ERP updates are a breeze in the cloud

The downside of the large portfolio is the large amount of master data, which presents the company with special challenges in terms of safety, performance and transparency. For a long time, Strack Norma used an ERP system from proALPHA for this purpose. Although this was tailored to the operational processes, it was difficult to customize. In addition to that, there were structural deficits, aspects that were no longer up to date, recalls Markus Hempel, Head of IT at Strack Norma: "We installed proALPHA on every computer and hosted it ourselves. As a result, working from home was only possible to a limited extent. We had to go through a great deal of effort to test each and every customization. This left our small IT team hardly any time for other tasks." Every three years, major updates were performed, putting an undue burden on the entire organization and costing as much as a new installation. 

Despite all that was going on, the IT team still found time to blaze new trails. During the pandemic, the team gained experience with the cloud. Since then, the company has been using an online product information system (PIM) in addition to Office solutions from the Microsoft 365 product family. "The cloud represents an opportunity for us to establish uniform system structures and avoid time-consuming update periods," says Michael Lang, emphasizing the strategic aspect of the cloud. At the same time, this reduces the IT team's workload and allows them to concentrate on other tasks.  

So it was no surprise that when it came time to replace proALPHA, the cloud was the obvious choice. Finding a new, modern cloud ERP solution was a team effort. The IT department, management, and users first analyzed their own processes and documented them in a specification sheet. During the subsequent market research, the project team attached great importance to a high proportion of standard modules: "Standard modules and configurations are better than individual programming in the long term. They tie up significantly less capacity and give us the flexibility to scale the system at any time," emphasized Carsten Woker, Project Manager at Strack Norma. Following a thorough evaluation of the options, the company has selected Microsoft Dynamics 365 Business Central, also known as Dynamics 365 BC. This cloud-based ERP system is a popular choice within the SME sector and offers the flexibility to expand with additional modules as required. "It was important for us that Microsoft picks up on new trends such as AI at an early stage and makes them available to those using the software. This allows us to benefit from efficiency gains more quickly. Dynamics 365 BC is also a very open system that can be flexibly expanded," said Carsten Woker.   

The company commissioned the digital transformation specialist COSMO CONSULT with the system change. "We were specifically looking for a partner who could provide consultancy and implementation as a one-stop shop. COSMO CONSULT also has a very broad product portfolio, so that we can manage with one contact person in the long term," he added. This avoids an inconvenient back and forth regarding responsibilities and lets future requirements be implemented more quickly. 

The project's motto was "stick to the standard model with no compromises". Over time, the old system had been extensively adapted to take user requirements into account. Adhering to the standard also meant that employees had to get used to new processes. "That's not always easy. You quickly get the feeling that you are no longer efficient if you stop doing the things you usually do. On the other hand, sticking to the standard solution has enormous advantages when changing systems: basic training is easier, the external hotline can help immediately and updates are installed almost automatically in the cloud," said IT manager Hempel.   

At the start of the project, all key users were trained, so that they could later pass on their knowledge. The project team used agile Azure DevOps tools to structure the individual tasks and implement them step by step. Before going live, the project team tested each process under real-life conditions. One of the special features was the integration of the autostore storage system. In this process, small robots move over stacking boxes and precisely retrieve the box with the required parts. The storage system only knows the location of the boxes. Content and stock are managed in the ERP system. Another challenge concerned the transfer of data to the new system. As Dynamics 365 BC works using other structures and other procurement methods, the data first had to be manually prepared. This was the only way to generate planning proposals later on. In the course of optimizing the data, the data volume was reduced from 450,000 to 100,000 data sets. "It still took us around four days to migrate the data. Patience was sometimes needed," recalls Michael Lang. 

Looking back, Michael Lang sees the added security and increased flexibility as the main advantages. The risk of downtime is close to zero, and updates are now installed regularly and in a volume that is easy to manage. "We can manage this easily with a small team and are always up to date in terms of technology," says Strack Norma's Michael Lang. This leaves time for strategic planning and the implementation of new ideas. In central areas such as purchasing, production, sales and logistics, the project team has succeeded in mapping the already mature processes in the standard solution. The company is now able to quickly implement further requirements, such as additional reports in Microsoft Power BI, without external support. "Most customers didn't even realize that we had changed our ERP system behind the scenes. And that's exactly the way it should be," said Markus Hempel. In e-commerce, on the other hand, the improvements are tangible for everyone: customers can see their individual products and prices and can order easily. The order is released with one click and goes directly to picking and dispatch. "You can follow the progress of the order practically in real time," adds IT manager Hempel.    

For many people at Strack Norma, the new cloud ERP means a much more flexible way of working. It is now much easier to participate in processes using mobile devices. In many workplaces, employees can decide for themselves how and where they work - as long as data protection and safety regulations are observed. The advantage of standardized processes is also evident when it comes to training new colleagues: Whereas expensive individual training courses used to be necessary, many areas can now be covered with a basic seminar at COSMO College. 

Strack Norma is currently exploring the possibilities of the new ERP system for its industrial business. "We're becoming more skilled and efficient with Dynamics 365 Business Central. It's fun to watch the development and see how our team is getting better every day," says Michael Lang. The aim over the next few months is to further optimize the company's processes. New functions and improvements are to be implemented via configuration or standardized extensions. At the same time, the company is pushing ahead with digital transformation. The project team is already working on connecting a product information system (PIM) to Dynamics 365 BC. "In the future, we will only have to manage our product data in one central location," says Markus Hempel. Reporting, which does not yet meet the company's requirements in the standard solution, is also to be further expanded. The next building blocks of digital transformation are new CRM software and the COSMA knowledge bot. COSMA will help the Strack Norma team to answer IT questions and research product information.