Firing up the Processes

Taconova simultaneously introduces Microsoft Dynamics based KUMAVISION ERP in Switzerland, Germany and the Czech Republic.

Lesedauer: 6 Minuten

11. April 2021

Firing up the ProcessesTaconova simultaneously introduces Microsoft Dynamics based KUMAVISION ERP in Switzerland, Germany and the Czech Republic.

The Taconova Group AG, headquartered in Switzerland, is one of the leading producers of innovative hydraulic solutions for heating, facilities, and solar energy applications in residential and commercial real estate. The products are manufactured in the Czech Republic and distributed globally from Switzerland as well as from local distribution companies in Germany and Poland. The products are then shipped internationally from Germany and Poland. This creates a complex web of intercompany processes, which Taconova has now reconfigured with its Microsoft Dynamics based KUMAVISION ERP industry software for the manufacturing industry.

  • Implemented Solution: Microsoft Dynamics based KUMAVISION ERP for the manufacturing industry
  • Challenge: Mapping of cross-border intercompany processes
  • Highly effective for: Paperless data exchange (EDI) with clients, distributors and internal company departments

Taconova has worked with an older version of Navision as ERP software for almost 20 years. This software is no longer supported, so it was time to introduce a new system. The expiration of support was only one of the reasons behind Taconova’s Management’s decision to implement a new system. The intercompany processes had to be completely revised. As Fabian Moser, controller and ERP project manager at Taconova, explained „Since the opening of our new production site in the Czech Republic, the production was configured in the ERP system to be integrated at the headquarters in Switzerland”. This configuration, however, does not conform to the new OECD tax regulations. Therefore, the company’s ownership structure and value creation had to be redefined. This has only further complicated the already intricate intercompany processes over international and EU borders.

Challenging intercompany processes

The following example illustrates nicely how challenging intercompany processes can be: A German wholesaler orders balancing valves for a distribution system from our distribution company in Germany. Thanks to KUMAVISION the order is completed easily and conveniently via EDI. The system automatically places a sales order and an order is initiated at our central office in Switzerland. If there is an insufficient number of the valves in stock at the German logistics provider’s warehouse, then an order is placed at the Czech manufacturing company. The Czech manufacturer then fabricates the valves and transfers it into its own stock. The Czech subsidiary then sells the valves to the parent company in Switzerland, and the product is relocated. From there the valves are transferred to the German logistics provider. The parent company receives the shipping slip, the invoice is sent to the German distribution company, which then forwards it to the end user. 

The Herculean task of data consolidation

Fabian Moser fittingly described the primary challenge as requiring „many tiny, interconnected gears. “. Impressed, he continued “KUMAVISION shared all its international project experience with us”. The project became particularly tricky over the years as each company developed its own data structures. Regardless of whether it is a chart of accounts, a product structure, or a commissions structure: everything is now standardized. What today serves to provide more transparency, presented a mammoth task for the project teams. “It was already a Herculean task to separate and consolidate the data.” Fabian Moser explained. Especially so, due to the fact, that it was carried out during business operations. This meant that the data changed daily. Nevertheless, it was worth the effort. Many distribution processes were automated. Most importantly, however, the standardised data base is a prerequisite for more efficiency and transparency. To this end, a business intelligence solution is currently being developed together with KUMAVISION. According to Fabian Moser “Up until this point it was all about mapping a highly complex structure. Now we can take steps towards continuous improvement.”

Transparency across borders

Nonetheless, Taconova is already profiting from its new software. The individual distribution companies can use webservices to check inventory levels and production planning. This allows them to constantly keep their customers informed of whether an item is in stock and, if not, how long its estimated delivery time is. On the other hand, the Swiss parent company can access the distribution companies‘ current sales orders and create reliable sales and production plans from them. 

A software for lot size 1 and series

KUMAVISION ERP truly gets to show its true strength at the production site. Whether its contract or series manufacturing, lot size 1 or 100,000, this flexibility plays a central role in production at Taconova. While individual components are mass produced for customers, residential heating systems are generally solutions tailored to the individual customer. This ERP sector software meets all requirements. A diverse set of functions ensures that projects with a lot size of one are also implemented quickly and cost-effectively. As Fabian Moser remarked: “For example we have programmed assembly groups into our system so that we don’t have to start from zero when manufacturing made-to-order products. Instead, we can complete orders efficiently.”

Great Expertise

Due to the complex intercompany processes, it was necessary to do the implementation and live start simultaneously in Switzerland, the Czech Republic and Germany. This permitted KUMAVISION to show one of its strengths: As the company operates internationally, KUMAVISION was able to manage the project across borders. It was important to factor in the various tax regulations in the exports and value streams between the EU countries on the one hand and between the EU countries and Switzerland on the other hand. KUMAVISION’s wide breadth of expert knowledge impressed Fabian Moser: “We were able to rely on specialized experts for every topic and phase of the project. That gave us a great feeling of security.”


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