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MAGIS Management Information System for AGROP NOVA a.s., a leading company in the wood industry

One of KOMIX’s most important partners is DATA-Software, which supplies the MAGIS economic information system and its MIS add-on in the form of the QlikView business intelligence software. The highly successful applications developed and offered by DATA-Software include resources for performing data analysis and interpretation. These applications fall into the category of business intelligence and are widely sought as tools used for monitoring long-term trends, identifying bottlenecks in financial management, assessing the success of business strategies, and monitoring the key indicators for company processes. In many cases, only the analysis of long-term data makes it possible to determine the causes of the problems that lie hidden within a company’s daily activities and are concealed within a vast volume of other information. For this reason, the solutions we offer include tools for creating and populating data warehouses and for analysing the data contained in these data warehouses.

Description of the client

AGROP NOVA a.s. is one of Europe’s largest and most modern manufactures of multi-layer solid-wood panels (SWPs) and both the company’s registered offices as well as its production headquarters are located in the Czech Republic. Over 640 lorries carrying 1,200,000 square metres of SWPs leave the factory each year. AGROP also manufactures the modern NOVATOP building system designed for use in assembled wood constructions. The foundation for this system is the solid-wood panel.

Initial situation and the solution

The Management Information System (MIS) for AGROP was developed as an add-on to the company’s MAGIS PRO application. The MIS application includes a data warehouse that is automatically populated from the MAGIS PRO system and it is updated on a daily basis. One of the key components of the MIS is the presentation layer, which is built on the specialised and highly-advanced QlikView business intelligence technology (developed and supplied by QlikTech). This layer is defined directly by the user and is characterised by its exceptional user friendliness and primarily by its almost immediate response to just about any end-user query.

Functionality of the MIS QlikView application

As far as advanced data analysis and interpretation are concerned, the requirements defined by AGROP’s management were aimed primarily at ensuring different ways of analysing and interpreting business results. The key objective was to simplify as much as possible the generation of the supporting materials that provide information about the profitability of individual orders and are used for decision making. The secondary goal consists of obtaining the related data pertaining to the profitability of the company’s product range, groups of products, the profitability of individual customers, and the frequency at which certain product sizes and levels of quality are produced, including a clear presentation of development over time and the depiction of the associated trends. AGROP’s MIS application includes, amongst other things, a highly developed system for recalculating discounts and various add-on amounts (e.g. for distribution costs) as they relate to individual parameters of the product portfolio (quality, dimensions, and individual product codes) and in relation to an individual customer, with the aim of attaining the most objective assessment of profitability possible in relation to both the product portfolio as well as the company’s customers.

The end result consists of an integrated management information system that is regularly updated on a daily basis and which is now the main source of credible information used by AGROP’s owners, other members of management, and ultimately by all of the company’s sales staff as well.

The following are only some examples of the indicators that are regularly evaluated and monitored using the MIS: customers; individual items in the product portfolio (product code, quality, type of wood), and the quantity sold (in square metres or cubic metres, or on a per item basis). Sales are monitored in both Czech crowns and in euros. In addition to manufacturing costs, the other expenses associated with sale and distribution are also monitored (e.g. transport costs, commissions, discounts, and volume bonuses). The MIS application is able to calculate and present the margins that are attained (gross and net, reflecting sales costs) according to all of the monitored indicators: orders, customers, product portfolio and product groupings, regions, etc. Financial indicators can be recalculated into any currency using the updated currency conversion tables that are automatically downloaded. The application is also able to analyse the warehouse status of finished products (either current status or as of a certain date).

The initially delivered sales analysis application was subsequently supplemented to include the interpretation of marketing information drawn from the data obtained during the pre-sales processes and pertaining to the supply and demand for products and an evaluation of the success of the processes. The MIS application also addresses the sources of market demand, preliminary pricing information, AGROP’s sales and planning partners, and the evaluation of specific marketing events.

The complete MIS application was brought into operation within two months. This is a very short period of time taking into account the scope of the application and the strict requirement for the accuracy and verifiability of the information generated by the MIS. The application was further fine-tuned with regard to certain details during the following two to three months.

Benefits for the end users

The main benefit enjoyed by the end users thanks to the implementation of the MIS application is the immediate access they have to key information that affects daily and strategic decision making. The MIS application became a standard part of management meetings within a very short time.

As compared to the standard output from ERP applications, it is possible to use the MIS to obtain ad hoc information according to actual needs at a given time. This is in part due to the patented way in which the data is stored and the immediate response time, without regard to the scope of the data and the structure of the source tables. It is specifically this flexibility, ease of use, and the fast response time to just about any combination of input parameters that is most valued by the users.

Statement from Ing. Jiří Oslizlo, owner of AGROP NOVA:

“Since 2008, as a result of the recession on the European market there has been a significant decrease in the margins for most products. Our customers continue to be very sensitive to price. The MIS application helps us daily to evaluate certain special offers in relation to the actual margins attained over the course of a given month. The very simple margin analysis according to individual products purchased by specific customers is especially valuable. Given that our standard products are subject to the greatest price pressure, we use the MIS to optimise our sales prices for special products in a way that allows us to attain positive numbers overall. Using this analysis, it is then possible for us to make an objective decision as to whether it makes sense to implement every individual contract. The MIS therefore contains an operatively complete overview of daily sales, which we evaluate once monthly from various perspectives during our sales meeting and thus, thanks to the MIS, we are also able to objectively and quickly implement corrective measures as required.”