Borjomi IDS Georgia is the region’s foremost supplier of mineral water with several well known brands leading the market. The company is constantly seeking to diversify and grow its sales in other regions. However, its existing ERP system was not suited to its strategic expansion plans. As a result, the company implemented Microsoft Dynamics AX 2012 R2 to provide it with a flexible, reliable and cost-effective platform for growth.
ERP system provides greater control which in turn delivers decision making confidence
IDS Borjomi Georgia is part of IDS Borjomi International, the largest natural mineral water producer in the region. Borjomi International dominates the bottled mineral water market throughout the Commonwealth of Independent States and the Baltic states while IDS Borjomi Georgia is an unchallenged market leader in Georgia’s bottled water industry.
|The flexibility of Microsoft Dynamics AX gives us confidence… In fact, without this system we would find it very difficult to efficiently handle growing demands.|
| Nitsa Cholokashvili|
Public Relations Manager
IDS Borjomi Georgia
It produces a number of well known brands such as Borjomi, Likani, Borjomi Springs and Bakuriani and its waters are often found on the tables of government ministerial meetings throughout the region. The biggest selling brand Borjomi is available in over 40 countries worldwide. The company’s operations are built on three driving principles: expansion of sales geography, market diversification, conduction of aggressive marketing campaigns and bringing new brands into the portfolio. Outgrown existing ERP
IDS Borjomi Georgia was using Exact Globe 2003, an enterprise resource planning system for small and medium-sized businesses. The ERP processes included purchasing, sales, production processes and financial accounting. It also used Excel and a range of bespoke applications created by its developers, for salaries, cash and bank transaction and other processes.
However, in a sense it had outgrown these systems. For example, it has several subsidiaries that were using various accounting systems which were leading to problems with financial consolidation and integration. Further, it did not have a full range of automated systems across procurement and production. A variety of reporting systems such as Microsoft Access, SRSS, and Excel meant that it was difficult to gain a unified and holistic view of the business which in turn hampered decision-making processes. At the same time, its existing ERP system was not integrated with a tax portal which also compounded its financial accounting difficulties. Need for control
Nitsa Cholokashvili, Public Relations Manager, IDS Borjomi Georgia, said: “We needed to control our business processes and avoid things such as double entry of records which was happening due to the manual nature of some of our accounting. At the same time we wanted an ERP system that could provide us with flexibility to allow us to quickly adapt to changing circumstances such as tax law adjustments and changing business processes.”
The company carried out an assessment of alternative ERP systems and ultimately chose Microsoft Dynamics AX. Cholokashvili adds: “It was a relatively straightforward decision. Unlike some of the other ERP offerings, Microsoft offers strong local support which is clearly important."
“Dynamics AX also seemed like a perfect fit for us. It’s designed for medium-sized and large enterprises and supports industry-specific and operational business processes. It offers comprehensive, core enterprise resource planning (ERP) functionality for financial management and is flexible enough to adapt to change. As a constantly expanding and growing company, this was an important point for us.” Incorporating local needs
The company began implementing Microsoft Dynamics AX 2012 R2 to address the most immediate and important issues and as such it began implementing several specific modules including procurement and sourcing, product information management, inventory and warehouse management, human resources, accounts payable, cash and bank management. However, thanks to the flexibility of Dynamics AX it has also developed bespoke functionality, reflecting the local needs and requirements.
This development work also includes integration with its tax portal and local banking system as well as integrations with an existing customs system and other areas. Most of the Dynamic AX modules are at a ‘go live’ stage and IDS Borjomi Georgia is now planning to extend the system’s functionality. Cholokashvili said: “There are other important modules we want to incorporate such as production control, sales and marketing, budgeting, payroll and fixed assets.”
Currently it has 20 users working with Microsoft Dynamics AX but this number is expected to increase significantly when the system is fully rolled out, underpinning growth and expansion. Thirty per cent time reduction
While it is still relatively early days, Cholokashvili, said there has been a marked improvement in operations. For example, previously it would have to input the same data two and sometimes three times in order to ensure it was receiving accurate reports: “We now have automated and accurate data input, which is saving us at least 30 per cent in terms of time previously spent on data input.”
However, perhaps more importantly, the company is also benefiting from Microsoft Dynamics AX at a strategic level. “We now have control of the company’s business processes which gives us the confidence to plan and grow based on accurate reports and insight,” says Cholokashvili.
Meeting growing demands
This is clearly important for IDS Borjomi Georgia not only from a reporting point of view but also extending into budgeting, financial statements and projections, and taxation. Nitsa Cholokashvili, concludes: “The flexibility of Microsoft Dynamics AX gives us confidence that with any development or change we can meet new requirements, whether its change in our business processes or changes in the tax system. In fact, without this system we would find it very difficult to efficiently handle growing demands.” Next Steps
• Connect with Microsoft Dynamics
• Become a Dynamic Business
• Learn about partner solutions available in the Microsoft Dynamics Marketplace For more information about Microsoft Dynamics, go to:
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Document published January 2014