Kal Tire Latam makes way to the future with Microsoft solutions

Kal Tire is a Canadian capital company founded by Thomas J. Foord in 1953 in Vernon, British Columbia. Its name is a tribute to the famous Kalamalka Lake, nicknamed "the thousand-color lake." The company's businesses focus on selling and providing tire-related services for motor vehicles. The organization is a leader in supplying inputs for the mining business and is present in over 150 fields worldwide.

Today, the Canadian corporation has more than 250 stores and employs more than 6,500 employees around the world. Since the second half of the 20th century, Kal Tire has expanded its operations to different countries in Latin America, Europe, Africa, and Australia.

In 2019, Kal Tire was challenged to implement an ERP system in Latin America. Its purpose was to generate detailed information on the productivity of its various operations in Mexico, Nicaragua, Panama, Ecuador, Colombia, and Chile. To achieve this goal, Microsoft became the company of choice for transformation in managing its data.

Go Live in record time

To optimize the flow of information in its operations, Kal Tire chose Dynamics 365 for Finance & Operations and Power BI solutions. Between August 2019 and January 2020, the company implemented the new ERP tool, collaborating with ATX Business Solutions—a Microsoft Gold Partner—for support services in the implementation of enterprise solutions.

The joint effort and implementation of Microsoft solutions in record time resulted in an update and fusion of information that ultimately generated an online data mining platform. These efforts add even more value to Kal Tire's working dynamics, fueling its demand for access to the different kinds of information housed in its data banks.

Detailed information online

For Pedro Gálvez Callejas, CFO of Kal Tire Latin America, Microsoft has been the right answer for the company which is constantly expanding. Gálvez recounts that before the use of Dynamics 365 for Finance & Operations: "Each country had its own ERP systems. Reporting with detailed, online information, in conjunction with tax compliance and electronic invoicing regulations was a challenge for proper data management by corporate finance oversight." The executive reports enabled by the implementation of Dynamics 365—coupled with ATX Business Solutions' work to facilitate—have enabled greater capacity, availability, execution, and support for the entire Kal Tire Latam team.

Juan Antonio Blanco, CEO at ATX Business Solutions, adds: "Kal Tire's challenge was based on the unification of information across countries, given the characteristics and peculiarities of each one." He adds, "the ability to extract information from Dynamics 365 to Power BI allows the customer to get reports quickly given the complementation that exists between the two solutions. Power BI and Dynamics 365 have a totally native interoperation." 

Continuity during the pandemic

According to Kal Tire Chile's Finance & Administration Manager, Héctor Bravo Vásquez, the use of Dynamics 365 and Power BI has delivered remarkable results in terms of productivity and customer service. He highlights that Microsoft systems enable faster reporting with real-time strategic information. This has become relevant to decision-making. "The benefits have been tangible since March 2020. Even in the pandemic period, Kal Tire has been able to keep its operations running normally," Bravo says.

Carlos Madrid Valencia, Finance Manager for Kal Tire Mexico, explains, "Using Dynamics 365 allows for clear and immediate visibility into the company's economic operations, so monitoring becomes more efficient. Our learning has been that this reality has been sustained even during times of COVID-19. Our productivity as a financial and operational area has definitely increased despite being in the midst of a global pandemic." 

Project expansion

Looking ahead, Kal Tire estimates that within two years it will see a financial return relative to its technology investment. Likewise, it is mentioned that the positive impact will cover all levels of its operations, from administrative and commercial sectors to productive and operational sectors.

The success of the implementation of Microsoft Dynamics 365 for Finance & Operations—and its integration into Power BI—has resulted in impact and transformation for Kal Tire. With the support of ATX and Microsoft, today Kal Tire can achieve more and take on new challenges. This alliance has narrowed to develop future actions that will allow Kal Tire to continue its expansion into other markets worldwide.