The District Dairy Cooperative in Łowicz conducts sales based on central warehouses in Toruń and Łowicz, as well as a network of six on-site wholesale depots. Goods from these distribution points are currently delivered to wholesale customers and retail chains. The company’s problem was a lack of integration regarding: a unified IT system, connecting and standardizing the flow of warehouse, sales, and accounting documents, and standardizing work organization.
– A unified sales system is a necessity. The lack of consistent data makes it impossible to analyze them according to a single model and hinders efficient management of a multi-branch company. The lack of global information about the company’s condition would call into question the success of its development – says Małgorzata Wysocka, Commercial Director of OSM Łowicz.
This problem, although to a lesser extent, also concerned the company’s geographically separate wholesale depots and could have influenced future acquisitions. Furthermore, it resulted in difficult control over the functioning of separate locations and a lack of integrated management of the entire enterprise (price lists, stock levels, order fulfillment, etc.). Additionally, OSM Łowicz planned changes in operations – introducing certificates for individual batches of goods, changes in order organization, management of returnable packaging rotation, pallets, and improving the sales channel for animal feed and veterinary services by launching mobile sales. The lack of solutions in the aforementioned areas prevented full integration of cost information, and consequently, affected the financial result.
The beginning of the cooperation between Macrologic and OSM Łowicz was the successful implementation of the HR and payroll program – Xpertis HR and Payroll, within the multi-branch enterprise. The Xpertis solution in this area operated based on data exchange via the Internet. The success of the first stage of cooperation led to discussions about implementing an IT solution in the sales area. Before implementing the Xpertis solution, Macrologic conducted an analysis that covered the areas of logistics and sales. The project team developed a mobile sales support system working with PDA devices. Initially, the use of Psion devices was planned, but this technology was considered declining, and a proprietary solution for the Palmtop platform was created. This resulted in satisfactory operating speed and solved the problem of storing the customer and product assortment database on portable devices.
– The mobile solution we designed in 2005 was innovative and pioneering in the industry, as no IT company had a similar solution for the dairy industry – says Dariusz Adamek, project manager at Macrologic SA.
During the implementation, it turned out that in the details of business operations, the OSM Łowicz branch in Toruń differs from its headquarters. The differences detected by Macrologic were pointed out to the client. Adjusting and unifying the settlement of processes required a re-estimation of the workload of the Macrologic implementation team related to modifications, training, and assistance.
– The most difficult type of IT implementations are projects conducted in companies with high development dynamics. Due to the fact that advanced IT systems are implemented over several to a dozen or so months, the project team may even conduct an evaluation process of business goals several times. This most often happens when introducing products handled by a new distribution channel, competitor acquisitions, or sudden market changes. To successfully complete a project, efficient communication and cooperation are necessary – says Dariusz Adamek.
The problem of unification and implementation of “Łowicz” solutions at the cost of increased workload was solved. Despite the problems that arose, the implementation proceeded in a way that was satisfactory for both companies, and satisfaction with its results led to further cooperation. The Management Board of OSM Łowicz decided to expand the scope of the software in the area of finance and to launch the Xpertis system in subsequent locations. The main business goals achieved during the implementation of the Xpertis IT solution by OSM Łowicz were reducing production, warehousing, and transport costs by centralizing warehouse and order handling. Unified data from the above areas can now flow into the financial system – Xpertis Finance. In turn, the use of a single IT tool – Xpertis Logistics, eliminated the need to operate four independent applications working in the logistics area. The introduction of mobile sales allowed for the creation of new distribution channels. OSM Łowicz can now offer new types of services and acquire new retail customers, as well as propose better service and veterinary support. Meanwhile, a unified system and a standardized sales settlement model reduced the number of missing goods in the distribution process. The use of a central system managing logistics and sales, and integrating data from other applications, enabled the entry of very detailed information about goods into purchase confirmation documents. Managers responsible for sales accurately account for the costs of their own and rented transport. Data integration allowed for the introduction of order routing. The new solution in the logistics area enabled handling sales to retail chains in all wholesale depots. As a result, the cooperative improved its sales results. The flexibility of the Xpertis solution used at OSM Łowicz facilitated the process of incorporating subsequent plants into the integrated sales system. This was achieved thanks to the solution working in a “thin client” configuration. Such a configuration shortens the time of switching to the OSM Łowicz solution and lowers the costs of connecting new branches, and the system’s flexibility allows for integrating data from all plants according to the same business model. The introduction of an integrated logistics system also allowed for the introduction of an electronic data interchange channel for serving key customers – EDI. Orders from strategic distributors arrive electronically in the form of XML files and are automatically registered in the logistics system. In the same way, the customer receives dispatch notes (WZ documents) containing a shipping notice before the goods reach the recipient. Delivery confirmation is provided via the same channel, and after acceptance and confirmation of compliance, an electronic invoice is generated.
– The consequence of introducing EDI in an enterprise is very large savings related to reducing costs and streamlining the invoice issuance process itself. Savings are generated by process optimization and eliminating expenses related to paper documentation circulation. For example, replacing 2,000 invoices with electronic documents results in monthly savings of around 2,500 PLN – says Dariusz Adamek.