Published on 24-Aug-2010
"From an entrepreneurial business to a modern, flexible corporation: that was the main objective after the take-over. Established in a small court-yard, today Romanian market leader – Fabryo needed, among other tools, a management performance solution, delivering critical and timely information. This is mandatory in taking fast and efficient decisions. This solution came with IBM Cognos software – in time and with affordable project costs. Now we have what we want." - Aliz Kosza, Chief Executive Officer, Fabryo Corporation
BA - Business Analytics, BA - Business Intelligence
IBM Business Partner:
The solution met Fabryo’s requirements for an affordable solution that was quick to implement and could deliver quick time to value.
The company needed a scalable and powerful performance management solution for operational, tactical and strategic decision support. They also needed the solution to be integrated easily with their existing ERP and with their users’ daily routine; it should also deliver value quickly.
IBM Cognos 8 BI provided real-time analysis of business data to help the company increase market share and customer satisfaction.
The solution delivered value quickly through a number of benefits, including a short implementation time, scalability, state-of –the-art features and affordability.
Fabryo Corporation is the largest decorative paint producer on the Romanian market. Over the past three years, the company recorded an average turnover growth of 20 percent. Its portfolio includes: waterbased paints, plasters, primers, lacquers and varnishes, produced under the Savana, Innenweiss and Rost brands. The company is present in all relevant market segments and has the largest tinting capacity in Romania, in over 600 points of sales. Fabryo Corporation owns the largest paint manufacturing platform in South-Eastern Europe and its sole shareholder is the Swedish Private Equity: Oresa Ventures.
The company was founded in 1994 and started with auto parts. Comparable with some typical U.S. “self-made success stories,” Fabryo was founded in a small court-yard where the owner himself developed recipes and produced finished goods. He also shipped the goods to customers.
Now, about 15 years later, Fabryo is the market leader on the Romanian market in his business segment and is part of an international investment company.
In keeping with this rapid rate of growth – from an entrepreneur business with a single decision maker, to a capital based international investment entity – the need for information increased significantly. In the early years it was easy for the management to manage the activities of a couple of employees and customers, but nowadays with hundreds of employees, customers and suppliers, this is no longer possible. Additionally, the company’s need for consistent and easy to use reports increased as their business became more complex.
To handle these challenges, Fabryo decided to implement an overall ERP system to streamline and standardise processes and to have a strong foundation for an integrated information management system. After the ERP implementation, which was not at all an easy task, the management was satisfied with the generated results.
However, new challenges began to arise. And the company began to experience factors that added complexity to business planning, including:
• Change in the company’s status from always being a “seller” to also being a “buyer”
• A general shortage of financial liquidity on the market
• New business segments like B2B (paints and tinting systems for house constructions) or new products with limited life time increased the need for “just in time” deliveries
They needed a solution to address these needs. They needed a tool to ensure that finished products would be available to customers very quickly. Also, they wanted to decrease the number of standard products produced for stock, along with their financial investment in inventory. Fabryo tried to manage these requirements with their ERP
system. But very soon, the management realised that reporting capabilities were limited, and couldn’t support the company’s increasing needs. It was at this time that Fabryo decided to install a system for near real-time analysis of business data to further increase market shares and customer satisfaction. The company’s issues were addressed by forming an interdepartmental project team that included key users of the system. Among the key targets they identified was the reduction of inventories, better stock management and increased customer satisfaction.
Fabryo initially developed some additional reports within the existing ERP system. Later it was discovered that the data structure and content obtained from ERP was making it impossible to satisfy the company’s information needs. In the middle of 2009, Fabryo called in the ERP and BI specialist from Integral IT to analyse the existing IT architecture and to design a future-proof strategic IT concept.
Fabryo’s positive experience from previous engagements was a key factor in choosing Integral IT, along with IBM® Cognos® 8 BI. The Fabryo team was impressed with integral’s specialised ERP and BI expertise, and a professional understanding of Fabryo’s business processes.
The project was divided in three phases, targeting these three milestones:
• A project plan with detailed descriptions, approved by Fabryo
• An implementation and definition of a dedicated data warehouse, with automatic transfer and transformation of data from the ERP system
• Set up and training on the IBM Cognos software features including reports, analysis and dash-boards
IBM Cognos 8 BI is based on a dedicated data warehouse, and the solution now acts as the information center for Fabryo. This complete solution, used by managers and key users, delivers all relevant information in near real time. The solution has helped to reduce inventories and to increase customer satisfaction.
With improved data, the company can now deliver a much higher level of service to both customers and area sales managers. Better information and improved exchange of information in real time makes it possible to include external warehouses and distributors, and extend the functionality of the existing ERP planning processes. With this solution, the investment required to keep finished goods in stock at Fabryo warehouses can be reduced significantly.
Without IBM Cognos software all of this would be possible, but it would take two or three consultants and up to one week for each report request. But with IBM Cognos software,
Fabryo can access relevant information and create reports every day, based on real data, accessible for everybody, anywhere. And this makes the difference between making good decisions and “just making decisions”.
About IBM Business Analytics
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Products and services used
IBM products and services that were used in this case study.
Cognos 8 Business Intelligence
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