Argo achieves 100% traceability in its production process

Argo is recognized by the market as a problem solver. So when customers started complaining about the need for ingredient traceability, they set out to find a fitting solution. Together with Cegeka, Argo switched from Microsoft Navision to Dynamics 365 Business Central. Since then, Argo has achieved 100% traceability in its production process – that’s agility made real!

From enhanced planning to simplified administration and data-driven decision-making – at Cegeka, we’ve made agility real at numerous leading manufacturing companies.
 
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Reality check: taking traceability one step further

Since its founding in 1949, Argo has established itself as a household name in the production of high-quality technical rubber items, O-rings and die-cut gaskets. “We cater to various industries, from oil and gas to food and aeronautics,” says CFO Francesca Scifo. “Every year, our customers oblige us to raise the bar, especially in terms of quality. That’s why we have accumulated extensive knowledge in compound recipes and mold design, invested in a leading R&D department, and obtained numerous quality certifications, including ISO 9001 and ISO 9100.”

“We manage the entire production process in-house, from molding and mixing to processing and finishing. This way, we have full control over product quality and traceability.”

Francesca Scifo, CFO, Argo

“Because we manage the entire production process in-house, we are in full control of product quality and traceability. In Microsoft Navision, we could only trace the compound of each item. However, our customers had long complained about also having insight into the ingredient from which the compound was made, which was not possible in Navision.”

The real deal: Microsoft Dynamics 365 Business Central – and more

The demand for ingredient traceability was one the triggers for Argo to move to a more flexible and future-proof ERP system. “After defining the most important bottlenecks of Microsoft Navision and comparing different solutions, we decided to go for Microsoft Dynamics 365 Business Central. One of the main reasons why we chose Business Central is its flexibility without the need for customization.”

In addition to Business Central, Argo looked for a new reporting tool. “We wanted a flexible solution that would allow us to read all our data into the ERP quickly and easily. Cegeka Proposed Business Central Insight (BCI): a powerful and intuitive tool with dynamic graphics and always up-to-date data relative to the ERP. Not only did we buy the product, but we also decided to train two people from our organization to create tables and charts in line with the new requirements. Last but not least, we also embraced Power Apps to solve some specific production challenges.”

Agility made real: 100% traceability in production processes
Argo now uses a Power App to enable ingredient traceability – the most flexible, user-friendly solution for its operators. “With a new scale, barcode reader, and tablet, we created an Industry 4.0 weighing station. By calling up the production order, the operator can now view the mix recipe with the required ingredient and weight and proceed with batch entry using the wireless barcode reader, weighing and unloading the ingredients. c

Since the switch to Business Central and the adoption of Power BI and Power Apps, Argo has made improvements in other areas as well:

Less custom developments and reports

Over time, Navision had been layered by continuous customization, for example for logistics and Italian tax compliance. By the time Argo migrated to Business Central, they retained only two industry-specific custom modules: the cost sheet and the MES. For other functionalities such as shipping, accounting, and quality control, they now rely on the standard modules in Business Central or the Cegeka App.

In addition, Argo also uses 40% fewer custom reports. They only created custom versions of reports that require a printable version, such as invoices, delivery notes, or production orders. For all statistical or summary reports, they use the standard report in Business Central or train users in exporting data to Excel or rely on Business Central.

Automatic issuance of quality certificates

For certain items, shipments or customers, Argo needs to attach complex quality certificates. In Navision, only a few certificates related to compounds were issued automatically. All the other documents were created with Excel. Thanks to the standard Cegeka Quality App, 100% of product and compound quality certificates are now issued automatically from the ERP.

Better use of machine parameters for production

To ensure consistent quality during production, Argo needs to collect lots of machine data. In Microsoft Navision, machine parameters were available only for the molding department. For the other departments (mixing, processing, and finishing), the parameters were available on paper or in Excel and were occasionally updated, or even owned by the individual operator.

They now use the standard production cycle functionality by entering the parameters for each production step. All relevant data appear on the production order, and machine operators can alert the technical department of any changes that need to be updated on the cost sheet.

Improved document management

In Microsoft Navision, document management was complex and time-consuming. Now with the Cegeka app, users can make documents available to everyone in a few clicks, cutting time spent on document management by 80%.

Real partnership: complementary teams with a human touch

“We began looking for a modern, solution-oriented, and, above all, human partner to coordinate the transition to Business Central”, Francesca continues. “From the first meeting with Cegeka, there was a click. It didn’t feel like a typical business relationship. More than a team of professionals, the people at Cegeka are all approachable individuals eager to help us find the best solution. The monthly steering committees were a great initiative to proactively identify potential problems and deal with them.”

“More than a team of professionals, the people at Cegeka are all approachable individuals eager to help us find the best solution.”  

Francesca Scifo, CFO, Argo

“Since the project required a significant investment not only financially, but also in terms of time and resources, we wanted to actively engage everyone at Argo. The systematic training of key users was particularly interesting, as it allowed our staff to be very involved in learning and identifying problems in the testing phase, and accelerated the verification of different functionalities. Cegeka recruited a team with diverse skills to steer us in the right direction and respond to our specific needs.”

More innovations coming up

The ingredient traceability project is coming to an end. Francesca: “The pilot without the hardware was a success. We’re now also going to test the Power App with the scale, barcode reader, and tablet. Another project in the closing stages is the integration of new machines, which we bought in 2022 and 2023 in view of Industry 4.0 and now need to connect to the ERP. After this, our focus will shift to the finance part of BCI. Cegeka had already developed a handful of crucial reports; in 2024, we want to implement even more.”

“We now have the right tools to support our growth. What’s more, our customers have really appreciated the move to the new system and the numerous opportunities it brings.” 

Francesca Scifo, CFO, Argo

“Looking ahead, in 2025 and 2026, we are implementing a new manufacturing execution system. We are currently reshaping our production to include more machines with advanced technology. For now, our focus is on making the data from the current MES more intelligible to facilitate individual product industrialization efficiency projects, by analyzing the final cost associated with each code.”