UNICO achieves 100% increase in productivity
Founded in the 1970s, PT Unico Raya (Unico) started its operation as a small family business located in Padang, Indonesia as a distributor of building materials. Today, Unico has two key divisions, distribution and retail, and services over 100 shops in West Sumatra, Indonesia. Unico also owns two retail shops in Padang and plans to grow the business in the near future.
Originally, Unico developed its own inhouse software, which had very limited capabilities, functionality constraints and no data integration. They quickly faced challenges and were unable to cope with their day-to-day business operations. Initially, Unico changed their inhouse software to a local system vendor prior to partnering with Tectura and deploying Microsoft Dynamics® NAV and LS Nav.
Unico thought the local system vendor would be a better solution compared to their original inhouse software. However, Unico faced significant challenges with errors and bugs in the system and still struggled to compile and consolidate data and information. They were also impaired by limited solution functionality again and limited service and technical support from the vendor.
“We had to take over the technical support role from the local system vendor. Our staff had to put existing tasks on hold and were reassigned to resolve system issues. Our productivity level decreased tremendously. On the other hand, we experienced an increase in both resource and time costs by supporting our daily operations and reporting,”
says Mr. Andri Djamalus, Finance Manager of PT Unico Raya. “First and foremost, the inaccurate data and information caused us nightmares as we were unable to make accurate and quick business decisions, and the system’s limitation was incapable of supporting our growth and business needs.”
Tectura, Microsoft Dynamics NAV and LS Nav at the forefront
The local system did not meet Unico’s expectation. Unico struggled significantly for several years using the system to run their business operations and reporting. As a fast growing company, Unico decided to replace their existing local system vendor immediately. The new system should be able to operate their business more effectively, efficiently and profitably, as well as reliably serve the growth of their business for the next 10 years.
Unico wanted an ERP solution partner who had deep industry experience and knowledge within retail and distribution, and a solution that was easy to use, offered a rich set of features and could support a quick implementation timeframe. Unico evaluated various IT products and partners prior to their decision to select Tectura with Microsoft Dynamics NAV and LS Nav.
“We had assessed a number of IT products and interviewed many companies. Tectura stood in the forefront of our minds as they met our key selection criteria. Their global presence, deep industry knowledge and experience, as well as good credibility in the IT solution market combined with their proven project methodology and best practices, gave us the confidence we needed in Tectura’s capability to deliver our project successfully. By partnering with Tectura, we expected to improve our productivity rate and achieve a higher return on investment,”
says Mr. Andri.
Tectura started the Microsoft Dynamics NAV and LS Nav implementation for Unico in April 2010 and successfully delivered the ‘Go-Live‘ in January 2011 - ahead of the agreed project delivery timeline.
“Tectura’s project team delivered a level of service that was beyond our expectations. Their full commitment, dedication and competency enabled project completion far ahead of the targeted timeline and helped us save over 50% of our expected IT cost. I was also amazed with their deep technology and industry knowledge and experience. The solution delivered is much better than the previous system. It’s not only able to support our business needs today, but will also serve as a platform to meet our business growth and IT expansion in the near future,”
says Mr. Andri Djamalus.
Reporting and Inventory Management became a breeze.
With the Microsoft Dynamics NAV and LS Nav system in place, the data preparation and consolidation of business and financial reports became a breeze. The solution also provided business transaction visibility, allowing management to review the most up-to-date data
and information. The Unico management is now able to view their business in its entirety, whenever they wish, to make immediate and accurate business decisions. Additionally, they are able to control and manage their warehouse stock more effectively and efficiently.
Our staff has also gained benefits from Tectura’s project team through their knowledge transfer during the project implementation phases. It was the right decision to select Tectura as our IT solution partner,” says Mr. Andri. “Tectura has built our confidence and trust in them. We look forward to Tectura’s continued support and to building a stronger partnership with them in the coming projects.
The staff no longer needs to spend time and effort manually checking for duplicate data, validating the data, compiling information and consolidating the reports. Now they can stay focused on performing their key responsibilities. The new system helped us to improve our productivity rate by over 100%. Moreover, the inventory module has successfully helped us to effectively track, control and manage our inventory level. We now have more than 99% accuracy in order picking and distribution. That helped us reduce our operation costs by over 50%