Interview with Daniel Schuster from SPAR

RECADV is so much more than just a merchandise receipt message. RECADV (receiving advice) can shorten information flows, minimize invoicing discrepancies and reduce the workload at the warehouse, at the sales location, and in the accounting department. SPAR Austria leverages these advantages for both its own benefit and for the benefit of its suppliers. Daniel Schuster (head of e-purchasing and B2B projects) at SPAR Austria elaborates on this issue in the following interview:

SPAR Austria recently started using RECADV. Why is that?

In the EU, business partners are increasingly requesting RECADV as a confirmation of receipt. In addition, we also expect that the use of RECADV will translate into fewer invoicing discrepancies.

Which parts of the company benefit the most?

We are seeing great benefits in all areas that deal with volume and invoicing discrepancies. Our employees at our sales locations and in the warehouse no longer have to report volume discrepancies. In purchasing and accounting, RECADV reduces verifi-cations related to invoicing discrepancies or even eliminates them.

How do your suppliers benefit from RECADV?

As soon as we receive merchandise at SPAR, the merchandise volume is immediately reported to the supplier’s headquarters, which makes for a very prompt flow of information. Another benefit for our suppliers is that they can issue their invoices right after delivering the merchandise, which eliminates the risk of complaints and the need for further processing (corrections or credits).

Does this process expansion mean more work for your clients?

Some of our suppliers might have to adapt the date of their invoices. It pays off to wait until they receive the merchandise receipt confirmation via RECADV because no subsequent credits are necessary. Things are much easier for suppliers who already work with INVOIC or plan to use it. After all, their processes are much more time-efficient than those that still include printing documents, stuffing envelopes and affixing postage.

What kind of support does SPAR provide to its suppliers to implement RECADV?

SPAR does a test run with every single supplier who would like to receive a confirmation of delivered volumes via RECADV.

Do others benefit from RECADV as well?

The more parties are involved in the delivery, the more they will all benefit from RECADV. In the medium term, this could also include logistics services providers. We strive to minimize the time required for the flow of information to our contractual suppliers and invoice issuers and to send RECADV directly to them.

How does SPAR plan to encourage its suppliers to use RECADV?

As a first step, we will offer this EDI option to all our suppliers who already receive traditional merchandise receipt confirmations or who have prior experience with RECADV. As a second step, we will get in touch with all those suppliers who have shown invoicing discrepancies on a regular basis.

RECADV – the goods received confirmation

RECADV (receiving advice message) is a type of EANCOM message used to confirm the receipt of merchandise. This message includes detailed information about missing or excess volumes, lost merchandise and theft as well as damage occurred during shipping.

Benefits for suppliers:

• Suppliers will learn if their merchandise has been accepted as ordered/commissioned
• Eliminates the need for credits because of incorrect invoices

Benefits for retailers:

• Fewer mistakes when issuing invoices
• Receipt data available in the system