Distribution Network Achieves Consistent Operations & Reporting Across 17 Countries
Rapidly growing Distribution & Logistics network Orbico Group experienced one of the common hazards resulting from such fast growth. Creating & acquiring existing businesses across 17 countries they also acquired a wide variety of ERP software platforms & operating procedures. To enable the credible financial reporting required to obtain capital, Orbico decided to consolidate all locations onto one consistent platform. They chose Microsoft Dynamics NAV.
Background & Challanges
The leading distributor in Central Europe, The Orbico Group’s 3,000 employees manage over 200 brands from more than 50 top vendors, and 40,000 customers in 17 countries, generating revenue of over 1 billion euro annually.
The Orbico Group had been rapidly growing their distribution and logistics network by opening new businesses or acquiring existing ones in 17 countries. Each addition was what Jovin describes as “isolated islands of operating procedure” despite the fact that all of the countries were geographically contiguous. Their heterogeneous infrastructure spanned from Windows Server versions 2000 through 2008, some with and others without Active Directory, to Novell and Linux servers and desktops were running everything from Windows 98 through XP, Vista, Windows 7 and 8 in various editions. Each had its own ERP solution, its own data structures, and its own way of doing things.
Objective & Decision
Since distribution is very cash intensive, The Orbico Group often turned to banks for capital. Financial reporting pulled together from the many companies manually on Excel spreadsheets lacked the credibility and reliability banks required. A decision was made to standardize all Orbico companies on one ERP platform that could perform consolidated reporting, and bring consistency to operations across the company.
Beyond having to find one platform that was available in the many languages of the many countries Orbico Group was operating in, they would also need to identify reliable local support partners in each country who could work together to maintain the sought-after consistency while satisfying many widely varying local requirements, including legal, licensing, taxation, currency conversion, and more.
Beyond the fact that only Microsoft had partners in every country to support them, and the flexibility to accommodate the local requirements of each country, Darko Jovin explains that it was the agile ability to customize the platform that helped make the decision to use Microsoft Dynamics NAV.
“Of course,” he adds, “this lead to our biggest challenge. Once users found out they could request just about anything, they started showering us with customization requests.”
Acknowledging that Dynamics NAV was not the least expensive choice, Jovinobserves that, “When you compare cost to benefit, you are always winning with Microsoft Dynamics NAV."