The Furniture Palace, located in Nairobi, Mlolongo and Mombasa, was set up in 2004 to provide high quality contemporary furniture. They have a diverse collection of furniture that meets a wide range of shoppers’ needs. The business was doing well but by 2009 their management realised that business needs were not being met by their current systems.
The decision to implement a new business management system came from an internal review on where the company wanted to go in the future and what they wanted to achieve. Some of the requirements Furniture Palace identified was that the business solution should automate many of their of key processes, improve stock management, provide proper management reporting and real-time access to information. It was felt that if these could be addressed it would lead to increased efficiency and profitability. The decision was to go with SAP Business One as their integrated ERP business management solution. Sultan says, “The transition to SAP Business One was a challenge for us. Most of our processes in the past were manual, so the adjustment to a completely integrated and automated system was both challenging and rewarding. Our implementation partner, Bluekey, applied a solid project methodology to the implementation, and with their experience and expertise, they made the transition more manageable. In the end their change management skills pulled us through and gave us the skills we needed to get the most out of the system.”
The successful implementation and go-live of SAP Business One at Furniture Palace yielded positive results almost immediately. They now have an effective workflow system in place that has increased efficiency to such an extent that their business has doubled in terms of revenue, product range and market share. With SAP Business One the business handles customer orders, pre-delivery inspection, loading sheet, delivery and invoicing through to procurement and stock—all with the same workforce as before. “The management at Furniture Palace reported that with its current growth levels, they would have expected payroll costs to have increased by 30% without SAP Business One. On that basis alone Bluekey has been able to save Furniture Palace about KES 500 000 per month (KES 6M per year). They were also losing approximately KES 1M a year due to stock pilferage, which has since been reduced by more than 90%,” says Bhatt.
As far a benefits go, Furniture Palace have gained visibility across their whole business with increased control in all the different functional areas, while reducing stock write offs and payroll costs. “Furniture Palace envisages robust growth in the future, especially in opening new branches. We also expect to maintain, and grow, our market share to become the leading furniture supplier in the African region,” says Sultan.
“The Bluekey team were of great assistance to us and showed incredible professionalism. They also demonstrated in-depth knowledge of SAP Business One and our industry. Without their experience and know-how relating to business process flows and accounting the project would have been much more stressful. They were dedicated to the project, took our needs into account and ensured that the implementation was completed on time and within budget. We would recommend Bluekey and SAP Business One to any business that would like to grow, run better and become more profitable,” concludes Sultan.