ERP in two different worlds

Ing. Emmerich Csernohorszky GmbH
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Electrical equipment manufacturer uses ERP system in the areas of Trade and Services

High flexibility speaks in favor of the quality of an ERP system. The electrical equipment manufacturer Csernohorszky from Vienna uses a standard software that supports the areas of Trade and Services and is easy to customize. In as little as 3 months the company implemented the new system and uses the optimization potential aided by this tool. In Vienna traditions are still alive. Here one can still feel the spirit of good old days. The Austrian capital offers art, culture and architecture from over three centuries. Vienna is also the Austrian political and economic center. The Ing. Emmerich Csernohorszky GmbH shows that in economy tradition and modern spirit can go hand in hand. The company was founded in 1911 as an electrical mechanical engineering and motor development company. The traditions of the past are partially still alive today. The company is entitled to carry the national emblem, a decoration that is similar to the one purveyors to the court had in earlier times. Keeping with tradition, Thomas Csernohorszky is the third generation running the company since 1967. The company is currently one of the leading service providers in the area of electrical equipment. His areas of business include electrical projects, electrical installations, switchgear and steering equipment, street lighting, computer and telephone networks, fault clearing services and electrical wholesale. The medium-sized business currently has around 400 employees and has headquarters in a modern business block on the outskirts of Vienna. “Competition has increased immensely over the past few years and the tradition of a long-established company can help little when facing these problems. “Only exactly calculated prices, reliable delivery times and efficient working are important,” is Csernohorszky’s description of the Austrian market. A reliable cost estimation is relevant for the success of a company. “If one has to calculate with slim margins, reliable data from the various company areas are important. Therefore, the installation of a modern ERP system was essential for us,” stresses Csernohorszky.

The end of the old system

Up until a year ago a business software provided by Bull from the year 1985 was being used. Despite many individual adjustments, the replacement was inevitable. “By then I knew the software inside out and even though many things were possible it was still antiquated. The commercial requirements could not be met anymore,” says Peter Friedl, head of IT, who has been the responsible in this area for many years. Functions that are implicit nowadays, such as faxing purchase orders directly from the software, could only be accomplished indirectly. At the beginning of 2001 the customers from Vienna were looking at the ERP market in order to find the best provider for their requirements. Great emphasis was placed on the security of investment because with the introduction of an ERP system one commits oneself to the partner for a long time. For both sides this means a mutual give and take. Of course the new system was also supposed to cover the interests in the areas of trade and services. Some of the providers dropped out of the competition at an early stage, because they had bad references or the use and adaptability of their products was too complicated. The best impression was made by a German/Austrian combination of providers: they thought abas Distribution, the ERP trade solution from ABAS Software AG in Karlsruhe, in combination with the industry knowledge and IT Know-how of the Austrian abas Partners Nittmann and Pekoll (N&P), was the system that was best suited to their needs.

Live in record time

Csernohorszky signed the contracts in September of 2001, the beginning of the project was planned for October. Both sides had set an aspiring goal for the ERP introduction: until January 2002 the software was supposed to work (be “live”). Modules such as goods and material management, warehouse management, scheduling, sales with sales order processing, purchase with purchase order processing, as well as financial accounting were installed by N&P. In future, only payroll was to run with a separate solution. Until then a lot of work had to be done: for example, all the old data had to be structured in a new way: “We went through a lot of trouble so that our data could ‘flow’ consistently into the new system. Furthermore, our business processes had to be changed,” remembers Friedl. He adds, “Fundamental changes were implemented in the area of warehousing in order to optimally use the new ERP system”. Therefore, it is necessary that the abas Business Software is supplied with current information. . “Among other things we regularly import the actual supplier prices which facilitates and speeds up our cost estimations. In the future, we will store the items with pictures for internal use,” so Friedl. To increase efficiency, business processes and internal processes were put to the test. N&P played an important role. For example, they came up with a workflow that automatically activates order processing from incoming sales orders. This workflow reaches into all the necessary departments and retrieves or provides the information. Today 50 users work with the new system. “Most of them are very happy with the new software, but there are also other opinions. However, one has to consider that the users had worked with the old software for a very long time and some of them do not like innovations.”, commented the Head of IT.

Further optimizations

For most employees much time is saved by using the new ERP system because information, such as quotations, invoices or customer records are ready in a flash and do not have to be drudgingly accumulated. „Our good impression of N&P and ABAS on the cost side was confirmed. The budgeted limits were maintained with a planned 50 man-days.” Thanks to the flexibility of the software we could make many adjustments and made savings in return,” sums up Friedl. The next steps after the successful introduction remain fixed for 2003: “Optimize, optimize, optimize,” he says with a smile.