EDI connection streamlines the procurement processes of CSi Romania

Thanks to EDI connection, CSi Romania manages to greatly reduce the lead and delivery terms. When itsme ES Elektro became a logistics integrator for CSi Romania, ensuring a large share of its purchases, it brought about an innovative project in the collaboration between the two entities: EDI connection. Two years down the road, thanks to an EDI connection, CSi already manages to greatly reduce the lead and delivery times, which naturally leads to an increase in the number of orders.

Automatic order placing

What is EDI (Electronic Data Interchange)? “A communication channel between two systems, which greatly simplifies procurement operations and exponentially shortens working times across the entire execution and delivery process” is the simple answer, provided by Cătălin Văleanu, account manager at itsme ES Elektro. For example, before we established an EDI connection, a CSi order placed with supplier itsme ES Elektro would go down a rather complicated path through the internal bureaucracy of the two companies. Now, the order is placed automatically, it is confirmed automatically, the systems automatically import the correspondence between the two entities, without any human presence. 

“It was clear we needed an automated communication channel to be able to process the largest possible number of orders efficiently”

“Since March 2020, all orders issued by CSi go through this channel. Discussions, however, already started back in 2018 when itsme ES Elektro was about to become a logistics integrator for CSi Romania, and it was clear we needed an automated communication channel to be able to process the largest possible number of orders efficiently. An EDI connection had been successfully implemented by the itsme group in various companies around Europe, and we only needed to adapt it for the relationship with CSi Romania, a company to which we provide electrical, mechanical and pneumatic components and logistic services. At the end of 2018, a test was conducted, and at the beginning of 2019 the system was operational. From that moment until today, we have moved over 8000 items that CSi usually orders in the itsme ES Elektro database, with our identification codes”, says Cătălin.

In his opinion, an EDI connection, implemented for the first time in Romania at CSi, is best suited for industrial companies with order lines of tens of thousands in one year, and which additionally invest in warehousing and logistics. Their lives will be greatly simplified: human labour generated by the procurement process disappears, errors are no longer possible, delivery of components from suppliers is faster, and in conclusion, the lead and delivery terms of end products are greatly reduced.

“The solution to automate the procurement procedure came right on time”

“We have a strong partnership with itsme ES Elektro, which has been going on for many years, and nowadays we rely on them for a large part of our orders. CSi orders over 1000 items and over 3000 order lines on a monthly basis, necessary in our production processes, and the solution to automate our procurement procedure came right on time”, explains Eduard Pankler, logistics manager at CSi.

Optimisation and efficiency.​​​​​​​

Since the implementation of EDI, the company has seen results improving from month to month, which practically translates, ultimately, in a higher speed of delivery of final products.
“For us, time is a crucial factor in addition to quality and price. If we manage to produce and deliver faster, we can accept more orders, which will implicitly lead to the company’s development. Normally, we have ten to twelve weeks to finish and deliver a product. If due to the EDI connection we will gain two weeks, we will become much more competitive and, in addition, fixed costs will also decrease. In the relationship with itsme ES Elektro, we currently have a percentage of 90% delivery time success of orders placed by CSi, and our expectations are for this performance to reach 100%. We are still in the phase of aligning supply chains with them. CSi is undergoing an extensive transformation process: we want to shorten all our processes, so that we become more competitive on the market. If we are now targeting four weeks for the delivery, in the next stage, we will be targeting two weeks. Of course, this also implies investments made in safety stocks”, explains Eduard.

But there is a next step in the EDI connection project, which will make the work more efficient: automatic invoice receipt and registration between the two entities, considering that this process currently takes one day, or sometimes even more.
“We are hoping to achieve this integration by the end of the year. We are in the stage of checking the specifications of both systems, to see what changes we need to make”, adds the representative of CSi.
All these approaches aimed at optimising and streamlining processes between CSi and itsme ES Elektro Romania are the result of a close partnership, which brings forward continuous improvement and development. Beyond the operational side, the joint goal is to develop an integration mode allowing greater flexibility for the logistics chain, structured process automation, as well as an environment suited for communication and interaction. 

Info:
CSi Group maintains a strong position on the market, having among its customers manufacturers of consumer goods, distributors or customers in the packaging industry. This position is due to the reliability of their products and services, the ability to design attractive solutions, their innovation and expertise, their passion and determination, as well as their commitment to satisfy customer needs.
 

Check out our other success stories:

Stay up to date with the latest news:

Take a look at these promotions:

Why not take a look at these trainings we offer: