Herti AD develops its SAP ERP system with a new mobile application

Mr. Zahariev, tell us about the company's foundation and the way it has gone through to turn from a micro-company into a company rated in the Top 10 companies in the world for cap production.

When I turn back and remember the first steps in the business, I realize how long is the way we have passed up to now. Herti was founded in 1993 as a new packing company specializing in the production of aluminum screw caps. The decision came as a joke, after we realized that there was no such production in Bulgaria. Every year we invested in new machines, new markets and staff training. We are now a public company with 5 subsidiaries in Europe. We sell our products in 54 different countries around the world on 6 continents. Our customers are world’s leading manufacturers of high-alcoholic beverages and wines, mineral waters, olive oil and pharmaceutical products. Over 85% of our production is exported.

What were the main challenges you had to overcome and how did you come to the decision to implement an integrated SAP ERP system?
Following its goals, the company realized the need of special software for integrated business management. The main needs that required SAP ERP implementation were the following:
• Building a unified working environment that comprises all the business processes in the company
• High data reliability

• Timely processing of received information;
• Real time access to detailed information for the business management and control of business processes in the company.

Why did you choose SAP ERP as a solution?
We chose to trust STEMO Ltd., an established system integrator and a long-term SAP partner. The team of SAP consultants managed to feel our processes very well and set a good pace in the project implementation.

We chose SAP ERP as a solution based on SAP Best Practices and Baseline Package V1.603. We covered all the production planning and management business processes, maintenance and management of facilities, quality management, material and instrumental facilities management, warehouse management, commercial activities service, new product development, supply and logistics services, financial accounting and controlling, project management.

In order to optimize the operational activity in the production management process, an interface with the individual production machines for the production schedule management and automatic reporting of the production operations and results reported in the machine controllers was realized. Interfaces to several on-line banking systems, as well as an interface with an operating Payroll system, have been implemented in the system.

What are the main benefits you are reporting after using the SAP system for almost two years now?
The benefits Herti reports after the implementation of SAP ERP are basically the following: achieving a full automation in production planning; real time order production tracking on all the stages; acceleration of production processes by optimization of the load of production capacities; better planning of raw material supply to avoid "out of stock"; costing and costing of production calculation improvement; information on obsolete goods and unfinished production; inventory management for raw materials, materials and finished goods improvement.

How do you plan to develop the system and will you trust again at STEMO Ltd.?
An automation process is under the way at our new Expedition warehouse. New automation processes are closely tied to business processes in SAP Warehouse Management - a module we are already actively using in the company. We plan the usage of mobile handheld devices when loading and unloading the cells in the warehouse. Again, we rely on STEMO for the fulfillment of the project, we rely on their expertise, efficiency and quality of performance. As a result, we expect to reach optimization of the location of the pallets in the warehouse, reducing the processing time of each order, which will generally lead to increased efficiency.