Tchibo Coffee - a case study

Introduction

Tchibo Coffee International supplies coffee, tea and juice to many of the key players in the food service market. Customers include contract caterers, hotels and restaurants. The company also supplies coffee machines and a range of modular furniture for its Tchibo mobile coffee bar concept.

This case study describes the installation of a new ecommerce system at Tchibo that uses AS2 (Applicability Statement 2) to exchange messages in real-time using a secure internet connection.

Background

The requirement to introduce an AS2-based electronic trading system at Tchibo was prompted by one of the company's major customers. Compass Group is one of the largest food service organisations in the world with a turnover of £10 billion. It provides high quality catering and support services to staff restaurants, student refectories, hospitals, coffee bars, food courts,
corporate hospitality events and executive dining suites.

A condition of trading with Compass is that suppliers, like Tchibo, introduce a system capable of sending invoices in electronic format. Rather than using a traditional EDI network, Compass
opted for a new AS2 Internet based system. AS2 is a state-of-the-art technology for delivering business messages.

Compass also required invoices and credit messages to conform to the EAN.UCC XML format developed by e.centre in conjunction with OFSCI (Optimum Foodservice Supply Chain Initiative).

Software solution

Tchibo's ecommerce system was installed within six weeks of Freeway receiving the order. The first step was to conduct an audit of Tchibo's existing hardware environment and Internet connection settings. Tchibo asked Freeway Commerce to design and install a solution that would not only fulfil Compass's requirement but also integrate with Tchibo's existing Sage-based accounting system.

Freeway specified their Spectrum Professional software as the most cost-effective method for providing both the communication module and translation system required.

The software is capable of transacting ecommerce messages with EDI VANs (Value Added Network), FTP and AS2 and integrating them with the majority of back-office accounts packages. So Spectrum Professional had the added advantage that it would also allow Tchibo to expand its ecommerce activities in future by offering connectivity with other customers using different message protocols.

Over 1.5 Million cups of Tchibo coffee are served every day in the UK

Installation

Tchibo's ecommerce system was installed within six weeks of Freeway receiving the order. The first step was to conduct an audit of Tchibo's existing hardware environment and Internet connection settings.

Sample files were then generated from the Sage CS3 accounts package to ensure the invoice and credit note data could be translated by Spectrum Pro and received by Compass. In this case Freeway used their widely adopted Standard File Format (SFF) to complete the integration with Sage. Once the system had been tested and proven to work off-site, the Freeway team installed the Spectrum software at Tchibo's offices and carried out training of their personnel. Final checks were made before the system successfully went live.

In addition to the software solution, Tchibo also receives an annual package of ongoing maintenance and support from Freeway.

Benefits with the new Spectrum Professional system in place

Tchibo's business is benefiting in a number of key areas. First and foremost, Tchibo is in a position to continue the trading relationship it has enjoyed with one of its major customers. Secondly, invoices are dispatched immediately to Compass without relying on a paper-based system and the postal network for delivery. This is quicker, more efficient and much more cost-effective.

AS2 offers security certification and uses message encryption and data compression to provide complete end-to-end auditability and positive acknowledgement of delivery. Messages are exchanged in real time between trading partners over the internet. By adopting an internet-based system, Tchibo also benefits from lower operating costs because there are no Value Added Network charges to pay as with traditional EDI mailboxes.

Finally, Freeway was able to provide a software solution that was significantly cheaper than the lowest price quoted by other ecommerce software providers, both in terms of initial capital outlay and cost of ownership.

Conclusions

Freeway's Spectrum Professional is a very flexible solution that can be tailored to the specific needs of each individual customer. If Tchibo extends their electronic trading relationships in the future or change their back office accounts system, Freeway's solution can be upgraded in line with their requirements.

To download a PDF version of this case study follow the downloads link on the left.

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