Supply
chain collaboration may not function properly without EDI. EDI exists in many
forms, the one better than the other. The best example of EDI in Dutch fashion
retail is the retail company called Gebrs Coster, based in Capelle aan den
IJssel. A not for everyone known business name, but a super-efficient retail
operation with multiple mono brand formulas, but also a duo brand formula.
Coster retail operates besides its
unique duo brand retail formula many franchise shops of the brands: Dockers, G-Star
RAW, Denim & Supply by Ralph Lauren and Adidas. The in 2011 started duo
brand retail concept is called CTC ColourToColour, in which one half of the store
is G-Star RAW and the other half of the store is Adidas Originals. The middle
part is a common space for service (fit, checkout, combined presentations).
Coster is an originally Rotterdam based
family owned retail business with a rich history. Started as multi brand
formula ‘Coster for father and son’ and later grown as a franchisee of Levi's
and Dockers, Coster retail made a few
years ago a structural turnaround towards intensive cooperation with a number
of brands.
Supply chain collaboration and focus on
a far-reaching efficiency of operations are the key words of the success of
this retail organization. The very limited amount of overhead people working at
Coster and operating such a large number of shops is unprecedented in the world
of fashion retail companies. To achieve this great results, Coster decided to work
only with brands that strongly believe in supply chain collaboration and who
can support business processes between the brand owner and retailer for 100%
via EDI. For clarity Coster buys at their own risk and expense to the brands
and therefore has the same processes as a traditional multi brand retailer.
The seasonal collection orders are
agreed upon in the showrooms of the brands. The brands deliver the order
confirmations digitally via the EDI message ORDRSP per branch, accompanied by a
PRICAT message including the EAN/UPC codes and suggested retail price therein. Coster
doesn’t need to manually enter orders and product data anymore, resulting in huge
time (and cost) savings, less errors and a much faster data and product availability.
By the time the new collections are
ready to dispatch to the retailer, the brand owner sends an EDI delivery note
(DESADV) to the retail system of Coster, per branch stating the amount per SKU
(EAN/UPC) to be delivered. The retail
system of Coster (PFA from ProFashionAll) therefore knows what is going to be
received. Upon delivery of the goods in the store or in the central warehouse,
the goods are scanned and an automated comparison is made with the DESADV
already in the system. Deviations, if any, are determined automatically and registered
in PFA on detail level. Coster saves a lot of time, money and manpower. The
main advantages are significantly reduced time-to-shop floor (average 4 days
earlier on the shop floor) as well as to grow in the number of stores, without
the capacity of the central warehouse and head office needs to be expanded.
The dispatch of the goods is the trigger
for the supplier to send the invoice. This process is also 100% handled digitally
via EDI (INVOIC). With a twofold advantage. Coster retail doesn’t need to book invoices
in its financial system (Finall of Bison software) any more. Even more important
is the invoice verification, which can be done fully automated. The retail
management system PFA already knows what EAN codes are ordered, for which purchase
price (ORDRSP) and the exact quantities received per EAN code in which branch
(DESADV). The numbers actually received by barcode (scanned on entry) are stored
in a database matching (FactMatch from Bizon Software). The numbers and amounts
invoiced by EAN code are also written to FactMatch. Then FactMatch produces a
list with the discrepancies between invoiced EAN’s and actually received EAN’s
including (amount and price). Deliveries and invoices are automatically checked
correct, approved and paid. This method is highly efficient and provides a tremendous
decrease of workload.
EDI also
makes replenishment of the basics very efficient. In their stock system (PFA)
COSTER entered a minimum and maximum stock level of the basics both for each
branch and for each EAN code. PDF will calculate periodically which EAN code,
in which amounts for which branches are needed to be reordered and will hereby
create a matching EDI order (ORDERS message). At the suppliers these electronic
orders will be processed automatically and with priority and therefor will be
replenished within 2 days at each branch. These will be followed by DESADV and
INVOIC messages and in this way the delivery, billing and control can take
place very efficient! With this replenishment procedure the lower actual
minimum supply as well as the lower lost sales, are very important victory points.
For the
handling of all their EDI traffic, Coster retail uses the dedicated EDI solution
eBiss/eGate, provided, delivered and supported by FashionUniteted Indicia. Therefor
Coster also exchanges EDI messages with G-star RAW, both in EDIFACT and in XML
format. With eBiss Coster has a lot of flexibility within their own organization
regarding EDI.
“Without
our migration from our FUI’s MessagingCentre towards eBiss/eGate our business never
could have been this efficient” says Klaas Both, chief controller of Coster retail.
