Photo: Tiit Mõtus
Managing a retail business is a complex process. Every part of the supply chain needs to work efficiently, especially when coordinating with suppliers. Prisma, one of Estonia’s largest retail chains, is stepping up its game by adopting 4DOC EDI system. Using electronic documents helps to improve communication and workflow between Prisma and its suppliers. While Prisma is not the first to implement this—Selver, and Maxima have been using 4Doc for years—they are leveraging the experiences of other retailers to ensure a smooth transition.
For years, Prisma has been using 2DOC EDI, which includes electronic orders (ORDER) and invoices (INVOICE). While this was a step forward from manual processes, the 4DOC EDI system goes further, by adding two additional electronic documents: despatch advice (DESADV) and receiving advice (RECADV). These extra documents make a big difference in creating a more seamless and transparent supply chain.
Why 4DOC EDI is a Game-Changer for Suppliers
The 4DOC EDI system offers significant benefits for suppliers by addressing key challenges in supply chain management. Here are some of the ways 4DOC EDI stands out compared to the older 2DOC system:
- Faster Problem Resolution: In the 2DOC system, if there is a mismatch between what was ordered and what was delivered, suppliers and retailers often have to resolve disputes manually, leading to delays. With 4DOC, despatch advice (DESADV) ensures that Prisma knows what’s in a shipment before it arrives, and receiving advice (RECADV) confirms exactly what has been received. This eliminates confusion and allows issues to be resolved quickly.
- Improved Transparency: In the 2DOC system, suppliers lack visibility into whether their deliveries were accepted or if any adjustments were needed. RECADV now provides real-time feedback on deliveries, giving suppliers clarity and reducing follow-up queries.
- Reduced Credit Invoices: One of the major drawbacks of 2DOC is the frequent need for credit invoices due to mismatches or errors. With 4DOC EDI, suppliers issue invoices based on receiving advice, so the need for credit adjustments is significantly reduced.
- Confidential Pricing: Unlike the 2DOC system, where invoice pricing could sometimes be exposed to third parties (eg, transportation companies), 4DOC ensures that pricing remains confidential, protecting supplier and retailer agreements.
“We see this system as a win-win for everyone,” explains Merje Aavasalu, CFO at Prisma. “It’s not just about making our operations more efficient. It’s also about making things easier for our suppliers, which in turn helps us deliver better service to our joint end customers.”
Want to learn more about 4DOC EDI and how it can transform your business?