Skip to content
Microsoft ERP Industry

Case Paptic

A demanding ERP system was built cost-effectively for Paptic, a global high-growth company

The Finnish company Paptic has developed a groundbreaking innovation that makes it possible to replace plastic with a renewable wood fibre-based material. The company, which is growing globally at a rapid pace, needed an ERP system for which the requirements were exceptionally high. Digia carried out this demanding system implementation in a cost-efficient manner.

 

 

Paptic, which has its roots in VTT's research activities, has developed a new type of packaging material, the sales of which is picking up rapidly around the world. “We produce a new wood fibre-based material that replaces plastic in various types of packaging,” says Aino Vanhatalo, who is responsible for Paptic's supply chain and sales office.

The material developed by Paptic is a unique solution that is more flexible, stronger and softer than paper. The versatile material is used, for example, in product packaging, shopping bags and in the shipping packaging of online shops. The material is renewable and recyclable, and it can also be produced with the existing paper machines.

There is a huge international market for such a product, and Paptic aims for net sales of one billion euros by 2030. A more efficient information system was needed to manage the rapidly growing business, but the acquisition of such a system was challenging due to business requirements.

What we did

  • ERP-system
  • financial administration
  • purchase invoice circulation
  • continuous services

What we used

  • Microsoft Dynamics 365 Business Central
  • ExFlow
Digia immediately gave the impression that they think about the customer's best interests. They didn't sell us anything that was unnecessary.

Joonas Lahtiharju, Head of IT and Digitalisation, Paptic

Digia was able to deliver the exceptionally challenging ERP system

Paptic's business set unique requirements for the new ERP system. First of all, the system is used to process rolls of material, in the production of which weight and dimensions vary. An additional challenge is that some customers buy Paptic® materials by weight and some by surface area.

Another challenge was the complex nature of Paptic's international trade. In Paptic’s transactions, the seller is often located in Finland, manufacturing and processing in another country and the customer in a third country. This leads to very complex entities, especially in terms of value added tax. Paptic® materials have been delivered to more than 40 countries.

The ERP systems used by paper mills would have been unreasonably unwieldy in terms of features and costs. On the other hand, other solutions specialising in material trade raised doubts regarding system continuity and flexibility and the special requirements of the European markets. Paptic was therefore looking for an experienced supplier that was capable of a reasonable implementation of the demanding entity needed by the company.

“We wanted a reliable system for the long term and a supplier that understands the paper industry trade and the financial requirements in Europe,” says Joonas Lahtiharju, who is responsible for digitalisation and information systems at Paptic.

Finding the right kind of supplier was challenging, but in the end, Digia presented a solution that was an excellent match with Paptic’s requirements. It is based on Microsoft Dynamics 365 Business Central software, which enabled meeting Paptic's needs in a way that was considerably lighter than other alternatives.

“The capability demonstrated by Digia was a significant reason for our decision. The fact that Digia was recommended to us as a good supplier was also significant,” Lahtiharju says.

“Digia immediately gave the impression that they think about the customer's best interests. They made sure that the project included all necessary work but did not sell us anything that was unnecessary. Therefore, the solution turned out to be very cost-effective,” he says.

 

Efficient system handling Paptic's entire core business

The specification and implementation work related to the new ERP system started in spring 2021, and the system was ready in February 2022. The project also included the implementation of Paptic’s purchase invoice circulation, which was built using ExFlow software.

The company is very satisfied with the outcome of the project. “We now have one system that allows us to manage the entire order and supply chain, invoicing, reporting and accounting,” Vanhatalo says. The special needs related to material manufacturing and international trade are met well by the system.

 The system was customised to extend the basic functionality of Business Central in order to meet Paptic's business requirements. However, Lahtiharju compliments Digia for constantly striving to keep customisations to a minimum. This lowered costs and, above all, it facilitates system maintenance.

Vanhatalo and Lahtiharju are also otherwise pleased with the cooperation with Digia. “It was easy to negotiate with Digia from the very beginning, and we understood each other well,” Vanhatalo says. The project organisation was also successful, and the project was completed on schedule.

“I have worked with many consultants, and Digia is among the best. They were also flexible, which was a significant relief for a high-growth company,” Lahtiharju says. According to Vanhatalo, the development of the ERP system will continue with Digia. The next steps include, for example, further automation development.