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The Paradyz Group first installed IT support in 1995 to assist sales and finances, but this proved inadequate within just two years. New systems were installed, but after another three years, it became apparent that in order to assist the company, more refined IT tools would need to be found because the knowledge about what was going on in the enterprise, particularly in its manufacturing process, logistics, unit costs, and product profitability analysis, was unsatisfactory. So a search was initiated for an integrated system that would allow the company to accumulate and analyze data from all areas of its operations. The need for integrated software
Chairman of the board, Stanislaw Têpiñski, explains “It was precisely this product profitability analysis and the exact planning of a very broad assortment of products that was the chief reason we began looking for integrated software that could embrace the whole of our operation.” Deputy chief accountant at Ceramika Paradyz Sp. z o.o., Renata Robak adds, “Up till then we had been using nonintegrated software, with all modules operating independently. Analysis was labor-intensive and involved a large number of staff. With such a large company, there were serious management difficulties. It was very hard to extract reliable information and because we had considerably increased the range of our products, we were also interested in the value of finished goods in our warehouses. We have to know whether a certain product is showing the necessary turnover, or whether it constitutes ‘idle’ warehouse stock requiring a controlled sell-off.” Ceramika Paradyz’s chief accountant and authorized signatory, Marian Wróbel, continues, “By 2001, our legacy system was already proving clearly insufficient. With the growth of the company, we were having more and more problems connected with information processing. On a daily basis we were suffering the effects of the lack of integration between the various systems. Too much time was lost in repeat entry of data, controlling its quality and searching for and eliminating mistakes. Moreover, the existing systems in the company did not allow for any development of the functions, which were becoming more and more indispensable. What proved particularly burdensome was that for all practical purposes, production—a businesscritical area— remained beyond the control of IT tools. We needed a single integrated IT system.”
Integration and Better Customer Service Were Key Criteria
The new business software would have to integrate data throughout the enterprise and provide rapid access to operating and management information in order to shorten decision cycles and enhance data control and security. It would also be required to improve customer services and collaboration contracting parties. Moreover, Paradyz wanted a solution that would lower distribution and warehouse costs, in addition to improving human resource management. After the decision to replace the company’s IT tools, the board of directors appointed an implementation team, which was led by the company’s chief IT specialist. After an extensive assessment of the market, IFS was awarded the contract.
Implementation as Planned
Implementation began in September 2002, and the first components went live early in 2003 with functionality for logistics, manufacturing and inventory. Subsequently, the maintenance, HR, and financials software went live. As the implementation schedule was tight, the leading users in the various groups were trained by IFS consultants. These staff members passed on their knowledge at internal training courses. As a result, the system became operational on schedule. Paradyz’s chief accountant, Wioleta Bojdo, “In our plant, the system was implemented practically painlessly.” IT chief, Grzegorz Mikucki, added, “Reports were initially drawn up by IFS, but taking advantage of the easiness of retrieving data from the system, our own IT staff were soon creating reports themselves. There are also departments in the company that create reports just for their own needs. Accounting is just such a department. Although we are not fully using the benefits of the system, we are gradually discovering the wide range of capabilities it offers.”
Plans
Having efficient tools to assist in the most important areas of the enterprise’s operations, the company plans to implement modules enabling production planning, budgeting and a CRM module, and will computerize the marketing department. At a later stage, solutions enabling Internet-based order management will be added.
About Paradyz Group
The Paradyz Group, a Polish manufacturer of ceramic tiles, was established in 1989. The Group consists of two companies, Ceramika Paradyz Ltd. and Paradyz Ltd, and has five production plants. In 2002, production amounted to 22 million m2 of ceramic tiles. In 2003 the company employed 1,130 people and reported revenue of 346 million zlotys. The Paradyz Group controls over 20% of the domestic market for ceramic tiles and decorations.
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