Teva Naot Company began its journey 80 years ago in Kibbutz Naot Mordechai in Northern Israel when the small workshop developed over the years into a shoe manufacturing plant and became the country's first brand to operate in the comfort footwear category. In 1986, the company entered the comfort footwear market and positioned itself as a quality shoe brand, combining handcrafted production with advanced technologies, and in 1989 broke into international markets under the Naot brand name. Today, Naot is a global company that exports to the United States, Canada, Australia, Japan, Singapore, and additional markets around the world.
Key results at a glance
centralized system
export markets
visibility into global operations
“We had three systems: two ERPs, a POS system, and a ton of Excel files to overcome all of this. And Priority was just able to put everything into one system, into one database.”
Keren Telia, CFO, Naot Footwear
Two different ERP systems, a separate POS system, many Excel files to bridge between systems
One unified system
Inconsistent data between systems
Consistent and accurate data
Difficulty getting clear visibility of the full business
Complete visibility in real time of the global business thanks to one database that connects all information
Need for manual information transfer between systems
Automatic information transfer between modules and global companies
Compatibility challenges and data transfer errors
Improved data reliability
Operational impact:
The unification of all systems into one database fundamentally changed the way Naot Footwear operates. Sales teams can now access inventory information in real time without dependence on a separate POS system. Manufacturing teams see sales orders directly without manual transfers, accounting receives financial data automatically from all operational activity and management can analyze performance across all global locations with consistent data.
Global control: Centralization with flexibility
Priority transformed Naot Footwear's global management capability. Keren Telias emphasizes:
“I have control of everything from here in HQ, we have access to everyone's system.”
Keren Telias, CFO, Naot Footwear
Limited control over remote locations
Full central control from HQ
Dependence on local managers for information
Immediate access to data from all locations
Delayed reporting from different regions
Real-time reporting from around the world
Difficulties in coordination between locations
Smooth coordination between locations
Each location operates differently
Standardized processes in all locations
Difficulty enforcing global standards
Enforcement of global policy
Strategic value:
The ability to control and monitor global operations from HQ provides multiple strategic advantages. Management can identify trends in different markets and transfer successful work methods between locations. Problems can be identified immediately and addressed before they spread. Global inventory management allows inventory transfer between regions according to demand. Strategic decisions are based on complete and up-to-date data from all markets.
For a company that exports to the US, Canada, Australia, Japan, Singapore and is seeking new markets, this central control is critical for efficient expansion and maintaining the quality and uniformity of the Naot brand worldwide.
Operational uniformity: “Same language, same reports”
Priority created operational uniformity that was not possible with multiple systems.
“The same languages, the same reports, the same order and organization within the system: one world.”
Keren Telias, CFO, Naot Footwear
Advantages of uniformity
- Uniform business language: All locations use the same terminology, the same codes, the same data structure. This eliminates confusion and enables clear communication between teams in different countries.
- Standardized reports: The “same reports” means a manager in the US sees the same type of report as a manager in Japan. This enables meaningful comparisons, identification of best practices, and decisions based on consistent data.
- Standardized processes: The “same order and organization” ensures all locations execute processes the same way – from order receipt through production to shipping and accounting. This reduces errors, facilitates training, and ensures consistent quality.
Impact on growth
This uniformity is critical when Naot Footwear “is constantly looking for new markets to enter.” Entering a new market is easier when proven processes from existing regions can be replicated, and the same technological system can be used without the need to implement new systems or develop interfaces.
Ease of use: Fast onboarding and learning for new employees
Priority provides an intuitive interface that significantly accelerates employee onboarding.
“I love that Priority is user-friendly. Even if someone didn't know the system beforehand, they can figure it out on their own, it's so easy, so intuitive, it's really very simple.”
Keren Telias, CFO, Naot Footwear
Long training and onboarding to multiple systems
Short and quick training on one system
Steep learning curve
Moderate learning curve
Dependence on experienced users
Quick independence for new users
New employees not productive for weeks/months
Quick productivity for new employees
High training costs
Reduced training costs
Comprehensive solution: Covering all business areas
Priority provided the comprehensive functionality that Naot Footwear required.
“We looked for a solution for our points of sale as well as for logistics, finance, and manufacturing.”
Idan Dahan, CCO, Naot Footwear
Point of sale (POS):
- Retail sales management
- Integration with real-time inventory
- Multi-method payment processing
- Sales analysis and purchasing patterns
- Multi-currency support for global operations
Logistics solution:
- Global inventory management
- Supply chain planning and control
- International shipping management
- Inventory level optimization
- Product tracking worldwide
Financial solution:
- Global consolidated accounting
- Multi-currency financial reporting
- Cash flow management
- Cost control and profitability analysis
- Compliance with local regulations in each country
Manufacturing solution:
- Production planning and scheduling
- Raw materials and component management
- Quality control
- Manufacturing process tracking
- Production workforce management
Integration value:
The real advantage is that all these solutions are integrated in one system. When a shoe is sold in a store in the US, inventory is updated automatically, the manufacturing need may be updated in the Galilee, and the profit is recorded in accounting. Everything in real-time, without manual data transfers or complex interfaces.
Flexibility and partnership: Keys to success
“The most intelligent and most important thing is proper, in-depth characterization, in collaboration with Priority. That was the key to our success.”
Keren Telias, CFO, Naot Footwear
Importance of characterization:
Investment in accurate planning and characterization at an early stage ensured the system meets Naot Footwear's needs precisely. Instead of starting with a basic implementation and discovering limitations later, the in-depth characterization enabled Naot Footwear to plan a comprehensive solution that covers all requirements.
Collaboration with Priority:
The collaborative work with Priority ensured the solution is adapted to Naot's unique processes: handcrafted production integrated with advanced technologies, global management, diverse markets with different requirements. Priority's experience in the retail and manufacturing sector was combined with Naot Footwear's knowledge in the footwear industry to create an optimal solution.
Flexibility for the future:
The system not only meets current needs but is planned for the future. As Naot Footwear continues to expand into new markets, Priority can expand with it, supporting additional currencies, additional languages, and different regulatory requirements.
Growth and stability: Infrastructure for the future
“We discovered that a strong ERP is a strong company, and that it enables our growth moving forward.”
Idan Dahan, CCO, Naot Footwear
Stability:
The choice of Priority was not only about current functionality but also about stability and continuity. A “strong company” ensures that Naot Footwear's investment will be preserved, that the product will continue to develop, and that support will be available long-term.
Opportunity for growth:
Priority provides the infrastructure for Naot Footwear's expansion plans. The system supports entry into new markets, addition of sales channels, expansion of product lines, and volume growth without the need for structural changes to the system.
Support for the company's vision:
“We're constantly looking for new markets to enter and bring tidings of comfort to.”
Idan Dahan, CCO, Naot Footwear
Priority enables them to do this efficiently, with standardized processes that can be replicated, unified data for decision-making, and central control that ensures each new market is coordinated with the global strategy.
Competitive positioning and vontinuation of tradition
Priority strengthened Naot Footwear's position as a global brand while preserving its Israeli roots:
- Operational excellence: Efficient processes and accurate data support price competitiveness while maintaining margins.
- Leading customer service: Quick access to information and uniform processes improve customer satisfaction.
- Consistent quality: Standardized processes across all locations ensure every Naot shoe meets the same quality standards.
- Growth in new markets: Flexible infrastructure enables quick entry into new markets while preserving tradition: ability to continue manufacturing in the Galilee while managing global operations.
- Israeli brand uniqueness: Naot successfully combines its Israeli tradition (80 years, manufacturing from the Galilee) with sophisticated global operations.
Supporting company values
Priority enables Naot Footwear to live its core values:
- Honesty, integrity and respect: Accurate and transparent data support ethical decision-making.
- Family atmosphere and teamwork: A shared system strengthens the sense of “one world” and collaboration between locations.
- Innovation: Advanced technology supports creative thinking and continuous improvement.
- Purpose-driven determination: Real-time data enables focus on goals and progress tracking.
- Open-mindedness: System flexibility allows adaptation to different requirements in different markets.
- Commitment to high quality: Standardized processes and central control ensure quality.
Priority ERP transformed Naot Footwear from a company struggling with fragmented systems and operational complexity into a unified, data-driven organization with infrastructure for sustained global growth. As Keren Telias summarizes: “Priority took everything into one software, one database, and today I control everything from here in Israel… one world.”
This unification, combined with the user-friendly approach and support for all business areas, provides the operational infrastructure Teva Naot needs to continue bringing the Israeli comfort tradition to new markets around the world, while maintaining commitment to 80 years of excellence in manufacturing and service.
“We discovered that a strong ERP is a strong company, and that it enables our growth moving forward.”
Idan Dahan, CCO, Naot Footwear