EDICOM, BUSINESS CASE

Mondelēz International, the new designation for Kraft Foods, now implements a Continuous Replenishment Planning or CRP tool in its EDI platform.

By integrating this smart logistics management and optimization software, the company generates and controls **Nueva denominación de Kraft Foods restocking for the different distribution points in Spain, automatically creating orders based on sales and logistics information sent by its trading partners to configure the CRP-Flow solution. Company Mondelēz International

Activity Manufacture and sale of all kinds of foods products such as candies, snack foods and beverages. CLIENT PROFILE Use of EDI technology to improve Retail sector logiscs communicaons Location USA-based company Mondelēz Internaonal (formerly Kra manufacturing and trading Foods) is a large company founded and In a global environment, the major Retail products worldwide. established in the city of Northfield Distribuon sector suppliers and (Illinois) USA. manufacturers need fast and efficient Solutions Rolled Out management systems to reach the Global EDI via EDICOM B2B Its field of acvity is focused on the Cloud Platform manufacture and markeng of all types maximum number of consumers of food products, although their sweets, possible, supplying their products in Publishing solution for electronic snack foods and beverages are highly quick turnover mes and with high invoices. popular all over the world. quality standards to ensure consumer Electronic invoice integration sasfacon. platform With nearly 100 brands implanted CRP-VMI optimization solution worldwide, Mondelēz Internaonal is The increasingly commonplace use for stocks and goods at known for its leadership in most of the among manufacturers and distributors of point-of-sale. sectors where it operates, as the B2B communicaons soluons like those company is the largest United States food developed by EDICOM simplifies the Benefits Achieved exchange of business transacons. This Availability of a single B2B manufacturer. platform personalized to represents a breakthrough for manage, administer and companies, which are rewarded with exchange business messages They achieve this through such significantly improved efficiency and cost and logistic activities with all well-known chocolate brands such as reducons in admin management. the company's distributors. Milka, Cadbury and Marabou, or LU in Outsourcing the resources biscuits, as well as Trident gums and Halls needed to start up the solution caramels, Kenco and Jacobs in coffee and A crucial step in achieving high standards through the EDICOM B2B Philadelphia cheese. of consumer sasfacon in the end Cloud Platform. consumers, who finally determine the Training and technical support company's success, consists of seng up for the users who are to Their global presence in all connents, logisc communicaon systems to enable manage the CRP tool. operang in more than 155 countries and rapid and connuous restocking of retail employing more than 127,000 workers, distribuon warehouses and gives us an idea of the magnitude of a point-of-sale. company listed on the New York Stock Exchange with posive results. In this context, companies in the distribuon sector need to implement specific soware for connuous logisc replenishment of goods in their internal http://www.mondelezinternational.com informaon systems that allows them to

Edicom Business Case: MONDELĒZ INTERNATIONAL | STOCK MANAGEMENT – Pg. 1 edicom business case

connect via EDI and share informaon purchase orders for Mondelēz Internao- Paradigm shi: Vendor self-generates among all stakeholders in the distribuon nal’ customers. purchase orders chain: customers, manufacturers and logisc operators. The challenge for Mondelēz Internaonal In principle, this seems quite a radical involved in the rollout of a logisc change from how companies usually management tool with these features is A key point in rolling out the tool is the engage in business communicaon, underpinned by two basic aspects. On exchange of informaon between accustomed to receiving orders from one side, the important and close suppliers and recipients of goods. On the their distributor clients by fax, telephone cooperaon they need to maintain with basis of this informaon, the soware and nowadays increasingly by EDI. These their business partners to achieve quality checks the exisng inventory at each orders are usually served at the commercial and logisc informaon that delivery point and proposes purchase distributor’s request, but with the use of serves to configure the CRP tool orders from a stascal analysis taking Connuous Replenishment Soware, the correctly. On the other, carrying out sales forecasts into account, among purchase orders are generated automa- ongoing analysis of the data generated by other factors. cally from the results of analysing the the applicaon on the basis of the sales forecasts from the distributors. The different messages received daily, since it collaboraon between both business To achieve fluidity in procurement is a smart management tool which partners (Manufacturers and Retail processes for products and goods in evolves and falls into line with the new Distributors) who have to share the retail outlets, both manufacturers and informaon entering the EDI plaorm. logisc and sales informaon residing in distributors need to implement the their in-house management systems is soware with the rest of their usual EDI SOLUTION indispensable so that the data obtained plaorm business transacons. This way, CRP FLOW: Restocking management tool through stascal analysis of the sales they obtain a complete and transparent with posive impact on consumer forecasts is effecve and fits the needs of tool for managing their B2B sasfacon both partners. communicaons, including the logisc distribuon of their products as an With this tool, a company dedicated to Mondelēz Internaonal implements this important aspect of efficient company Connuous Replenishment soluon with administraon. the manufacture and markeng of food products like Mondelēz Internaonal can the large retail distribuon outlets and use EDI technology to influence its hypermarkets supplying its products in CHALLENGE FACED customer sasfacon, being able to serve Spain. Some of the companies currently them products more efficiently and taking advantage of this collaborave avoiding problems that currently crop up tool are CONSUM, SABECO, CAPRABO, Mondelēz Internaonal (Kra) is a ALCAMPO and EROSKI, among others. mulnaonal company that manufactu- in the food sector, such as the expiry date res and markets its products in highly of perishable products. demanding sectors with stringent quality Tool operaon: Message flow requirements both from the consumer Similarly, they managed to solve impor- and government authories, such as the tant logisc efficiency problems, with The system runs an analysis to compare food industry. quick and flexible delivery of goods in the the current inventory with a dynamic transport condions and on the dates modelling (stascal) system based on In this sense, Mondelēz Internaonal which are profitable both for suppliers sales forecasts and, as a result of this uses electronic data interchange and retailers. Moreover, this logisc analysis, the system constructs order soluons with its clients wherever it has replenishment soware can be imple- proposals on the basis of the specific commercial interests to achieve more mented by the EDI plaorm our clients rules for each client defined by the user. dynamic and transparent communica- use for their normal electronic business The company leverages the flexibility of ons with a posive impact on adminis- transacons. This way, they are fully the tool to parameterize different rules trave management cost savings, but equipped with a transparent tool to depending on each of the clients they most of all to respond to the need to manage their B2B communicaons, supply with their products. distribute their products quickly and including such an important aspect of ensure beer consumer sasfacon. efficient company administraon as the The system lets the company review distribuon of their products. these order proposals and those from This point is where a logisc manage- their customers and automacally ment soware focused on ongoing generate the Definive Orders. These restocking of goods such as CRP FLOW orders are integrated in the company's appears to provide a soluon to the need SAP system and sent to the customers via to opmize the processes of generang EDI.

Edicom Business Case: MONDELĒZ INTERNATIONAL| STOCK MANAGEMENT – Pg. 2 edicom business case

The messages are sent, received and stored in Kra’s EDI soluon. The distributors CONSUM CAPRABO informaon sent and received is customized to the circumstances of each EROSKI VEGONSA trade relaon. So, in Mondelēz SABECO Internaonal’s B2B plaorm we can ALCAMPO disnguish the following message flow:

The distributor sends Mondelēz Internaonal an inventory report INVRPT ORDERS (INVRPT) containing informaon on sales, stock and the units to be replaced.

That EDI soluon receives the message and transforms it into flat text to be loaded into the CRP soware.

This ERP soware stores the data and analyses the informaon in line with the parameters set by the Mondelēz user managing the plaorm. KRAFT EDI Platform The soware automacally generates the purchase order in line with the distributor’s features.

The order informaon is sent via EDI ORDERS to the distributor and integrated with INVRPT the internal SAP management system in idoc format.

Mapping Mapping CRP Continuous Replenishment Planning

Storage User

IDOC

SAP

ERP Kraft

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BENEFITS Opmizaon of company resources Improved financial balance Thanks to opmized transport and less Less maintenance required thanks to No more stockouts need for warehouse space. smaller inventories, increased sales, opmized operaons or the demand CRP models let you provide an efficient Cost cung forecast over me. All this translates as response to the consumer, maintaining increased benefits, or more accurate permanent stock adjusted to consumer All the improvements listed result in a financial forecasts, gradually leading to paerns at each point of sale. significant reducon in direct expenses, especially transport-related costs. beer financial management for both customer and supplier. Fewer product inventories Increased sales Demand-linked product stocks, leading to The disappearance of stockouts SAP integraon fewer inventories of goods and raw translates as regular and stable Purchase orders generated automacally materials, which translates as consumer paerns, improving the by the CRP soware are directly operaonal improvements, especially service provided to the customer and integrated with the internal management evident in the case of Kra, working with boosng the number of products units system in idoc format. perishable goods. sold at the retail point.

CONTACT www.edicomgroup.com

Edicom is an internaonal point of reference as a developer of technology plaorms for B2B e-commerce soluons such as EDI (Electronic Data Interchange) or Electronic Invoicing.

Some major companies in their respecve sectors are among Edicom’s thousands of clients. Businesses that use their soluons and services on a daily basis worldwide, generang over 100 million business transacons annually, perfectly adapted to the technical requirements and legal parcularies of the different markets where their customers operate.

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