Hjort Knudsen implemented Microsoft Dynamics to streamline business operations

Hjort Knudsen success story 1

Hjort Knudsen is a manufacturing company providing high-quality and high-tech custom-made furniture. The headquarters are located in Denmark, production sites – in Poland, United Kingdom, India and Ukraine. The company was founded in 1973, operates already for 10 years in Ukraine. Initially, the main production facilities were located in Poland. Now company develops Ukrainian and Indian regions actively. There are four production sites in Ukraine today.

Hjort Knudsen success story 2

The company has been using Microsoft Dynamics AX for about 10 years. Initially, the system was deployed for Polish office, then Ukrainian users were provided with access to this solution. But over time, it became obvious that this solution did not cover the key business needs:

  • automation of the most complex (high-level) production processes that tightly connect two countries (Poland-Ukraine);

  • transparency in tracking production orders and materials used;

  • automation of production processes on outward processing of materials and return of semi-finished products and finished products;

  • prompt and transparent management reporting.

The collaboration between OntargIT and Hjort Knudsen began in October 2018 and continues to this day. The initial stage comprised acquaintance with the client’s problems:

Main problems

  • production customization for a mass scale;

  • split accounting from one company into two (Poland / Ukraine);

  • incorrect consigned materials supplied by the customer (one company did not have the ability to correctly keep records of such materials in accordance with Ukrainian legislation);

  • large volumes of production orders (individual orders of small volumes).

Hjort Knudsen success story 3

Goal

  • get a universal solution for business scaling (to other countries / companies);

  • split accounting from one company into two (Poland / Ukraine);

  • support production in this configuration.

  • in the future, implement correct cost accounting, production accounting, configurations.

Solution

Together, OntargIT and Hjort Knudsen have built a complex business process of work on a tolling scheme for the transfer of raw materials, which is built on the same Microsoft Dynamics AX platform and allows transferring production orders from Poland to Ukraine with the ability to track material consumption, transfer orders between manufacturing sites to Ukraine, and also takes into account the requirements for displaying in system entities and document flow of the outward processing of production materials.

A pricing scheme for products was implemented between the Polish and Ukrainian companies, taking into account the efficiency of using consigned materials.

Results

  • a universal solution for business scaling was obtained;

  • in Ukraine, orders are now processed by Ukrainian users in their own system, as previously it was necessary to use Polish, which made work much more complicated;

  • processes of accounting and production management were introduced in the Ukrainian company;

  • a fully-fledged mechanism for transferring and returning orders according to the Poland-Ukraine-Poland scheme was launched;

At the moment, cooperation goes in the direction of transferring invoicing to AX, production cost calculation, solving current organizational and business problems in logistics, warehouses and finance, as well as work on integrating AX and 1C.

OntargIT is an international consulting company that implements modern innovative solutions for effective business management. It focuses on implementing and supporting Microsoft Dynamics AX / 365 and Microsoft Power BI.

Let’s Make Things Happen

Yevhenii Maliukin OntargIT

Eugene

Dynamics 365 Expert
(971) 266-0690

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