Introducing Integrated Microsoft Corporate Management System in the Tobacco Industry

The constantly evolving Continental Tobacco Group wished to update its obsolete corporate management system. The Group sought a solution to resolve slow data processing and recurring data corruption problems. With implementation of user-friendly and integrated Microsoft Dynamics AX, the company expects more efficient operations and full automation of ordering, production, delivery and logistics processes.

Business Needs

The Group’s MS SQL 7.0 database management system, which was introduced in 2001, had become obsolete. Due to the growing number of products, the system was no longer transparent for employees.

In the case of Tabán Trafik — which belongs to the Group and carries out direct product delivery to nearly 15,000 retail units — the Hungarian Customs and Finance Guard (VPOP) made centralized data collection and submission mandatory.

*Compared to the old system, we expect more effective operations and full automation of ordering, production, delivery and logistics processes. Our objective is to achieve more efficient operations and to boost competitiveness through the application of this new system.*

Mr. János Sánta
Chief Executive Officer
Continental Tobacco Group

The processing of data stored on local servers at regional distribution warehouses also took a long time (at least 12 days per month) and there were frequent instances of data corruption.

The company searched for a corporate management system that was customizable, user-friendly and which supported Continental Tobacco Group’s manufacturing processes, customer care and wholesale trade.

Furthermore, the CEO expects to save time by reducing the operational workload and accelerating data processing, financial and control activities. “In addition to the reduction of our inventory, we would like to develop special offers for our customers; thus fast, efficient data processing is essential,” comments Mr. János Sánta, CEO of Continental Tobacco Group.

The Group’s goal is to implement a new system that will serve it for the next 10 years. The systems should also be able to provide a quick, efficient return on investment.

“Compared to the old system, we expect more effective operations and full automation of ordering, production, delivery and logistics processes. Our objective is to achieve more efficient operations and to boost competitiveness through the implementation of this new system,” adds Mr. Sánta.

In the future, the Group plans to expand to new markets. Currently, it operates in 25 European countries and offers 200 individual products. The complexity of business processes and product components makes traceability essential.


Due to the Group’s special needs and expectations, several companies refused to implement the new system. According to its references and considerable experience, Update Consulting Ltd. was chosen to carry out the installation.

As a Microsoft Certified partner since 2000, Update Consulting Ltd. services medium-sized and large companies that plan to install Microsoft Axapta, or what later became known as Microsoft Dynamics AX integrated corporate management system.

“We are likely to add further Microsoft applications in our company in the future, so we would like to install a system that is readily compatible with our existing Microsoft applications. After the evaluation of our criteria, we decided to use Microsoft Dynamics AX products,” explains Mr. Zsolt Ficzera, IT manager at Tabán Trafik.

These Microsoft applications optimize corporate strategic processes in the fields of finance, data analysis, human resources, project management, customer care management, site servicing, supply chain management, e-commerce, production management and retail trade.

Due to its flexibility and upgradeability, the Microsoft Dynamics AX corporate management solution is able to ensure the Group’s adaptability, profitable management and strategic business objectives both for domestic and international markets.


The complex ERP solution, specially designed for medium-sized and large corporations, can help companies make use of their full potential. This system can be customized in a fast, cost-effective way in order to meet all of Continental Tobacco Group’s individual needs.

It is of key importance for the continuously growing Continental Tobacco Group to have all necessary IT equipment available to boost its competitiveness. Furthermore, this new system helps reduce data processing time; it can handle and reduce the amount of outstanding stock and makes trading processes transparent.

Implementing a unified system throughout the company supports cooperation with retailers, the assessment of their needs and the creation of special offers for customers.

Benefits of the new system:

  • A fast, cost-effective, customizable solution

  • A complex, yet user-friendly, solution

  • Automated processes

  • Transparency

  • Saves time for employees

  • Cooperation with retailers

  • Reduction of inventory

  • Special offers for customers

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Tamanho do cliente: Medium Organization
Setor: Manufacturing & Resources; Consumer Goods
País ou região: Hungary
  • Microsoft Dynamics AX
  • Microsoft SQL Server 2008
  • Windows Server 2008
Perfil da organização:

Continental Tobacco, an independent Hungarian tobacco manufacturer with 500 workers and subsidiaries across Europe, aims to restructure data collection and processing and to reduce stock.

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