Interview with Mr. Silviu Toma, General Manager at Phoenix Contact Romania
Phoenix Contact Romania was founded in 2005 as a subsidiary 100% owned by Phoenix Contact GmbH & Co from Blomberg, Germany. With an 80 years’ market presence, Phoenix Contact is leader in the production of components for electrical connection and industrial automation technology. Globally, the company has today 12.800 employees, 50 subsidiaries, 30 partners and a turnover of over 1.6 billion EUR.
In 2009, after studying several local and international offers, Phoenix Contact Romania has chosen the ERP system provided by Senior Software thanks to the intuitivity of the operational flows, the compatibility with the distribution business and the customer references. SeniorERP replaced at that time an application that blocked the workflows and seriously affected the employees’ productivity.
“After analyzing the internal processes, we have identified the weaknesses with a major impact on resource allocation. This process has revealed major problems in the existing activity flows, which where dimensioned to meet the limitations imposed by the existing accounting software and that were not based on the functional analysis, as normal.
In this way, significant time and human resources were locked for synchronizing the business activities with the reduced possibilities of the software. Acknowledging this situation led to the decision to have an opportunity analysis and implementing a solution that would fold on the business needs and not vice versa.
The intuitiveness of SeniorERP solution, the fact that it covered our current activities and the positive references received from users, led to the decision of choosing this solution.” said Mr. Silviu Toma, the General Manager of Phoenix Contact.
In 2010, a year after the implementation, Mr. Silviu Toma said that: „Procedures that took a long time before and really got me into delicate situations when it came to deadlines, have now disappeared. The relationship with the clients has improved dramatically, we removed some of the intermediary links. Regarding the profitability of an ERP, I can only say that the volume of direct sales has considerably increased, allowing me to invest more time in the development of the business.”
Senior Software: The last interview that you offered us was in 2010. What was the company’s evolution from then until now?
Silviu Toma, Phoenix Contact: In the last 3 years our turnover has doubled (in 2013, the turnover of Phoenix Contact Romania was about 6 million. EUR). The customer portfolio has evolved in the same rhythm. We managed to develop our business due to a better organization of sales activities, customer support and logistics. By increasing the efficiency we were able to allocate additional resources in the directly productive areas. The influence of SeniorERP in increasing the performance of Phoenix Contact Romania is remarkable.
Senior Software: What were your objectives from 2010 so far and what was the role that Senior Software systems had in achieving them?
Silviu Toma, Phoenix Contact: Increasing the quality of services offered to customers and deepening the existing trade relations were and still are two of the fundamental objectives for the development of the company. SeniorERP played an extremely important role in the process of internal organization, planning and control, which has allowed us to develop and ensure the security of the transactions.
Senior Software: How important is SeniorERP for your company today?
Silviu Toma, Phoenix Contact: The specifics of our activity, import and distribution of electrical and electronic industry products, involves, in addition to logistics services, a quick response to our clients’ requests. When the product portfolio is over 70,000 different items, any of the above mentioned activities becomes a real challenge. Here SeniorERP offered me a very suitable support, because it is a flexible tool, safe in operation and with a simple and intuitive interface. Moreover, the support team constantly helps us adjust the system to the changes occurred in the operational area. The constant evolution of our needs has been fully supported by the flexibility and efficiency of Senior Software’s team.
Senior Software: Can you mention a few benefits you’ve achieved from 2010 until now?
Silviu Toma, Phoenix Contact: Since SeniorERP implementation our market position and the complexity of the provided services have changed constantly. I can say that today, the customizations made along the way have made SeniorERP a lot more complex system, perfectly adapted to our needs. Thus, efficiency has increased exponentially and at the same time the safety and control of the transactions have also increased, in accordance with the standards of our corporation. Without these improvements, it is very clear that we would have not been able to achieve all current performances. Although the system has constantly grown in complexity, paradoxically, from the usage point of view, things have become more accessible. Customization allowed a better optimization of the operating times, of the workflows, and ultimately a higher volume of transactions. In addition, we can work with multiple warehouses, we are able to manage custody stocks, all this in an intuitive and secure manner.
Senior Software: We know that the mother company is using another software. The communication between SeniorERP and its system is done using the EDI component. How does this communication work and what are the benefits?
Silviu Toma, Phoenix Contact: The communication with the system used by the mother company is based on electronic communication standard protocols (Electronic Data Interchange). Senior Software’s team has solved, from the technical point of view, all of these very specific requirements. SeniorERP is therefore successfully integrated at the level of the Corporation.
Senior Software: What indicators do you analyze with SeniorVisualBI solution and how does it help you in your daily activity?
Silviu Toma, Phoenix Contact: It is a very powerful analysis system. It provides a broad perspective of options both in the area of revenue and profitability and also in what cost or financial analysis are concerned. Complicated Excel files processings, necessary to obtain relevant and specific reports, are solved almost instantly with SeniorVisualBI. It is the ideal tool for reporting and analysis, essential in fast establishing of accurate and operative decisions.
All employees that have to do analysis and control activities in some operational areas, are using the BI system. Maintaining a high level of efficiency is the reason for which we have introduced the use of this software on a large scale in the company.
Senior Software: You have recently benefited from an upgrade of the SeniorERP solution. How was it, what was the impact it had on the organization?
Silviu Toma, Phoenix Contact: The transitioning to a superior SeniorERP version was done in a short period of time, the impact on the current activities being almost invisible.
Senior Software: How did the collaboration with Senior Software evolved in these 5 years of partnership?
Silviu Toma, Phoenix Contact: In these five years of collaboration with Senior Software, we can mention an increase in the overall performance of both the developing and the support team. SeniorERP has progressively evolved as technology, which is why I decided to upgrade the system 2 times in these 5 years. We have the certainty that both the development team and the one that manages the support of the application have evolved continuously, they have kept pace with new technologies and they have confirmed the status of a reliable supplier in a very competitive and sensitive market. It is a positive partnership and we trust it will be so from now on.