Eugesta ahead of Competitors with EDI

Who doesn’t know Evian, Danone, Barilla, Actimel or Heinz? These renowned brands are among the many that Eugesta brings to the Baltic market. Adopting electronic data interchange (EDI) with their trading partners 10 years ago has positioned Eugesta at the forefront of competition. Although all Eugesta entities across the Baltic states use Telema EDI services, this narrative specifically delves into the EDI journey of Eugesta Latvia.

Old ways were insufficient

Eugesta Latvia processes over 4300 monthly orders from more than 700 delivery points and issues 5000 invoices. Orders are long, averaging 30 lines each. This complexity translates into an average of 23 minutes of manual data entry per order into their ERP MS Dynamics AX. This means roughly 1700 hours of work each month, equivalent to the workload of 10 full-time employees.

Consequently, it became important to find a better way to handle the growing volume of orders and invoices. Agris Treiguts, the Head of Logistics at Eugesta Latvia, emphasizes the company’s commitment to innovation, stating:

“We have always kept up with the times and innovations. Whenever there are solutions that can ease the workload, reduce the number of errors, and speed up processes, we have been at the forefront of adopting them.”

In their pursuit of an Electronic Data Interchange (EDI) solution, the primary considerations were simplicity and user-friendliness. Eugesta Latvia sought a solution that would demand minimal development effort from their side while offering standardized, easily integrable options with their clients’ systems.

Solution up & running in a week

The company evaluated several options, including direct integrations with partners. However, that would have been overly complex because of the diverse range of partners and their systems. The company found what they were looking for in Telema EDISupplier solution.

A key factor in their decision was the positive feedback from their current partners who were already using Telema. Additionally, Telema’s extensive network of 5 500 retail shops was particularly appealing. This meant that EDI connections with the majority of Eugesta’s delivery points could be established quickly. According to Treiguts,

“In Telema, we noticed a strong readiness for collaboration. And what sealed the deal for us was Telema’s competitive pricing and a team with a proactive attitude to find the best solution for the client.”

The implementation process was smooth and swift, taking just one week from the signing of the contract before the system was up and running. Despite potential challenges, the transition was seamless.

1000 hours saved monthly

Automating the processing of orders and invoices translates into significant time and cost savings. With Telema’s solution, Eugesta Latvia was able to integrate more than 400 delivery points into their EDI system, accounting for roughly 70% of their total monthly order volume. Furthermore, orders were received into Eugesta system automatically, eliminating human errors and significantly improving data quality. The shift to electronic, machine-readable orders means Eugesta now saves over 1000 hours each month in manual labor and error correction – this is an equivalent to approximately 10 000 euros savings monthly.

Treiguts explains,

“The use of EDI has streamlined Eugesta’s order receipt, invoice exchange, and processing, allowing for the quick and error free data exchange straight in the warehouse software.”

Moreover, adopting EDI has not only standardized Eugesta’s processes but also drastically reduced the need for invoice corrections, further saving them time and money. This efficiency ensures that Eugesta’s products are more reliably available on store shelves, enhancing their availability to consumers and providing a competitive edge in the market. This reliability in product availability is crucial for maintaining customer satisfaction and loyalty, as it ensures that consumers find what they need, when they need it, bolstering Eugesta’s reputation as a dependable supplier.

EDI supports sustainability

Apart from operational improvements, the collaboration between Eugesta and Telema is also characterized by united dedication to sustainability. For example, in Telema portal, every user can see the number of trees saved through the use of Electronic Data Interchange (EDI) by their company, offering a tangible measure of their contribution to sustainability.

Quality, Communication, Positive Experience

Reflecting on the journey, Treiguts encapsulates Eugesta’s experience with three key themes: “Quality,” “Communication,” and “Positive Experience.” The transition to Telema EDI systems not only enhanced Eugesta’s operational efficiency, but also supported their sustainability goals. Eugesta’s recommendation to partners in the industry is to keep looking and adopting automations and innovations that benefit the whole supply chain, including the end consumer.

Eugesta

Eugesta is an international distribution company with over 20 years of experience in Estonia, Latvia and Lithuania. They offer a full scope of services for FMCG brands, from sales and marketing to logistics, merchandising, and promo services. Eugesta uses MS Dynamics AX as their ERP software. To facilitate the monthly exchange of over 28 000 documents with 130 of their partners, they use Telema EDISupplier solutions for receiving orders and sending invoices. Eugesta’s 220 sales agents are also using Telema eAgent solution for sales force automation – merchandising and ordering.