IT in control

There comes a moment in the life of FMCG companies when they can no longer function relying solely on human resources. This is when they need a management, or logistic software. According to Zsolt Weiszbart, managing director of IFS Hungary, the basic processes are practically the same with all FMCG companies. Differences only appear when we take a closer look at various stages of these processes. Intense competition and fast moving stocks are typical of the FMCG sector, which means that up to date, in fact “up to minute” records need to be kept – say Attila Neumer, from e-Best Tanácsadó Kft. Apart from this, it is also a requirement to be able to effect prompt changes in the processes. In order to fulfil customer needs, companies need to be continuously ready for product introductions, advertising campaigns and promotions. These activities can only be pursued effectively, when marketing, sales, logistics, customer relations, finances and management are efficiently co-ordinated. IT systems are practical for invoicing and book-keeping even for the smallest enterprises. In the domestic ERP market, first time customers account for the majority of sales, who already use various IT solutions but these are not integrated into a comprehensive system. Introduction projects are still generally aimed at handling the most essential tasks in Hungary, whereas in the international market, where companies had started using IT systems much earlier, business intelligence, management information and CRM systems are focused on. According to Csaba Balázs, pre-sales manager of SAP Hungary, 800 management systems are in use in Hungary. Improvised systems developed by talented students cannot be relied on in the long run, as there is no guarantee that the students will always be available, when the systems need enhancement. SAP has some kind of SAP solution for companies of all sizes. SAP Business All in One is intended for medium size enterprises, like many Hungarian FMCG companies. Prices in the Hungarian market are lower than in the international market. Smaller companies usually do not have sufficient budgets for employing consultants to supervise the introduction process. Such companies will find the consulting page at the SAP web site useful. Attila Molnár, sales director of Hostlogic Kft believes that demand among SME-s is growing for ERP solutions. Companies are making long term arrangements when they choose a management system which is to be in use for 5-15 years. It is not easy to select the right system, as differences are difficult to spot. For FMCG companies, it is usually a good idea to choose an SAP system, as most retail chains also use SAP systems. As László Horváth, head of the SAP division of Synergon reveals, subsidies for the introduction of management systems in SME-s have been reduced and take a longer time to obtain. Few of the small companies can afford to introduce such systems. It might be a good idea for these to buy ERP systems collectively or to lease systems collectively as a kind of “utility”. Attila Molnár believes that different financing possibilities should always be taken into consideration before the introduction of an ERP system. There are different possibilities for leasing both hardware and software systems, and subsidies are also available from the EU, even for agricultural enterprises. It is also important to choose a system with references from the sector. Partially pre-configured solutions help to save time and money. According to László Horváth from the Synergon Informatika Nyrt. experts bear great responsibility when they explain the benefits of an integrated IT system to clients who have had no previous experience with such systems. Zsolt Weiszbart thinks the following problems might occur during the introduction of an ERP system: deadlines are not observed, budgets are exceeded, solution turn out to be inadequate. Sufficient motivation, supervision and compensation are needed to avoid these. In the opinion of Attila Neumer, an expert from e-Best Tanácsadó Kft., the introduction of an integrated management system is a major challenge for a company. The biggest problem is generally that clients tend to think everything is going to work fine automatically once they have bargained successfully about the price, without much participation by them.