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Cegeka supports ambitious innovation and growth at Packo and Verder Liquids

Sandor Veltman, Operations Manager, Verder Liquids Herwig Verhoyen, CFO, Packo Danny Maenhout, Managing Director, Packo

Manufacturing

Challenges

Need for a modern cloud based ERP solution
Improvement of customer experience
Being able to be futureproof for any innovation projects

Results

Accelerated digitization
Improved customer experience
Higher working efficiency

Over Packo

Part of the Verder Group (Verder Liquids)
Manufacturing of pumps and stainless steel components for hygienic and industrial applications
Since 1974

Solution and Technology

Content here

Solution & technology

Business

Parts for milking machines: that's how it all started for Packo in 1974. Today, Packo is part of the Dutch Verder Group, which has been a specialist in pumps (Verder Liquids) and laboratory solutions (Verder Scientific) for 65 years. To maintain its excellent reputation for quality and continue growing, Verder invests heavily in innovation and automation. A forward-looking Microsoft platform is part of this strategy.

Acquisition enhances development and growth

Packo transformed from a supplier of parts for milking machines into a specialist in hygienic stainless steel components. The company operates based on three pillars, as managing director Danny Maenhout explains: “We have an electropolishing department and continue to produce hygienic components for milking machines and robots. However, our industrial pumps division is experiencing the most rapid growth.”

The acquisition by Verder has accelerated Packo's growth. Since the summer of 2015, Packo has been part of the pump specialist Verder Group. The collaboration provides an additional boost: “We now combine the best of both worlds: the flexibility of an SME and the scale and commercial strength of a growing player with more than 40 locations worldwide.”

Fragmented IT environment

With growth, however, come challenges. Sandor Veltman, Operations Manager at Verder Liquids, explains: “Due to numerous acquisitions, a fragmented IT environment emerged. Each location operated with its own system, and there was minimal integration. Many of these systems were not ready for the cloud or new technologies like AI or IoT, even though progress and innovation are incredibly important for Verder. Therefore, we decided to transition to a single unified platform that would support finance, sales, logistics, and production across all our locations.”

Expansion, Automation and Digitalization

The decision also affected Packo, which had been using Microsoft Dynamics AX since 2003. "It was no longer up-to-date, there was a lot of customization, and it was becoming increasingly difficult to integrate other systems," said CFO Herwig Verhoyen.

A new IT platform perfectly aligns with Packo's ambitious innovation plans, continues Danny: "To increase our capacity, we will soon expand with an additional 1,700 m² of production space. Furthermore, we continue to invest heavily in automation. More cobots and automated guided vehicles are being introduced. This is the ideal moment to redesign and optimize our production flow."

“Many of the existing ERP solutions were not ready for the cloud or new technology such as AI or IoT, while progress and innovation are extremely important for Verder.”

Solution

Microsoft Dynamics Finance & Supply Chain Management proved to be the best solution to support the end-to-end processes at Packo and all Verder locations. Sandor explains why: “We briefly considered Microsoft Business Central, but it was somewhat limited for our needs to ensure smooth interaction between systems and entities. Our goal is for all locations to operate with the same system, in a single environment, so that we can consolidate all data.”

Integration between systems and entities? Check!

For Packo, linking the ERP platform with the factory was also crucial, particularly to support the challenging make-to-order process. Herwig: “Almost every pump or installation that Packo produces is custom-made. We therefore create a wide variety of products in small batches. Our own shop floor system supports that complex production aspect. But we also need to design, deliver, and invoice the right products flexibly, quickly, and cost-effectively. The Microsoft platform plays an essential role in this.”

More time for the customer

To better support the sales organizations, Verder is also implementing Microsoft Dynamics 365 Customer Engagement in the 20 sales offices. Sandor: “With the CRM package, the sales organizations gain better insights into customers and have more time for customer interactions. They can delegate routine tasks to the tool. This way, the tool helps us move closer to our goal: doubling revenue with the same number of employees.”

Seamless, one-click system

The platform is now operational in several locations, including Packo, and meets expectations. Efficiency gains, cost savings, satisfied employees and customers: these are just a few of the benefits.

“We sometimes refer to Microsoft as our one-click system,” says Sandor. “With a single click, we send an order to the factory, instruct a product to be delivered to the customer, and automatically create and send the invoice. This way, we also gather the right data and connect it. This results in much greater transparency. Our processes are now perfectly measurable from end to end.”

Herwig also highlights the benefits for finance: “Previously, Packo kept information like margins outside the Microsoft package. Now, all details are available within Dynamics 365.

The reporting is therefore much more comprehensive. We have visibility into many different parameters at both the company and business unit levels.”

“We sometimes call Microsoft our one-click system. With one click we send an order, give a transport order and the invoice is automatically created and sent.”

Approach

To initiate their ERP project, the Verder Group enlisted the assistance of external consultants. Together with the internal team, they selected the appropriate software platform, defined the scope, and began the implementation. However, setting up and rolling out an ERP project across various locations is quite intensive and complex. This is where Cegeka came into the picture, having been the Microsoft implementation partner for Packo for many years.

Invest in time and data

“During the local implementations, we occasionally encountered obstacles. Each country has specific needs that they want to integrate into their system. Cegeka collaborates with us to translate that local expertise into the central setup,” Sandor explains. “They understand the processes and can effectively translate them into what is needed in the system.”

Meanwhile, Packo has been using the system for over a year, and everything is running smoothly. Thanks to the expertise, pragmatic approach, and close collaboration with Cegeka, Herwig looks back with satisfaction. However, no IT project is perfect. Time and data are the biggest hurdles, he notes: “Anyone embarking on an IT project knows it takes a lot of time, but in reality, such a project is even more demanding. Ensure that your key users can allocate sufficient time. Also, invest heavily in data quality and migration upfront.”

Fully connected future

Verder will leverage these insights and knowledge for the deployment of Microsoft Dynamics 365 Finance & Supply Chain Management and Customer Engagement at other locations.

And after that? In the long term, Verder aims to involve customers and suppliers more closely in the internal process. "We are considering a customer portal and the use of Power Apps to further automate processes," says Sandor. "Not all of our customers are ready for this yet, but we truly aspire to become a fully connected company in the future. We believe Cegeka will also assist us in achieving this."

20+ years in close cooperation

“In 2003, Packo signed a contract with Edan, now known as Cegeka, for the implementation of Microsoft Dynamics AX 3.0,” says Hilde De Moor, account manager at Cegeka. “We have continued to support, advise, and inspire them over the years. When Verder transitioned to Microsoft Dynamics 365, we initially assisted only Packo with the implementation and interfaces. Now, Verder also approaches us for specific subprojects.”

“Make sure your key users can free up enough time. Also invest heavily in data quality and migration in advance.”