Dietmar Weber

1
Introduction

• Dietmar Weber
• Managing Director of 1eEurope Deutschland
• Member of möbelonline Deutschland
• Business Consultant of FENA

2
Why CSA 7 ?

• Different usage in NL(CSA2) and D/B/IT(CSA1)
• German manufacturers and Dutch retailers were not
  able to communicate
• Missing functionality in CSA 1 and CSA 2
• Enormous number of exceptions necessary
  (Hjellegjerde)
• Stop for those who love to say But
• Split of catalogues
• Article catalogue
• Price catalogue

3
1eEurope (former EDIREKT IMT)

• One of the business lines is EDI
• Converter, Clearing Center, WebEDI, Projects,
  Consulting
• App. 70 customers for EDI in Europe in furniture
  (gt 200 overall)
• Retailers like
• Porta, Segmüller, Finke, Zurbrüggen, Lutz, Tejo,
  Ostermann, Weko, Heinrich, Zimmermann, Rathmer,
  Heylen, Hardeck
• Manufacturers like
• Nolte, CS Schmal, Schieder Group (30 Companies),
  Steinhoff, Selva, Habufa, Staud, Wiemann, Ilert,
  
• Much more than 1000 relations in furniture
  operational (!)
• Lutz More than 200 manufacturers operational
• Roller More than 130 manufacturers operational

4
FENA

• European association of furniture retailers
• FENAnet
• Platform
• To exchange catalogues and transaction messages
• Clearing Center
• WebEDI
• Catalogue testing
• Platform for
• Marketing and sourcing
• Business development
• Planned for
• New services like mobile services
• Logistics integration

5
Agenda

• Möbelonline Deutschland -gt
• What are they within
• Standardisation
• Political issues
• Practical functions
• Manufacturers and CSA -gt
• Benefits and challenges
• Risks
• Requirements for success
• Implementation examples
• EDI architecture solutions -gt
• Retailers and CSA -gt
• Benefits
• Problems
• How to start
• How to implement the complete functionality
• Implementation examples
• The role of software vendors

6
Questions and answers
7
profile möbelonline e.V. september 2004
8
profile möbelonline e.V.

• Contents
• Structure and aims
• Activities
• Working groups / consultants
• Communication and information
• Business model
• Cooperation with service providers
• Acquisition of members
• Cooperation with standardisation organisations
• Co operations

9
profile möbelonline e.V.

• Structure and aims
• Foundation 1996
• Members
• Retailer
• Combines
• Manufacturer
• Service providers of the branch (Logistics,
  Software, Clearing Center, etc.)
• Address
• möbelonline e.V.
• Heidestraße 50
• D-32051 Herford
• Tel. 49 / 5221 / 1012900
• Fax 49 / 5221 / 1012901
• eMail moebelonline_at_web.de
• www.moebelonline.com

10
profile möbelonline e.V.

• Structure and aims
• Board and Management
• Chairman Dr. Eberhard Ludwig (Schieder-Gruppe)
• Member of board Manfred Sattler (SHD Holding)
• Treasurer Hubert Westhäuser (Oberfränkische
  Vereinigung für rationellen Datenaustausch)
• Member of board Lior I. Yarom (Easy Motion /
  Garant)
• Member of board Reiner Eckert
• Managing director Reiner Eckert
• Advisory board
• BVDM (Mr. Kunz)
• ZGV (Mr. Glaser)
• VDM (Mrs. Geismann)
• CCG (Mr. Förderer)
• DCC (Mr Dr. Plümer)
• board members of möbelonline e.V.

11
profile möbelonline e.V.

• Aims and activities
• möbelonline e.V. is an independent organisation
  of the furniture branch pressing ahead and
  supporting those activities which are focused on
  non-stop (EDI-)processing of business
  transactions.
• möbelonline e.V. therefore works out EDI-overall
  scenarios as an aid for partners of the branch to
  make their decision.
• Further development of data formats (CSA Pricat
  and transaction messages based on this) based on
  EANCOM 2002 in close cooperation with CCG (German
  EANCOM-Organisation)
• All activities are made in close coordination
  with national and international branch
  organisations and associations

12
profile möbelonline e.V.

• Procedures
• Working groups / Consultants
• Within several working groups we are actually
  developing
• EDI Overall scenarios
• Product data formats (CSA-PRICAT)
• Transaction formats (order, order response,
  delivery advice, despatch time, invoice, payment
  avis, partner-information etc.)
• We plan to recruit consultants for dedicated main
  point out of the members of möbelonline e.V.

13
profile möbelonline e.V.

• Communication within and information for the
  branch
• We inform members and the branch via the internet
  presence www.moebelonline.com about activities of
  the association and their results
• Information events for the branch about EDI
• Information about publications of branch
  associations of retailers and manufacturers
• möbelonline has got a cooperation with MÖBELMARKT
  and uses this magazine for regular information
  about main topics and solutions

14
profile möbelonline e.V.

• Business model
• Non profit organisation
• Cooperation with service providers and software
  vendors within the working groups of möbelonline
  e.V.
• Acquisition of new members
• By personal contact following the aim to have
  comprehensive and balanced membership of
  manufacturers, retailers, combines and service
  providers
• Via the branch organisations and associations

15
profile möbelonline e.V.

• Cooperation with standardisation organisations
• Closest cooperation with EAN - organisation (CCG)
• Joint work with
• Daten Competence Center (DCC) for product data
  kitchens
• Verband Büro-, Sitz- und Objektmöbel e.V. (BSO)
  for product data of planning intensive products

16
profile möbelonline e.V.

• Communication within and information for the
  branch
• The cooperation are minted by the aims of the
  association.
• Co operations partners
• BVDM (German furniture retail association )
• ZGV (Central association commercial combines)
• VDM (German furniture manufacturer association)
• FENA (European furniture retail association)
• Möbelonline e.V. is the central official contact
  in Germany for the project FENAnet. Möbelonline
  e.V. took over this responsibility in
  coordination with VDM and BVDM
• DCC (Data competence centre for kitchens)
• BSO (Office furniture)

17
möbelonline main topics

Furniture branch All partners pre-suppliers
manufacturer - retail co operations logistics
service providers
Target group

CSA-PRICAT möbelonline product data for single
and variant articles Developed and released with
CCG based on EAN-standard EANCOM 2002
Product data formats
Order, order response, despatch advice, delivery
times, invoice, Payment advise, partner
information (more in work) möbelonline
transaction data formats based on EAN-Standard
EANCOM 2002
Transaction data formats
Independent of any service providers Support and
consultancy on EDI -projects within the
branch Exploitation of synergies in data and
transaction formats Support of Software for
retail (retailing software, configurator,
Planning systems) which provide the electronic
supply chain
Coordination aims for the complete branch
18
Traditional EDI
ERP Solution
19
Traditional EDI - Problems

• Initial costs
• Hardware and networks
• Software
• Internal architecture
• Resources
• Ingoing costs
• Hardware and networks
• Resources
• Project time
• Mostly projects are running too long

20
EDI within the ERP
EDIFACT Format
ERP Solution
21
EDI within ERP - Problems

• Software Vendors
• Not focused on EDI business
• Mostly individualized solutions
• High costs for enhancements
• Architecture
• Less flexibility for integration of other
  software pieces
• Costs
• Less reusability of mappings etc.
• Less knowledge about partners and their
  specialities

22
EDI via Clearing Center
ERP Solution
23
EDI via Clearing Center

• Problems
• Data at a service provider
• Benefits
• Easy to start
• Reusability of knowledge and work
• Less costs
• Only one network connection

24
Questions?

• Same architecture possibilities for retailers

25
Topic Retailers and CSA
26
Retailers and CSA

• Benefits out of CSA - Pricat
• Problems
• How to start and implementation examples

27
Practical goals

• Reduction of costs
• Enlargement of turnover

28
Benefits out of CSA - Pricat

• Satisfied customers
• Satisfied sales men
• Satisfied employees in the backoffice
• Satisfied managers
• Satisfied manufacturers
• Basis for a lot of other advantages

29
Benefits satisfied customers

• Information
• More information at all
• More quality on information
• Information available at a single point
• Reduction on delivery time

30
Benefits satisfied sales men

• Information
• More information at all
• More quality on information
• Information at one point available
• Information earlier available
• Less introduction work on new products
• Less introduction work on new suppliers
• More satisfied end consumers

31
Benefits satisfied back office employees

• Less manual work
• Less reclamation quote
• Less trouble with end consumers

32
Benefits satisfied managers

• Statistics possible
• More quality in statistics
• Comparable statistics across the retail
  organisation or the complete branch
• Cost reduction in phase 2
• Easier to change assortments or parts of them
• Ability to differentiate the offering easier

33
Benefits satisfied manufacturers

• Less manual work
• Less reclamation
• ? Less costs
• Category Management tasks become possible

34
Benefits basic for other advantages

• Internet sales solutions
• Other sales channels
• End consumer information at all
• Other devices and services
• Handheld, mobile, window shopping, information
  terminals, eMail Marketing, etc

35
Retailers and CSA

• Benefits out of CSA - Pricat
• Problems
• How to start and implementation examples

36
Problems

• Retailing software
• Internal organisation
• Technical architecture

37
Problems Retailing software

• No standardised article identification used
• Sometimes EAN numbers used
• No interfaces for import of articles used
• Less enhanced than ERP Solutions for variances
• Software completely based on single article
  numbers
• Article data
• Stock information
• Ordering processes
• Statistics
• Marketing
• .

38
Problems internal organisation (1)

• Responsibility
• At buying department and not at IT
• Communication with manufacturer
• About data formats
• About data quality
• About actualisation of data
• About testing results
• Departments instead of categories
• Buying department, sales department, stock

39
Problems internal organisation (2)
Buying Department
Sales Department
Stock Management
Logistics
Manufacturer
Category Management
Responsibility ??
40
Problems technical architecture

• Networks
• Bandwidth
• Displays

41
Retailers and CSA

• Benefits out of CSA - Pricat
• Problems
• How to start and implementation examples

42
How to start?

• Project with your software vendor
• Interfaces to import and export data in whatever
  data
• Article data, orders , order responses, invoice,
  despatch advice,
• Enhance the order line capability
• ( Product configurator ?)
• Internal decision projects
• In which way to handle catalogue data ?
• Which EDI architecture?
• Projects with your manufacturer
• Which kind of projects and message types do you
  want to run?

43
How to start? Software Vendor (1)

• Enhance the order line
• Today's situation
• Order head
• Order line
• Order line
• Tomorrows situation
• Order head
• Order line
• Order sub line option option value
• option article
• option parameter
• Order line
• Order line
• Order sub line
• This will offer the opportunity for more detailed
  statistics

44
How to start? Software Vendor (2)

• Build up the messages interfaces
• Use an extensible internal format
• For new developments XML seems to be the best one

45
How to start? Software Vendor (3)

• Integrate a configurator (?)
• Based on the decision how to handle catalogue
  data
• Keep in mind
• Development cycle will be long perhaps longer
  than expected
• CSA Pricat is standardized, but used in different
  ways by the manufacturers
• Programs no programs
• Article groupings no groupings
• Perhaps other formats for other sections will
  raise (kitchen)

46
How to start? Internal decision

• How to handle catalogue data?
• Three possibilities perhaps more
• Solution 1
• Import everything into retailing software
• Have your own configurator integrated
• Think of how to keep data actualized
• Solution 2
• Have catalogues and configurator outside
• Take over the configuration results into the
  order line
• Shortest development cycle
• Solution 3
• Combination of solution 1 and solution 2

47
How to start? Example of Fundamental
software(1)
48
How to start? Example of Fundamental
software(2)
49
How to start? Example of Fundamental
software(3)
50
How to start? Example of Fundamental
software(1)
51
How to start? Internal decision

• Which EDI architecture should be used? -gt

52
How to start? Projects with manufacturers

• Which kinds of project and message ?
• Depends on the ability of the partners
• Depends on the decision of how to handle
  catalogues

53
How to start? Project Type 1 on FENAnet EDI
for flat articles catalogue

• Type Identification
• Manufacturer produces flat articles (1 article
  1 EAN Code)
• Manufacturer is able to produce a catalogue
• Retail Software is able to import catalogues
• Manufacturer is able to do transaction messages

FENAnet Platform FENAnet Clearing Center
Manufacturers ERP Solution
Retail Software EAN Maintenance 8751367983447
54
How to start? - Project Type 2 on FENAnet
EDI for flat articles Online Integration

• Type Identification
• Manufacturer produces single articles (1 article
  1 EAN Codes)
• Manufacturer is able to produce a catalogue
• Manufacturer is able to do transaction messages
• Retail Software is able to Integrate FENAnet
  Online

FENAnet Clearing Center
Manufacturers ERP Solution
Retail Software EAN Maintenance 8751367983447
55
How to start? - Project Type 3 on FENAnet EDI
for variant articles catalogue

• Type Identification
• Manufacturer produces variant articles (1 article
  multiple EAN Codes)
• Manufacturer is able to produce a catalogue
• Manufacturer is able to do transaction messages
• Retail Software is able to import catalogues
• Retailer is able to configure articles within
  retailing software

56
How to start ? - Project Type 4 on FENAnet EDI
for variant articles online Integration

• Type Identification
• Manufacturer produces variant articles (1 article
  multiple EAN Codes)
• Manufacturer is able to produce a catalogue
• Manufacturer is able to do transaction messages
• Retail Software is able to integrate FENAnet
  online

FENAnet Platform FENAnet Clearing Center
Manufacturers ERP Solution
Retail Software
57
Retailers and CSA

• Benefits out of CSA - Pricat
• Problems
• How to start and implementation examples

58
Topic Manufacturer and CSA
59
Manufacturers and CSA

• Practical Goals
• Risks
• Requirements for Success
• Summary

60
Practical goals

• Reduce costs
• Enlarge turnover

61
Practical goals reduce costs

• Reduce manual work in data entry
• Reduce costs for catalogue production
• Reduce costs for catalogue distribution
• Reduce reclamation quote
• Reduce communication costs
• Not line costs but
• What is the actual price?
• What is the delivery time?
• What is the delivery date?
• Is it available in oak also?
• Can you send me a picture?

62
Reduce costs CSA and electronic
communication

• Electronic communication today in furniture
• Catalogue data
• Orders
• Order responses
• Invoices
• Despatch advice
• Sales reports (example Jahnke)
• Inventory reports
• Not for all of them we need CSA-Pricat
• But for this messages it would make it easier
• catalogue data, orders, order responses, sales
  reports, inventory reports
• Example Möbel Hardeck

63
Reduce costs example Möbel Hardeck

• Project aim 20 manufacturers with orders and
  order responses
• Project start up
• Project setup 3 days
• Contact manufacturers 2 days
• Project with one of them
• Test communication at all 4 hours
• Test orders 6 hours
• Test order response 6 hours
• Article data 8 days
• Who is responsible
• Where can I get them
• Different formats
• Project for one manufacturer in total 2 weeks
• Project time in total 41 weeks
• Possible reduction by using standardised
  catalogue data
• From 8 days to 2 days
• Possible project time in total 16 weeks

64
Practical goals Enlarge turnover

• Address new markets
• Get new clients
• Awareness for endconsumers
• Enlarge availability of products
• Shorten the production cycle
• Open new sales channels
• Factory outlets
• Endconsumer business via Internet ?
• Joint ventures
• Faster and better information about sales results
• Not for all of them, but for a lot of them
• Easier with standardized article data

65
Manufacturers and CSA

• Practical Goals
• Risks
• Requirements for success
• Summary

66
Risks

• CSA Pricat
• will not be the global standard
• format changes very often
• Retailers
• Retailing Software will not be able to handle CSA
  Pricat
• Retailers are asking for different formats
• Internal organisation and responsibilities
• Implementation costs and implementation cycles

67
Risks Global standard

• Actual situation
• Your project forces CSA Pricat 7
• Möbelonline Deutschland forces CSA Pricat 7
• Möbelonline Netherlands forces CSA Pricat 7
• FENA forces CSA Pricat
• CSA Pricat is operational
• Development cycle of more than 8 years
• Responsibility handed over to EAN
• No other standard available
• XML / EDIFACT discussion
• Complexity of product structures
• Still other activities based on single interests
• XML
• Planning tools
• OFML

68
Risks Global standard - Solution
ERP
69
Risks Global standard - Solution
ERP
70
Risks Retailer

• Retailing software
• Not prepared like ERP Systems for variant
  articles
• Project cycles become too long
• How can you address more retailers and retailing
  software packages
• Is it necessary for retailers to handle all data
  within their software?
• Enormous amount of data
• Actualisation?
• Men Power ?
• One possible solution Data on demand
• Place your articles data on a branch platform,
  which makes integration for retailers easier

71
Risks Internal Organisation

• IT
• 1 Point solution
• Service availability
• Sales and Marketing
• Responsible for
• Structuring data
• Decision on details of data
• Quality
• Distribution
• Release for production

72
Risks Implementation costs and cycles

• Catalogue production without interaction with
  recipients
• Retailers
• Branch organisations
• Retailing software vendors
• Standardisation organisations
• No validation tool available
• Dont ask the partners for beta testing
• 1 - n Interfaces in ERP Software
• Customer specific solutions

73
Manufacturers and CSA

• Practical Goals
• Risks
• Requirements for success
• Summary

74
Requirements for success

• Visualisation
• Quality
• Connectivity
• Be completely ready
• Learn to think like a retailer

75
Requirements for success - Visualisation

• Present the data to Marketing and Sales in the
  same way as to the retailer
• Get experiences on the amount of data and the
  performance related to data and pictures

76
Requirements for success - Quality

• Quality of
• Data
• Pictures
• Structure
• Do not focus on mandatory items
• Every partner might have different requirements
  today and tomorrow
• Later changes are mostly cost expensive changes
• Enable your ERP to maintain all data
• Think on multi language features

77
Requirements for success - Connectivity

• Enable communication within all communication
  layers
• Catalogue data
• Transaction data

78
Requirements for success Be completely ready

• Why PRO Program name
• Because
• PRO reduces the amount of exceptions
• Makes changes easier because of descent
• Important for retailers search algorithms
• Use it even if you have no program names until
  today
• Why these numbers of free texts
• Because
• Retailers have different scenarios where they
  want to use the data
• Buying department
• POS local
• POS Internet
• Marketing Flyers and brochures
• Because
• End consumers want to get more and more
  additional information

79
Requirements for success Be completely ready

• Why all these article information fields
• Because
• Endconsumers want to know the delivery time
• Retailers stock manager has to know the number of
  packing pieces
• Transport agency wants to know the number of
  packing pieces
• End consumer wants to know number and size of
  packing pieces
• Why all these measurements
• Because
• The end consumer will ask What is the maximum
  depth when I open the doors?

80
Requirements for success Be completely ready

• Why multimedia information
• Because
• Most of the time it is already available
• Retailer needs different information for
  different usage
• To be able to start in different sales channels
• Why not to use CSA for your own Internet?
• Retailer searches for pictures in Mediterranean
  milieu

81
Requirements for success Be completely ready

• Why should we group articles
• Because
• For usage within configuration situations like an
  option value
• Reduces maintenance costs on data
• Why alternative and complementary product
  information
• Because
• Cross selling becomes more and more important
• Think of sales scenarios without a sales man
• Why more than 1 classification schema
• Because
• No end consumer will ever use the classification
  schemas of manufacturers, not at all those of the
  retailers
• Enables the recipients to map their schemas with
  yours

82
Requirements for success Be completely ready

• Should I also use variances for single products?
• Example
• You have one article in 3 colours.
• Often therefore manufacturers are using 3 EAN
  Codes
• But
• How does a retailer know, when he is working on
  article 1 that there are more colours available
• Therefore use also CSA 7
• Create an virtual article
• Article xxx
• Option colour option value colour 1 or colour 2
  or colour 3
• In CSA 7 you can say
• Article xxx
• Colour red -gt leads to a new EAN Code for ordering

83
Requirements for success Be completely ready

• Why
• Please ask more details during the breaks or per
  mail
• dietmar.weber_at_1eeurope.de

84
Requirements for success

• Learn to think like a retailer or an end consumer

85
Manufacturers and CSA

• Practical Goals
• Risks
• Requirements for success
• Summary

86
Conclusion

• Open architecture
• Responsibility on the marketing and sales
  department
• Best quality on information and connectivity
• Be complete
• Data
• Processes