Hugo Ericson Ost stores for the future

Hugo Ericson Ost is a wholesale company with a long history, lined with a lot of knowledge and tradition. The company was founded in 1932 by Hugo Ericson, but its roots date back to 1888 when its first store opened in Saluhallen in Gothenburg. Since then, the people of Gothenburg have been able to visit Hugo Ericson's store in the middle of the market hall. Today, the company is run by Hugo's granddaughter Jenny. Since 2000, there are offices, warehouses and production in the historic Nääs Fabriker outside Gothenburg. Production and sales consist of food items, mainly cheese.

A few years ago, Hugo Ericson was faced with a choice: continue to further develop its ERP system to better suit the company's needs, or invest in a new ERP solution that is complete with the features needed.

One of the main needs was to modernise and streamline the warehouse; Not least because the layout is small, which means that the entire surface potential must be utilised in the best way. Joakim Martinsson, who is a product manager and responsible for warehousing and logistics, says that after weighing the pros-and-cons of keeping and further developing the current system or investing in a new one, they came to the conclusion that a new ERP system is the smartest solution for the future.

"In the end, it can become unsustainable precisely because there are so many adaptations and so many different systems that have to talk to each other. So, we thought that if we now have the opportunity to change our ERP system, maybe we should take that opportunity, to be able to have something stable for the future. So that's why we decided to get a completely new ERP system."

When it came time to investigate and find a new ERP system, Joakim and his colleagues based their search on a number of requirements. To be able to streamline warehouse work with the help of pick and pack and traceability. But also to be able to better manage orders, batches and create smoother workflows. Joakim also says that as the company works with fresh produce, there is a need to effectively handle products that are approaching their best-before date.

There are several reasons why SAP Business One was chosen. On the one hand, it is a large system that already has most of the functions that were requested, and that there was a sense of security in having an ERP system that is used globally. It is a big investment to acquire an ERP system and Joakim says that they wanted the security that the system will not disappear and that it will not stop being further developed. Since SAP Business One is so well established, Hugo Ericson thought that the system should also be compatible with other systems. Since they plan to integrate with other systems in the future, it was an advantage to have an ERP system that is built to be able to handle such further development.

"Our old system could have been developed further, but I think we would have reached a ceiling in the end, where it would have become too complex with too many adaptations," he said.

How did the implementation go?

Prior to the implementation, Hugo Ericson prepared in many ways. Thorough preparatory work was done and they had a clear vision and knew how they wanted the project rollout. The employees were involved in different phases, where some key people were given greater responsibility during the implementation. Here, time was spent cleaning data, drawing up flows and planning to be able to go live. Joakim, who led the project, believes that it was precisely the preparation and clarity that made the transition from the old to the new system so smooth. He is pleased with how the implementation was carried out, but stresses that there is still a lot to explore and learn in the system.

Furthermore, Joakim says that he was careful to inform the employees that it will be a tough change that will require patience.

"We are all creatures of habit. It's always easier to do something you're comfortable with, change is challenging for everyone. But I think everyone has taken it on well and been positive. The mental attitude is important in such a shift and how receptive you are to the change."

What has improved?

Six months after the implementation and employees are starting to use more and more in the new system and several improvements are already starting to appear – especially with transparency and accessibility of data. Here, Joakim highlights the widget system that many people benefit greatly from. It can be customised to a large extent and provides a clear picture that makes it easier to plan. In addition, it is a safety net and a way to gain control so that you do not miss things that you may have done before.

Furthermore, Joakim says that the goal is for the work to be both faster and more efficient. With support from SAP Business One, the hope is to be able to create better workflows that make it possible to pick and place more orders, but also that knowledge and data become more easily accessible so that the foundation of the sales part becomes more stable.

Today, there is more data that needs to be entered into the system, which takes more time than it did before. However, Joakim mentions that even though it takes longer to, for example, create a production order, it also creates better traceability that streamlines at the other end.

There are also improvements to be seen in the sales department. The salespeople can now see in the ERP system which batches are approaching the best-before date and what the stock balance looks like. Previously, they had to call down to the warehouse to get the right information. This new way of working creates less waste and greater control over what is sold. At the same time, warehouse work has become more efficient and thanks to the handheld devices, which is managed via an app, so paper is no longer needed - something that reduces the risk of something being missed or lost. Thanks to this, the space available in the warehouse can be used to its full potential.

Stores for the future

Joakim emphasises the importance of working actively with the system and continuing to learn and explore the system's functions. He is convinced that the more they work in the system, the better and faster everything will go. It hasn't been that long since the implementation was completed, but he can already see that a lot of progress has been made and that employees are becoming more comfortable with using the system.

"To learn, you have to sit in the system and work repetitively. As you learn, the system comes into its own, we are not using the full potential right now because we have not had time to familiarise ourselves with everything. The more time we spend with the system, the more comfortable we will become and the better and faster we will become," he said.

Now that more has started to fall into place, the company is ready to start exploring new modules, as well as exploring integration opportunities – specifically around sales and eCommerce integration with its website to create better order management processes.

Six months after the implementation, Joakim can now look back and reflect on the project and the time that has passed since. He notes that now that despite global challenges, Hugo Ericson is pleased that they now have a stable foundation to stand on. The goal they had from the beginning was largely fulfilled and there are many development opportunities left to explore.

With the benefit of hindsight, Joakim can conclude that it was the right decision to implement SAP Business One and that it was an investment for a more secure and stable future.