Jan Kuzelik, Tesco Stores CR a.s. B2B Communication Jan Kuzelik Project Manager July 17 th 2003 Prague

Jan Kuzelik, Tesco Stores CR a.s. Agenda The present and the future in Retail Ways of communication Solution: TIMS

Jan Kuzelik, Tesco Stores CR a.s. Order  Supplier Have you received my fax? Yes Printer Fax G.O.L.D. SAP,…. PO Was it really sent? Current situation

Jan Kuzelik, Tesco Stores CR a.s. Order  Supplier Have you received my fax? Yes InvoiceProduct catalog ? STOP !!! Printer Fax G.O.L.D. SAP,…. Was it really sent? PO Current situation

Jan Kuzelik, Tesco Stores CR a.s. PO Supplier NETWORK Internet or EDI VAN InvoiceProduct data Receive d POInvoiceProduct data G.O.L.D. SAP,…. TIMS (Tesco Internet Management System) PO … The solution - concept

Jan Kuzelik, Tesco Stores CR a.s. Ways of communication

Jan Kuzelik, Tesco Stores CR a.s. Terms definition OrderInvoice EDI – VAN (Value Added Network) ERP System (e.g. SAP, Oracle….) EDI Interface EDIFACT document EDI Document type Communicatio n channel

Jan Kuzelik, Tesco Stores CR a.s. XML – addition to EDI XML Interface OrderInvoice EDI ERP System (e.g. SAP, Oracle….) EDI Interface EDIFACT document EDI INTERNET ANY document INTERNET (SMTP) Direct (HTTPS, FTPS,…) WWW (HTTPS)

Jan Kuzelik, Tesco Stores CR a.s. INTERNET Types of connections Document type Channel EDIXML EDI-VAN Direct - - WWW EDI

Jan Kuzelik, Tesco Stores CR a.s. EDI Scenario: EDI INTERNET Doc. type Channel EDIXML EDI- VAN Direct - - WWW EDI  XML Convertor EDI  XML Convertor Retailers Suppliers

Jan Kuzelik, Tesco Stores CR a.s. Scenario: XML - direct INTERNET Doc. type Channel EDIXML EDI- VAN Direct - - WWW EDI Retailers Suppliers

Jan Kuzelik, Tesco Stores CR a.s. Scenario: XML – INTERNET Doc. type Channel EDIXML EDI- VAN Direct - - WWW EDI system Retailers Suppliers

Jan Kuzelik, Tesco Stores CR a.s. Scenario: WWW INTERNET Doc. type Channel EDIXML EDI- VAN Direct - - WWW Suppliers

Jan Kuzelik, Tesco Stores CR a.s. Conclusion Immediate solution can be EDI. Short term solution can be XML over . Long tern solution is XML with direct connection. Small and medium size suppliers can use WWW browser. Internet based communication brings high standard using XML at low operational cost.

Jan Kuzelik, Tesco Stores CR a.s. Solution: TIMS

Jan Kuzelik, Tesco Stores CR a.s.

Jan Kuzelik, Tesco Stores CR a.s. IBM system, IBM technology, secure No Investment needed by suppliers: With large suppliers having EDI system we can communicate through EDI messages Smaller suppliers, not having EDI, can look at, print and download documents from the Internet, no necessity to invest, only 1 PC can be enough Downloaded files can be processed further by Word or other applications Overview

Jan Kuzelik, Tesco Stores CR a.s. Document flow Product catalogue (PC) Purchase order (PO) Order confirmation Delivery note (DN) Goods received note (VRN) Invoice / Debit note Request for credit note Supplier Head Office or Store Inventory report Phase1 Phase2

Jan Kuzelik, Tesco Stores CR a.s. Purchase Order handling in 4 steps (www) TESCO issues new order Notification ( ;SMS) Login on TIMS web site (user name + password) View, print, download of PO Confirmation of PO by supplier: full or partial quantity

Jan Kuzelik, Tesco Stores CR a.s. TIMS Screen: Orders - list

Jan Kuzelik, Tesco Stores CR a.s. Technical background SMS or notification in case of new document Message types: – Purchase order, confirmation, inventory report – Product data, Delivery note, receiving note, Invoice, Credit/Debit memo Available at central and shop level Simple, user friendly interface

Jan Kuzelik, Tesco Stores CR a.s. Solution - architecture Topology Small or medium supplier G.O.L.D. TIMS data Large suppliers EDI XML atd. HTML RTF PDF XML atd. TESCO TESCO user TESCO admin FIREWALL INTERNET SMS FTP SMTP IBM EDI Interchange Server TIMS = TESCO Internet Management System

Jan Kuzelik, Tesco Stores CR a.s. Benefits Faster, more accurate communication: Information transferred immediately Lower telephone costs, and working costs (inventory reports) More information at the supplier  increased service level – no fines because of low service level (sell more and get more money) Increase stock holding capabilities by planning – lower logistic cost Increase sales by receiving local data from stores on a daily level – (example create chance for local marketing activities) Accurate information about products in GOLD

Jan Kuzelik, Tesco Stores CR a.s. Challenges Setup of communication Training Contract, and discount negotiation Parallel use Constant feedback Live operartion

Jan Kuzelik, Tesco Stores CR a.s. How did we deliver Input from business –Analysis –Functional specification agreement –Confirmation of functionality Conference room pilot Pilot in 1 country (Hungary) –Phase 1 (Orders, Inventory reports) –Phase 2 (Product data, Delivery notes, Receivings, Invoices) –Roll-out to stores Roll-out within the region

Jan Kuzelik, Tesco Stores CR a.s. Thank you Jan Kuzelik Project Manager Contact: