ERP software gives Kose Mööbel better planning and a sharper edge

Customer Story

Estonian furniture producer Kose Mööbel was expanding quickly when the complexities of warehousing and production planning started holding it down. An IBS ERP system put the company back on the growth track.

Kose Mööbel AS is a furniture trade company belonging to one of Scandinavia’s leading furniture manufacturers, Isku OY of Finland. Founded in 1993 and located at Kose-Uuemõisa near Tallinn, Estonia, Kose Mööbel’s production focuses on the manufacturing of upholstered furniture. Most of the pieces produced by Kose Mööbel are affordable, quality sofas and sofa groups, sold as a part of the Isku range.

Sales strategy is sharply focused on exporting. The bulk of output goes to Finland. Combined with sales to corporate clients in Lithuanian and Estonia, these three countries are the market for about 98 percent of output. The company employes 60 people and has an annual revenue of 2.5 million euros.

Growing needs

As Kose Mööbel grew, its supply chain became more complex and the production cycle increasingly fast-paced. “We had three different, separate pieces of software in use – one for warehousing, one for bookkeeping and one for production,” explains managing director Toomas Vork. “It took time and effort to gather information. We saw that we were growing, expected to keep growing, and realized that we couldn’t go on like this. We needed the capacity for the decision-making process to develop along with the company.” 

Ensuring managed growth, efficiency and continuity of production, while undergoing expansion, were the challenges faced by Kose Mööbel management. It started a project to define specific requirements, and a search to find a solution that would be the best fit for current operations and future plans. Bids were solicited from 10 different solution suppliers, and numerous application analyses were carried out. Of the 10 suppliers, three looked suitable.

Application service provider

Available financing and a reputation for reliability were major factors in tipping the scales in favor of  IBS ERP software. For a number of reasons, including Kose Mööbel’s dual locations and its target of keeping investment under control, the company went for a Web-based application service provider (ASP) package solution to meet its needs.

Kose Mööbel had been prepared to adjust its operations and processes to adapt to the IBS ERP solution. During roll-out, it became clear that the software was an ‘out of the box’ match for Kose’s business requirements. In terms of timetable, budget and usability, the company’s implementation project was deemed a real success.

Improved planning

Today, Kose Mööbel is reaping the fruits of the decision. “There has been a major improvement in production planning, making it possible to avoid the halts in production that we used to have. It used to be that we had to check stocks every day, and sometimes the last piece to complete an order was missing,” Vork recalls. “Now we can take urgent orders and guarantee delivery dates. Overall certainty that we can and do make the right decisions is so much better.”

It took about six months for Kose Mööbel to learn how to best take advantage of the new situation, but then the company started seeing cost savings. “For the first time, the report allowed us to order and manage raw materials in reality, not just in theory. Stock value has fallen, there is no need to order and store large volumes of materials. We were able to lower our prices a bit, giving us a sharper competitive edge.”

ASP a good investment

The choice of an ASP package was a departure from previous experience, but one that gets nothing but praise from Vork.

“It’s simply a good solution. At first, I was skeptical of it as an Internet-based system, but it is good and it is useful. There is no need for us to invest in our own servers. We have two sites, and they can be handled at the same time,” he says, and adds, “For me personally, it is great that I can access it from anywhere at any time. Pricing has become so much easier. All of our operations have become a lot easier and faster. The aim is to continually develop our company, and we are also using IBS services for this. It has been a good investment for us.”

Contact IBS for more information. »