ERP upgrade at efko: Peak performance in food processing with Microsoft Dynamics

Vision for Unified Processes

Over more than 80 years, efko Frischfrucht und Delikatessen GmbH has evolved from a local fruit and vegetable processor to Austria's leading company for refining fruits and vegetables. Headquartered in Eferding, Upper Austria, the efko Group includes companies like machland in Naarn, Geißlmayr in Eferding, Vitana in Lower Austria, and subsidiaries in the Czech Republic (efko-Veselí and machland-Veselí). To enhance efficiency across these business units, a modern and fully integrated solution was essential. 

"Our goal was a fully integrated solution that reduces interfaces between departments and entities. The overarching objective was to increase transparency across the efko Group, allowing us to better monitor cost structures and set the foundation for sustainable revenue and volume growth."

– Bernhard Stöhr, Managing Director at efko

Choosing the Right Partner

The partnership with BE-terna began with a rigorous selection process. efko sought a partner with expertise in ERP implementations and a deep understanding of their specific goals.

“For me personally, the key success factor was the people—the dedicated efko team and the BE-terna consultants who were a perfect fit for us. It was evident that for them, this was more than just a job. They had a genuine interest in working with us to find the best solution."

-Kerstin Kraml, Project bei efko.

Leveraging the Microsoft Ecosystem

BE-terna’s industry-specific solution for food manufacturing, based on Microsoft Dynamics 365 Finance & Supply Chain Management, played a central role in the selection process. A critical component of the proposed solution was its deep integration with the Microsoft ecosystem, including Office 365 and Power BI. This integration enables efko employees to perform ERP functions through familiar tools like Excel and Outlook. Thanks to the cloud-based nature of Dynamics 365, efko gains the flexibility needed for future growth.

Data Migration and Customization

The transition involved extensive data migration from AX3 to Dynamics 365. Large volumes of historical data were carefully mapped, cleaned, and transferred to ensure data integrity and continuity.

Together with BE-terna, efko developed tailored modules that seamlessly integrate with the Dynamics 365 platform, enhancing functionality without compromising system integrity or upgrade capability. Some specific customizations were essential to meet efko’s unique operational requirements, particularly the seasonal availability of certain products. Additionally, BE-terna’s industry solution was further developed in collaboration to meet broader food industry standards.

Driving Change and Innovation

Along with meeting process requirements, the project also faced the typical challenge of implementing new workflows within operations. Through effective change management strategies and a comprehensive training program, efko and BE-terna successfully ensured a smooth transition. BE-terna’s project methodology, eagle, involves regular status meetings, where the entire project team presents progress directly in the test system. These “Conference Room Pilots” foster open communication within the team and ensure alignment across departments.

A project of this scale requires a carefully assembled team from various departments—IT, finance, sales, production, logistics, quality management, and procurement—as well as an experienced team of experts from BE-terna.

“We had a relatively large internal project team, which initially slowed decision-making in the workshops. However, this broad team structure proved highly beneficial during the training and change management phases, facilitating broader knowledge transfer and acceptance across the company.”

- Kerstin Kraml.

Change management was a cornerstone of the project’s success. efko and BE-terna worked closely to prepare the entire workforce for the changes. Training programs were tailored to various user roles, ensuring that everyone, from production line staff to executives, understood how to leverage the new system to improve daily operations.

Results at a Glance

• Enhanced process efficiency and traceability: The implementation of Dynamics 365 helped structure and improve processes, especially between different areas of the company. This enables detailed visibility into production metrics, inventory, and financial transactions. Ensuring end-to-end traceability from raw materials to the final product and complying with food safety regulations maintain efko's reputation for quality and reliability.
• Meeting complex planning requirements: efko's production involves both seasonally available products and year-round items, creating specific planning challenges. With the robust planning functionality of Dynamics 365, efko successfully managed the diverse needs of these product groups.
• Streamlined decision-making: The unified data structure within the group, integrated with the Microsoft ecosystem, particularly Power BI, provides efko’s management team with powerful analysis and reporting tools for informed decision-making based on comprehensive, up-to-date business reports.
• Scalability and flexibility: The cloud-based Dynamics 365 offers efko scalability to integrate all subsidiaries, supporting future growth.
• Increased user adoption and productivity: The consistent and intuitive D365 user interface facilitated efko employees' transition to the new system. The deep integration with familiar Microsoft tools like Excel and Outlook enhances efficiency in daily operations.
  

The Journey of a Pickle: From Field to Consumer

Pickled gherkins are efko’s most popular product, and their production journey showcases the efficiency of the new ERP system. efko secures contracts with cucumber growers well in advance to ensure a steady supply. When the cucumbers arrive, they are automatically sorted, weighed, and recorded in the system. Each stage of production—from washing and slicing to pickling and packaging—is closely tracked to ensure quality and safety. Logistics, from storage to delivery, is simplified with scanning tools, while precise scheduling in the system ensures timely shipping. This setup provides full traceability for each batch, making it easy to track suppliers, customers, and quality checks all the way from raw cucumber to finished pickle. 

The Path to a Connected, Digital Future

The transition to a cutting-edge ERP solution has positioned efko as a leader in technology adoption within the food industry. Their journey is not only about upgrading technology but also about embracing change and setting the stage for future growth and innovation.

The successful go-live in February 2024 at efko and machland marked the start of the group-wide implementation of Dynamics 365. Close collaboration with BE-terna was key. efko’s experience demonstrates how strategic planning and early stakeholder engagement secure the success of large-scale ERP transformations.