SocrateCloud Case Study B MONTE BIANCO Industry Discrete manufacturing (production of napkins, toilet paper, paper handkerchiefs and paper towels). Monte Bianco – short description Monte Bianco, the largest Romanian producer of tissue paper products, was founded in 1994, in Targoviste. The company's portfolio includes three strong brands (Puff, Best and Fiore), but also own brands for various partners. At the end of 2010, Monte Bianco ranked first in Romania for napkins, handkerchiefs, paper towels and HoReCa products. The Challenge Replacing the old ERP system in order to support the company’s growth and long term sales objectives. The Solution Monte Bianco has chosen the open source ERP solution from BITSoftware, the evaluation and decision to buy SocrateCloud was taken after analyzing several offers on the market. After the preliminary decision, a pilot program was initiated, in order to validate the SocrateCloud functionality. The Results With SocrateCloud, Monte Bianco reduced the reporting time and improved the operational performance of the company, leading to a customer increase of 8% and almost 10% increase in the annual turnover. MONTE BIANCO - the largest Romanian producer of napkins and paper handkerchiefs has increased its turnover with almost 10% by using SocrateCloud Brief company description S.C. MONTE BIANCO S.A. was founded in 1994, in Targoviste, having as main activities the paper processing in order to obtain sanitary products for single use. Over the time, the company's development strategy has been successful, now Monte Bianco is a major player for the single use paper products market, ranking first at the conventional categories of tissue paper products - napkins, toilet paper, kitchen towels and paper handkerchiefs - with a market share of 20%. The company's portfolio includes three strong brands (Puff, Best and Fiore), and own brands for various partners, such as Metro Quality (for Metro Cash&Carry Romania), Clever (for Billa Romania), McDonalds and Tarom. If at the beginning of activity, Monte Bianco sold its products only through local distributors, since 1997, it started to colaborate with the major stores chains developed in Romania, the first of them being Metro Cash & Carry, with the store located in Otopeni. Currently, Monte Bianco colaborates with all major supermarket and hypermarket chains in Romania, as well as with an extensive network of local and regional distributors. Also in terms of investments, Monte Bianco achieved its strategic objectives. The company invested in increasing and modernizing the production capacity of the converting sector and installed the paper reels production lines to provide the necessary raw materials for the converting sector. Through this program, the company aims to diversify the products range, to increase the productivity and to reduce the manufacturing costs and purchasing expenses, to better manage the raw materials production and transformation sectors and, last but not least, to increase its turnover. Monte Bianco has about 200 employees, 150 products, over 700 customers and suppliers across the country and a turnover of 15 million Euro. The Challenge The accelerated growth of the company led to an increase of processed data volume and to a continuous diversification of data types, leading to a complex data matrix required for analysis. All these imposed an upgrade operation from a simple management and accounting software used by Monte Bianco at that time to a complex ERP system able to handle a large number of data and provide accurate information in real time, in order to support the company’s growth and its sales objectives. „When we implemented our first ERP system we had between five- six hundred monthly transactions and nearly 100 employees. When we reached 1500-2000 monthly transactions, the old ERP system became useless and we had to think to a new solution”, said Dan Savu, Planning Manager at Monte Bianco. The Solution Once the decision of purchasing a new ERP was taken, Monte Bianco began evaluating a number of ERP solutions, and decided that the functionality of “traditional” proprietary ERP solutions didn’t meet their needs. Because the company used already several open source programs, they expanded their search, considering SocrateCloud, the ERP & CRM solution from BITSoftware, a good alternative. After the preliminary decision, a SocrateCloud “We can say that, by definition, any ERP/CRM system is primarily designed to improve and optimize the business processes. At the beginning, any additional information represents a major advantage on decisional level, and also on economical level. Along with increasing the volume of data and available information, the way of screening, sorting and aggregating data became extremely important, in order to obtain maximum performance. And here SocrateCloud helped us to be always one step ahead of competition.” pilot program was initiated, in order to validate the functionality of the system and the way in which it suits to business processes across the organization. „At that time, we analyzed all the ERP solutions available on the market. We had to choose between four or five ERP solutions and the final decision of implementing SocrateCloud was based on two aspects. First, BITSoftware came with a solution that had the best price /functionality ratio, and it was also the only one supplier who helped us to clarify our needs and requirements. Second, BITSoftware proposed us an ERP system, with a low cost of ownership, a flexible system that allows us to modify, adapt and extend the solution quickly and easily“, said Dan Savu, Planning Manager at Monte Bianco. The implementing process was quite fast, the implementation began in the first days of November 2007, and by January 1st, 2008, the system was fully functional. Beside the standard SocrateCloud functionality, for Monte Bianco, BITSoftware developed also new components such as Fleet Management and an integration with Hand Helds. Currently, Monte Bianco uses SocrateCloud in order to automate the purchasing processes (from requisition to payment), to Case Study manage the inventory (from receipts and shipments to warehouse transfers and inventory), to manage sales, accounting and financial and payments. „I estimate that we are using at this moment about 70% of the SocrateCloud Standard Edition functionality. Now we are trying to identify new functionalities of the system and analyze the necessity of migration to higher versions of the application", said Dan Savu. The Results With SocrateCloud, Monte Bianco reduced the reporting time and enhanced operational performance of the company, allowing an accurate tracking of customers and suppliers, leading to an increase of 8% in the number of clients and almost 10% in annual turnover. Also, the availability of data regarding stocks led to an increase in inventory turnover by 12%. In the future, Monte Bianco wishes to maintain the company’s growth, increase the product offering, quality and market share. SocrateCloud, the ERP & CRM solution from BITSoftware helped until now and will help also in the future to achieve all these objectives. Dan Savu Planning Manager - Monte Bianco BITSoftware SRL, 4 Zambilelor St., BraČ™ov, Romania, Phone: +40 268 314446, Fax: +40 268 314447 E-mail: office@bitsoftware.ro, www.bitsoftware.eu