Electronic Data Interchange (EDI) in Baltic States Edisoft Systems, June 2006

What is EDI EDI is the computer-to-computer exchange of business information using a public standard. EDI is a central part of Electronic Commerce because it enables businesses to exchange information electronically: much faster, more cheaply and more accurately than is possible using a paper- based system.

How does it work? Electronic documents (orders, invoices, etc.) are given standardized electronic formats, so everyone involved can correctly interpret the information being transferred. Translation software is used by each Trading Partner to translate the business data. This is usually called “systems integration”. Integration is a connection, when EDI documents get the information from Customers' ERP (enterprise resource planning) system automatically. Many business-oriented systems nowadays (SAP, Navision, etc.) have a built-in means of EDI interface, thus enabling the system to generate the structured file.

Example Purchase orders from Retail Chain are made by Phone Fax Day-by-day and this operation may be formalized by using common platform for exchanging documents and integrating the partners IT systems

Types of documents that may be exchanged DOCUMENT DESCRIPTION ORDER Order DELIVERY ORDER Delivery order ORDERRSP Order confirmation INVOIC Invoice DESADV Shipment advice RECADV Shipment confirmation INVRPT Storage status, quality changes PRICAT Price list IFCSUM Loading list IFTSTA Loading status IFTMIN Instruction message STOCKREC Stock reconciliation CONTROL Transmission confirmation SALES REPORT Sales report

What is ECOD? ECOD - is a universal platform for electronic exchange of commercial documents (based on EDI technology. A common environment for the traffic of commercial e-documents for all business partners. EDI services in Estonia, Latvia and Lithuania based on ECOD are being offered and serviced by "Edisoft“. Edisoft is a service provider and systems’ integrator.

What is ECOD? ECOD platform provides Your Company with a direct access to strategic information about your sales in the network or through distribution chain. You can receive stock reports from your business partners, sales reports, orders, invoices and lots of other information necessary for quick and automatic management of the entire logistic chain at your company. ECOD technology is based on international standards supported by EAN, a European organization focusing on standardization of coding of goods and electronic messages.

Target group Retail chains Suppliers of the retail chains

Situation in Baltics Market is well-developed in Estonia Market is quite ready in Lithuania Not quite ready in Latvia Retail chains are taking the proactive position willing to standardize the exchange of documents with its suppliers

Retail chains in Baltics ETK, Rimi Eesti Food, Prisma Peremarket, VP Market, OG Elektra, Comarket, A-Selver in Estonia VP Market, Rimi Latvia, Aibe, Nelda, Elvi, Beta, Mego in Latvia VP Market, Norfa, Iki in Lithuania

Suppliers 400 active supplier in Estonia 600 active suppliers in Latvia 600 active suppliers in Lithuania

Benefits Operational are related to streamlining of business documents processing procedures (orders, invoices, price lists, stock reports, etc.). Strategic ones - increase your appeal in cooperation with business partners (suppliers, buyers), giving your company a sharper competitive edge over the other market players, e.g. due to logistic system open for new technologies, such as VMI (Vendor Managed Inventory).

Benefits Automatic invoicing, automatic ordering, etc. Reduction of resource allocation Status of EDI document processing Error reduction 6000 companies already use this platform in Eastern Europe, documents can be exchanged with your business partners from abroad

Security Transmission of documents to the recipient is performed by means of encrypted connection, and can be additionally confirmed with electronic signature. The ECOD- EDI document processing center is located in the well protected ComArch Data Center facility.

Guaranteed time of document transmission: Let us imagine that our order may not reach the recipient in time or not reach him at all. Either case is a drawback for the company - our space on the shop shelves will be taken by the competitors. ECOD-EDI guarantees that documents will reach the destination in time no longer than 3 minutes since sending. If the documents are not received properly by your partner, ECOD will inform you in a defined manner (processing status report, SMS, e- mail, other) and will attempt to perform emergency transmission procedure.

Document processing statuses The important element of ECOD-EDI technology is the ability to follow the flow of electronic document during transmission to the recipient. This is enabled by document processing statuses, which inform the user which stage the given document is in, and whether it was sent correctly to the recipient.

Full integration Electronic documents sent by ECOD-EDI can be seamlessly integrated into internal systems of the sender and the recipient. This enables the automation of the document sending/receiving process.

European standards ECOD-EDI technology is based on international EDI standards and therefore it is not a closed solution. ECOD platform user immediately gains the ability to communicate not only with one, but also with thousands partners connected to our platform or to any other EDI operator worldwide.

Problems Electronic document is not considered document in Latvia Small market 3 languages to localize applications Different legislature

Thank you Edisoft Systems OÜ EDI provider System Integrator