Case

How Klippan Yllefabrik has managed to grow during a long time, with SAP Business One

In Klippan, this family business i located, which since 1879 has piled up successes on top of each other, thanks to several generations of driven and enthusiastic entrepreneurs. Today, Klippan Yllefabrik is a well-known brand in many households; both in Sweden and other parts of the world. Initially, the company was primarily a spinning mill with a focus on yarns, but after purchasing of a factory in Latvia, the production of the plaids that many associate Klippan Yllefabrik with today started. Each pattern is selected with great care and the range is updated several times a year, where the biggest change takes place before autumn, which is also the high season. A new website and e-shop was recently launched, but the largest sales are via retailers and the own store in Klippan. About 50% of what is produced is exported and among the exporting countries are countries both in and outside of Europe.

Petter Magnusson is Group CEO and has been part of Klippan Yllefabrik since 2003. It was Petter who 20 years ago chose SAP Business One as the company’s new ERP. Previously, a home-built system was used, but the company reached a point where a system was needed where all processes could be gathered in one place, but which could also manage the company’s unique needs.

“If we had bought something simple and cheap, we would probably have had to change to a new system later”.

On the list of requirements for the new system included demands such as; possibility to manage royalties and sales commissions and several different price lists, in order to have unique prices for different customers. In addition, the system needed to work in Latvia, as well as be able to handle different currencies and have good integration possibilities. The reason why SAP Business One was chosen, as explained by Petter, was also largely due to the fact that SAP is large and that they will be around for a long time. It is a stable and safe investment.

What has happened since the implementation?

Since the implementation of SAP Business One, the business has grown and taken new steps. They are bigger, have more customers and more employees. More transactions are taking place and more functions in the business system are used than before. Among other things, the system has been expanded with a web shop, B2B portal, and integrated with an EDI solution. Another important development is the introduction of the pick & pack function. Customers who place larger orders sometimes want to supplement the order afterwards. In order for everything to end up on the same order, the pick & pack function can therefore be used, where it is possible to collect in batches and then release the order.

Petter explains that even though much of the business system today looks the same as it did at the time of implementation, the business has been able to grow unhindered in recent years. He describes this as a strength; not too big adjustments have had to be made, but the system has worked well through all the growth phases of the business.

Towards the future

Klippan has several goals for the future. One is to get established in markets where they are currently not that active, which includes also opening up the e-shop for several markets. Investments will also be made in the factory in Latvia.

“It has been a good investment. We switched 20 years ago and still have the same system, so it’s been money well invested.

The future plans that exist and the progress made in recent years have been facilitated in many ways by the Business One. Mainly, Petter mentions the fact that the company has been able to have the same business system for so many years and, despite that, have been able to grow exactly as they want. He states that if they had invested in a smaller system from the beginning, implementing another system at some point would have become inevitable. SAP Business One is scalable and flexible, which suits Klippan Yllefabrik’s business well. Petter tells us that even if it doesn’t work 100%, it feels good and secure to have a stable supplier and a partner who constantly works actively to update and improve.

“It feels safe. It’s not perfect, but it’s great. The best thing is that we have actually been able to keep the same system for so long and that we are still just as happy.