STS Cosmetics introduces Microsoft Dynamics AX

The introduction of modules: “Warehouse”, “Supplying” and “Planning” comes to an end. In perspective the ERP system will include the activities connected with sale and production.

Miroslav Dimitrov, Project manager for introducing ERP in STS Cosmetics

STS Cosmetics is a company established in 1990 in Gabrovo. The company is one of the biggest producers and exporters of personal hygiene products in our country. Among the products offered by the company are tooth pastes, hair dyes, shampoos and hair conditioners, hand and face creams, shaving foam, aftershave lotions and others. It has its own brands in every section of cosmetics – female, male and children’s. Moreover, it produces product at the specific request of the client (the so called private brand).

Up to the present moment STS Cosmetics uses different information systems while most of them are developed by the company’s software department and are designed to serve the needs of the users and the company’s clients. The information infrastructure is based entirely on Microsoft products, while for the account management the company uses the InfoStar system of ALOE Co Ltd.

IT priorities

In conformity with the company’s IT strategy, the construction and development of its information infrastructure are focused mainly in two directions:

  • The construction of a unified communication and information environment between all departments of the company.
  • Minimizing the expenses and the client service time.

Current IT initiatives

For the achievement of the set priorities, the company decided to introduce a new business management system. Moreover, during the last years the activity of STS Cosmetics has expanded significantly with which the need of a unified information system that will include all aspects of the business became obvious. After a process of research, analysis and evaluation of different products and suppliers, at the end of 2007 Microsoft Dynamics AX system was chosen as a basis for the construction of the decision.

The project of introducing the ERP decision started from the middle of this year in partnership with FTS Bulgaria and TSS Ltd. On the basis of implemented analysis of the business processes and the scope of the company’s activity, a plan for introduction was prepared, which foresees the introduction of the following modules:

  • Warehouse economy, delivery and planning;
  • Sales;
  • Production;
  • Finance;

At the present moment the realization of the first stage of the plan is coming to its end. The following modules are being introduced: “Warehouse”, “Supplying” and “Planning”. The income data of the clients’ orders will be inserted in the system by the “Planning” department employees. Thus on the basis of the information of the available raw materials as well as the data of the delivery and the order entries of clients, the production planning and the generation of the relevant production order will be possible.

The expectations are that by the end of November the new stage of the project should be started.

In perspective

On the next stage of the project the efforts will be concentrated on the introduction of the “Sales” module. Its introduction aims at the optimization of the work in the “Marketing” department, by giving opportunities to employees to sell more quickly and effectively the available free production.

An introduction of “Production” module is also planned, which will increase the company’s effectiveness in reference to the quick and quality execution of client orders.

The system will provide opportunities for tracking the warehouse availabilities by expiration dates and consignment, specification of products with hierarchal structure with the possibility of adding semi-manufactured articles and development of many versions, tracking the order statuses, the stages of the production process for every item, as well as information for loading and the state of the production powers.

In conclusion

The project of ERP system introduction is a challenge for everyone – for the managing structure as well as for the company’s employees. The major difficulties that a manager of such project has to overcome are: the budget limitations and the natural resistance of the company’s employees to the innovations. However, the efforts to overcome these challenges are well-grounded.