Food distributor saves money by replacing Sage

Catering food specialists, Central Foods more than doubled their turnover by implementing Microsoft Dynamics NAV

Customer

Central Foods Limited

Sector

Wholesale/Distribution

Country

United Kingdom

Central Foods Limited

Food distributor saves money by replacing Sage

The Business Need/Challenge

Central Foods originally started the business using Sage Line 50 however they quickly recognised that this application would not support their growth ambitions and was holding them back. The system became antiquated and operationally it slowed the business down. The main challenge was usability and training, Sage wasn’t intuitive and staff struggled to learn how to use it. Sage is also designed to support the service industry and raising invoices for services is adequate but Central Foods required it to raise product invoices but Sage could not support this process. 

Central Foods took the decision to replace Sage Line 50 with an ERP system that could fulfil business requirements such as faster input of data, tighter credit control and stock management capabilities, profitability analysis and multiple levels, advanced reporting, operational speed and most importantly ease of use for the staff to learn quickly.


The Solution

The solution of choice for Central Foods was Microsoft Dynamics NAV, provided by Tisski, as it was the one solution that was able to demonstrate how it could meet and resolve their issues.

Managing Director Gordon Lauder says:

 “We selected Microsoft NAV and the product has been incredible - it suited our business then and it continues to suit us today. We were advised by Tisski Ltd to go with a Microsoft product to fulfil our ERP requirements right from the start. We really haven’t had to deal with a potentially costly and disruptive new system at all during this time.

The key thing was that our partner understood our business, how we operated, and that meant understanding pallet configuration, frozen food processes and catering governance.

Since implementing Microsoft Dynamics NAV our business has acquired both competitors and brands, our turnover has doubled, then doubled again.  


The Benefits

Administration Cost Savings

Central Foods experienced some significant cost savings in terms of postage costs, printing and paper costs. These items combined contributed to a £22,000 costs saving. Now all their paperwork is generated electronically, there is no longer a need for physical paper invoices, statements or purchase orders. Today everything is driven through Microsoft Dynamics NAV to their customers and suppliers.

 

Tighter Credit Control

With the implementation of Microsoft Dynamics NAV, credit control got tighter and bad debt issues were eradicated. With some customisation, NAV managed credit control so well via alerts and coding that the Central Foods team were able to place orders with utmost confidence. If a credit limit was exceeded, NAV would not allow them to process the order any further. The systems automated credit limit blocks kick in and stay on top of everything. We also instigated template price points, allowing each of our 270 customers to have different item prices for the entire 300 plus products in our range. Credit notes truly are a thing of the past for Central Foods.

 

Faster Data Input

Data processing is rapid via NAV and the team are highly efficient, which has meant that this has freed up their time to sell more products to the same customers. Central Foods are now in the enviable position of cornering their market and are at saturation point in terms of customer penetration. Therefore, selling more of their products to existing customers is key. By using Microsoft Dynamics NAV this has become a reality.

 

The Conclusion

            • Return on capital in 6 weeks
            • £5m turnover increased to £20m
            • Print and postage savings of £22,000
            • Credit control and bad debt issues eradicated
            • Staff processing time freed-up to focus on sales activity.

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