‘MAJOR DIFFICULTIES WITH SOFTWARE’ BLAMED FOR POOR RESULTS AT LIQUI MOLY

The introduction of new company software has been blamed for mixed half-year results at lubricant manufacturer Liqui Moly.

Problems with the suite have had a ‘direct impact on business relations’  according to the company, leaving customers frustrated.  “In my entire professional career, I have not had to apologize so often to customers, as I have had to in the last six months. The level of service that we are currently delivering really pains me,” says Ernst Prost. The company is also incurring considerable extra costs, for example, because containers can only be half filled, delivery vehicles have to wait longer than planned to be loaded, or air freight needs to be used when items that are needed urgently do not arrive by ship in time. “It’s not our customers’ fault that we are having problems, so we are doing everything we can to minimize the impact on them and to bear any additional costs.” These expenses are not the whole story either. “In addition to the huge cost of having the software installed, every day produces new things to trouble shoot and problems to solve.”

READ: LIQUI MOLY ACQUIRED BY WURTH GROUP

All of this has left significant tracks in the company’s figures. Compared to the first half of 2018, turnover has fallen slightly by 0.8 percent to € 259.6 million, and this is only because the high backlog of orders cannot be fully processed due to the computer problems. Earnings for the half-year fell by around 30 percent to € 11 million. “I never would have thought that in 2019 a change of software could send a whole company skidding off the road” concluded Prost.

The company hopes to have the computer problems under control, and a new central warehouse in action, ‘by the end of the year at the latest’.

Software causes production delays at plant

 

 

 

 

Published by Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

Behind the scenes at GSF Car Part’s new “title challenging” national distribution hub

500,000sq ft Wolverhampton base services 139 branches with stock “sold by 6pm one day back on the shelves by 8am the next”

Read More

Movers and Shakers: GYS takes on new sales manager

All the latest changes from across the sector, including new roles, promotions, and retirements

Read More

CAT Awards nominations

Taking place in February at Manchester’s Lowry Hotel, the CAT Awards celebrates all of the best in the UK automotive aftermarket

Read More

Government warned to not forget aftermarket as it confirms ZEV consultation

Business secretary Jonathan Reynold announced that Westminster will now consult with car makers to find “options for a better way forward”

Read More

GSF Car Parts partners with Cleevely EV

The partnership will see both parties collaborate on range development and product sourcing

Read More

Go to comments

Your email address will not be published. Required fields are marked *