CCH Sales

System

Information about ordersent by e-mail

about 20 min.

3) Translation to

CCH language

8) Invoice ready forCustomer payment

system

5) Summary

Invoice issued in

CCH system

about 30 min.

Invoice packInvoice packInvoice pack

6) Translation to

universal language

EDIFACT of XML

7) Translation to

Customer language


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Electronic Data Interchange in CCHBC

Order

Dispatch adv.

Invoice

Customer CCH


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Customer

Translation

EDI example Order via EDI operators

CCH

Customer EDIOperator

CCH EDI

operator Translation

Salessystem

e-mail notification

App. 20 minutes

electronic

systems &

Internet


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EDI central solutions for Baltics

Business

Partner 1

Coca-Cola HellenicEDI global platform

Baltic countries

Other CCHcountriesBusiness

Partner 2

VANconnection

AS2 connection

Business

Partner 3

Business

Partner 4

AS2 connectionBusinessPartner 1

Coca-Cola HellenicEDI global platform

Baltic countries

Other CCHcountriesBusiness

Partner 2

VANconnection

AS2 connection

Business

Partner 3

Business

Partner 4

AS2 connection


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Customer

Translation

EDI example Order via AS2

CCH

Translation

Salessystem

e-mail notification

App. 10 minutes

electronic

systems &

Internet


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EDI how to start

The following items represents high level preparation

task in order to start exchanging EDI messagesbetween parties

- Agreement on using standard coding for product (GTIN-EAN) andlocation (GLN)

- Agreement on details related to specifics of document/message coding(EDIFACT, XML,..). This is called MIG (Message Implementation Guideline)

- Agreement on used unit of measures (retail unit [bottle], wholesale unit[case])

- Agreement on cooperation during tests and approvals of createddocuments with clear identification of responsible persons

- Agreement on contact/responsible persons to handle all unexpecteditems during EDI implementation


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Deployment Phases

- Tollgates

Phases

Systems

Deliverables

Test Systems EDI/Sales/Invoicing Production Systems

Appr. 14 weeks total 3 weeks

Decision for

implementatio

n

Project

Go-ahead Go-live

decision

Post-implementation review

Business Case based

on Completed

questionnaires from

Country;

Project charter andorganization;

Start date

and time-line agreed

Partner mappings;

Process mappings;

Customizations to

the system;Infrastructure and

telecom;

Requirement

Specifications from

Business partners;

VAN providersevaluation

Integration tests

(off-line and on-

line);

Acceptance test andAcceptance sign-off;

Go-live date

confirmed

Training &

Training

materials;

Business change

activities;

Go-live;

Period of intensive

support;

Project Evaluation

Service Support

Pre-preparation

Preparation

Mappings development

Customization &

Infrastructure set-up TestsTraining &

Sign-off

Intensive Post

Go-live supportRegular service


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EDI benefits

CCHBC expected following benefits of EDI:

increased satisfaction of the customerssaving on the order processing resources.

-faster documents delivery versus paper, phone, fax

-more accurate data(any manual handling like typing order from fax, or entering invoice details intosystem from paper is reduced so less risk of mistakes)

-less human involvement in documents handling (we have order automaticallycreated in our sales system without anybody's time)

- paper reduction (no paper, fax,..)


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EDI current disadvantages

CCHBC faced following disadvantages of EDI:

-Reduced flexibility at order modifications and variations.

-Different customers have different EDI providers

-Our customers wants from us EDI invoices in addition to paper one

For CCHBC is rather additional complication and additional cost (on top of paperwe would need to pay for EDI messages)


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EDI CCHBC Baltics status and plans

Nearest future plans: implement electronic orders in fully

automatic way, using CCHBC EDI group wide solution.

What was done so far :

Communication channel has been configured between :

(1) eXite (CCHBC international EDI partner) and Edisoft;(2) eXite and Prisma;

XML order conversion to standard EDIFACT format has been developed

We have started group wide standard EDI order testing with Statoil, Mego

and Prisma of Estonia.

We have started to investigate possibilities to implement electronicinvoices.


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Thank You!

Q&A
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Enjoy the day!

Next: EDI Legal Aspects in Estonia
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03 coca cola hellenic business case analysis valdas pakstys

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