Outdated system and manual processes hindered growth plans

Before implementing the new Business Central solution, LIK Lighting relied on a Navision system that restricted the company’s growth ambitions. Multiple subsystems and manual workflows made it challenging for the lighting company to manage inventory and procurement efficiently.

What was once a challenge has now transformed into a comprehensive logistics management system with location and placement control. Additionally, numerous manual processes have been consolidated and automated within the new Business Central solution.

LIK Lighting's challenges

LIK Lighting's benefits from the collaboration

Handles larger order volumes in less time

Optimized workflows and processes

All departments integrated in one system

Overall business overview

Jesper Hansen, former COO/CFO and project manager at LIK, is very satisfied with the benefits delivered by the new Dynamics 365 Business Central solution, particularly in relation to inventory and the project department. He also sees plenty of improvements and new opportunities for the finance department he manages daily:

"One of our main goals is to handle more orders in less time. With our new solution, we are now able to act faster, with fewer resources. The whole company is working better and more collaboratively," says Jesper Hansen.

In addition to marketing its products to new segments, LIK Lighting is also working internally to build greater precision into the company's processes. Both of these require full control of master data and for employees to trust the information in the ERP system.

LIK's data is managed in the standard system, Dynamics 365 Business Central, where everything from time to goods is recorded. All departments—inventory, accounting, sales, and purchasing—now work in one integrated solution. According to Jesper Hansen, this unified overview provides one key advantage:

"It means that we have a clear financial understanding of where we’re making money and where we’re not."

The overview is further strengthened through LIK's new logistics solution, which includes location and placement control in the warehouse. This makes it easier for everyone to find goods and spare parts. The new system has also enabled project managers to view purchase prices and order goods for projects, a task that was previously handled by a buyer.

Logistics solution optimizes inventory and order flow
Originally, the plan was to implement a smaller Warehouse Management System. However, as the project progressed, ambitions grew. The project team at LIK was ready for more, and the scope was quickly expanded, resulting in LIK Lighting now having a fully advanced logistics solution.

The logistics solution has, among other things, made the order flow more efficient from sales to purchase, making it easier to manage when goods come in and out. It has also become easier to handle customer-specific solutions and use standard warehouse activities to consolidate orders into customer orders.

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Digital development of the business is boosted by the new Business Central solution

LIK's business model has evolved significantly since its establishment in 2000. With the new Business Central solution, the company is now ready to face the future, no matter what it brings:

"We were previously a wholesale supplier, but today we offer our own products. Therefore, we are integrating Business Central with our webshop and shipping module. Additionally, we've created an integration with one of our largest suppliers, which was previously not possible. Now we can scale the online business, no matter how fast it grows."

Greater synergy between systems and departments
LIK’s new solution includes the Invoice Workflow module, which helps automate invoicing and document storage in the finance department:

"We’ve got automatic invoice loading and payment, which gives the accounting team a significant time saving. At the same time, we can now store documents digitally, which we previously stored and recorded manually. So, not only are we saving time, but we’re also avoiding a lot of waste," says Jesper Hansen.

LIK Lighting has made significant progress in automating processes and eliminating manual handling. In the coming period, the focus will be on extracting even more synergies from the fully integrated systems:

"We’re integrating our new design program, Revit, with Business Central, so that drawings and bills of materials are automatically loaded into Business Central, allowing us to create quotes based on the individual parts required," explains Jesper Hansen.

In this way, key departments—project, finance, and inventory—are better connected. The synergy saves LIK Lighting time and means that the business can respond faster to customer demand.

LIK and Business Central passed the test during the COVID-19 lockdown
The many digital processes and optimizations were truly put to the test during the COVID-19 lockdown, when it became necessary, almost overnight, to have control over processes and the required digital systems to work remotely.

Jesper Hansen is confident that the new Business Central solution passed the test during this challenging time:

"Especially during the COVID period, when we were working from home for an extended period, it has shown that with our new system, we’ve been able to handle a large part of case management in less time. I’m not sure we could have managed the period nearly as well in our warehouse and design office without the new solution."

Chose a specialized ERP partner that could challenge the project

The Business Central project, divided into sprints, proceeded with strong collaboration between LIK Lighting and 9altitudes. LIK's requirements and expectations for the new ERP system were continuously discussed and implemented:

"I find that 9altitudes are good at asking critical questions and explaining the consequences of different choices, rather than just executing based on our commands," says Jesper Hansen.

9altitudes specializes in businesses within trade/logistics and manufacturing, which made a positive impression on the CFO and employees at LIK Lighting:

"We can definitely tell that they cater to clients in our industry and of our size. Our business was not just another number in line. 9altitudes brings the necessary insight into our processes, which allows them to advise and challenge our ideas."

Management of finance, timelines, and continuous expectation alignment through steering committee meetings was anchored through the agile project model.

The agile project model ensures that adjustments in a Dynamics project are proactively addressed. In short, it was a successful implementation without surprises, completed on time and within budget.

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Services and solutions used

About LIK Lighting

LIK Lighting provides indoor and outdoor lighting solutions for both the professional and private sectors. This includes LIK Health, an innovative lighting concept with healthy light that automatically adjusts to natural daylight throughout the day. LIK Lighting was founded in 2000 and is headquartered in Vejle, Denmark, employing 20 dedicated experts, each specializing in their respective fields.

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