Electronics distributor grows revenue by 25% without hiring staff, cuts costs, accelerates inventory turns

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headON Communication, a leading Austrian distributor of headsets and communications equipment, implemented Microsoft Dynamics NAV as the company’s ERP system and integrated it with Microsoft Dynamics CRM by means of the Connector for Microsoft Dynamics. The technology implementation produced compelling results: “With the support from Microsoft Dynamics NAV, we
are growing revenue by up to 25 percent per year without adding head count,” comments CEO Rene Horvath. Savings generated by no longer honoring unfounded warranty claims amount to close to €5,000 (approximately U.S.$6,890). Geographical and other information from the ERP system also serves to structure successful campaigns managed with the customer relationship management system to market interesting products to those customers who are most likely to see
their value.

Operations have become vastly more efficient. Says Horvath, “We now have much better control in our inventory management. We were able to double the speed of inventory turns and almost entirely eliminate losses through inventory devalorization. …By using wireless scanners connected to Microsoft Dynamics NAV, we generated new efficiencies in our logistics center and were able to reassign one full-time employee.” In addition, the monthly reports to inform suppliers of the company’s sales are now automatic, no longer requiring manual collation of data.

From detailed tasks in financial management to executive decision making, headON Communication managers use the integrated ERP system and the customer relationship management system to strengthen the company’s competitive standing in the Austrian market and take control of the business. Horvath summarizes, “With Microsoft Dynamics NAV, we can better achieve our goals and be nimble managers of our growth. Microsoft is a long-term technology provider with a strong commitment to further develop the ERP system, which lets us maintain the value of our investment.”

The project replaced a legacy system that was not optimally serving the company anymore. As Horvath explains, “The cost and pricing information in our system was occasionally unreliable. Without any integration to the warehouse system, it was unable to reflect the value of our inventory or inform us of the length of time products were on the shelves.” Read the full story: <bit.ly/ola5Wa>