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10.12.2010

CRP/VMI at Adeg Austria

CRP/VMI at Adeg Austria

Adeg Austria achieves a milestone in data quality and information content through the availability of CRP/VMI data implementing an intranet platform for internal users. Since 1996, the year of the foundation of the ECR initiative, Adeg Austria is an active member of this unique consortium of the FMCG (Fast-Moving-Consumer-Goods) industry in Austria.

According to our understanding “Active” means the intensive cooperation within the working groups and also the practical implementation of the mutually aggred outcome of them. In this case, it is essential to have a certain head start in terms of knowledge. Especially, individual networking contacts, which have been developed in the course of time, help to manage the daily business within one’s own company. Due to these contacts, we have reached a rapid progress in the range of CRP (Continous Replenishment). In Germany CRP is often interpreted as transmission of stock/warehouse data from a retailer to a manu-facturing company – whilst the retailer remains in the position of the ordering party.

In Austria, however, the implementation of CRP is automatically linked with VMI (Vendor Managed Inventory). In this case, the responsibility for the replenishment control of the trade warehouse is passed over to suppliers. The precondition for living CRP successfully is based on mutual reliance between both parties. The term “partner” is gaining utmost importance here. Mentioned ECR and GS1 working groups are an ideal framework to build up this high level of confidence. Since 1998 Adeg has gained experience with the realisation of ECR projects.

The last years were strongly characterized by intensive CRP/VMI Roll-Out activities. Initial trials have started already in 2005 and nowadays Adeg cooperates with 14 CRP partners. For the purpose of exchanging CRP-data Adeg, as well as their partners, is using eXite® which is the leading communication platform for exchanging business data in Austria amongst other countries. EANCOM is the required format for the transmitted report data. INVRPT (Inventory report) contains warehouse data such as stock of inventory, inbound and outbound stock movement. GENRAL (General purpose message) is used to exchange data such as article statistics or announcements of the so-called special demand, such as promotional campaigns, fairs and so on. Conversely, based on this sales/inventory data, suppliers are identifying the actual demand of Adeg and finally send (so called reverse-) orders to Adeg. As generally known, trust is good, but control is much better – Adeg has implemented an intranet platform, based on data, which will be exchanged with the industry. Each authorized user, regardless whether he is working at the local warehouse, IT-department in Vienna or at the central procurement in Salzburg, has the possibility to track the development of service level and stock duration.

Furthermore, users can get a picture of the numbers of incoming goods delivered to the warehouse and inform themselves about the flow allocation of incoming goods during the course of a week, on GTIN-basement. With one push of a button the user is able to switch from a general to the daily overview of orders. The usability of this application allows you to get a clear overview on the development of KPI’s (Key Performance Indicators), which have been designed within ECR, before and after starting the partnership. The entire system works at the push of button within a few seconds. Only by using such stable and reliable systems, the procurement manager can trust on the provided information, monitor the decisions of suppliers in real-time and support the dispatcher if necessary. Nowadays this happens only exceptionally, e.g. on special occasions like Christmas or other similar events. While the warehouse staff already had full power of monitoring the flow of goods and information, the new intranet platform is an additional milestone of data quality and information content for the employees of the central purchasing department.

Our suppliers, who take part in the regular CRP meetings, are impressed by our system, which leads to requests to make the data available for our partners on such a detailled level as well. Therefore we have already granted some suppliers access to the system to benefit from the advan-tages. Adeg is far from considering the topic CRP / VMI as finished. Further suppliers are interested to realize such projects. CRP is already the “supreme discipline” of ECR, but Adeg will take it to the next level of CRP, which is CPFR (Collaborative Planning, Forecasting & Replenishment). In other words, CPFR is the mutual planning of promotions and replenishment control from the first estimated quantity till to measurement of results, based on the international ECR-principles. To speak from one’s own experience with CRP, we can conclude, that the advantages predominate clearly.

Advantages in favour of the suppliers can be regulated easily by purchasing conditions. For us CRP has resulted in an authentic Win-Win-Situation. Contact Helmut Artner ADEG Österreich Handels AG Handelszentrum 5 5101 Bergheim T +43/664/45 54 048 M helmut.artner@adeg.at

Contact

Helmut Artner
ADEG Österreich Handels AG
Handelszentrum 5
5101 Bergheim
T: +43/664/45 54 048
E: helmut.artner@adeg.at

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