"ELTEH" implemented an end-to-end system of management of merchandising and finance based on Microsoft Dynamics AX

"ELTEH" — one of the largest suppliers of electronic components in the Russian market. Now "ELTEH" is official distributor of many world manufacturing companies of electronic component parts. The company has an extensive network of the regional offices located in large industrial centers of Russia — Moscow, Yekaterinburg, Novosibirsk, Rostov-on-Don and Cheboksary, and existence big on the volume and the nomenclature of a warehouse of products allows to provide multidimensional customers needs of the company — the enterprises of telecom industry, power, chemical, oil-and-gas and processing industry, transport, military industrial complex, etc.

Situation

In 10 years of development in the market of distribution of electronic components, the ELTEH company became one of the largest players in the Russian market. In process of development of the company, growth of the state and complication of business processes there was obvious a sharp need for essentially new information infrastructure. For management of all complex of distribution business, an extensive regional network, and also works with wide dealer network in the territory of Russia and the CIS countries, the single platform capable to cover key circuits of business was required for management and to keep further development of the company.

System Selection

The management of "ELTEH" conducted a detailed research of the existing ERP platforms. Having studied solutions of the leading vendors and world experience in distribution automation a choice was made for benefit of Microsoft Dynamics AX: functionality, flexibility, terms and implementation cost, and also total cost of ownership a system – in the light of the tasks "ELTEHa" the platform was ahead of competitors on all indicators.

Experience of integrator in distribution automation became a decisive factor in the choice of the partner in implementation. The management "ELTEHa" considered the project as a possibility of essential business process optimization and aimed at work with the most qualified command having deep industry expertize. Also, existence of the ready-made industry solution built on the basis of the best business practices was an important condition.

"As the partner in implementation we selected Corus Consulting. This company believed in our desire and capability to change internal business processes of the company under the processes put in the Microsoft Dynamics AX system. Also the integrator could propose to us own solution "KORUS|Distribution" - the broad and worked functionality of this system completely covered our requirements, and enormous experience of the partner allowed to be sure of a project success".
Andrey Peregud, CEO of "ELTEH"

"Experience of Corus Consulting in business process automation of distribution do our industry solution by one of the most developed in the Russian market. Experts, the western consultants, representatives of the leading companies of the Russian business took part in its development. In the solution emphasis on key process of distribution activity – supply chain management is put. This functionality allows clients to transfer internal and external logistics to new level and at once to increase efficiency of a circuit of merchandising".
Ksenia Rodnova, menezher on work with key clients of Corus Consulting

Implementation

In plans of the management of "ELTEH" there was a complex automation of business: from planning, purchases, supply chain management and sales to financial statements and customer relations. This major problem is decided to be broken into 2 separate projects - during the first automation of a circuit of merchandising and implementation of the CRM block based on Microsoft Dynamics AX was assumed, and during the second it was going to cover processes of financial accounting.

For replacement of the separate business applications which were earlier automating specific sites of a company performance it was necessary to build the common information space covering key trade processes: purchases, vendor relations, inventory management in a warehouse, internal and external logistics, sales management. The implemented system had to provide transparency of all logistic process: tracking of the status and location of a load, appointment responsible for delivery, calculation of expected delivery time to the client.

"Clients often address us with such problem: it is impossible to define where there are goods. As a rule, this inevitable consequence of growth of business and complication of logistic processes. And search of goods in all chain, are ringing to logisticians and on warehouses take away huge amount of time from employees. Therefore one of the main tasks of implementation "KORUS|Distributions" we see ensuring transparency of information on goods".
Ivan Fedorov, the project manager from CORUS Consulting Group.

Creation at the enterprise of a transparent system of motivation of employees therefore in ERP the motivational schemes and formulas developed by specialists of CORUS Consulting Group together with top management of "ELTEH" were put became one of project tasks. Bonus schemes are individual for different departments and coordinate KPI of employees to the general tasks of the company: for example, for sellers is not only the sales volume and work with receivables, but also marginality, turnover of reserves, sales of focal goods. Such approach will allow to increase business performance "on a joint" works of divisions.

Project team members of CORUS Consulting Group note that in a project success the huge role belongs to the CEO "ELTEHa": Andrey Peregud became the main idea man and actively participated in project work.

"Thanks to global vision by the CEO of processes of the company, it made a set of management decisions "on a joint" activity of different departments that allowed to reduce considerably time for approvals of project parts between departments. The political will of the head to change of the company, its business processes and successful implementation of a new system provided "acceptance" of a system by users. During the project we almost did not notice personnel resistance, people wanted and tried to master a system at once is rather exceptional case at implementations of ERP systems at the enterprises".
Ksenia Rodnova, menezher on work with key clients of Corus Consulting

Automation of financial accounting and traffic control of money became the next stage of business process optimization of ELTEH company. During the second project the new modules Microsoft Dynamics AH "Fixed assets", "Settlings with clients", "Settlings with suppliers", "Settlings with advance holders" and also the solution Treasury allowing to automate planning of cash flows and multilevel process of approval of requests for payment developed by CORUS Consulting Group were implemented.

"During the second project we actually closed all main business processes of the client in a uniform circuit and expanded an information system: integrated management not only a trade flow, but also detailed planning of financial resources became possible".
Ivan Fedorov, the project manager from CORUS Consulting Group.

Results

In a project deliverable a common information space and base for work of all divisions was created, coordination between employees and departments improved. All necessary information contains in a single system now – it considerably reduces labor costs of employees on communication with adjacent services, information search and, eventually, increases quality and efficiency of the made decisions.

Information on deliveries became more transparent for sellers, the quality of service for clients grew, delivery dates became completely predictable. At each stage of logistic process there is collecting of costs which as a result are considered in product cost. It allows to understand real cost value of each delivery, its marginality, profitability of the specific client.

As a result of optimization of key logistic transactions it was possible more than to reduce errors in accounting of loads by 30%. At the same time, the timeliness of deliveries to clients increased more, than by 40%.

"Today became CORUS Consulting Group the prime vendor of IT solutions for our company, having proved as the reliable and experienced partner who is perfectly knowing specifics and requirements of our business. We have rather difficult distributor "profile", and successful implementation of the ERP system showed high professionalism of the contractor. The solution created within both projects provided new competitive advantages for our business gives the chance to continue active development and expansions of a regional scope".
Andrey Peregud, CEO of "ELTEH"

In plans of ELTEH companies and CORUS Consulting Group - further development of a corporate information system. In particular, works on integration of the website of the company with Microsoft Dynamics AH are already conducted. It will allow to create online store with data access on the range, the prices and a remaining balance from a personal account of partners of the company.