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NL 12-2013

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19.12.2013Read it in different language:

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TELEMA NEWS TELEMA SERVICES AND PRODUCTS NEWS
PARTNERSHIP NEWS
TELEMA TEAM
TELEMA IN NUMBERS



Maxima to start with EDI 4Doc from January 2014
It is finally official! The long awaited news that Maxima is technically ready and has made a decision to implement EDI. The decision is that right from the start all 4 documents will be used: order, despatch advice, receive advice and invoice. Maxima will begin with the 100 biggest suppliers in Lithuania and continue step-by-step with the rest. There will be a transition period allowed. As an interesting remark, Maxima is ready to connect suppliers both through EDI operators as well as directly.

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DIY sector switching to EDI
This year, the biggest document growth came from the DIY sector. In Estonia, hundreds of DIY suppliers and large chains like Bauhof, Optimera and Rautakesko exchanged over 240 000 electronic documents that is six times more than in 2012. Over 60 new suppliers, Saint-Gobain, Kiilto, Mecro, Baltic Agro and Caparol, among others formed EDI partnerships with the retailers and many more are planning to start the implementation.  There is also excellent progress in the Latvian DIY sector. In Latvia we can currently offer to suppliers cooperation with Rautakesko (all over the Baltics), local retail chain Mājai un Dārzam and many other DIY retailers in Estonia.

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SEPA and IBAN - how does it affect EDI?
All people, companies and institutions in Estonia will need to be ready to start using the technical and business requirements of the Single European Payments Area (SEPA) from 1 February 2014. “Regular” bank account numbers will be converted into the international IBAN format and the domestic direct debit service will be replaced by e-invoices. How these changes will affect daily operations of your organization can be explained by your ERP software provider. Telema system transfers both national bank account numbers equally to IBAN numbers. Should you need help providing bank with the needed e-invoices, Telema is ready to advise on that matter.

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40 billion Euros to be saved with e-invoices in Europe
In Europe, only 18% of all invoices (annually 33 billion) are exchanged electronically. Therefore, there is  a strong potential for growth. In 2011, the European Commission took a strong course towards e-invoicing by setting up the European Multi-stakeholder Forum. The forum’s recommendations for mass adoption include, among others:

  • that all European countries would require e-invoices in public sector
  • that public procurement processes should be easier and more accessible for small enterprises
  • that accounting and bookkeeping rules should be adapted to be compatible with e-invoices.

European Parliament has called for e-invoicing to be mandatory for all public sector institutions in EU by 2016.

According to the annual e-invoicing report issued by Billentis, switching to e-invoices can result in 60-80% savings compared to traditional paper-based processing and the average project payback period is only 6 months to 1.5 years. Adoption of e-invoicing would save Europe about 40 billion Euros.

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Hello Euros, farewell Lats
On January 1st, 2014 Latvia will enter the Euro zone. This is a major change, so it is comforting to know that Telema EDI system is ready to transfer data in any currency. This means that there are no additional validators in our system to check the currency, instead, the desired currency is determined by the sender of the document. What clients will send to us, we will forward to their partners. For integrated EDI users, Telema system exchanges information to and from their ERP system. Telema’s web environment will also be automatically Euro compliant.
 
We kindly ask all our customers in Latvia to be alert about their master data and documents they are forwarding to Telema EDI system and make sure the currency is correct. Starting in January 2014, trading documents issued in Latvia should bear amounts in euros and currency code needs to be EUR.

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1100 shops in the Baltics sharing POS data for VMI
In Switzerland, 85% of food and near-food products in retail sector are supplied using VMI strategy.  However, VMI usage in the Baltics is still marginal.

In spring 2013 Triinu Kollamaa, a Supply Chain Management student in Tallinn University of Technology researched 64 retailers in Estonia. Only a few retail chains currently empower its suppliers to automatically replenish the goods in stores. However, 20 chains more are willing to share POS (point of sales) data with suppliers.

Despite the retailers’ surprisingly good knowledge about VMI, the strategy is still slow to expand. The main reasons named by retailers for not using VMI are:
  • lack of  trust to empower suppliers for self-replenishment
  • complexity of changing business processes
  • suppliers’ low ability to demonstrate their VMI competence and initiative to start.
Indeed, the suppliers often lack the knowledge or necessary tools (ERP systems do not have the VMI functionality, VMI softwares not widespread in the Baltics) for establishing VMI relationships with their partners.

In Telema network there are over 1100 shops technically able and willing to share POS information with their suppliers. It is now up to suppliers to respond with the interest to go for it.

Continue reading how to build trust and become more competent in VMI or if you wish to learn more about VMI solutions and implementations.

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TELEMA NEWS

10 million documents annually - done!
The total number of EDI documents exchanged through Telema network during 2013 was 10 million, increasing by more than 25% compared to the last year. Telema transfers about 20 different document types of which e-invoice and e-order are the most widely used. This year 3, 4 million orders and 3,2 million invoices were sent through our network. As 4-document supply model is gaining popularity, one the fastest growing (by 39 %) document categories was receive advice.

At the end of 2013, Telema network carries close to 70 000 active e-supply links. E-supply link is the connection between one supplier and one delivery address (shop). The number of connections between partners grew this year by 21%. The growth was supported by new connections between existing clients as well as by adding new customers to the base.

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Telema customer network expansion in 2013
2013 was another good year for new EDI relationships. In Estonia alone, 100 new customers joined Telema network, majority from the DIY sector - Saint-Gobain, Kiilto and Caparol for instance. Another well-known beverage supplier Royal Unibrew  chose Telema as their EDI partner. Two major successful EDI pilot projects were initiated, one between AleCoq and Maxima, the second about Coca-Cola’s e-invoices to ETK cooperatives.

In Latvia and Lithuania, the focus continues to be on the FMCG sector. Additional retail chains like Mārksmens and Gabriēla from Iepirkumu Grupa (65 TOP! shops), also Prisma Latvia have started more active usage of EDI over the last year. On supplier side, Kuldīgas Maizes Ceptuve, Roga-Agro and Diāna were added, to mention a few. In Lithuania Sanitex C&C and Šilas retail chain have joined Telema EDI network, as well as wholesalers Tridens and Elmera, among others.

More than 3050 shops and over 900 suppliers exchange their documents through Telema. Telema’s complete customer list is available on Telema Website. Please send the linking request using our new Telema Service Web request form and EDI document exchange may begin.

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Nordea adopted Telema eFactoring solution
In September, Nordea Finance Estonia started to use the Telema eFactoring service. For Telema clients using Nordea financing services, the invoice submission to the bank is now automated.

With Telema eFactoring service, a copy of the invoice issued from the seller to the buyer is automatically transferred to the bank’s software in correct format. No more double data entry or sending Excel files via emails. As a result, the whole factoring process is faster, more secure and more convenient. Telema eFactoring service is currently in use by Swedbank Leasing and Nordea Finance in Estonia.

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Telema customers’ feedback: “It works!”
“ A reliable solution that works so that you can forget about it :)” - Akzo Nobel Baltics AS, EDISupplier

“Makes work smoother and increases productivity.” - Alexela Oil AS, EDIBuyer

“Good system for ordering and sending invoices. We like that the system is stable and comprehensible.”  - Casual Trend OÜ, WebSupplier

Telema’s annual customer satisfaction survey at the end of November brought replies from nearly 500 respondents - decision makers, IT people and daily service users. The average rating on a scale from 0 to 10 was 8. Nearly half of the respondents gave Telema scores 9 or 10, meaning that they would highly recommend the company’s services to a friend or colleague. The NPS (net promoter score) calculated as a result was 32,5 (an increase of 2,5 compared to last year).

The most valuable part of the satisfaction survey were  the comments given by customers. There were praise and kind words, but also constructive feedback on what could be done better. Based on these suggestions we are able to raise the quality of our services to an even higher level.

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What mistakes to avoid in implementing EDI
Promoting the idea of paperless trading processes is continuously one of Telema’s priorities. In 2013, Telema organized a series of morning EDI seminars in Lithuania, Vilnius and Šiauliai. Both suppliers and retailers were invited to discuss the benefits of EDI.  In addition to explanations of how much time and money can be saved with the help of EDI, real customer references were presented for demonstrating the possible savings.

Throughout the year our good cooperation with universities and public sector organizations resulted in various lectures and conferences. Estonian Trade Conference and ECR Baltic Forum are just a few examples of the events where Telema participated. Take a chance on learning from our CEO Hele Hammer’s presentation “Mistakes to avoid implementing EDI in supply chain” shown at the ECR Baltic Forum in Tallinn.

Telema is also among the supporters of the newly opened business and innovation center Mektory in Tallinn. Telema helped design the innovation lab for logistics and supply chain management. It is a place for simulations and interactive games, but also where businesses meet students and ideas meet application.

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TELEMA SERVICES AND PRODUCTS NEWS

Telema MMT now in use also in Finland
In December, the first company in Finland, Sirowa Nordic Cosmetics, started to use Telema MMT service with its 14 sales representatives. Order collection, previously done manually with pen and paper or Excel in their laptops, will now be automated. Nordic Cosmetics also implemented the MMT Merchandising module. It allows to record information about the out-of-stock situations and their reasons, sales prices, number of product faces, layout photos etc.
 
Sirowa Group in Estonia, Latvia and Lithuania have been using Telema’s solution for more than 7 years. Over time, the use of Telema MMT has improved their customer relations as well as saved time and money. The solution and good partnership led to a logical decision of  implementing the same solution also in Finland and there are plans to use it also for their Poland operations.  

In 2013 Telema MMT was spreading beyond Estonia. Companies like Premia FFL (22 sales agents), Diāna A/S, Mayeri Latvia and Jungent in Lithuania either started to use or upgraded their version to our new well-designed and simple to use Android based one. In total more than 90 sales agents started using the tool - now it helps over 250 sales representatives in their daily work. The document flow transferred via MMT nearly doubled compared to 2012.  The  interest in Telema’s MMT is escpecially keen in Lithuania and Latvia. Read more about Telema MMT from here.

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Telema WebShop - convenient B2B purchasing
Telema WebShop is a web based purchasing environment where smaller shops and HoReCa companies can place their orders to multiple suppliers. For vendors on the other hand it is a cost-efficient way to collect orders from smaller clients. For buyers it does not require anything but a signed agreement, a computer and  Internet connection - no special software or technical implementation is needed.  WebShop benefits for the buyers are:
  • accurate product data - prices, codes and specifications - as it is updated by suppliers
  • convenient template orders - one can create several for different suppliers - so the order can be sent even faster
  • orders can be placed 24/7

Today Telema WebShop allows to order goods from 80 FMCG suppliers - Eesti Pagar, Leibur, Fazer, Rakvere Lihakombinaat, Bambona, Karlskroona, Vegelog, Valio, Tere, Atria, Saaremaa Lihatööstus, Kaupmees & KO among the biggest ones.

Integrated suppliers get the orders directly to their ERP, orders are based on accurate data and arrive more evenly, not only at the end of the working hours. All this means benefits for suppliers:
  • reduced workload for sales personnel
  • less mistakes in orders - so order handling is faster
  • efficiency in processes, both in sales department and warehouse

More than 500 shops, cafes and restaurants have registered themselves as Telema WebShop users and are conveniently placing their daily orders.  To find out how you could benefit from Telema WebShop, please contact Product Manager Renate Valdna renate.valdna@telema.com.

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E-invoices to public sector via Telema: XML+PDF
Starting from October 2013, Telema transfers suppliers’ invoices to Estonian public sector institutions. Telema’s customers can now be easily connected to public sector institutions, such as schools, kindergardens, hospitals etc. The new feature is enabled through roaming agreements with e-Arvekeskus and Opus Capita (formerly Itella). The main update in functionality is the added pdf image of the invoice that is included in the currently used xml format.

How does it work? A supplier sends its invoice Telema EDI system as usually. Telema forwards the invoice to e-Arvekeskus or Opus Capita, who processes the invoice and addresses it to the final recipient. The public sector institution receives the invoice in “xml+pdf” format that is the standard in the Estonian public sector.
 
For the vendors dealing with public sector, this new functionality makes sales invoice handling easier, as it can now be done conveniently using one channel. In order to use this functionality, suppliers only need to update their Telema eDoc to the latest version. Vendors not yet connected to Telema network, please contact our Sales Manager Kalle Kuuspalu kalle.kuuspalu@telema.com.

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Latest version of Telema eDoc 2.8.3
Telema has released the new Telema eDoc version 2.8.3 that carries several significant updates and confirms to recent retailers’ and suppliers’ requirements.

The Telema eDoc now has new updated header values, such as country code and registration number, to support additional addressing possibilities. Also, addition formulas were updated in the respective fields. Among other improvements, the latest Telema eDoc version introduces a new document type - ROAMINGLIST - that was added for sending roaming partner's customers list to Telema.

Complete Telema eDoc specification and the changelog can be viewed at:
http://www.telema.eu/developer

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PARTNERSHIP NEWS

Telema started cooperation with Omnitel
Telema’s services attracted the interest of Lithuanian biggest telecom operator Omnitel. In August 2013, the companies signed a cooperation agreement that covers joint marketing and sales activities for business clients in Lithuania.

Now, high quality telecommunication services and newest mobile devices offered by Omnitel can be combined with sales force automation solution Telema MMT. Combining the solutions, suppliers  are able to collect orders in real-time from their customers’ site, gather market information, check assortment compliance and out-of stock situations, and manage their sales team better. The sales processes become quicker and more accurate saving up to 200 euros monthly per sales agent.

Cooperation with Omnitel brings Telema’s value added solutions closer to Lithuanian  customers and demonstrates that EDI access can be mobile and easy.  The aim of the cooperation is to make business operations more efficient throughout the supply chain.

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Telema Certified Partners programme 7 new members
More and more ERP providers are willing to provide their customers software with built-in EDI functionalities. During the year 2013, 7 new software support firms have been awarded the Telema Certified Partner diploma.  Tresoor Tarkvara and Eurotec are the most recent ones. There are now 13 partners in total.

Being a Certified Partner of Telema allows business software companies to offer their clients a simple, fast and inexpensive EDI connection with over 1000 companies. It also means that the Partner and Telema have agreed on end user activation terms—how long will it take to “switch on” EDI in that software and how much it costs. For example, to activate EDI capability in KMA software Ladu, it takes one business day and it is free for the company ordering it. For SAF, it costs 450 euros and takes up to 7 business days. Terms for all Telema Certified Partners can be found here.

Telema EDI Module is in a development phase for Astro Baltics, Latinsoft (LAT) and ELMI (LAT) softwares, moreover there are about 10 projects in negotiations phase. More information about the Certified Partner program you can find  here.

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TELEMA TEAM

“The strength of the team is each individual member. The strength of each member is the team.”
/Phil Jackson/
 
In the second half of 2013, new professionals joined Telema team.

Telema Latvia got  more sales power – ARTIS BOGDANOVS started  working as a Sales Manager in July. In August, the Estonian sales team was reinforced by RENATE VALDNA, while CAROLIINA RAND joined the team in December. As Customer Account Managers, their main task is to be the daily interface for our clients. KADRI LENK is our new Product Manager since August. In November, ANNELI LEPIK started as our new Pan-Baltic Sales Director. VIVIAN MARIPUU, responsible for IT partner relations, joined us in December.

There are newcomers also to our customer service department – OLEG PODLIPSKI started in August as an IT Specialist and TEA SUURKIVI arrived in November to take a position of the Customer Service Manager.
 
Two of our colleagues – MERLIN SAARESTE and RAIGO KALDMA parted with us for a year  to explore themselves and life in Australia. However, we were happy to welcome back Product Manager TRIINU KOLLAMAA  from her study break and Helpdesk Specialist EVA KIISA from her maternity leave.

ARTIS BOGDANOVS
RENATE VALDNA
OLEG PODLIPSKI
KADRI LENK
CAROLIINA RAND
VIVIAN MARIPUUEVA KIISATEA SUURKIVITRIINU KOLLAMAAANNELI LEPIK

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TELEMA IN NUMBERS


2012
2013
Change
Suppliers
   870
   900
+30
Shops
2 900
3 050
+150
E-supply links*
56 000
64 500
+15%
Documents, thousands
7 900
10 040
+27%
*E-supply link is the connection between one supplier and one delivery address (shop)

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