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The production in Karmela is controlled easily with MS Dynamics NAV

Newspaper Dnevnik, 11.05.2009, supplement Business Software

The first waffles Karmela appeared on the market in 1998. The beginning was as an experiment in the kitchen of Sonya Stoyanova, owner of Karmela Company. But after that simple begging the business started to grow very seriously. Mrs. Stoyanova always has looked to the future with optimism, has learned a lot from her mistakes, takes risks, create a positive atmosphere for the employees. And today Karmela is one of the biggest producers of sugar and chocolate products on Bulgarian market and a leader in segment of mini waffles. Karmela sells its products in 17 countries in Eastern Europe, Middle East. The most popular Karmela’s brands are Family, Golden Cake, Choco Family, Karmela Cookies. Karmela is certified in quality control system ISO 9001:2000 and HACCAP. Staring from March 2008 Karmela successfully implemented ERP system MS Dynamics NAV for running the business.

What forced you to make the change and start the implementation of ERP system?
– Starting from the beginning of our business we in Karmela try to offer to our clients nonstandard products with expellant taste, high quality and European design. This business model was a success, because every year we sell more, we increase our product portfolio and the dimension of our business. But growing is difficult. Continuously we increased the number of the orders, the number of deliveries, and the volume of the production. And it started to be difficult to take control of our every day work. It was difficult to receive the necessary information for the management. Enlarged work started to lead to mistakes. It happened that I wanted some information and everybody from the administrative department stopped their work to collect the necessary information from different sources. There was one time when we did not have accurate information and we ordered some row material with hundreds of kilograms more than required which blocked a lot of money in the warehouse. So I realize that we can not do our job in an old way. There is no universal way for solving all the problems connected with business, but there are solutions which can improve business process and to become a competitive advantage. For us the change came with the implementation of ERP system. We chose MS Dynamics NAV, and for a partner in implementation we chose LLP Sofia.

What are the changes in your work after the implementation?

– There are no significant changes in the working process, the real change is in strict control, availability of detailed information, possibilities of business analyses and planning of the future growth. Now we make correct planning of our production, deliveries and sales. We can control every raw material in which product, on which product line has been used and where it has been dispatch. With MS Dynamics NAV we can make analysis of the supply and demands and to make correct prognoses for our business.

When did you started to notice the benefits of the investment in ERP system?
– Some of the benefits we saw right after we started to work with the new system, I’m talking about the control, the information on all levels of the production process. Some of them we see gradually as how to find the most effective information for the all-round developmen of our business.

What will be your advice for those managers who are in the beginning of the so called “process of implementation of an ERP system”?
– If someone does not have a long term vision for the business, the ERP can not do this. But an ERP system can make it easier to realize business ideas. Everyone who has decided to implement an ERP has to be patient. It always take longer and always require more people involved in the process and it is always require the management to be involved. Everyone has to know what his business aim whit the implementation is. Because now a year after the implementation of MS Dynamics NAV in Karmela I can tell, that I know what is happening in the company every day and I have control of the business.