Have an SeniorERP account? Login
Implementare ERP, CRM, BI, SFA si SCM pentru distributie, productie, servicii si retail

ERP – Case Study – Koelner Romania – Distribution of construction materials

Koelner Romania SRL was founded in 2001 as a subsidiary of the Koelner SA concern in Wroclaw-Poland, having as main activity the import and distribution in Romania of fixing elements and tools used mainly in construction. The firm has legal personality in the Romanian shareholders and it is entirely owned byKoelner SA Poland. Headquarters and administrative offices contain spaces on an area of 108 sqm. and storage of goods on a surface of 2000 sqm. Merchandise is classified in 20 main groups, 10 groups for the fixation in construction and 10 for groups of hand tools and accessories for electrical machines used in construction.

Company Description
Sales team consists of about 20 people. Koelner has a car park comprising 13 cars and warehouses in which 2 managers and 5 workers are working are equipped with 2 industrial trucks and 5transpalete. Managing merchandise implies tracking about 7500 benchmarks.

Distribution system is combined, using the channels with local distributors in each county and direct distribution networks of DIY hypermarkets. Its main clients are: Bricostore SA, Mr. Bricolage, Bautechnik Ceres, Swisspor Arthur Group, Arabesque, G & G, hyssop, Woodcote, Free Star, Comfort Pro, Real Construct, Menatwork, etc.. The total number of clients is over 800, half of which are permanent customers.

The objectives of implementing SeniorERP
The role of the SeniorERP implementation was to create the necessary prerequisites for effective operation of the company and supporting growth and development expected medium and long term. TheSeniorERP solution was chosen and implemented as a system of dedicated to import, distribution and logistics verticals. SeniorERP is the tool used to manage the processes in the activities of import and distribution carried out by the subsidiary in Romania of the Koelner group. Implementation of the SeniorERP platform was a support for management change at the structural unification of procedures and operational support for the development of Koelner operations in Romania.

Challenges
A significant effort of implementing the ERP solution was retrieving data from old software used together disparate files and used as base in different moments. Senior Software has successfully ensured the migration of data critical to the functioning of the unique platform offered by SeniorERP.

Analysis and import of data were made by Senior Software specialists in a record time, so the timing was fully respected. Import of goods, performed regularly, is an important part of routine management activity. Due to complex physical and lobby the calculation of costs of goods, due to the great number of components of a domestic delivery, lost significant sales in the dead time between the arrival of the merchandise and when it was actually available for sale. Solution itself and tuning now allow users to retrieve the goods in a time reduced by over 500% of initial pre-term implementation.

At implementation, Koelner faced structural difficulties in terms of:
– Increase customer satisfaction
– Changing the organizational structure, the hierarchical structure fixed to a vertical structure focused on processes
– Full integration of processes and its orientation towards value-added activities

Particularities of the implemented vertical:
– High speed of movement and the correctness and completeness of delivery is very important
– Very short time to honor customer orders
– Efficient management of a portfolio of over 7500 products
– Increasing expectations of customers meet orders
– Quality control and availability of stocks
– Quick determining supply requirements
– The acquisition costs and selling prices for a large number of products
– Quick and correct treatment of post-sale operations (traceability, solving conformity delivery, development of corrective actions)

Analysis of implementation
Before implementing SeniorERP, the software used did not ensure integration of business processes, not offered the possibility of pursuing commercial partners concerned. Analysis of risk can be inferred a high risk business, where software used initially not receive support. During the early phases of implementation there have been observed for the first time real financial parameters as below expectations.

Following detailed analysis provided by the central module of SeniorERP, there was observed as a result of negative influences arising from the evolution of exchange rates (prices of sale being held in GBP), and lack of control of the sale price in relation to hypermarkets (orders were introduced as they were received by fax, not as practical for each product in each order to be verified from the contract price due to high volume of orders), operating profit from the activity was strongly affected. After analysis, the conclusions offered by SeniorERP reports, there were developed and implemented a set of immediate action on several directions, to ensure the stabilization of the processes and flows and a stable support for further development.

SeniorERP system has been heavily customized for specific needs of Koelner processes, especially the relationship with hypermarkets.
In an efficient automation and acquisition process, redistribution and sale, the system operates in real time, using a unique database Microsoft SQL Server 2005.

Benefits of implementing SeniorERP
– Reduce logistics costs by increasing the operating speed of rotation of stock and optimize the supply
– Increase customer satisfaction through the elimination of controls in a largely human errors and reduce the stock breaks
– Increasing the activity of deposit without allocating additional resources through more efficient logistics processes (increasing the number of reception lines, the positions in the delivery of reception and delivery flow)
– Traceability of upstream and downstream of the entire supply chain and distribution
– Implementation of quality management, the assimilation of a vision of development company focused on processes and correct measurement of key performance indicators.