ELIT has been growing with Microsoft Dynamics NAV for over 15 years

ELIT is one of the largest suppliers of automotive parts in the Czech Republic, with  around two billion crowns in annual revenue. since their founding in 1992, ELIT have gradually expanded their operations internationally, to places such as Slovakia, Romania and Ukraine. The company’s business strategy is built on a wide range of about 500 000 items and a high level of customer care, which is based on a rapid response to demand.
employees working concurrently
1,5 million
spare parts
75 000
items processed per day
newly opened branches

A business IS was needed at the beginning

Even at the company‘s founding, ELIT‘s business could not be managed by pen and paper alone, leading ELIT to implement their own simple information system. Later, when the company began expanding internationally in 1995, it was replaced by the professional information system Navision, which was adapted to the needs of the company and its international subsidiaries. In 2002, it was upgraded to keep with the company’s expansion, who was now operating in six markets.
However, even this upgraded system could not keep up with the expansion of the company. With a significant increase in the volume of processed data, it became slow and unstable. Additionally, it became unable to cover all the needs of the company that changed as a result of their growth. Because of this, ELIT began searching for a new platform. ELIT needed a system that could handle their higher database and performance demands to support their increased operations, and support the standardization of data exchange and analysis options for strategic decision making. Another desired feature was better interconnectivity and support for logistics processes, for both within the central warehouse and moving goods between the headquarters and branches.

When picking a new system, Microsoft Dynamics NAV won out

After careful deliberation, ELIT decided to acquire the latest version of Microsoft Dynamics NAV on the SQL database, with Allium as their implementation partner. The implementation team shared a common goal: to introduce a new system that could reliably support ELIT's operations and its dynamic development with an emphasis on response, speed and stability. The 4×2 methodology was used in order to maximize the mutual intersection of existing processes and standard functionality of the system, and to detect major areas for potential improvement in the analysis and design phase. With this work, a good basis for process optimization was laid down.
The preparation phase of implementation involved determining how to best optimize system performance, along with exhaustive testing. The final testing phase, consisting of more than twenty load tests and involving up to 200 potential users at once, demonstrated need for adjustments to improve system transmittance while fully integrating WMS operations with sales. The implemented technological and functional modifications of the system were standardized by the implementation partner into the "Dynamic Logistics & Distribution" system extension.

Perfect performance, even under extreme load

Thanks to these careful preparations, no significant problems have been observed since the release of the solution. The optimized system, operated by up to 260 users working simultaneously, has become a powerful brain of the company’s distribution network, which handles the movement of up to 40,000 items daily without issue. Up to 70% of trades are closed within a few hours, even during morning and afternoon peak times.
Item information and ordering is also available online with B2B internet sales, through which ELIT realizes more than 50% of total sales. The heart of the distribution network is a central warehouse in Prague with more than 110,000 unique items stocked, totaling over 1.5 million pieces. From this warehouse goods are constantly being shipped at precise intervals by carefully designed shipping routes to all regions so that each of the branches can deliver ordered goods to customers as quickly as possible.

Customers no longer have to wait

One of the most apparent improvements was quicker access time for the electronic catalog, where previously customers would often be forced to wait when other users were accessing the item tables. Under the new system, this presents no problems - both employees and customers can concurrently access the online store effortlessly. Additionally, by optimizing the movement of goods through ELIT‘s distribution network, the inventory in branches could be simplified and reduced. The positive outcome of the project and process and performance optimization achievements have made it possible to better integrate the ELIT Group companies, and unify processes across countries. The implementation of the system in ELIT Romania was completed in 2010.
The main target of the project was to further unify processes in all participating countries while still preserving legislative specificities. The smooth implementation of this project was due in part to the Process Inspector tool, which enabled not only the easy mapping of ELIT Romania processes, but also a clear comparison and unification with the processes used in the Czech Republic and Slovakia. With this solid foundation, ELIT steadily expanded and built upon their processes. Therefore, it is not surprising that the increase to up to 464 simultaneously working employees and the total goods throughput to over 75,000 a day did not affect users‘ waiting time or stability. Additionally, integrating companies into one unified system has reduced the costs of administration and further system development, which is now taking place centrally in Prague.

Microsoft Dynamics NAV has pushed the company even further

The most significant benefit of implementing the new system has been the increased speed, reliability, and the level of support for ELIT's business goals, which provide a good platform for fulfilling the ambitions of united operations for companies in the CEE region. The system enables a rapid response to market needs and eliminates previous barriers to further development. Since implementing the new system, ELIT has already opened 17 new branches in countries that use the system.