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2M Kablo to achieve efficiency with ERP

2M Kablo realized an enterprise resource planning (ERP) implementation with Senkron, one of Turkey's successful software houses. With the project where Prometrik ERP solution was used, all business processes of 2M Kablo can now be governed through a single center. For detailed information about the project, we talked to Mr. Mehmet Dereli, Chairman, 2M Kablo, and to Mr. Erdal Ozkan, General Manager, Senkron.

2What kind of a project have you carried out at 2M Kablo?
Dereli: At 2M Kablo, we have carried out an enterprise resource planning (ERP) project which allows management of all processes in an enterprise. We now have a system which we can use practically with limited human resources, and where we can rapidly revise product costs according to changing conditions to measure our profitability on the basis of product and customer.

Why did you decide on such a project?
Dereli: Before Prometrik ERP application, all departments used to monitor their processes independently and mostly by using Excel. Since these monitorings were under the initiative of the individual, we were using an error-prone system. The situation was causing communication flaws and information inconsistencies among departments. Taking all these into consideration, we required a system where data could be stored safely in a single source and which would eliminate communication gaps among departments.

What is the aim of the project?
Dereli: In an environment with fierce competition, it is inevitable to increase control capability, streamline all processes and most importantly, ensure customer satisfaction. To do these, an ERP implementation is the most important tool. The reason to realize the project was to ensure efficiency and satisfaction.

Can you make a comparison between pre- and after-implementation?
Dereli: When compared to pre-implementation, our revenues have grown 2.5 times, and our headcount has risen to 105. Today, by using barcode automation in our warehouse application we make shipments rapidly and with zero error. We take the inventory in a very short time. By entering production approvals into the system daily, we can measure personnel and machine performances. Before implementation, there used to be great deviations in deadlines given to the sales department by the production department. After the implementation, there are no more deviations in the deadlines given.

What benefits does the project provide for 2M Kablo's customers?
Dereli: We have enabled full visibility in the products we generated with the project. If a customer experiences a problem regarding a product, due to our quality policy, the personnel from the related department examines the product at customer's place, and accesses data including the raw material lot information of the product, when it was produced, who produced it and with which machine, and who made the quality check. Besides, thanks to the project, we will enable some of our customers to make online transactions by opening our stocks to them.

Why did you prefer Senkron and Prometrik?
Dereli: As a result of the research we carried out, we realized that general ERP solutions did not completely meet our needs. The cable industry differs from other industries with regard to the application of the stock follow-up, production follow-up and cost modules. For this reason, Senkron's industrial experience and customer-focused approach were the most important criteria for us.

Can you mention the process and scope of the project?
Ozkan: A project team comprising expert engineers from both companies was set up. Processes of 2M Kablo were analyzed. These processes were adapted in Prometrik ERP. 2M Kablo uses various modules such as material and warehouse management, sales management, purchasing management, production management, quality control, cost, maintenance management, and finance. The company also uses ADC modules which allow real-time production monitoring by capturing data online.

What have you learned from the 2M Kablo project?
Ozkan: 2M Kablo is a company who is aware of the importance of the information technologies and knows that investments in information technologies return fast. It is satisfying to work with a company and people who value your work and lust for cooperating. Carrying out the adaptation of our ERP solution with a company that bears these features is an important element of our success in the industry.

This interview was published in KablosanTurkey's March 2009 issue.