Industry:
Retail ERP, Wholesale & Distribution
Country:
Global
Website:
naot.com
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.
centralized system
export markets
visibility into global operations
As Naot expanded globally, the limitations of existing systems became critical obstacles. Idan Dahan, Commercial Vice President, describes the central challenge: “One of our biggest challenges was connecting all of our companies to one global system.” The company operated with a fragmented technological infrastructure that included three separate systems: two different ERP systems and a separate POS system. This fragmentation created multiple challenges:
Lack of data uniformity: Each system held different data, making it difficult to obtain a complete and accurate picture of the global business.
Operational complexity: Employees had to work with different systems, transfer information between them, and overcome incompatibility using numerous Excel files.
Limited control: It was difficult to manage and control global operations from Israel when each country or region operated on a different system.
Diverse needs: According to Idan Dahan, Naot was looking for “a solution for our points of sale as well as for logistics, finance, and manufacturing” – a comprehensive solution that would cover all aspects of the business.
Training complexity: Different systems were complicated to operate and required separate training, which slowed down the onboarding of new employees and made organizational knowledge management difficult.
The challenge was to find a solution that would unite all global operations, provide comprehensive capabilities for all business areas, and enable central control while maintaining local flexibility.
Naot chose Priority as its global ERP solution, providing a unified system that covers all the company's global operations from the manufacturing stage through the supply chain to end-store management.
Unification into one global system: Idan Dahan relates, “Thanks to the Priority system, we organized everything into one system without separate interfaces that speaks the same language to all of our users.” This approach of using one centralized system, without complex interfaces, ensures smooth communication and consistent data for all global locations.
Comprehensive solution for all business areas: Priority provided all the required functionality: a point of sale (POS) solution, a logistics solution to manage the global supply chain, a financial solution for unified accounting management, and a manufacturing solution that manages production processes.
One unified database: “Priority was able to put everything into one system, into one database” – explains Keren Telias. This means all information – sales, inventory, manufacturing, finances – is in one database, accessible to all authorized users around the world.
Central control with global access: The system allows Keren Telias and the management team to control “everything from here in Israel, we have quick access to everyone's system.” This provides central control while enabling each location to operate efficiently.
Uniformity in processes and reporting: The advantage of one system is “the same language, the same reports, the same order and organization within the system: one world.” This ensures all locations operate according to the same processes and standards, which facilitates management, comparison, and decision-making.
User-friendly interface: Keren Telias emphasizes: “I love that Priority is user-friendly. Even if someone didn't know the system before, they can figure it out on their own, it's so easy, so intuitive, it's really very simple.” This intuitive interface is critical for a global company with many users at different knowledge levels.
In-depth characterization: Keren Telias identifies a critical success factor: “The most intelligent and most important things is proper, in-depth characterization, in collaboration with Priority. That was the key to our success.” Investment in accurate planning and characterization in collaboration with Priority ensured the system meets Naot Footwear's needs precisely.
The implementation of Priority ERP provided comprehensive operational improvements that positioned Naot Footwear for sustained growth while eliminating data fragmentation and improving decision-making capabilities.
Naot Footwear achieved a fundamental transformation in managing global operations through Priority ERP implementation. The company eliminated three separate systems (two ERP systems and a POS system) and many Excel files, and established one unified database accessible to all stakeholders. This unification enables central control from Israel with immediate access to all global location activities. The system provides a comprehensive solution for points of sale, logistics, finance, and manufacturing, all operating in the same language with the same processes and reports. Priority's intuitive interface saved significant time in training new employees, and the system's advanced capabilities provide infrastructure for sustained growth in global markets.
Priority delivered Naot's central goal of unifying fragmented systems. Keren Telias, CFO, describes the change:
“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
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.
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
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.
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.”
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.
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.”
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
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
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.
“The most intelligent and most important thing is proper, in-depth characterization, in collaboration with Priority. That was the key to our success.”
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.
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.
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.
“We discovered that a strong ERP is a strong company, and that it enables our growth moving forward.”
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.
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.
“We're constantly looking for new markets to enter and bring tidings of comfort to.”
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.
Priority strengthened Naot Footwear's position as a global brand while preserving its Israeli roots:
Priority enables Naot Footwear to live its core values:
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.
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