Bidvest: Our Growth Boosted by a New Enterprise Resource Planning System, Supporting Us in Difficult Times

Food industry.

The Microsoft Dynamics AX enterprise resource planning software adapted well to the processes of the NOWACO Group. The new system deployment met the objectives set by our management. Apart from the smooth transition to the new IS, which was very beneficial for users, it also included increased throughput of all central warehouses, savings on transport costs, increased procurement efficiency, contract registration integrated with customers, simplified pricing, and preservation of all the existing key processes without the need to change them where it was not desirable. Benefits also include “little things” such as working with the familiar MS Office, excellent search options, etc. Roman Žičař, Manager of the IT Team at NOWACO

Task

To deploy a new ERP: Microsoft Dynamics AX, to assist the company in its growth through centralizing and pooling sufficient data in the system during a time of market slowing.

Solutions

The IT Systems Company (now a part of RSM) implemented a system that was beneficial for Nowaco especially because of its incredible flexibility in the strategic change management. The rapid growth that Nowaco had been experiencing since 2007 indicated that it would be appropriate to separate the methods applied for trade and logistics management. It was becoming apparent that the most suitable method for the logistics management was segmentation according to individual depots, while centralization appeared to be the most suitable approach for the trade management.

In fact, the organisational change took no more than the one month required for an analysis and respective changes in Microsoft Dynamics AX. The investment paid off within several weeks, because thanks to this organizational change it was possible to reduce the total number of dispatchers.

Nowaco most appreciated the flexible and easy adaptation of the system to new market conditions.

Achievements

Microsoft Dynamics AX proved to be the right choice for Nowaco during its first year of operation. Microsoft Dynamics AX enabled the easy reflection of changes in production management when the company purchased new equipment for meat processing and customers could choose the method of meat treatment. Microsoft Dynamics AX also allowed the company to create an entirely new sales channel in the form of an e-shop. It was custom developed for Nowaco by its implementation partner. Because it was directly connected to Microsoft Dynamics AX, the entire sales process was finally fully automated. Customers visit the e-shop, choose the goods they wish to be delivered, and the whole process – from ordering goods from individual warehouses or production plants, to their delivery to the nearest depot, warehouse release, transportation to the customer, and billing – is done in an automated manner. The new system was of the greatest benefit to Nowaco when the market slumped. Nowaco was able to respond to fluctuations in production and inventory management, which is quite complicated in the food industry because some contracts are negotiated up to a year in advance and supplies have a limited shelf life. The sufficient quantity of information from the system was an especially big benefit, because it helped to analyse the difficult market situation and allowed flexible reaction to decreases and increases. Microsoft Dynamics AX is a powerful tool that the company’s management obtained during a difficult time. It sped up decision-making processes through exact and easily accessible data, increasing the overall flexibility of the company.

Business Impacts

Microsoft Dynamics AX is a powerful tool that the company’s management obtained during a difficult time. It sped up decision-making processes through exact and easily accessible data increasing the overall flexibility of the company.