Itho Daalderop: Ready for international growth

Integrated management for Itho Daalderop using Microsoft Dynamics AX

The merger between two companies and the outdated and – moreover – different ERP systems were the reasons behind Itho Daalderop deciding to initiate a selection project. Following intensive comparison, the manufacturer and distributor of heating, hot water, ventilation and control technology solutions chose Pulse. Leo van den Hil, ICT Manager at Itho Daalderop about the intended aims: “Microsoft Dynamics AX allows us to work more efficiently by giving further shape to the integration of processes and offers a platform for further, international, growth.”

Itho Daalderop is the result of a merger between two Dutch companies in 2010: Itho and Daalderop. Both companies had been independently active in the installation market for many decades and both have a rich history. From an IT point of view, following the merger of Itho and Daalderop, the companies found themselves in the situation that they both used a different ERP system; Itho used Microsoft Dynamics NAV and Daalderop used MFG Pro. At Itho, several versions of Microsoft Dynamics NAV were in use. The oldest version in use was twelve years old. Van den Hil said the following about the ‘new’ bottlenecks: “in the ideal situation a client request has to result in a production order that can be tracked through the entire process. We have to be able to provide integrated management of the process, the internal chain. Each sales organisation was a separate entity and had its own stock. This situation was far from ideal – with all the inherent consequences. We want the company to operate like a chain, something that was impossible in the old situation. As a result of this our stock levels were also too high. One of the goals is therefore to move towards chain optimisation through central production planning which will allow us to substantially reduce the stock levels.” Double selection The situation that had arisen demanded action. “The management decided fairly quickly to remain within the Microsoft family because we were happy with Microsoft in terms of continuity and ambitions”, says Van den Hil. The period from September to December 2011 was used by Itho Daalderop to prepare the ERP project. Van den Hil: “Internally we started with a Business Process Redesign project, which resulted in a set of requirements that allowed us to approach the market. We were of course already familiar with Microsoft Dynamics NAV and we compared that with Microsoft Dynamics AX. It quickly became apparent that Microsoft Dynamics AX offered greater standard functionality and provided better support for our international ambitions.” This was followed by a further selection phase – the partner selection. Van den Hil: “After we had decided on Microsoft Dynamics AX the next thing was to select the right partner. A number of parties were invited, including Pulse. You pay specific attention to how such a party ‘connects’ and is able to think along with you. We are a very discerning organisation and what struck us was Pulse’s effectiveness of response. Their understanding of the Itho Daalderop situation, of our processes and the rapport with our people were further decisive factors for proceeding with Pulse.” Future Itho Daalderop’s international ambition was already touched on earlier. According to Van den Hil the forthcoming project will contribute significantly to this. “We see a great deal of market potential abroad, opportunities for growth. The Dutch market is fairly well organised and to grow we need to expand abroad. International acquisitions are a possibility and Microsoft Dynamics AX offers us the opportunity of easily integrating companies into the existing environment.”

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About Itho Daalderop Itho Daalderop develops, manufactures and sells heating, hot water, ventilation and control technology solutions. Its mission is to provide innovative products and systems that contribute to a comfortable, healthy and energy-efficient indoor climate. Itho Daalderop is the result of a merger between two established names in the installation market in 2010: Itho and Daalderop. Itho (founded 1919) is a well-known and much sought-after supplier of ventilation systems, heating and hot water equipment. Daalderop (founded 1880) has been a market leader in hot water equipment and a supplier of central heating boilers, innovative heating equipment and boilers for many years. Itho Daalderop Nederland is divided into three business units: New-build, Renovation and Installation & Wholesale. The business units serve their own markets with a package of specific products and services. Innovation is at the core of Itho Daalderop. Both Itho and Daalderop have multiple nominations for the VSK Awards (innovation award for the installation market) to their credit. Itho Daalderop has recently won its latest VSK Award for the Flat Energy Cube. All products are developed and manufactured in-house. Itho Daalderop has three locations in the Netherlands: Schiedam, Tiel and Etten-Leur. In recent years, it has gained considerable market share in Europe and Itho Daalderop has a branch in England (Burton on Trent) and a branch in Belgium (Sint-Niklaas). The company employs a total of approximately 350 staff.

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