Damila, authorized importer and distributor of the most renowned manufacturers of building materials and steel products in the country and abroad, has implemented the integrated business management system offered by Transart: B-ORG ERP. The implementation of the ERP – B-ORG solution proved to be a real support for the company’s management, providing both unified operational procedures, and support for the development of the company’s operations.
About the client – Damila
Damila, Romanian leader in Romania in the field of distribution of materials for metal constructions has developed a flexible business model by combining commercial and distribution activities with manufacturing and service activities. In 2007 the company achieved a turnover of 215 million lei (65 million euros): 80% of the total turnover comes from the metallurgical products, while 20% comes from construction materials.
The most important activity is the wholesale and retail sale of metallurgy and construction materials and their nationwide distribution. The commercial activity is carried out through warehouses located in: Bucharest (approx. 14,000 sqm storage space), Ramnicu Valcea (about 50,000 sqm storage space), Timisoara (approx 6,000 sqm of storage space) and Dragasani (about 15,000 sqm space storage), and starting September, Damila will also be operative in Craiova..
The range of products sold by Damila includes:
- Steel products: plate, euro profile, reinforcing steel, steel pipes, roofing systems, cement, concrete, bricks and other building materials;
- Products from Mittal Steel, Ductil Steel, Elpreco, Wienerberger, Profiland, Lafarge Romcim, Mechel, Prefabricate Vest.
The distribution fleet ensures delivery to the destination requested by the client through the 30 trucks of various capacities, equipped with modern cargo handling
The challenges
Before implementing B-ORG integrated system, Damila headquarters used a DOS based application that did not cover the emerging needs of the company. The operation of primary documents only occurred at the headquarters, which generated a huge stream of documents, loss of time, loss of documents, the absence of real and timely information on stocks, receivables or payables. The company needed a solution that would offer the possibility of online communication between the workstations and – thus – to assure real-time information flow. It also needed a complete solution to assure the management of all the activities that were carried out, from production to trade, distribution and services
Distribution in general, but distribution of construction materials and metal products, in particular, is an area with specific work characteristics that must be resolved and / or supported by the chosen ERP application:
- use of equivalent units for reporting;
- inventory rotation speed;
- rapid determination of supply requirements;
- controlling costs and prices;
- short time for customer order fulfillment;
- control of stock availability;
- employees’ work control;
- managing a large portfolio of products;
- management of goods import.
Benefits of implementing B-ORG la Damila
Due to the implementation of the ERP solution B-ORG, Damila has a number of benefits that support the business conducted by the company.
The efficient management of information allows easy access to vital information and – thus – a better control of the work of the employees in every subsidiary – by:
- real-time access to information from the subsidiaries because of its on line function
- management of inventory in real time in all sites and the development of effective procurement policies;
- in real-time, complex and flexible management reports on sales, discounts, collections made, customized to the changing user needs.
Increased operational security by means of:
- control of default risk due to the possibility of using credit limits for exposure restrictions;
- risk reduction within the company, by restricting user access to the level of detail;
- auto save data security.
Managing the large product portfolio is now easier due to:
- controlling costs and prices (purchase and sale) for a large number of products at all subsidiaries
- quick selection of products from thick catalogs by searching facilities (code, barcode, partial name, product group);
- use of equivalent measurement units (eg price is for mp /m, but the sale by the box /pallet).
The decision on imports and purchases of goods is the most difficult part in the management of the company administration, with impact on the real stock available in stores. That is why the application B-ORG allows one to create an unlimited number of inventories – interim inventories according to specific user needs (eg management “port” for goods in port undergoing unloading and delivery to the premises of land). This helps to negotiate for the sale of goods which, although owned by the company (located in port, uncleared and / or unloaded from the ship) are not reflected in the inventory of subsidiaries. Based on the information that was complete and available at any time, the procurement decision has improved, the rotation of goods has increased and the loss of business opportunities due to not being able to know the existing or under supply – has been reduced to a minimum.
Our client’s opinion:
„B-ORG gives us safety in our business and this is due both to the stability of the application and to the strict control of user access to operations – from administration level to field or button in the window level. What is even more important for a large business like the one that Damila runs- B-ORG gives us control over default risk through effective credit policy at a client level
Another essential aspect is the support of management, based on the possibility of obtaining flexible reports in a very short time, giving us a global view of the entire business.” – Mihaela Rovenţa, Deputy General Manager Damila