10,000 paper documents daily: Logistics Director of Three Bears LLC tells how EDI optimized the company’s business processes
Three Bears is a national producer of ice cream and frozen products (dumplings, dumplings, pizza), which has been operating on the market since 1998. Today the company produces products under the brands Monaco, MORJO, Three Bears, Teddy Bear, From the Chef, Don Pizzeron and others.
The company pays special attention to safety and quality of production, control at all stages of its production: from the moment of purchase of raw materials – to shipment of products to outlets.
Thus, directly at the plant “Three Bears” in Berdychiv (Zhytomyr region) has its own laboratory that provides thorough inspection of ingredients and materials, compliance with sanitary and technological standards in the production process and control of finished products.
Three Bears supplies products to Ukraine’s national and local retail chains, works with distribution and retail channels, and exports to about 10 countries.
Given the scale of production of the company and its responsible attitude to product quality, reducing the time for operational processes, taking into account the document flow, are necessary to ensure control of all stages of product sales.
The introduction of electronic document management helped to establish processes that required a lot of costs and resources: “The transition to EDI was facilitated by a number of business processes that required the involvement of many company resources. This includes a large number of printed documents, which were processed daily by the department of delivery of goods to customers and accounting, and special industrial high-speed printing equipment, consumables, resources for the exchange of documents with customers, partners and more. It should be understood that the usual document flow – these are errors that occur when exchanging information, and hence – the need to constantly process documents. For example, the return of signed documents requires a long time (up to 20 days), as a result – we learn too late about the discrepancies during shipment. All this leads to the adjustment of receivables, late registration of tax invoices and delayed payment to transport companies” – says Julia Ivanchenko, Logistics Director of “Three Bears”.
“Every day, only for the delivery of goods (which is more than 1,500 deliveries) we would have to keep a large staff who process each order and form a package of documents. As for the average number, it is more than 10 thousand paper documents a day, which we exchange with contractors. Calculate what a big expense it is just for paper! And there are costs for sending these documents, staff salaries, etc.” – says Ms. Julia.
What are the most obvious benefits for you from the implementation of EDI?
“First, it’s speed and huge time savings, a significant acceleration of business processes. The exchange of information after the introduction of EDI takes a few minutes. In 20 minutes after unloading the goods we will have documents signed by all parties. That is, we are talking about a significant simplification of interaction between the participants in the process, because we have a much smaller chain of processing and transmission of documents, the ability to access relevant information in real time from anywhere.
This is accuracy and the absence of errors, saving money on paper, sending documents and paying staff – what we had to put in the final cost of the goods. That is, the introduction of electronic consignment note gives, among other things, the ability to more efficiently manage working capital. For now, switching to an e-consignment note is an option, not an obligation, for companies, but we expect more and more market players to understand the obvious benefits of this process. And we hope that in the future the introduction of an electronic consignment note will help increase the competitiveness of Ukrainian logistics in the international arena.”
With regard to the electronic consignment note, many companies would like to implement this document in their supply chain, because the benefits are obvious – control of the entire process of delivery and signing of e-documents, elimination of human error or loss of the consignment note, saving money at each stage of delivery and coordination, 25 – 50% increase in productivity of drivers, signatories.
And what changes do you expect in your own processes after connecting the electronic consignment note?
“We are interested in the transition to an electronic consignment note, as we will be able to introduce a paperless automated fast and transparent chain of ordering cars, transporting and transferring goods to delivery points, as well as obtaining a certificate of work for both parties. We will be able to see the status at each stage of movement of transport, freight. This will significantly help reduce costs. In addition, due to quarantine restrictions and remote work, employees will be able to generate, confirm, modify and track documents and shipments anywhere. We expect that the digitalization of transport services will help make the service faster, more convenient and, of course, better,” Yulia Ivanchenko summed up.