Case study

ELIT has been growing with Microsoft Dynamics NAV for over 15 years

ELIT is one of the most significant suppliers of car parts in the Czech Republic with annual revenue of around two billion CZK. Operating since 1992, it has gradually expanded into other countries such as Slovakia, Romania and Ukraine. Its successful strategy is built on a broad portfolio of roughly 500,000 items and a high level of customer care driven by fast response to demand.

Back to References

An enterprise IS was needed from the very beginning

Even at the company's founding, its operations couldn't be run with just paper, pencil and a phone. An indispensable tool back then was an in-house simple information system. Later, when the company began expanding into other countries in 1995, it was replaced by the professional Navision information system, customized for the company's needs in all three countries where it then operated. In 2002, when it was already active in six markets, the system was upgraded.

Over time, however, this system stopped keeping up with the company's needs. With the significant growth in data volumes it became slow and unstable. It also stopped covering all of the company's needs, which had changed as the business grew. A replacement was therefore considered. Higher demands on the database and on system performance for operational activities had to be addressed, along with questions of data exchange standardization and analytical capabilities to support strategic decision-making. Another topic was deeper integration and support for logistics processes — not only within the central warehouse, but also optimization of goods movement between headquarters, individual countries and branches.

ELIT – více než autodíly

When choosing a new system, Microsoft Dynamics NAV won again

In the end, the decision was to acquire the newest version of the same system, by then developed by Microsoft under the name Microsoft Dynamics NAV on a SQL database. Allium was chosen as the implementation partner. The delivery team shared a common goal: deploying a new system that would reliably support ELIT's operations and dynamic growth with an emphasis on response speed and stability. To get the maximum out of the overlap between existing processes and standard system functionality, the analysis and design phase used a method for detecting the main sources of improvement potential — the 4×2 methodology. It laid a strong foundation for process optimization.

A significant part of the preparation phase was devoted to system performance optimization and thorough testing. The final testing phase, consisting of more than twenty load tests in which up to 200 future users participated concurrently at peak moments, revealed the need for demanding modifications to increase system throughput when WMS operations are fully integrated with sales. The implemented technological and functional adjustments were standardized by the implementation partner into a system extension called "Dynamic Logistics & Distribution".

Under extreme load, the new system passed with flying colors

Thanks to this careful preparation, no significant problems were recorded from go-live. The optimized system serving 260 concurrent users became the powerful brain of the company's distribution network, smoothly processing up to 40,000 goods-movement items per day. Up to 70% of trades are closed within just a few hours — during the morning and afternoon peak.

Information about goods and ordering options is also continuously available in the B2B online store, through which ELIT generates more than 50% of revenue. The heart of the dense distribution network is the central warehouse in Prague with more than 110,000 stocked items totaling over 1.5 million spare parts. From there, goods flow continuously at precise intervals along carefully designed delivery routes to all regions so that each branch can deliver the requested goods to customers as quickly as possible.

Customers no longer have to wait

A visible improvement is the faster work with the electronic catalog, where customers previously had to wait for system access because the entire item table was momentarily locked by another user. Now no one waits for the system — neither employees nor customers in the online store or at the branches. Another significant outcome is reduced inventory while maintaining the level of service, thanks to optimized goods movements across the distribution network. The new system contributed to unifying processes across countries. The project's positive outcome and especially the achieved process and performance optimization enabled tighter integration of the ELIT group companies. In 2010 the rollout was completed at ELIT Romania.

The main goal of this demanding project was to maximally unify processes across all involved countries while preserving legislative specifics. The smooth course of the project was helped by the Process Inspector tool, which made it easy to map ELIT Romania's processes and to clearly compare and unify them with processes used in Czechia and Slovakia. Good foundations make for stable growth. It's therefore no surprise that the increase to 464 concurrent users and over 75,000 booked goods movements per day was not marked by user waiting or other instability. Integrating the companies into one homogeneous system also reduced the costs of system administration and further development, which now happen centrally in Prague.

Microsoft Dynamics NAV has supported the company through further growth as well

The most significant benefit of the new system is the speed, reliability and degree of support for the company's business goals, which create a good platform to fulfill the ambition of acting as one company across Central and Eastern Europe. The system enables quick response to market needs and has removed earlier obstacles to further growth. Since the new system went live, the group has opened 17 new branches in the countries that use it — and continues to grow.

Key numbers

  • 143 concurrent users
  • 0.5 million spare parts
  • 75 thousand items processed per day
  • 17 newly opened branches

Interested in our solution?

Get in touch — we'll discuss how a similar deployment can help you.