4-page Case Study
Posted: 1/13/2014
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Salda Resources are controlled twice more effectively with the newest version of enterprise resource planning system

“Having installed Microsoft Dynamics AX 2012, work processes started to run more smoothly due to the optimized planning and actions analysis, whereas large number of orders with timely completion which the company already had before has increased by another 10 percent.”
– Marius Urbietis, UAB Salda Head of technology group

Salda group of companies, with a turnover exceeding EUR 29 million per year, is a European leader in the production of air ventilation and heating systems. The company produces a wide range of modern ventilation equipment for industrial companies, offices, cafes, hotels as well as individual homes. With 23 years’ experience, the company is also a leader in the production of ventilation equipment in Lithuania. Currently, Salda group of companies has more than 400 employees.

Salda sells its products in Lithuania and exports to over 30 countries, including Austria, Belarus, Belgium, Denmark, Estonia, Italy, Latvia, Poland, the Netherlands, Norway, Russia, Sweden, Switzerland, Ukraine, Germany, among others.

The activities of the company from its very foundation have been focused on high-quality customer service and the meeting of their expectations. “The most important goal of our company is to ensure that our products meet the needs of our customers and provide them the desired comfort. It is namely why we are constantly looking for the best solutions to ensure not only an efficient working process, but also the quality of the final result,” states Marius Urbietis, UAB Salda Head of technology group.

Didn’t need to look far for a new solution

Since 2003, the company has been using Microsoft Dynamics AX 3.0 to control the working processes; however, with the rapid growth of the company's needs and ambitions, it has been searching for advanced technological possibilities that could be easily adapted for the development of the company's business and future plans and that could help in the effective serving of the existing and also potential customers. New needs have arisen in the production and administration processes as well – starting with the laboratory and workshops and ending with the marketing department. In order to speed up and organize the database of materials orders, the archiving of stock and new orders, to optimize the production process and schedule the dispatch operations in a timely manner along with managing expenses and revenues, it was decided to upgrade the ERP system that was in use.

In 2012, Salda began cooperating with the Columbus Lietuva consultation company, which belongs to the Columbus worldwide network. Columbus Lietuva experts recommended installing the latest version of the ERP system which was already in use, i.e. Microsoft Dynamics AX 2012, as it met company’s requirements the best. Having agreed on the goals and the expected results, the two parties signed a cooperation agreement in February 2013 and by July of the same year 63 users had started operating the new system. This Microsoft Dynamics AX 2012 start was one of the first in the Baltic States.

“In the beginning, Microsoft Dynamics AX 3.0 satisfied the basic needs of the company, but with the growth of the company those needs had changed, as had the requirements for the enterprise resource management system. Microsoft Dynamics AX had also changed – the new version had been augmented with additional functionalities. Having considered the rapidly growing needs of our customer, we recommended taking advantage of the new Microsoft Dynamics AX 2012 potentials. First, the key functionalities were installed: cost sheet, output orders, packaging and dispatch of consignments. The realized possibility to promptly obtain information on stock operations, orders and left-over stock has essentially improved the general planning process,” commented Laura Jakučionė, Columbus Lietuva Project manager.

According to Laura Jakučionė, the changes put in place by the system not only facilitate the work planning, but also help in coordinating the entire process from the beginning to the end of products production ensuring the best results. The installation of the solution took 3 months, including presentation of the system’s prototypes following the analysis and application realization stages and employee training.

First results – immediately after installing the system

Having installed the new version of the ERP system, the users were trained to use it straight away. Although the installation and the learning process took several months, the activities of the company continued allowing a smooth switch to the new technology, so the company immediately had a return on their investment. Owing to the similarities between the new and old system’s functional environment, it was much easier for the employees to adapt than in the case of installing a new, yet unused and unfamiliar system.

According to Laura Jakučionė, the installed key functionalities help in a more effective management of current finances, tracking purchase, sale and stock data, fixed assets, production and supply chain processes.

“Although we have been using Microsoft Dynamics AX 2012 system only for six months, we have already noticed positive changes. Following the installation of the new system, the time index of execution of orders has improved even more. Even though this index had been quite high in our company before, now it increased by another 10 percent, which means that we have even more satisfied customers,” Marius Urbietis, UAB Salda Head of technology group, speaking about the results.

Another benefit of Microsoft Dynamics AX 2012 is that important business information is received much faster. For example, in the old ERP system, data delays could be up to 5 days, which meant the planning results did not reflect the true situation of the stock. Currently, with the terminals installed in workshops and warehouses, there are no delays in data sharing as data transfer is up to 5 times faster. In the meantime, manual work has decreased by 20%, while the amount of information and history volumes have increased.

It is also important that the new ERP system is more integrated, because a part of the previously used third-party functionalities have been moved to a new platform, which simplifies system maintenance. In addition, the stock management has improved and stock search in the system has simplified as 40% of stock were removed as unused when re-coding. At the same time, the multilanguage feature facilitates communication with foreign partners who use non-Latin characters.

When the use of the new Dynamics AX 2012 warehouse management functions began ensuring reception of timely information on stock operations, orders and left-over stock, the company started to use the general planning. “Taking advantage of the new technical solutions of the system (webservices) creates new opportunities of business organization: use of mobile barcode scanners in the warehouse, registration of the fact of production tasks completion at place, etc. However, these are future plans,” adds Marius Urbietis.

According to Marius Urbietis, the main objective is to have satisfied customers. Therefore, the future plans include the use of advanced web and mobile technologies and the further improvement of internal processes for customer convenience. Flexibility and timely customer service enhances the competitive advantage, thus the efficiency and accuracy of the information in the company are still very important. Salda will continue to pursue the goal of storing as much information in the new system as possible and information entering exactly where it originated.

Solution Overview



Organization Size: 300 employees

Organization Profile
Salda group of companies, with a turnover exceeding EUR 29 million per year, is a European leader in the production of air ventilation and heating systems. The company produces a wide range of modern ventilation equipment for industrial companies, offices, cafes, hotels as well as individual homes.  Salda group of companies has more than 400 employees and sells its products in Lithuania and exports to over 30 countries,

Business Situation
In the beginning, Microsoft Dynamics AX 3.0 satisfied the basic needs of the company, but with the growth of the company those needs had changed, as had the requirements for the enterprise resource management system.

Solution
Having considered the rapidly growing needs of our customer, Microsoft Dynamics AX 2012 was recommended to the Customer. First, the key functionalities were installed: cost sheet, output orders, packaging and dispatch of consignments. The realized possibility to promptly obtain information on stock operations, orders and left-over stock has essentially improved the general planning process.

Benefits
Following the installation of the new system, the time index of execution of orders has improved even more; Another benefit of Microsoft Dynamics AX 2012 is that important business information is received much faster; the stock management has improved and stock search in the system has simplified as 40% of stock were removed as unused when re-coding.

Software and Services
  • Microsoft Dynamics AX 2012
  • Microsoft SQL Server Technologies

Vertical Industries
High Tech & Electronics

Country/Region
Lithuania

Business Need
Business Productivity

IT Issue
  • Manufacturing and Supply Chain Management
  • Asset Management
  • Data Warehousing

Languages
English

Partner(s)
Columbus IT Partner Lithuania

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