1. P&G and METRO: automation of
logistics operations with EDI-messages
implemented for shipment process.
EDI-technology case
Volkova Alla, P&G
Alexander Stepannikov, METRO

2. P&G and METRO: automation of logistics
operations with DESADV/RECADV EDI-messages
April 2009 – a target date for P&G – METRO logistics collaboration – a switch to full Direct
Deliveries via MGL Cross Dock platform managed by METRO with further store-by-store
distribution.
One of the main goals of this initiative was logistics efficiency KPI’s improvement such as
Service level; OOS level; Case Fill Rate.
Business
context Important action steps to be done towards Cross-dock logistics optimization:
• Development of data flow technology between partners via standard EDI-messages such as
DESADV (electronic shipment notification) and RECADV(electronic proof of delivery);
• Information flow optimization and business process automation due to the increased number
of shipping documents exchanged per day;
• Establishment of a clear and correct billing process due to changed sources of invoicing
information (MGL-platform and particular stores).
• DESADV (electronic shipment notification) and RECADV(electronic proof of delivery);EDI-
messages implementation;
• Full end-to-end integration of these EDI-messages into ERP systems to make an automated
Technologies shipment and billing process;
and business
processes • «Proof of Delivery»-report development on the P&G side in order to get quantity variance
information on shipped and received goods in order to have a root-cause and statistics for service
implemented level improvementа;
• Automated CDN-assignment process implementation during goods receipt on METRO side to
eliminate manual work.

3. P&G and METRO: automation of logistics
operations with DESADV/RECADV EDI-
messages
DESADV and RECADV EDI-implementation:
Technical - Fully in line with EANCOM and ECR-Russia Message Implementation Guide;
details - Connectivity is done via AS2 certificate over HTTP without EDI-Provider;
- EDI-messages are integrated into Metro ERP-system and P&G SAP PI module.
EDI-messages architecture
EDI
METRO
P&G
DESADV (dispatch advice/shipment RECADV (receipt advice/proof of
notification) delivery)
- Delivery # and date; - Receipt # and date;
- Goods shipped by EAN-code; - Goods received by EAN-code and MGB-article;
- Shipped quantities by EAN-code; - Received quantities by EAN-code.
- Country of origin;
- CDN by EAN-code.

4. P&G and METRO: automation of logistics
operations with DESADV/RECADV EDI-
messages
Proof of performance *
EDI
P&G METRO
- METRO: 2162 correct DESADV received => 99,9% of concordance
with ordered goods (tolerance level – 95%);
- P&G: 99,2% correct CDN’s transmitted in DESADV messages;
- P&G: 99,9% correct RECADV received for further billing procedures.
* Based on data from 8.02.2010 by 14.03.2010

5. P&G and METRO: automation of logistics
operations with DESADV/RECADV EDI-
messages
Main benefits from the project
Timely shipment information integrated METRO and P&G:
into the system. Approximately 90 orders/day: 75% of transactions are
accompanied/replaced with electronic documents (EDI-messages ORDER-
DESADV-RECADV); manual CDN-assignment upon receipt is eliminated.
Goods receipt process optimization.  3 full-time employees (joint work hours optimization is
approx. 120 hours per week).
FTE savings due to manual work
reduction.
Timely receipt information is sent (Proof  Each store provides the date of goods receipt via RECADV
of Delivery) for the correct billing message.
documents issue.  95% data accuracy in invoicing documents between
partners (possible tax penalties form Federal Tax Service can be up to 2% of
turnover between the partners in case of incorrect invoicing data) .
Data accuracy increase due to manual  10% of errors in the document flow (i.e. 3% - orders errors;
work reduction. 5% - CDN assignment errors;, 2% - invoicing errors).
Timely quantity variance information on  Primary information on discrepancies is gathered right upon
shipped and received goods is provided. the receipt of the goods and RECADV sending. This is a major
source of statistics for further root-cause and service level
improvement.
Opportunity for further IT-developments  Further order-cuts and service level root causing via
and business process improvement in “quantity variance reason” indicator in the RECADV message
Order Management area. to get deeper insights.