NL 12-2012


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Newsletter contents

* Baltic Retailers EDI Practices and Trends in 2012
* EU Directive 2006/112/EC on VAT and e-Invoices
* Bauhof implemented an advanced 4-document supply process
* E-receipt from retailers to consumers in Estonia

* Highlights of Telema Year 2012
* Network expansion: new suppliers and retailers
* Feedback from the Customer Satisfaction Survey
* Helpdesk Requests through Telema Service Web

* Logistics Act of the Year 2012 II prize goes to Telema Web4Doc
* Telema MMT: Merchandising Solution, Product Pictures and more
* Telema TeleSales – A Convenient Way for Collecting Phone Orders
* Telema VMI – Automatic Replenishment Order
* Telema EDI and Web Services News

* Telema EDI Module in Baltics ERP softwares
* Telema partners with Tallinn University of Technology
* Interesting Conferences and Seminars in 2012
* Telema becomes a member of LIKTA



Baltic Retailers EDI Practices and Trends in 2012
The main trend in 2012 Baltic retail in EDI context was to move towards using more EDI documents in the purchasing process. Most retailers start with implementing EDI.orders, as this allows them to automate the ordering process. The value of getting EDI orders is clearly understandable also for the suppliers, since the amount of errors decreases and speed of products getting to store usually increases. The second document for implementation is usually EDI invoice.

By the end of 2012, most Baltic retailers have implemented ability to use EDI orders and EDI invoices. Leaders in terms of share of EDI documents of all documents are Prisma Estonia, Selver, and Rimi Baltics. Prisma Latvia and Lithuania have lower usage rates yet, as do Palink, Norfos Mazmena, Aibe, and Top!. ETK in Estonia is the one using EDI despatch advices and EDI orders, and only recently moving to start using also EDI orders. They will at least double their EDI order usage in 2013 . ABC Supermarkets in Estonia as well as OG Elektra chains are also more than 50% EDI order and invoice users. One of the biggest retailers postponed its full-scale implementation of EDI orders and EDI invoices to year 2013.

The second trend we see is the move towards the 4-document supply. In addition to EDI orders and invoices, also EDI receive advice and EDI despatch advice will be used. While despatch advice is a familiar document and has been in use in most companies all the time, then implementing an electronic receive advice has proven quite a challenge to most suppliers. Many ERP systems do not support this kind of document. Moreover, many suppliers have not used the paper document in their business processes. We therefore see that the diffusion of receive advice will be slow and take years, not months.

To name some retailers actively promoting 4Doc: Selver as the pioneer from 2010 with its frozen and cooled products suppliers, Rimi from 2012, starting with receive advice and adding despatch advice in 2013, Bauhof in DIY sector from the end of 2012. Bauhof’s project has been one of the most succesful, being well planned and executed. At the end of 2012, over 100 suppliers are using 4doc. (See more below).
The reason for one of the biggest retail chain's postponement of EDI orders and invoices was that they decided to develop the EDI functionality for 4doc  supply rather than continue with initially planned two document supply model. The fullscale 4doc EDI project is planned to be launched in 2013.

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EU Directive 2006/112/EC on VAT and e-Invoices
To comply with the requirements of the EU directive 2006/112/EC, Telema introduced a new version of Telema eDoc 2.7.0. The major change is that all invoice documents now need to contain full contact data, like address, registry code, VAT code etc. Until today many documents only had receiver’s code and name, and Telema offered an advanced service of adding  the missing data on behalf of the sender. However, the EU directive specifies that the invoice document should contain all required data from the sender and should not be modified during the transfer process.
Complete Telema eDoc 2.7.0 specification and the change log are available here.

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Bauhof implemented an advanced 4-document supply process
Year 2012  was groundbreaking for EDI development in construction materials ("Do It Yourself", DIY)  retail sector. Estonian leading DIY retail chain Bauhof implented an enhanced 4-document supply process. As a result, about 100 construction material suppliers are exchanging EDI documents through Telema network by the end of the year.

Bauhof chose Telema to be their EDI operator in 2011. Since then our specialists were developing and implementing a 4-documents supply solution that would meet all the specific requirements of the DIY industry. Several value added services, such as data validation and document matching, were designed. Now that the solutions are up and running properly, a remarkable growth of EDI adaptation in DIY sector can be foreseen for the year 2013, and the number of suppliers capable of 4Doc Supply should increase to at least 300. Bauhof is planning to launch EDI in Lithuania during 2013 as well.

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E-receipt from retailers to consumers in Estonia
Estonia has taken another step towards paper-free commerce. The idea of retailers issuing e-receipts to consumers had been in the air for years, but it became more realistic in 2012 when the Tax Authority joined the interested parties. E-receipt would replace the printed receipts from the POS and consumers would get an overview of e-receipts over either a special portal or their bank accounts. Progressive  retailers such as Tallinna Kaubamaja and Euronics have expressed interest  to test the possibilities of the e-receipt. Technical solution of the e-receipt will undergo further developments in 2013. However, until the question about the business model of the idea is unresolved, we see no quick widescale adoption of the solution.  

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Highlights of Telema Year 2012

For Telema, the year 2012 has been another year of rapid growth. The number of EDI documents exchanged through Telema System has increased by 23% to 8 million documents. Most popular document type is still EDI order, closely followed by EDI invoice. In total, about 20 different EDI document types are being exchanged through Telema System.

This year, revenues were up 24%. The number of contractual customers has grown in line with revenues. We have customers from total of 14 countries, but the majority are from Estonia, Latvia and Lithuania. We were glad to see that the rapid growth did not affect negatively one of our key performance indicators, the customer satisfaction. The Net Promoter Score we use for measuring it, was at 30%.

Supporting our expansion, Telema hired over 10 new great professionals in 2012. The whole team worked hard on making our services more accessible and easy to use. New products, improved client support processes as well as added self service functions of Telema Service Web are just a few examples of the progress. 

Two major focus areas of year 2012 were

  1. Out-of-Box Service development allowing our customers to use more and more self service functionality and for our helpdesk to fasten activation process of new customers
  2. Telema Certified Partners project, which is aimed at Telema EDI Module being added to widely used business softwares so that joining Telema would become faster and more cost-effective. By the end of year 2012, we are happy to welcome 6 Telema Certified Partners in total.

In 2012, Telema also continued spreading the idea of paperless trading processes, so we expanded our cooperation with universities and the public sectore, giving lectures and helping to organize seminars and conferences on the topic. 

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Network expansion: new suppliers and retailers

In 2012, over 100 new suppliers and about 300 shops joined the Telema network. Among new suppliers are Premia in all three countries with both EDI and Telema MMT solutions, ŠVIESA Publishers in Lithuania, and Putnu Fabrika Ķekava in Latvia. Among buyers there are Harju and Rapla TÜ in Estonia, Kilminė UAB (Express Market) and Danutės Varanavičienės company (member of Aibė) in Lithuania and LPB chain in Latvia. Interesting pilot is also AleCoq and the biggest retail chain's EDI connection. During 2012, the biggest increase occurred in DIY sector. In the beginning of the year, there were about 10 DIY shops and 5 suppliers using EDI. By the end of 2012 already 100 shops and 40 suppliers are exchanging EDI documents.

At the end of 2012, Telema has clients from more than 14 countries. The vast majority of clients are from the Baltic States. More than 3000 shops and over 1000 suppliers exchange their documents through Telema. The total number of documents is over 8 million, increasing by more than a million compared to last year.
Telema’s complete customer list is available on Telema Website. This allows for the existing and new network members to expand their EDI coverage easily. Please send the pairing request using our new Telema Service Web request form and EDI document exchange may begin.

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Feedback from the Customer Satisfaction Survey

„Established and properly working system. Convenient for both buyers and suppliers.“

Fiskars Estonia AS, Telema EDI Supplier

Results of Telema’s annual customer satisfaction survey were received in December. This year there were replies from close to 500 respondents. The average rating of clients on a scale 0-10 was 7,9 and nearly half of the respondents scored Telema 9 or 10, meaning that they would highly recommend the company’s services to a friend or colleague. The NPS (net promoter score) calculated as a result was 30 that is among the best in the Baltics.

Besides praise and kind words, our customers gave us constructive feedback on what could be done better. Based on those suggestions we are able to raise the quality of our services to an even higher level. For more  comments extracted from the questionnaire, click here.

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Helpdesk Requests through Telema Service Web

During 2012, Telema  has also invested into Helpdesk and Customer Service by developing a request process that works over the Telema Service Web. Customers  can now send all kinds of requests from Service Web: adding and linking new partners, adding/removing/changing company, branch or user data, as well as send information requests.

Sending request trough Telema Service Web has multiple advantages:
•    There is no need for double entry of contact data
•    All requests are automatically logged and confirmation sent to issuer
•    It is more secure, simpler and faster:
         - More secure: only requests by the authorized users are allowed,
         - Simpler—no need to look up the email address or contact person of Telema helpdesk
         - Faster-- processing speed of requests increases, as the requests are better classified

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Logistics Act of the Year 2012 II prize goes to Telema Web4Doc

Logistics Act of the Year is an annual award given already 11th year to the most influential improvement in logistics during the year. This year, Telema Web4Doc solution won the II-III prize in the competition.

Websupplier 4DOC is a simple and affordable web-based application that enables suppliers to meet the new requirements of the retail chains, the 4-document supply. Selver started to used 4 documents in 2010, Bauhof in November 2012. Rimi is currently in planning and implementation stages, and the launch is planned in 2013. The awardwinning Telema 4Doc Portal is useful for smaller suppliers who do not have advanced systems and who can thereby avoid huge investments into new systems. For more information on Telema Web4Doc solution follow the link here.

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Telema MMT: Merchandising Solution, Product Pictures and more

 The role of sales agents is shifting from simple order collecting to gathering information from the market. Monitoring sales performance, product display in the shops and customer buying behaviour is increasingly important. All these activities and roles are now supported by the advanced functionality of Telema MMT.

The new Surveys Module enables more precise targeting. Now it is possible to address certain questionnaires to specific customers as well as define which sales agents will fill it. Surveys can be assigned as mandatory or voluntary and the frequency can also be determined. The results are downloaded to Telema service web for further analysis.
The new Merchandising Module gives better overview of the products’ situation in shops. Stock-outs, excess stock, number of facings on shelves and the retail price can all be recorded. Further analysis of the information can be done in Telema service web.

For more Telema MMT user friendly features visit our homepage. Should you have any questions, please contact our Product Manager Sven Uustalu.

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Telema TeleSales – A New Convenient Way for Collecting Phone Orders

There are many small retailers who do not have Internet or even a computer to send their orders to suppliers, not talking about EDI. The only way for them to submit the order is to make a phonecall .

Telema TeleSales is a new convenient way to collect orders from such small customers. Being a web based ordering module, TeleSales is accessible from anywhere which is its major advantage.  TeleSales can lead to major cost savings in case the ERP system user licences are expensive. Adding a user in TeleSales is very easy and quick. A new user can be activated within an hour.

TeleSales orders are received over the phone and entered by supplier’s sales people into Telema Webportal, based on supplier’s own product data and forwarded immediately into supplier’s ERP system. For product data to be in the system, regular upload of partner information, product and price data to Telema system is needed.

Ps. TeleSales service can also be used as a substitute for Telema MMT if the device is lost or broken, or during agents’ holidays.
Should you have any questions, please contact our Product Manager Sven Uustalu.

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Telema VMI – Automatic Replenishment Order

Telema VMI is the solution enabling Vendor Managed Inventory supply chain policy. Instead of retailers making the orders, supplier has the right to replenish goods himself based on agreed minimum and maximum levels and sales reports. There are three versions of Telema VMI: VMI Lite that enables supplier to view the sales reports over Telema Web, VMI EDI that forwards sales and inventory reports to suppliers own ERP System and VMI Premium that is a complex web-based solution.

In Telema VMI Premium, it is possible to follow the stock levels of supplier’s goods by retailers shops, understand for how many days there is enough stock  (DOS Days of Sales), what have been the sales in various shops following a campaign etc.

The new feature launched in December 2012 also allows to create an automatic replenishment order. The quantity in the automatic order is determined either as the difference of the maximum and the current stock levels or as equal to the amount of goods sold starting from the last delivery. It is possbile to change the quantities when needed, as well as add or remove products, add discounts etc.

Telema VMI sends orders directly to company’s ERP system for further processing. To find out more about Telema VMI solutions, please contact the VMI Product Manager Sven Uustalu.

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Telema EDI and Web Services News

Telema's development team has been working on creating new functionality to the Telema EDI core system, making the usage simpler and easier. Some of it is already available to the customers, the rest being made accessible as it passes our rigorous testing procedures. 

The new functionality is mainly related to self service for our customers. 
Administrative users of the companies are able to
•    make linking requests,
•    manage the company profile and
•    manage user rights.

The system improvements will make the use of Telema EDI more convenient and will shorten the time to access desired functionality. It will also enhance the security and reliability of the system as all the self service operations will be performed only by authorized users. Telema will have a better overview of customer profiles that enables quicker response time in case of troubleshooting.

Lot of development has been directed at improving the usability of the web interface. For example, there are now icons in document lists showing whether a document has been processed already or not. Many new functionalities have been added, such as templates for orders and other documents. Many suppliers have appreciated the new options like  printing the draft of an invoice and using it for the packing list.

In relation to 4Doc solutions, new functionalities like creating a despatch advice in Telema Service Web based on received order from the retailer or and an invoice based on receiving advice are much appreciated (the last two being part of the award-winning Telema Web4Doc Solution (read more here).

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Telema EDI Module in Baltics ERP softwares

To help end users to join Telema EDI System quickly and cost efficiently, Telema has a goal of developing EDI functionality into most wide-spread financial softwares used in Baltics. For that, a cooperation program with IT support companies has been designed.

Being a Certified Partner of Telema allows ERP support companies to offer their clients a simple, fast and cheap EDI connection and document exchange possibility with over 1000 companies. It  also means that the IT Partner and Telema have agreed on end user activation terms—how long will it take to “switch on” EDI in that software and how much it costs. For example, to activate EDI capability in KMA software Ladu, it takes one business days and is free for the company ordering it. For SAF, it costs 450 euros and takes up to 7 business days.

Currently, there are six Telema Certified Partners – Sysdec, KMA, Taavi Tarkvara, BCS Itera, Ankravs (LAT), Rivile (LIT). Under progress is development by New Vision, Nixor EE, Latinsoft (LAT), ELMI (LAT) and FVS (LIT). More information about Certified Partner and Telema Modul activation terms can be found here.  Since 2012 we also have a designated project manager for IT Partner Relations Merlin Saareste.

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Telema partners with Tallinn University of Technology

Telema CEO Hele Hammer is currently also the Head of the Supply Chain Management Department of the Tallinn University of Technology (TUT), where a new SCM master studies program was launched. In Fall 2012, first students to the SCM master program were admitted and among the succesful candidates, Sven Uustalu and Raul Silde from Telema were accepted. . Additionally, Telema team organized  a world famous MIT Beergame for the first year SCM masters students that from now on will be an annual tradition.  

Telema also continued to organize lectures in the Tallinn University of Applied Sciences. Telema experts supervised a course for logistics students on EDI, its history and application in practice. For Telema staff, giving lectures is a good motivator and change from the ordinary workday. It is also a rewarding way to contribute to spreading the message about the value of EDI, and creation of a new generation of specialists with broad spectrum of knowledge.

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Interesting Conferences and Seminars in 2012

As a leading EDI operator in the Baltics, Telema has the right and duty to develop the market by spreading innovative ideas. Throughout the year Telema participated in several events discussing the topics of trade, supply chain and information exchange.

Telema is a devoted supporter of TEDx Tallinn, being present already for the third year. The first Annual Trade Congress hosted by Äripäev was also supported by Telema. Another annual tradition is to sponsor the ECR Baltics Annual Forum. There as well as at the VIII Annual Procurement  Conference in Tallinn, Telema representatives spoke about VMI solutions.

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Telema becomes a member of LIKTA

Telema affiliate in Latvia is now a member of the Latvian Information and Communications Technology Association – LIKTA.  It is a professional association, founded in 1998, that unites over 80 important IT companies and educational institutions, as well as about 100 individual professional members of the ICTE industry sector in Latvia.

By becoming a member of LIKTA, Telema demonstrates its commitment to the development of Latvian EDI market. We intend to actively promote EDI services and participate in  endorsing the objectives of e-Europe in Latvia.

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Since our customer base and each customer’s usage of the services is growing rapidly, we are also constantly strengthening our team. 

Telema sales team has several new members: Sales Manager KALLE KUUSPALU who is responsible for DIY sector joined in April 2012. HEELIKA KREIM has been Customer Account Manager since September 2012. ERGE KALBUS recently joined Telema as Sales Director to coordinate pan-Baltic projects and activities. Our product managers team has a newly appointed leader, Product Management Director KLAIRE KUUSK.

MERLIN SAARESTE, IT Partner Relations Manager, joined Telema in April 2012.  

Three new people have joined the development team during 2012 – LAURI TIKK  as IT Software Tester, TAAVI SEPPEL and VAHUR KAAR as Java Developers.

JANE SUURSAAR, responsible for Helpdesk and office functions, joined the company in September and Marketing Manager KRISTINA UUS followed in December to strengthen Telema’s support functions.

Latvian and Lithuanian organizations have both an additional member in the sales team: IEVA NORENBERGA in Riga office and  EGLĖ GIMŽŪNAITĖ in Vilnius.

Telema offers internship opportunities. This year undergraduate students from TUT, but also from Aarhus Academy in Denmark have worked and gained experience in Telema.

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    850   870  +20
  2 800  2 900   +100

E-supply links*

 48 650

 56 000


Documents, thousands

  6 500

  7 900



*E-supply link is the connection between one supplier and one delivery address (shop)

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