CZECH STYLE, spol. s.r.o.: Microsoft Dynamics Supports Dynamic Development of the Enterprise
Since 1999, this company has engaged in wholesaling and retailing tyres for personal cars as well as for trucks, construction machinery, and tractors. They produce retreaded tyres and have established their own network of car repair shops. They continuously extend their lines of business, with the production of protection sheets and sealing tapes being the latest addition.
In my opinion, Infinity contributed to our business especially by giving us an opportunity to reflect on our processes and review them so that the costs of the system development would not be increased due to additional programming. It is standard that they deliver quality and keep their word, otherwise they could not have survived in the market for such a long time. Petr Hink, Executive Director and Manager, CZECH STYLE, spol. s.r.o.
Task
To implement Microsoft Dynamics AX 2012 for the first time in the Czech Republic
CZECH STYLE initially used a customized corporate information system; however, the system was gradually complicated by upgrades and extensions. The system lacked a number of functions, such as asset management, and it had other shortcomings, such as the inability to set limits on customer accounts for credit purchases, which complicated the credit control processes. With the extension of its business with further activities, the company decided to replace the old system.
Solutions
CZECH STYLE selected Microsoft Dynamics AX as a suitable and strong international solution provided by a renowned partner. The company was already using other Microsoft technologies, including SharePoint, and they were satisfied with them. It was easy to select a partner for Microsoft Dynamics AX implementation because the company had been successfully cooperating with Infinity and its reliable implementation team for many years and were very satisfied with their work. Infinity’s role lay not only in implementing the system itself but also in carrying out a thorough process analysis and providing consulting services. After their rather negative experience with the extensive adaptations of the customized system, CZECH STYLE preferred their processes to be adapted according to the best practices contained in Microsoft Dynamics AX. This accelerated the whole implementation process, which was completed in a record-breaking three months so that the company could start accounting under the new system by January 2012. The system covered all the key areas of the company’s operations.
In September 2012, the opportunity arose to extend the production programme with the production of adhesive protection sheets and sealing tapes. The company was able to cover all the core financial and personnel processes with the new corporate information system immediately. However, the problem remained of how to cover the demanding process manufacturing procedures, where work with alternative formulations was required, etc. The company approached Infinity and asked them to extend the existing system with functions necessary for process manufacturing. This could be secured by applying the separate Microsoft Dynamics AX 2009 for the Process Manufacturing Industry module. However, in the autumn of 2012, a new version of Microsoft Dynamics AX 2012 was to be launched in the Czech market, comprising all previously separate modules, including the control of process manufacturing. Microsoft Dynamics AX 2012 included a number of enhancements providing efficient solutions in other areas of interest for CZECH STYLE, such as analytical functions, customer portals, and other important improvements in assets administration. Another great advantage of Microsoft Dynamics AX 2012 was the fully revised CRM module that the company wanted to start using intensively as they planned to provide their customers with an e-shop and an advanced customer portal. Infinity hence recommended waiting until the new system was launched and then to migrate to it.
The first phase of the implementation, comprising the basic accounting and personnel processes and management of the retreaded tyre production and the new production of protection sheets and sealing tapes secured by means of a specialized module for process manufacturing was completed in May 2013, a mere two months after it started.
Achievements
The Microsoft Dynamics AX 2009 version significantly increased the efficiency of a number of processes, particularly the credit control process. The new system enabled limits for offtaking for individual customers and efficiently prevented deliveries of goods and services to debtors. Another important function was the easy administration of multiple markets and currencies. As a wholesaler of Russian KAMA tyres, the company delivers their goods to a number of European countries as well as to Mongolia or Latin America. The support of multiple currency administration hence increased accounting efficiency significantly. Although the turnover of CZECH STYLE achieves nearly three million CZK, the company can do manage with one accountant.
With the completed implementation of Microsoft Dynamics AX 2012, CZECH STYLE became the very first 100% Czech company to start using it. As the implementation was really very fast, taking only half the usual time, CZECH STYLE was able to execute their financial statement for 2012 in the new system. The company had adapted to the standard processes embedded in the system as much as possible, including in the area of process manufacturing in the new division of protective sheets and sealing tapes production. It therefore started to operate according to the introduced best practices as well. The new system provided predefined user roles and analytical views that CZECH STYLE adapted according to their needs. The deployment of Microsoft Dynamics AX 2012 provided the company with a number of other specialized modules, for example for managing distribution or for enterprises doing business in services, which the company can readily deploy when expanding any time in the future.
The company decided to deploy a specialized module for the control of retail sales that will cover the sales of tyres, retreaded tyres, and the new protective sheets and sealing tapes through an e-shop. The enterprise portal that is integrated in Microsoft Dynamics AX 2012 serves for launching a new advanced customer portal. It will ensure registered customers have access to comprehensive information on all their present and past contracts and invoices. For example, a customer will be able to see when his truck will be repaired, the specific production progress of the retreaded tyres he ordered, and that his truck is just being serviced by the company’s mobile tyre service crew. Changes are also ahead of the mobile staff. They will be able to book capacities in the car repair shops or to place orders for retreaded tyre production directly from their tablets. When exchanging a defective tyre, they will be able to tell the customer precisely when a tyre or retreaded tyre will be available for use.
Thanks to the positive experience of CZECH STYLE with Microsoft Dynamics AX 2012, their partner Russian Style, operating in the Russian market, plans to deploy the system. They will be able to take over the whole system, including all its processes, outputs, and related applications, such as the e-shop, in a ratio of 1:1. The implementation will take only a few weeks. Additionally, thanks to the native support provided by international holding structures, it will not be a problem to secure consolidated financial statements in the future according to Czech or Russian accounting rules or IFRS, or to secure the possibility of direct commissioning of orders to production from CZECH STYLE to the partner organisation in Russia or the other way round. Microsoft Dynamics AX 2012 will thus instil the confidence in the company necessary for its further dynamic development.
Business Impacts
Microsoft Dynamics AX 2012 enables the easy administration of multiple markets and currencies. Although the company’s turnover reaches nearly three million CZK annually, only one accountant is necessary. The system offers new analytical functions and a fully revised CRM module, which the company plans to use as a base for launching its e-shop and advanced customer portal.