NeuralSoft
CASE STUDIES
Estudio de Casos - Pinturerías Prestigio

Prestigio is the largest independent chain of paint stores in Argentina. With 40 years of experience, it is the leading company when it comes to insights and color inspirations in architecture and design matters.

Run by its founders with a strong business acumen, the company became the sector leader. Driven by its growth, the company put a new stage in motion in 2000, which included the corporate image redesigning and organizational restructuring. This helped the company expand its business locally – something that it still does thanks to the large investments made in business development.

Prestigio implemented a self-service and assisted sales plan to its paint distribution channel, which consolidated the company’s innovative profile in a market full of rigid customer service models. This redesign allowed them to take a leap forward and increase their presence throughout the country, opening their own stores in the provinces of Corrientes, Chaco, Mendoza, and in the city of La Plata as well.

Prestigio offers services for retail and professional clients from its stores, including distribution logistics, customer service line and online assistance. Additionally, the company was a pioneer in services for professionals by launching an exclusive reward program for paint, decoration, architecture and construction specialists. This customer loyalty program, one of a kind in the paint market, has more than 20,000 active members.

Currently, Pinturerías Prestigio has more than 75 self-owned stores in the City of Buenos Aires, the Greater Buenos Aires, the Atlantic Coastal towns and cities, Mendoza and Punta del Este, and 2 franchises in Río Grande and Posadas, with a total of 163 users. The company has a growth average of 4 stores a year.

KEY ISSUEANALYSIS

As to the company’s IT system, up until 2008 Prestigio had a decentralized work scheme (it used a management system developed by the company). Each store had its own cash register and every day, at the close of business, any transactions’ information was transferred over the phone to the company’s headquarters. This type of communication was inexpensive because a the company used a Centrex telephone exchange for a monthly fee. However, the updating and administration process was slow and inefficient. At that time, the company already had 45 self-owned stores.

What they needed was to have online centralized information. From the operating point of view, there were many difficulties. Any change or update would take hours.

When they decided to change to an ERP system, they analyzed the market of these kinds of solutions and that is how they learned about NeuralSoft. Although SAP was our first choice because of its solid track record, the IT Department knew that it was an option that would not solve all their needs, because it did not have a retail subsystem and, additionally, the implementation costs and monthly fees were considerably higher than the assigned budget.

Among the items that were considered to choose NeuralSoft, the fact that it was a national company, with a solid clientele, and that other companies provided good referrals about the company and the system itself, were of great importance. Additionally, Presea covered Prestigio’s essential requirements of having integrated information and it included a Point of Sale application.

SOLUTION/IMPLEMENTATION

The migration process was progressive and all the difficulties that arose were solved thanks to both companies’ teamwork. At all times, NeuralSoft was always willing and ready to hear about any issues that came up, and focused on providing solutions to any incidents that occurred. Thanks to the joint effort of both companies, their permanent willingness to improve and the commitment everyone assumed in relation to the project, the results are highly satisfactory.
On the one hand, Presea had to be adapted to Prestigio’s invoicing requirements (managing several price lists, with multiple discount options, credit card promotions, sorted by bank, line, product, etc.) As withholding agents, they needed to process large volumes of information on a monthly basis (taxpayer registers).
On the other hand, Prestigio prepares colors using a tintometric system that administers pigments using certain formulas, and it needed to accurately calculate the impact on the price of the pigment that was used to prepare each color. Presea allowed them to do this, measuring the number of impulses, and controlling their stock to plan their procurement. Additionally, it helped them have a record of the colors purchased by each client. This is stored in the database and is emailed to the client so that they can have that information as well.

Storage and Logistics was another subsystem which was adapted. Prestigio worked with a storage setup with chaotic allocations, which Presea was able to take and configure. This allows Prestigio to determine the exact location of each item and to generate an optimized picking circuit.

BENEFTS

Having updated information in real time improved the organization’s commercial management and logistics.

Additionally, thanks to Presea’s Automation, tasks can be loaded in a time period and certain processes can be executed during the night, optimizing time.

Working with an ASP (Cloud Computing) model, the company saves large amounts of money in hardware and license update and maintenance. This tool allows them to have new stores online within hours.

For the Procurement department, Presea allowed to automatize processes to generate orders, which not only improved procurement Management, but it also allowed for a more efficient control of discounts, payment conditions, etc., in relation to Suppliers, which improved profitability.

The HR subsystem optimized this department’s performance, allowing them to improve the management of resources thanks to a specialized follow-up system and to the accurate calculation, through automated processes, of sales commissions.

“Presea is a great tool that allows the IT Department to optimize their management, since it allows them to create their own programs and integrate them into the system. This boosts the performance of this sector. Besides, it features a user-friendly format, and improves the quality of work. All in all, Presea’s benefits are far-reaching, and apply to all areas of the organization.

Interview with Carlos Carullo, Pinturerías Prestigio’s IT Manager

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