Duka increases customer satisfaction with IBS ERP softwareCustomer Story Leading Swedish glass and kitchware retailer Duka turned to IBS for a stable, long-term ERP software partner to manage its growing needs. Accurate stock information and automated order processing have increased customer satisfaction. 
Company background
Duka is part of the Norwegian CG Holding Group and is Sweden’s leading retailer of glassware, porcelain, kitchenware and gift items. Its product line consists of items from such well-known brands as Orrefors, Kosta Boda, Höganäs Keramik, Boda Nova, Iittala and Rörstrand, as well as Duka’s own brand. The chain’s retail network consists of some 100 stores across Sweden.
Duka employs 500 people and had a turnover of approximately EUR 110 million in 2002.
Business issues
Duka sells the majority of its products through a combination of wholly owned shops and franchises. In 1994 Duka was owned by the ICA conglomerate, which suggested that Duka use a tailored system to run its business. The software maker involved ended up in bankruptcy, however, before a new system could be fully implemented.
Duka used this opportunity to look for a new business system, focusing mainly on distribution requirements. The company also needed to be sure that its new business partner understood the wholesale distribution industry and was able to demonstrate experience with similar organisations. Unlike its previous software supplier, Duka was looking for a long term and stable business partnership.
It was essential for any new system to incorporate an integrated warehouse management module, as Duka needed to keep tabs on product identity and location. An accurate stock count was especially necessary, as broken goods distorted the numbers of real available stock. Computer-reported stock figures were sometimes higher than the actual stock figures, which led to customer dissatisfaction.
In 1997, CG Holding acquired Duka. CG Holding is a fast-growing, many-faceted group whose interests range from football clubs to supermarket chains. The company also owned two factories in Norway, which needed help in the distribution of their products.
Duka needed a business software solution that would enable the company to satisfy the information demands of distribution within the corporate group.
Solution and capabilities
After looking at two potential vendors, Duka chose to go with IBS Enterprise, IBS’ integrated ERP software suite. IBS has deep roots in wholesale distribution and the company understood Duka’s unique business needs. IBS’ focus on customer demand is the driving force for timely, reliable applications and solutions specifically for distribution and supply chain management. IBS’ experience and knowledge was ready-made for Duka’s business system requirements.
IBS also proved it was the right partner by showing Duka its detailed ’hands-on‘ experience with a previous customer that had similar needs.
The warehouse management module was further reason for choosing IBS ERP software as the solution is designed to cover any warehousing scenario, ideal for companies like Duka. The system is built with scalability in mind. The end result has allowed Duka to customise IBS ERP software to accommodate the company’s particular warehousing requirements, ensuring reduced lead-times, cost savings and rapid ROI.
A highly integrated link between Duka and its outlets provides shops with the right amount of stock. The IBS ERP software solution automatically processes outlet orders, which are sent to the warehouse for picking.
Duka also makes great use of EDI (Electronic Data Interchange), which establishes communication between the company and its business partners. EDI functionality gives Duka’s customers the ability to place orders directly into Duka’s system, thus increasing order control and speeding up the delivery of goods.
Benefits and value
The inventory control feature of IBS ERP software has been a major benefit to Duka, allowing constant tracking of goods by using location quantities.
In addition, Duka’s highly diversified product assortment, which ranges from glassware to frying pans, is easily accommodated by IBS. This is particularly useful when a new product line is identified. merely requires a limited number of new settings but no software modifications are necessary. This saves the company a substantial amount of time, particularly when dealing with suppliers.
Duka made the right decision in choosing IBS ERP software. Within the CG Holding Group, Duka and IBS have established an excellent reputation and successful track record in the distribution of goods. As a result, Duka now distributes products on behalf of its two sister manufacturing companies in Norway, which transmit their local distribution requirements to Duka in Sweden.
Thanks to IBS, Duka has shortened its lead-times, reduced its costs and an acceptable ROI has been achieved. The future looks bright; decisions concerning business management software are now crystal-clear.
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