The right AI strategy: buy, integrate or build it yourself?

Home / The right AI strategy: buy, integrate or build it yourself? Many companies now realise that they need to get to grips with artificial intelligence. But as soon as it becomes concrete, a central question arises: should we buy AI, integrate it into existing systems or develop it ourselves? The answer depends on several factors: the company's own goals, the existing IT landscape, the available expertise and, of course, the budget. While some companies achieve quick results with ready-made AI tools, others need customised solutions that are deeply integrated into their processes. This article shows the three most important strategies for the use of AI in companies and helps you make the right decision. Briefly explained: Which AI strategy suits which company? Many decision-makers are looking for precisely this answer. So here's a direct summary: Situation Suitable strategy Fast entry into AI Buy AI solution Make existing systems more intelligent Integrate AI Strategic or highly customised applications Develop AI yourself In practice, many companies combine several of these approaches. Why companies use AI at all Artificial intelligence is rarely introduced because it is „modern“. In reality, it is almost always about very specific improvements in everyday working life. Many processes in companies are still heavily manual. Employees search for information, analyse documents, answer recurring questions or transfer data between different systems. This is precisely where AI can make a huge difference. Typical areas of application are, for example: Automatic analysis and processing of documents Support in customer service Intelligent search in company knowledge Automation of routine processes Evaluation of large amounts of data Generative AI in particular has opened up new possibilities in recent years. Modern language models can summarise content, generate texts or serve as intelligent assistants in everyday working life. However, the key point here is that added value is only created when AI is meaningfully integrated into existing processes. Option 1: Buy AI (SaaS solutions) The quickest way to utilise AI is to use ready-made tools. Many providers make their solutions available as a cloud service so that companies do not have to set up their own infrastructure. These solutions can often be introduced within a few days or weeks and are particularly suitable for getting started with AI. Typical examples include chatbots, generative text tools and document analysis systems. Advantages very quick introduction low initial investment no in-house infrastructure required continuous further development by the provider Disadvantages limited customisation options dependence on the provider integration into existing systems often limited possible data protection or compliance issues Ready-made AI solutions are therefore particularly suitable if companies want to gain initial experience with AI quickly or if there is a clearly defined use case. Option 2: Integrate AI into existing systems Many companies decide to integrate AI directly into their existing applications. Instead of using an additional tool, the technology is used where it is actually needed in day-to-day work. A typical example is an ERP system that automatically analyses documents or merges information from different sources. Internal knowledge assistants or AI-based search functions are also often part of this approach. The major advantage of this strategy is that AI becomes part of existing processes. Advantages better integration into existing systems use of existing company data higher acceptance in day-to-day work individual customisation possible Disadvantages higher implementation costs technical expertise required longer project duration Technically, this integration strategy is often based on platforms such as Azure OpenAI or comparable AI services. They enable companies to specifically integrate generative AI into existing applications without having to redevelop entire systems. On this basis, internal knowledge assistants, automated document analyses or intelligent search functions can be implemented, for example. Among other things, the collana Group develops customised solutions based on generative AI in Azure that can be specifically integrated into existing company systems. More on generative AI for companies Option 3: Develop AI yourself In some cases, neither standard solutions nor integrations are sufficient. This is particularly the case for companies where AI is to become a central component of the business model or where there are very specific requirements. In these cases, custom models are developed or existing systems are heavily customised. Advantages maximum flexibility complete control over data and models high adaptability strategic competitive advantage possible Disadvantages high development costs need for specialised AI teams longer time-to-market ongoing maintenance and operation necessary Especially in the case of sensitive company data or strict compliance requirements, it can make sense to operate AI entirely within the company's own infrastructure. In such cases, local LLMs are often used - i.e. large language models that are operated locally and do not send any data to external providers. The collana Group also develops corresponding solutions for companies that want to operate AI entirely within their own IT infrastructure. Such local LLM solutions make it possible to utilise AI functions while retaining full control over sensitive data. More on local LLM solutions Decision-making factors for the right AI strategy The decision between buying, integrating or developing in-house usually depends on four key factors. Costs Ready-made solutions are often cheap to start with, but can become expensive if used intensively. In-house developments require a higher initial investment. Expertise Building your own AI systems requires data scientists, ML engineers and software developers. Without this expertise, an integration or purchasing strategy usually makes more sense. Time-to-market If a solution needs to be available quickly, SaaS products are often the fastest way to go. Flexibility The more individual the requirements are, the more worthwhile in-house development or customised integration is. The best place to start: a clear AI roadmap Many companies do not start their AI journey directly with technology, but with a structured analysis of their processes. This involves identifying possible AI use cases, evaluating the potential benefits and checking the technical feasibility. A structured approach helps to avoid typical bad investments and quickly identify the projects that promise the greatest added value. One example of this is the collana Group's AI discovery workshop, in which companies work with AI experts to develop specific use cases and define a realistic implementation strategy for the use of AI. More about the AI discovery workshop Conclusion There is no one right AI strategy for all companies. Instead, there are three basic options available: Buy AI for quick results Integrate AI for intelligent business processes Develop AI yourself for maximum control and individuality Many organisations combine these approaches and develop their own AI landscape step by step. The decisive factor here is not the technology itself, but the question of which problems in the company really need to be solved. Practical example → AI voice assistant from collana AI-supported voice assistants

A weclapp alternative for e-commerce: a comparison with collana diva now

Home: weclapp is one of the established cloud-based ERP systems for German SMEs and covers a wide range of sectors. For some online retailers, this is precisely where the limitations lie: a cross-sector system maps e-commerce processes universally, but rarely with the depth required by growing online shops when dealing with returns, multichannel operations and campaign peaks. A specialised alternative is collana diva now, our ERP solution for online retail based on Microsoft Dynamics 365 Business Central. The following comparison highlights the differences and explains which system is suitable for whom. When a cross-sector ERP system reaches its limits in e-commerce We encounter these situations time and again in consultations with online retailers: multiple sales channels plus returns require seamless synchronisation and rule-based workflows. Limited scope for customisation to suit their own sales processes holds the team back. A great deal of money is spent on in-house technical developments to adapt the ERP to the online shop. Enterprise-level features are lacking for more complex processes in sales and retail. During campaign peaks such as Black Friday, bottlenecks and manual rework occur. Each of these issues compromises control and efficiency. A cross-industry ERP system can thus hinder an online retailer’s international expansion or growth. This is where collana diva now comes in: the solution was developed specifically for online retail and consolidates orders, stock, dispatch and returns within a single system. A comparison of weclapp and collana diva now A direct look at the categories reveals where the systems differ. Comparison as at: December 2025 Feature weclapp collana diva now Add-ons Yes Yes Integrated CRM Yes Yes Project management Yes Yes E-commerce integration Yes Yes Power BI analytics Partially (via API or connectors) Yes Microsoft 365 suite Partially (via integrations) Yes, natively E-commerce specialisation Partially (industry-specific solution available, but universally designed) Yes LabelPort integrated No (not part of weclapp) Yes Multi-PSP hub integrated Partially (PSP integrations via interfaces) Yes (collana pay) AI features Partially Optional via Business Central Base ERP Proprietary platform Microsoft Dynamics 365 Business Central Open APIs REST API / Business Central Service Layer REST/OData APIs All information regarding weclapp is based on publicly available details from the provider’s website (as at October 2025) and is provided for general guidance only. „weclapp“ is a registered trademark of weclapp SE. It is mentioned solely for comparison purposes. The advantage of the Microsoft foundation The foundation based on Microsoft Dynamics 365 Business Central makes all the difference when it comes to scalability, integration and growth. Integration into day-to-day work: Edit Excel data directly, without the need for import and export Teams for real-time collaboration Outlook add-in for quotations and invoices, plus contact synchronisation Power Automate for complex workflows Scalability and security: Tried-and-tested ERP with integrated CRM High scalability thanks to cloud technology and add-ons Global availability, an advantage when expanding abroad Microsoft Azure security standards E-commerce features Online retailers need functions ranging from sales and marketing through to inventory management and financial accounting. collana diva now covers these workflows in a single system. An example from financial management: Flexibly add companies and clients International currencies, DATEV export and document printing as standard Reports by cost centres, cost objects, items and channels You can find an overview of all modules on the collana diva now product page. For businesses that outgrow the current feature set, collana diva offers the next level of functionality on the same Microsoft platform. Here’s how the switch from weclapp to collana diva now works: Our team will guide you through the process in a structured manner so that you can start working with the new ERP quickly: Assessment and consultation: At the first meeting, we’ll get to know each other and assess whether collana diva now is a good fit for your business model. Kick-off: We’ll define the scope, prioritise modules and add-ons, and agree on the effort required, investment and timeframe. Onboarding 1: We’ll set up financial accounting, data migration, users and roles. Documents, email templates and processes are prepared. Onboarding 2: Next come the e-commerce workflows, from purchasing and customer service to logistics. If required, we integrate Power BI or interfaces with online shops, payment providers and delivery service providers. Fine-tuning: Together, we test all processes and check that modules, workflows and integrations are functioning as planned. Go-live: collana diva now goes live. Our team supports the launch and monitors the processes until everything is running smoothly. In 8 to 12 weeks (depending on the project), you’ll be working with the complete solution, including shop integration and CRM. If you’re still at the early stages of selection, our ERP orientation and selection workshop will help you make a decision. FAQ: Frequently asked questions about switching Is collana diva now an alternative to weclapp for retailers? Yes, collana diva now is tailored to e-commerce processes. Even the basic package covers finance, customer service and dispatch. Add-ons can be used to expand the solution as required, whilst control remains within a central platform. What features does collana diva now offer for e-commerce? collana diva now combines stock management, order processing, dispatch, returns, CRM and financial accounting in a single system. The LabelPort dispatch module and the collana pay payment hub are integrated. Our workflows are tailored to weclapp. How do we go about the transition? As a first step, we analyse your existing processes and assess which ones can be mapped within the standard functionality of collana diva now. For the rest, we define the modules and add-ons during the kick-off meeting. We plan the data migration together during the onboarding phase. How complex is the switch to collana diva now? The switch follows a structured six-step process, from the initial consultation to go-live. Typically, the implementation takes 8 to 12 weeks, depending on the complexity of the project. Does collana diva now support international set-ups? Yes, international currencies are included as standard. Thanks to its Microsoft foundation, the solution is available worldwide, which is an advantage when expanding abroad. weclapp is a robust cloud-based ERP for businesses seeking a cross-sector solution with user-based licences. For those growing in e-commerce, managing multiple channels and seeking an ERP solution with native Microsoft integration, an integrated payment hub and a shipping module, collana diva now offers a strong alternative. Share this article X LinkedIn Facebook WhatsApp Our latest news Which solution is right for your business? Would you like to know which solution suits your processes? Arrange a no-obligation consultation with our ERP experts.

An Odoo alternative for e-commerce: a comparison with Collana Diva Now

Home Odoo is a powerful ERP system that covers many industries with over 80 apps. It is precisely this breadth that raises a question for online retailers: how much customisation is required before the system can map their own e-commerce processes? Retailers dealing with multiple channels, returns and integrations often encounter three recurring issues when using cross-sector systems: one specialised alternative is collana diva now, our ERP solution for online retail based on Microsoft Dynamics 365 Business Central. All business processes are consolidated within a single software solution: without detours, without development effort, and without constant customisation. Odoo and collana diva now compared Every software solution has its pros and cons. This comparison summarises the key categories. Comparison as at: December 2025 Category Odoo collana diva now Headquarters Belgium Germany (DACH region) Deployment Three options: Odoo Online, Odoo.sh, On-Premise Cloud (SaaS model) Implementation time Depends on the project 8 to 12 weeks (depending on the project) Target audience SMEs across all sectors E-commerce, SMEs and start-ups Platform Proprietary architecture (Python/PostgreSQL) Microsoft Dynamics 365 Business Central Support and updates Included with Odoo Online and Odoo.sh; not included with On-Premise Included, with a dedicated contact person Pricing structure according to provider Open-source version free of charge (One App Free); Standard from €19.90 per user per month (from €24.90 after 12 months); Custom from €29.90 per user per month (from €37.40 after 12 months). Costs for implementation, data import or project management may apply. Business Central plus the diva-now module for around €99 per user per month, plus the base module for €49 per client per month (includes LabelPort and collana pay). Further modules available on request. E-commerce integrations Possible via apps Integrated interfaces to online shops, logistics partners and production Microsoft 365 suite Possible via apps Yes, fully integrated LabelPort integrated No, other providers available via apps Yes PSP connection Possible via apps Integrated multi-payment hub (collana pay) Multi-client capability Depends on the edition Yes Security and data protection GDPR-compliant GDPR-compliant, operated in Microsoft Azure data centres Trial version Yes No, but free live demo All information regarding Odoo is based on publicly available information from Odoo S.A. (as at October 2025) and is provided for general guidance only. „Odoo“ is a registered trademark of Odoo S.A. It is mentioned solely for comparison purposes. A word on open source: the free version sounds tempting. In practice, however, most retailers require additional development work to implement sector-specific requirements. These customisations cost time and money, which are not included in the licence fee. E-commerce features: Collana Diva Now covers online retail workflows within a single system. An overview of three areas. Inventory management and logistics: Centralised inventory management with real-time data: manage items, stock levels, prices and storage locations in real time, with available quantities and variants at a glance. Returns management: Process returns quickly and in a customer-friendly manner, with automated order reversal and stock reconciliation. Dispatch and Logistics: Integrated interfaces with dispatch service providers simplify label creation, parcel tracking and dispatch optimisation. Product Range and Purchasing: Accurate master data, clear supplier management and intelligent order suggestions. Sales and Customer Processes Order Processing: The entire order process from ordering through dispatch to invoicing, with automatable workflows. CRM: Customer data such as address, payment details, reviews and service contacts are centrally consolidated, including quotation and chat history. Marketing: Use customer data for targeted offers and email campaigns, managed across all channels. Administration and Financial Accounting Payment processing: collana pay is integrated and, as a multi-PSP hub, connects all standard payment methods. Accounting: Automatically generate invoices and receipts, process payments, and keep track of outstanding items and cash flows. Reporting and Controlling: Dashboards and reports provide real-time key performance indicators, from turnover to return rates. As the business grows, the solution scales with it, even beyond the German market. For businesses with more demanding requirements, collana diva offers the next level of functionality, built on the same Microsoft foundation. The benefits of the Microsoft-based collana diva now combine Microsoft technology with over 20 years’ industry experience in e-commerce. In practical terms, this means: a stable ERP platform with excellent future-proofing, the security standards of Microsoft Azure data centres, and the direct integration of Excel, Teams, Outlook and Power Automate into day-to-day operations. Six phases to collana diva now The migration from Odoo or another ERP system follows a fixed process: Consultation: Live demo and assessment of whether collana diva now suits your business model. Kick-off: Defining objectives, scope, requirements, modules and timelines. Onboarding 1: Setting up financial accounting, data migration, users, profiles, documents and email templates. Onboarding 2: Implementing purchasing, customer service, logistics and further interfaces. Fine-tuning: Tests, adjustments and checks ensure the software is ready for use. Go-live: Launch of live operations with support until everything is running smoothly. If you’re still at the early stages of your selection process, our ERP orientation and selection workshop can help you make a decision. You can find comparisons with other systems in our articles on alternatives to Xentral and alternatives to weclapp. FAQ: Frequently asked questions about collana diva now as an Odoo alternative Why is collana diva now the more specialised alternative to Odoo for e-commerce? collana diva now is designed specifically for e-commerce. The cloud-based ERP is ready to go without the need for extensive customisation, and there’s no need to search for the right edition. All data from sales, marketing, logistics and financial accounting converges on a central platform. What is the difference between collana diva now and Microsoft Dynamics 365 Business Central? Business Central forms the technical foundation. collana diva now supplements this with e-commerce modules: integrated interfaces to online shops and parcel delivery providers, the LabelPort dispatch module and the collana pay payment hub. You receive the Microsoft platform with pre-configured processes for online retail. What features does collana diva now offer retailers? The solution covers inventory management, returns management, dispatch, purchasing, order processing, CRM, marketing, payment processing, accounting and reporting. Everything runs on a single system. Is collana diva now a scalable solution? Yes, the cloud technology and add-ons scale with your business, even internationally. If your business outgrows the scope of functions, you can switch to collana diva without leaving the Microsoft platform. How quickly can collana diva now be implemented? Typically, implementation takes 8 to 12 weeks, depending on the complexity of the project. The process follows six phases, from consultation to go-live. Both Xentral and collana diva now cover the core processes of online retail. If you want to get started very quickly and can make do with a transaction-based starter package, Xentral offers a suitable model. If you’re looking for a Microsoft-based ERP system with an integrated payment hub, returns management, personalised support and a clear growth path, collana diva now is a strong alternative. Share this article on X LinkedIn Facebook WhatsApp Our latest news Which solution is right for your business? Would you like to know which solution suits your processes? Arrange a

Integrating Shopify and ERP: How to manage your shop via the backend

Home Shopify is one of the most successful shop systems in the German e-commerce sector. According to an analysis by uptain, it is the most widely used shop system amongst small and medium-sized online shops in Germany. On the front end, the platform offers a wide range of features: product management, checkout, payment processing and marketing. However, Shopify is not an ERP system. The platform only partially covers inventory management, logistics, accounts and customer service. This is exactly where collana diva now comes in: a cloud-based ERP system based on Microsoft Dynamics 365 Business Central, which connects to your Shopify shop via a web API and bundles all business processes into a single system, from order processing to bookkeeping. Where Shopify reaches its limits Shopify is designed as a shop system – an online sales platform. As soon as order volumes grow, typical gaps emerge in the backend: you manage stock levels manually or via individual apps that do not exchange data with one another. Orders from multiple channels (shop, marketplaces, high street) are processed in separate systems. The accounts department relies on exports and Excel spreadsheets rather than real-time data. Every manual transfer carries the risk of errors: overselling, duplicate entries, incorrect stock levels.   An ERP system bridges these gaps. It takes over the backend and lets Shopify do what it does best: sell. What the integration with collana diva now actually delivers collana diva now connects your Shopify shop directly to the ERP. All relevant data flows automatically between the shop and the system, without any data disconnects, without Excel, and without the need for duplicate data entry. A central, real-time overview of all key metrics. Orders, stock levels, customer data and turnover are all available in one central location. You can see at any time what has been sold, what is in stock and how your business is performing. Seamless communication between the shop and the ERP. The system automatically synchronises orders, customer data, payments and status changes between Shopify and collana diva now. Changes made in the shop have an immediate impact on logistics, accounts and customer service. A unified order overview across all channels. collana diva now consolidates sales from the Shopify shop, marketplaces and other channels. You work within a single system, regardless of where the order was received. Inventory management and logistics in one software solution: collana diva now combines traditional ERP functions with e-commerce-specific processes. The system manages the flow of goods entirely digitally: Real-time stock levels across all channels; automatic stock entries for orders and returns; pick lists, dispatch documents and tracking; support for multiple warehouses and locations; minimum stock levels, forecasting and replenishment planning. This is particularly beneficial for fashion retailers with high return rates. To find out how an ERP system addresses the specific requirements of the industry, read the article ‘ERP for Fashion’. Open interfaces for your system landscape: collana diva now integrates seamlessly into your existing system landscape and can be flexibly expanded. Possible integrations include: Shopify as a shop front-end (via web API) Marketplaces Shipping and logistics providers Payment service providers, for example via collana pay (multi-PSP hub) Other third-party systems via interfaces The interfaces operate bidirectionally. You enter data once; processes start automatically. Reduce costs, boost productivity An ERP integration has a direct impact on your cost structure in four key areas: Effect How it is achieved Less manual work Automated processes save time in day-to-day operations Fewer errors Consistent data prevents overselling and duplicate bookings Less IT overhead No in-house server infrastructure, automatic updates Greater transparency All key figures in a single system Cloud ERP, on-premises or stock management system? Depending on your size, IT structure and growth targets, three models are worth considering: Criterion Cloud ERP On-premises ERP Specialised stock management system Description Cloud-based solution, no need for your own server, quick Shopify integration Runs on your own servers, highly customisable, maintenance-intensive Focus on stock, dispatch and orders; weaker in CRM and accounting Advantages No maintenance, automatic updates, scalability High level of customisation, full data control Easy to use Suitable for start-ups, SMEs, growth-oriented businesses Companies with their own IT department Small shops with standard processes Anyone looking to scale professionally with Shopify is generally best served by a cloud-based ERP. It integrates quickly, scales alongside your online business and requires no dedicated IT infrastructure. Scalability: for retailers looking to grow Competition in e-commerce is fierce. Alongside turnover and conversion rates, efficient processes are key to long-term success. collana diva now is based on a cloud platform and supports you as your business grows: The system handles more products, more orders and more channels without the need for re-engineering. Marketplaces, payment providers and logistics systems can be added on a modular basis. All teams work from a unified database. The underlying Microsoft technology ensures updates and ongoing development.   Implementation takes 8 to 12 weeks, depending on the project: consultation with a live demo, onboarding with data migration, and a supported go-live. Our comparisons with Xentral, weclapp, Odoo and SAP Business One show which other systems are suitable for small and medium-sized enterprises. Frequently asked questions about Shopify and ERP What is Shopify and what are its limitations? Shopify is a cloud-based e-commerce platform. It allows you to create and run your own online shop without any programming knowledge, including product management, payment processing, mobile-optimised themes, SEO and marketing features, as well as thousands of apps in the Shopify App Store. However, Shopify is not an ERP system. The platform only partially covers complex back-end processes such as inventory management, planning and financial accounting. Why should I integrate Shopify with an ERP? An ERP system eliminates the need for duplicate data entry between the shop, warehouse and accounts. Orders, stock levels and payments are automatically consolidated within a single system. This reduces errors, saves time in day-to-day operations and makes your processes scalable. What tasks does collana diva now handle for my Shopify shop? collana diva now handles the back-end: inventory management, warehousing and dispatch, returns processing, purchasing and planning, accounts and reporting. The Shopify shop remains the front-end, with the Web API synchronising data in both directions. When does an ERP such as collana diva now become worthwhile? An ERP system is worthwhile as soon as manual processes start to hold back your growth. Typical signs include rising order volumes, multiple sales channels, growing stock levels or an increasing number of errors in stock records and bookkeeping. During the consultation, we’ll work with you to assess whether implementing the system is already cost-effective for your volume. Which ERP system is behind collana diva now? collana diva now is based on Microsoft Dynamics 365 Business Central. This provides you with a well-established core ERP system featuring e-commerce extensions, full Microsoft 365 integration and analytics via Power BI. Which ERP system does Shopify use? None. Shopify is a shop platform and does not include an integrated ERP. For inventory management, logistics and accounting, retailers integrate an external ERP such as collana diva now. Is collana diva now also suitable as an accounting solution for Shopify? Yes, financial accounting is part of the system. Payments, credit notes and receipts from the Shopify shop are automatically fed into the accounting system without the need for manual exports. Share this article X LinkedIn Facebook WhatsApp Our latest news Shopify at the forefront, collana

Thinking about digitalisation together – Why networking is key in IT

Home / Thinking about digitalisation together – Why connectivity in IT is key Digitalisation is not a passing trend, but the foundation for long-term success. Yet many companies still operate with systems that are not connected to one another. As a result, processes remain isolated and data goes unused, which holds back innovation and growth. Yet the solution is, at its core, simple: connectivity. Only when people, processes and technologies work together can digitalisation realise its full potential. In this blog post, you’ll learn why connectivity is the key to successful digitalisation – and how collana puts this into practice every day.   Key points at a glance Interconnection is the key to successful digitalisation. Only when systems, data and people are connected can processes be designed efficiently and flexibly. Isolated IT systems hinder innovation and growth. Companies that rely on integrated solutions lay the foundations for data-driven decisions and better collaboration. collana stands for connection. The group brings together expertise in ERP, AI, data analytics and bespoke software development – to deliver solutions that make a difference. Successful digitalisation is a team effort. It can only succeed when technology, communication and partnership work in harmony. Why connectivity is the key In a digitalised world, nothing functions in isolation any more. Applications must communicate with one another, data must flow securely and efficiently, and teams need access to the same information – all in real time. Interconnectivity therefore means far more than just technical interfaces. It stands for integration, collaboration and transparency. Companies that rely on interconnected IT structures gain a clear competitive advantage: they respond more quickly to market changes, make data-driven decisions and continuously optimise their processes. At the same time, connectivity reduces complexity because all parts of a company operate on a shared foundation. Digitalisation is a team effort. It can only truly succeed when we work together. How collana embodies connectivity The name collana stands for connection. Within our group of companies, we bring together experts from a range of disciplines: from ERP and the cloud through to data analytics, AI and bespoke software development. Each of these areas of expertise is valuable. But it is only through their interplay that something special emerges: solutions that make a difference. Our companies work closely together – professionally, technically and on a personal level. For our clients, this means IT solutions that fit into their day-to-day lives and deliver measurable benefits. This approach creates genuine added value. Customers benefit from one-stop solutions that are flexible, future-proof and practical. At the same time, collana encourages collaboration between its experts across company boundaries. This creates a vibrant ecosystem that is constantly growing and evolving. Successful digitalisation requires partnership Technology is only one part of successful digitalisation – the decisive factor is people. Projects succeed when all those involved pursue a common goal and communicate openly with one another. That is why collana sees itself not merely as an IT service provider, but as a partner on an equal footing. We listen, ask questions and shape solutions together. The companies within the group work closely with their clients, from the initial analysis through to implementation and ongoing operations. Mutual understanding is always at the heart of this process: an understanding of business models, processes and the individual challenges faced by each company. Our clients know that: We don’t simply deliver software, but solutions that drive their business forward in the long term. A look to the future: interconnected IT as a key to success The coming years will show just how crucial connectivity is to long-term business success. Topics such as artificial intelligence, automation and cloud integration will further reinforce this trend. Systems are converging, data is becoming the driving force behind decision-making, and processes are adapting more quickly. Companies that invest in connected IT at an early stage are laying the foundations for growth, efficiency and future-proofing. collana is actively shaping this transformation. Because we are convinced that the IT of the future is connected, agile and collaborative. Conclusion: Strong together in the digital future Digitalisation is not a destination, but an ongoing process. And this process is most successful when undertaken together: with the right people, the right technologies and a clear vision. This is exactly what collana stands for: connection, collaboration and solutions that make businesses strong. After all, ultimately it’s not just about using technology. It’s about linking it together to create something new. If you want to drive your digitalisation forward in a sustainable way, we’ll support you with our solutions. Find out more about the collana Group. Latest news

How companies can use AI effectively – and where they would be better off waiting (for now).

Home / How companies can make good use of AI – and where they would be better off waiting (for now). Artificial intelligence is currently on everyone’s lips. Whether in headlines, meetings or strategy papers – hardly any other topic is currently the subject of such heated debate. Many companies are feeling the pressure to „do something with AI“. But not every application or use case delivers real added value. AI can automate processes, analyse data or support decision-making. However, it is not a panacea and certainly not a sure-fire success. What matters is how it is used and where it really makes sense. In this article, you’ll learn where AI is already creating added value today, where companies would be better off waiting (for now), and what it takes to harness the technology’s potential responsibly. Key points at a glance: Digitalisation must deliver measurable results. The key question is: Which steps bring real progress, and which are merely empty gestures? This is precisely where our digitalisation assessment comes in. We analyse processes, systems and data, assess the level of maturity and highlight where investments are truly worthwhile. The end result is not a theoretical document, but a clear roadmap that provides guidance and enables confident decision-making. AI can automate processes and support decision-making – but it is not a sure-fire success. It only works if data quality, objectives and responsibilities are clear. Companies benefit particularly from AI where large volumes of data are processed or where recurring tasks arise. This is the case, for example, in customer service, analytics, logistics or financial processes. Missing or distorted data poses the greatest risk. Without a sound foundation, AI models deliver inaccurate or incorrect results. Not every process is immediately suitable for AI. If the benefits, data basis or data protection are unclear, it is better to wait and see. AI is a tool, not an end in itself. Companies that take a strategic approach will gain more in the long term than those that simply follow the hype. What artificial intelligence can do today, and where its limits lie At its core, artificial intelligence describes systems that can recognise patterns, learn and independently derive suggestions or make decisions. In day-to-day business, this means that tasks which used to be carried out manually can now be (partially) automated. And usually faster, more accurately and round the clock. AI is therefore no longer a distant dream. Many companies are already using it to streamline processes, make better use of data or improve customer experiences. Yet, despite all the enthusiasm, the fact remains: not everything that is technically possible is necessarily sensible. How companies are already using AI today Currently, AI is proving its worth where large volumes of data are generated or recurring tasks need to be handled. Typical examples include: Customer service: chatbots and automated response systems support teams in handling enquiries. Marketing and sales: Analysis of customer data to personalise campaigns, pricing strategies or product recommendations. Finance: Automated invoice verification and fraud detection. Logistics and procurement: Demand forecasting, route optimisation and stock management. Human resources: Support with recruitment or internal training. These examples demonstrate that AI can make processes more efficient, prepare the ground for decision-making and take the strain off staff. It helps to automate routine tasks and free up time for value-adding activities. However, all of this depends on the foundations being right. Limitations of current technology Despite impressive progress, AI has clear limitations: it is very good at linguistically replicating contexts, but it does not truly understand them. It recognises patterns, but not meaning. Missing or distorted data can therefore quickly lead to incorrect results, a factor that is often underestimated and can cause problems.  Ethical and legal issues, such as those relating to data protection, copyright or traceability, also often remain unresolved. This can lead to uncertainty, for example when evaluating results, determining liability for errors or using sensitive data. Furthermore, AI cannot think intuitively or take responsibility. Decisions must therefore always be reviewed and assessed by humans. In short: AI is capable of a great deal – but only if it is properly integrated and used responsibly. AI in practice: opportunities and limitations Now that we have clarified what AI can achieve and where its limitations lie, we turn to practical applications: Where does AI create real added value today, and when is it better to wait and see? Where AI creates real added value today AI realises its potential where processes are clearly defined, data is reliable and objectives are measurable. Used correctly, it can take the strain off teams, utilise resources more efficiently and shift the focus to what really matters. Automating routine tasks: Whether it’s invoice verification, order processing or email pre-qualification, AI can take over standardised processes involving many repetitive steps. This saves time and reduces errors. Making better use of data: Companies collect vast amounts of information every day. This data comes, for example, from ERP systems, online shops or production facilities. AI helps to make this data usable by recognising patterns, generating forecasts and thus enabling well-informed decisions. Improving customer experiences: Chatbots, intelligent search functions or personalised recommendations ensure seamless interactions. At the same time, staff gain time for tasks that require empathy and experience. Practical example: A retail company uses AI to optimise stock levels. The system recognises seasonal fluctuations and automatically adjusts order quantities. The result is lower storage costs, fewer stock-outs and satisfied customers. When companies would be better off waiting a little longer However, not every process is immediately suitable for AI, and not every company is ready for it yet. Until the following fundamentals have been clarified, companies would be better off waiting a little longer before introducing AI tools. If the data foundation is lacking: Without clean, reliable data, AI remains ineffective. Anyone who first needs to prepare data or integrate systems should tackle this step first. If the benefits are unclear: „We’re going to do this with AI now too“ is not a goal in itself. Only those who know the specific added value – such as time savings, quality improvements or cost reductions – can measure success. When data protection and accountability are unclear: Caution is particularly advised when dealing with sensitive information. Companies should know exactly where data is processed and who has access to it. Our advice: understand first, then automate. After all, AI is not an end in itself, but a tool. Prerequisites for the effective use of AI For AI to deliver its full benefits, three things are essential: data, people and objectives. These form the foundation for any successful application and determine whether AI genuinely helps in day-to-day operations or remains merely a potential. Data as the foundation: Only those who understand and integrate their data can deploy AI in a targeted manner. An interconnected IT landscape – for example, between ERP, CRM and WMS systems – is the basis for this. Involving staff: AI changes work processes.

An SAP Business One alternative for e-commerce: a comparison of collana diva now

Home SAP Business One is SAP’s entry-level ERP system for small and medium-sized enterprises and is used across many sectors. Nevertheless, online retailers still wonder whether it is the right fit. In discussions with e-commerce companies, we repeatedly hear four reasons: SAP Business One is not primarily designed to meet e-commerce requirements. Multichannel integrations rely on partner connectors, add-ons or in-house development and incur additional costs. Long implementation times hinder agile growth. Licence and customisation costs mount up when the system needs to be adapted to retail processes.   Anyone wishing to avoid these customisation costs from the outset should choose a system that already includes the necessary retail functions. One such alternative is collana diva now, our cloud-native ERP solution for e-commerce based on Microsoft Dynamics 365 Business Central. SAP Business One vs. collana diva now A direct comparison of the categories highlights where the systems differ. Comparison as at November 2025 Feature SAP Business One collana diva now E-commerce integration Via partner connectors, add-ons and custom programming Pre-configured interfaces and modules Implementation time 8 to 12 weeks, depending on scope (project-dependent) Costs according to publicly available information Perpetual licence from €1,140 per user (Starter, depending on the package); Cloud subscription from €38 per user per month (Starter, teams of up to 5 people), from €91 per user per month (Professional). Costs for hosting, customisation, maintenance and support are additional. (Third-party figures) From €158 per user per month plus additional modules (see product page for available modules) Updates and maintenance: Chargeable projects; Automatic and at no extra cost; Cloud-first; Added subsequently; Cloud-native from the ground up; API flexibility: Limited; Open REST APIs. All information regarding SAP Business One is based on publicly available information (as at October 2025) and is provided for general guidance only. SAP does not publish a binding price list; terms and conditions are set by certified partners. „SAP Business One“ and „SAP“ are registered trademarks of SAP SE. These names are used solely for comparison and information purposes. E-commerce functions SAP Business One is designed for use across all sectors. collana diva now was developed for e-commerce, with integrated processes for purchasing, sales, stock and accounts. An overview of four areas. Multichannel management Centralised connection to and control of online shops Automatic real-time stock synchronisation Control of prices and offers by customer segment Fulfilment automation Dropshipping and just-in-time possible Configurable order rules based on availability Integration with delivery service providers via API and EDI, including dispatch and tracking data Invoice processing Returns management Fast returns processing with credit notes in the system Restocking and real-time stock updates Purchasing and sales Automated replenishment planning and optimised stock levels End-to-end document chains, product and customer histories Planning of marketing activities, campaigns and terms and conditions Business processes can also be automated and standardised. Thanks to the cloud, you can access your data at any time. The Microsoft advantage as a foundation: collana diva now is based on Microsoft Dynamics 365 Business Central, Microsoft’s cloud-based ERP. This brings tangible benefits: a tried-and-tested system with future-proof development, direct integration with Microsoft 365 (Teams, Excel, Outlook), Power BI analytics, the Azure cloud infrastructure, and support from Microsoft and a large community. Should your business outgrow the current scope of functionality, collana diva offers the next level of expansion on the same platform. Migration in four phases: The transition from SAP Business One to collana diva now follows a set process. You’ll be up and running in 8 to 12 weeks (depending on the project). Consultation and kick-off: During a no-obligation initial meeting, we get to know your business and you get to know our system. If you decide to go with collana diva now, we’ll draw up a roadmap. Analysis and mapping: We analyse your processes and data quality, and accurately map master data as well as document and tax logic to the new system. Customisation and data migration: Profiles, documents, price lists and configurable business rules are set up. We then migrate master data and selected open transactions. Training and go-live: Testing and training for key users and teams pave the way. Your data then goes live, and we remain by your side until everything is running smoothly. If you are still at the early stages of selection, our ERP orientation and selection workshop will help you make your decision. We have compared other systems in our articles on alternatives to Xentral, weclapp and Odoo. E-commerce integrations in collana diva now With collana diva now, you can use all the necessary platforms within a single system, including: Shop systems and online shops (e.g. Shopify) Payment providers (e.g. PayPal via collana pay) Parcel delivery providers (e.g. DHL) CRM, Power BI and other applications FAQ: Frequently asked questions about switching from SAP Business One What happens to my SAP data during the switch? Your data from SAP Business One will not be lost. We will transfer master data, open documents, balances and all other relevant data. We provide historical data as required, either via the migration of selected time periods or through an audit-proof archive. My staff are only familiar with SAP. How easy is the transition? The transition is prepared for through training sessions for key users and teams in Phase 4. Added to this is the familiar Microsoft environment: anyone who works with Excel, Outlook and Teams will quickly find their way around the interface. Can anything go wrong when switching ERP solutions? The structured four-phase process minimises the risk. Before go-live, we test all processes together, and our team supports the launch until the system is running smoothly. Does collana diva now offer all the functions that e-commerce businesses need? Yes, the solution covers multi-channel management, fulfilment, returns, purchasing, sales, payment processing and accounting. The LabelPort dispatch module and the collana pay payment hub are integrated. What size of business is collana diva now suitable for? collana diva now is aimed at e-commerce businesses, start-ups and SMEs with a focus on growth. Modules and the number of users scale with the business. Which solution is right for your business? SAP Business One is an established solution for medium-sized businesses seeking the SAP ecosystem and budgeting for customisation. For those growing in e-commerce who want a cloud-native system with pre-configured retail processes, an integrated payment hub and a predictable go-live within 8 to 12 weeks, collana diva now offers a strong alternative. Share this article X LinkedIn Facebook WhatsApp Our latest news Which solution is right for your business? Would you like to see the solution in action? Book a free migration consultation with our ERP experts.

Understanding lead time: definition, calculation and practical examples.

Home Page Companies in the production and manufacturing sectors know that there are more factors contributing to success than just quality. Time, for example, also affects efficiency, competitiveness, costs, logistics, customer satisfaction and other aspects. A key performance indicator in this context is therefore lead time. What exactly does this term refer to? Why does this indicator play a crucial role in both manufacturing and logistics, and why should you not neglect to measure it? This article provides an overview of the topic and answers to these questions. Lead time: The essentials in brief Lead time is a key performance indicator that reflects the duration of production for an order. Lead time comprises components such as waiting time (dwell time), processing time, transport time and set-up time. A long throughput time is detrimental to a business, whilst short throughput times can, for example, help you reduce costs and improve your market position. ERP systems such as diva now can help improve processes and reduce throughput time by providing key data and real-time insights. Definition: What is throughput time? Throughput time is a key performance indicator in production processes and in warehousing. According to the original definition, throughput time refers to the time taken to complete a product, from start to finish. In other words: throughput time measures the production process of a manufacturing order. It has its origins in manufacturing. However, other sectors now also utilise it for process optimisation (e.g. in services or warehouse processes). It is not, however, limited to a single time span relating purely to manufacturing. Instead, various parts of the process play a role here: from receipt and preparation, through execution, to completion. Production planning Which phases are included in lead time? Let’s take a closer look at which components count towards lead time within the context of an order: Set-up time: Set-up time is the period required by companies to prepare and adjust the machine. This also includes data input. Processing time: Processing time includes all periods during production when you are actually processing the product. Waiting time (downtime): The terms ‘downtime’ or ‘waiting time’ refer to the period during which you cannot continue with the order. For example, the product may be waiting for the next available machine. Transport time: Transport time is the duration a product spends being moved within the factory (e.g. by forklift trucks, machines and conveyor belts). Storage time: This is the time that semi-finished goods or products spend in storage after manufacture. Additional time: This encompasses all the time required in addition to the process times. For example: inspection times or test runs. What is the significance of lead times for businesses? Businesses should never lose sight of lead times. A long lead time, for example, ties up a larger amount of capital, can reduce customer satisfaction, increase storage costs and even cause bottlenecks. A short lead time, on the other hand, offers many advantages. It can reduce a company’s costs (e.g. lower capital tie-up costs), increase customer satisfaction, speed up the supply chain and improve competitiveness. Further benefits include increased productivity and flexibility, enabling companies to respond more quickly to new market conditions. An example of calculating lead time in practice To calculate lead time, you can use one of the following formulas: Lead time = Order delivery date – Order receipt date Lead time = Set-up time + Processing time + Dwell time + Transport time + Storage time + Additional time A practical example illustrates the lead time involved in manufacturing a shelf: Process step Time component Time required Adjusting the machine to a specific saw width and loading the saw blades. Set-up time 10 minutes Cutting the individual wooden boards to size Machining time 30 minutes Transport to the next machine Transport time 5 minutes Sanding and drilling the holes for the screws Machining time 15 minutes Transport to the next machine Transport time 5 minutes Varnishing the boards Processing time 10 minutes Drying the boards Dwell time 12 hours Screwing the boards together to form the shelf Processing time 30 minutes Quality control Additional time 5 minutes Storage until dispatch Storage time 2 days Total lead time 2 days, 13 hours, 50 minutes How can the lead time be reduced? Optimising or reducing the lead time brings companies a host of benefits. To improve this, however, you should not only be familiar with the figures, but also focus on the right measures. This includes taking a close look at production control. This allows you to identify bottlenecks and compare the processing times of individual items. An ERP system provides all the necessary data for this and also enables real-time monitoring, so that you can react quickly. To optimise production, you can also use more efficient and high-performance machinery. These machines can carry out work processes more quickly, automate manual processes or perform several work steps simultaneously. In practical terms, this means you can reduce both processing time and transport time. You should also not neglect the further training of your staff. Training can help them improve individual work steps, achieve higher productivity and identify opportunities for process improvement. This also helps prevent errors and disruptions that can increase lead times. Track and measure lead times with collana diva now Would you like to improve your lead times? diva now can help you do just that! The ERP system can provide you with real-time data on various times, statuses, components and items. Gain complete transparency, identify potential for process improvement and benefit from reports and analyses. However, by using an ERP system such as collana diva now, you’ll enjoy even more benefits: reduce your costs and secure a competitive advantage. Bottlenecks are a thing of the past, and customer satisfaction can only go one way: up! By integrating with other systems, you can also optimise your stock management. Share this article X LinkedIn Facebook WhatsApp Our latest news Best Choice for smart businesses Contact us and we’ll find a bespoke solution for your business.

Calculating the cost of goods sold: A practical guide and helpful examples

Home Cost of goods sold is a key financial metric and plays a crucial role for businesses in the retail sector, manufacturing and other industries. By calculating your cost of goods sold accurately, you can analyse your costs, optimise them and thereby increase your profit. In this article, you will learn everything you need to know about calculating the cost of goods sold, its definition, the cost of goods sold ratio, and practical tips for optimisation. Key points at a glance: Cost of goods sold – Definition: The cost of goods sold describes the cost of goods sold or materials consumed during a specific period. It is a key financial metric in accounting and is recorded in the profit and loss account (P&L). Calculating cost of goods sold – formula: The calculation is carried out using the formula: Cost of goods sold = Opening stock + Additions – Closing stock This provides information on how much was spent on sales or production. Significance of the cost of goods sold: The cost of goods sold is crucial for cost control, pricing and determining gross profit within a company. An accurate calculation helps to assess profitability. Difference from the cost of goods sold ratio: The cost of goods sold ratio represents the relationship between the cost of goods sold and turnover. It is used to assess a company’s efficiency and to make industry comparisons. Optimising cost of goods sold with collana diva now: With the collana diva now ERP solution, businesses can efficiently manage their stock, production and material costs. Automated processes and real-time data help to reduce the cost of goods sold in the long term. What is meant by cost of goods sold? Cost of goods sold describes the costs incurred by a company for goods sold or materials used in production over a specific period. This key figure is crucial for tracking material costs and assessing efficiency in the use of resources. The cost of goods sold is usually calculated in the profit and loss account (P&L) and is recorded on the debit side of the P&L account. The definition encompasses both the opening stock of goods and additions, as well as the closing stock. Why is the cost of goods sold important? Cost of goods sold is not just a figure, but a basis for business decisions. Accurate calculation of cost of goods sold is essential because: Cost control: By analysing the costs of goods and materials, companies can identify inefficient processes. Profit and Loss Account (P&L): The cost of goods sold is directly included in the P&L and influences the reported profit. Pricing: The cost price is crucial for calculating the optimal selling price and, consequently, turnover. Improved efficiency: With an accurate overview of the cost of materials, resources can be utilised more efficiently. The formula for calculating cost of goods sold The basic formula for the calculation is: Cost of goods sold = Opening stock + Additions – Closing stock Where: Opening stock: The quantity of goods at the start of the period. Additions: All goods added during the period. Closing stock: The quantity of goods still in stock at the end of the period. This formula forms the basis for calculating the cost of goods sold, whether in manufacturing or in the retail sector. Practical example: Calculating the cost of goods sold Let us assume a company has the following figures, which we will use to calculate the cost of goods sold: Opening stock: €10,000 Purchases: €50,000 Closing stock: €15,000 The cost of goods sold is calculated as follows: Cost of goods sold = €10,000 + €50,000 – €15,000 = €45,000 In this example, the cost of goods sold amounts to €45,000. This figure shows how much the company has spent on goods sold or consumed during the period. Cost of goods sold vs. cost of goods sold ratio. The cost of goods sold alone is often not sufficient to assess a company’s profitability. This is where the cost of goods sold ratio comes into play. It describes the ratio of the cost of goods sold to turnover and is calculated as follows: Cost of goods sold ratio = (Cost of goods sold / Turnover) × 100 A low cost of goods sold ratio indicates that a company has its costs well under control. Depending on the sector, the ratio is typically around 20–40 %, although manufacturing companies often have higher figures. The significance of cost of goods sold in the profit and loss account The profit and loss account provides information on a company’s performance during the financial year. Cost of goods sold is recorded on the debit side of the profit and loss account as cost of materials. This item is important for calculating gross profit and thus determining the contribution to the company’s overall performance. How can the cost of goods sold be reduced? Optimising the cost of goods sold can therefore have a positive impact on the cost structure and profit. This raises the question: where exactly can companies take action? Optimise stock management. Optimised stock management is essential for minimising losses due to spoilage, theft or overstocking. Regular stock-takes help to keep track of current stock levels and respond early to potential sources of shrinkage. Efficient stock management can also save space and reduce storage costs. Strengthen supplier relationships. Good relationships with your suppliers can reduce the cost of goods in the long term. Negotiate discounts, better payment terms or volume discounts to lower the cost price of your goods. A long-term partnership with reliable suppliers also ensures stable supply chains and reduces risks. Adjust production. In manufacturing facilities, it is important to optimally align the quantity produced with demand. Overproduction leads to increased stock costs and tied-up capital. By carefully planning unit quantities and production volumes, businesses can significantly reduce the costs of materials and storage. Utilise automation. Modern software solutions such as our collana diva now enable the automation of inventory management and the calculation of the cost of goods sold. These solutions allow you to keep track of stock levels, goods received and goods dispatched in real time. Automated processes save time, minimise errors and thus contribute to the long-term optimisation of your overall cost structure. Frequently asked questions about the cost of goods sold What is the difference between the cost of goods sold and the cost of materials? The cost of goods sold refers to goods in retail, whilst the cost of materials covers raw materials and consumables used in production. How often should the cost of goods sold be calculated? The calculation is usually carried out at the end of a financial year, but can also be done quarterly or monthly. How does the cost of goods sold influence pricing? The cost price of the goods forms the basis for calculating retail prices in order to ensure a profit margin. Share this article X LinkedIn Facebook WhatsApp Our latest news Calculate the cost of goods sold easily with collana diva now This ERP solution is specifically designed to meet the requirements of e-commerce and offers flexible scalability to support your growth.

Advantages and disadvantages of a consignment warehouse

Home Page Companies and manufacturers often face a balancing act: on the one hand, there must be sufficient space for goods, spare parts or frequently required components. On the other hand, storage costs and risk should be kept as low as possible. Building your own goods or spare parts warehouse is therefore not always cost-effective. A modern alternative is the consignment warehouse – a form of storage in which the goods are stored at the customer’s premises but remain the property of the supplier until they are collected. Sounds practical? It often is – but not always. In this article, we’ll outline the key advantages and disadvantages of a consignment warehouse, explain when this storage model is worthwhile, and offer tips on how to set up a consignment warehouse successfully. What is a consignment warehouse? A consignment warehouse is a specialised warehouse set up by the supplier in the immediate vicinity – or even directly on the premises – of the customer, and operated at the supplier’s own expense. The goods stored remain the property of the supplier until they are removed, paid for or an agreed period expires. As a rule, a retention of title applies, meaning that ownership only passes to the customer upon removal. As soon as the customer removes items from the warehouse, the consumption is recorded and the supplier automatically issues an invoice. In this context, you will often come across the following terms in practice: Term Explanation Consignor This is the term used to describe the supplier who provides the consignment warehouse. Consignee: The customer or recipient who removes goods from the consignment warehouse. Consignment goods: Term for the goods in the consignment warehouse – derived from „consignment warehouse“. Consignment warehouse: an overview of advantages and disadvantages A good example of flexible warehouse automation is automated conveyor systems – these are available in various designs and can be perfectly adapted to your warehouse system: Belt and roller conveyors: Ideal for transporting pallets, cartons or containers. These modular systems are easy to integrate and ensure a steady flow of goods. Vertical conveyor systems: Connect different warehouse levels – from floor to ceiling. This allows you to make efficient use of your entire warehouse space without having to extend the building. A consignment warehouse can bring many benefits for businesses – such as reduced storage costs, greater flexibility and improved stock availability. However, potential drawbacks should also be taken into account when making a decision. Here is an overview of the key pros and cons at a glance: Advantages of a consignment warehouse: No investment in your own warehouse infrastructure is required – no need for your own warehouse building, staff or equipment. Immediate availability of frequently required parts (e.g. common consumables or operating materials), as the warehouse is located in the immediate vicinity. Lower risk for the purchasing company – the risk of expiry or obsolescence usually lies entirely with the supplier. Quality assurance provided by the supplier – the goods remain the property of the supplier until they are withdrawn. No capital tie-up costs – goods are only paid for upon withdrawal. Less administrative effort – the warehouse is managed by the supplier, allowing you to focus on your core business. Disadvantages of a consignment warehouse: Longer contractual commitment – you are often tied to the same supplier for an extended period. Time-consuming selection process – searching for, comparing and negotiating with suitable suppliers can tie up time and resources. Price increases by the supplier are possible – particularly with longer contract terms or exclusivity. Limited flexibility – switching to other suppliers during the contract term is often difficult. Additional service fees – consignment models can be more expensive due to logistics or administrative costs. Advantages and disadvantages from the warehouse operator’s perspective There are also specific advantages and disadvantages for the supplier – that is, the operator of the consignment warehouse. Advantages for the supplier: Greater customer loyalty: The consignment warehouse fosters a close business relationship that secures long-term customer loyalty. Competitive advantage: The additional service provides an edge over other suppliers. Planning certainty: Thanks to transparent stock movements, sales planning can be managed more effectively. More efficient distribution: Customers’ direct access to the goods can reduce the workload involved in distribution. Disadvantages for the supplier: High capital tie-up costs: The goods are held by the customer but remain the property of the supplier – this ties up capital. Ownership risk: Design changes, technical developments or obsolescence may mean that stored products have to be replaced at the supplier’s own expense. Risks of loss and liability: Damage, theft or loss of goods in the consignment warehouse is usually borne by the operator. Additional administrative burden: Operation and stock monitoring require a reliable IT infrastructure and clear processes. When does it make sense to set up a consignment warehouse? A consignment warehouse can be a sensible solution for both large corporations and small and medium-sized enterprises (SMEs) – particularly if the storage of parts or products needs to be flexible, low-risk and without major initial investment. This form of warehousing is particularly attractive for companies dealing in perishable goods. In such cases, the risk of spoilage and the costs of replacement parts can largely be transferred to the warehouse operator. A consignment warehouse also offers a high degree of flexibility for seasonal items that are only required during specific time periods. The same applies to companies for which the immediate availability of parts and materials is crucial – or where consumption is difficult to predict. SMEs in particular benefit from not having to set up their own storage space or invest in additional staff. Instead, projects can be implemented more quickly, whilst the company can continue to focus on its core business. Furthermore, there are two other scenarios in which a consignment warehouse can be worthwhile: Manufacturing businesses with multiple suppliers can create an effective supplier logistics centre through a central consignment warehouse. And companies operating internationally – particularly those with customers in other EU countries – also benefit from shorter delivery routes and reduced customs formalities.   What is a supplier logistics centre? A supplier logistics centre is a shared consignment warehouse operated by several suppliers – specifically for a single company or group of companies. The advantage for the company receiving the supplies is clear: it receives all the parts and materials required for production centrally from a single location, which significantly simplifies logistics, planning and supply security. The suppliers involved, in turn, may be able to share storage costs and infrastructure expenses, thereby increasing cost-effectiveness for all parties.