Automating BI Leads to Increased Revenue for Global Sphagnum Manufacturer
Pindstrup Mosebrug, a 110-year-old Danish company and a world leader within its industry, now has a detailed and updated overview of developments in global business operations. The company uses the new insights to strategically optimize business and can now promptly react to any fluctuations in data. Double-digit growth in both revenue and profits strongly suggests that Pindstrup’s approach is paying off. Time spent on key data reporting alone has been reduced by 75 percent.
“It’s not an exaggeration to say that we are successful. Things are going well for us within the niche that we operate; there are not inexhaustible numbers of sphagnum bogs in the world, and more of our products are of such a unique quality that we can exploit this position better and look at our pricing in a global perspective. We must ensure that sellers only sell what we can deliver, and at the right prices,” says Tomas Guldberg Hansen, CFO of Pindstrup Mosebrug.
Every year, Pindstrup produces more than 2 million cubic meters of growing media for plant production in nurseries and horticulture at its factories in Denmark, Latvia, Estonia, Spain, England and Russia. The sphagnum is harvested in drained marshes that Pindstrup has licenses for, then fertilizer is added along with other ingredients from the company’s 15,000 different recipes. With customers in 100 countries, sales offices in 14 countries, and 790 employees, the company has grown to a size where it is imperative to adjust the price of all parameters in due time. The nursery industry represents 80 percent of Pindstrup customers with the remainder coming from the retail market. The products are sphagnum, peat bags, potting soil, fertilizer and decorative bark.
From gut feeling to facts
Since 2010, Pindstrup has been going through a generational change both in the management team and among experienced key employees. The change made the company realize there was an increased need to systematize and visualize the business knowhow. “The former director had by virtue of his 41 years in office an extremely precise feel for the market and our business. We have now created the foundation for extending that never failing gut feeling by looking at the company’s digital engine room,” explains Tomas Guldberg Hansen, who shortly after taking office in 2010 expanded reporting to include a wide range of key data. “But before we got introduced to the automated business intelligence solution from TimeXtender, the reporting required us to manually pull data out of our ERP system Navision, and then process and analyze it in a giant spreadsheet. In fact, we were often close to next month’s reporting when we were finally ready to analyze the numbers from the previous month, which meant that there was too little time for the interesting and valuable part: The data analysis as a basis for making informed decisions.”
A cost conscious solution
The reason for Pindstrup choosing TimeXtender is also due Pindstrup’s cost consciousness.
“In the year since we implemented TimeXtender, it has already paid for itself several times”
– Tomas Guldberg Hansen, CFO, Pindstrup Mosebrug.
“We screened the various solutions in the market, and TimeXtender was clearly the most budget friendly choice both in procurement, implementation and operation. We can quickly compile different data sets and see trends in an analysis context not possible before. Either because it would be too expensive in external programmer hours or simply cost us too many man hours internally. Now, we can juxtapose the data quickly, get the information and track the data much faster, which often delivers some valuable “A-ha!” moments. Time spent on key data reporting alone has been reduced by 75 percent,” says Pindstrup’s CFO and concludes:
“TimeXtender’s solution means that we are now much better able to optimize our business. We can quickly locate the key figures enabling us to make the right decisions in time. It has given us a greater degree of flexibility as we now have the power over our own data. Very rarely do we now use external consultants, because our own controller – after receiving efficient training with TimeXtender – now masters 90% of what we use the solution for.”