How Kährs is building on 160 years of craftsmanship with Dynamics 365, without disrupting operations

Kährs began its journey in the small town of Nybro, Sweden in 1857. Since then, the company has continuously evolved, from producing wooden utility goods, toys and doors to becoming a leading Nordic flooring manufacturer. Throughout that development, its craftsmanship, its connection to Nybro and its ability to innovate have remained central to the business. According to Jonas Bäck, who is director of business development, digital and IT at Kährs Group, this combination is vital to thriving in a changing world:

”To stay relevant, we need to carry our tradition of craftsmanship and heritage forward, while maintaining a strong focus on innovation. We have taken the values that have always defined us and combined them with modern tools, especially digitalization.”

The factory in Nybro remains at the heart of Kährs’ operations. But continuing the company’s development required more than preserving what already worked. Behind the scenes, an ageing ERP system had become a growing operational risk and increasingly limited Kährs’ ability to move forward.

“We were running a very old system that was no longer being developed. Ultimately, we had no choice but to take action,”  says Jessica Wolmhed who is operations controller at Kährs.

The system was no longer supported or developed. Waiting was not an option. The business needed a platform that could support both current operations and future ambitions.

Replacing the system introduced a different challenge. Kährs needed to make the transition without putting daily operations at risk and achieving that made Carl-Henrik Stenermark, who is chief operating officer at Kährs, nervous:

“I was extremely worried, that whether we would have a system in place that could secure our operations from day one.”

That concern shaped the project from the beginning. Rather than moving directly into implementation, Kährs invested heavily in preparation and risk mitigation.

A pre-study that made the difference

Rather than moving straight into implementation, Kährs recognized that a company of its size needed to invest time in understanding exactly what was required and what steps were necessary to ensure that the implementation of a new ERP system would not impact daily operations or productivity. Together with Cepheo, Kährs made a comprehensive pre-study over more than two years that mapped processes, evaluated requirements and aligned the organization before implementation began.

”The pre-study was extremely important. It allowed us to verify that all the core functionality we depended on was available in the new system,” explains Jessica Wolmhed.

This preparation meant that when the project started, decisions had already been made, key risks had been identified and the organization was aligned.

Adapting the business to the system

One of Kährs’ most important strategic decisions was to build on standard functionality in Microsoft Dynamics 365. Instead of recreating every legacy process in the new platform, the company reviewed its working processes and adapted them where this would create a simpler and more sustainable foundation.

“Instead we have chosen to adapt our ways of working to Dynamics 365. It was a deliberate decision to ensure we can continue to develop and evolve in the future,” explains Carl-Henrik Stenermark.

This helped Kährs limit unnecessary complexity and created better conditions for scaling, updating and developing the platform over time. At the same time, Kährs ensured continuity where it mattered most by avoiding downtime due the implementation and focusing on business processes rather than production processes.

”When I look at day-to-day operations, there has been very little change for employees on the production floor,” says Carl-Henrik. 

A collaboration built on trust and expertise

From the beginning, Cepheo supported the Kährs team as they planned how Dynamics 365 should be implemented. Operations controller Jessica Wolmhed highlights the expertise that Cepheo’s consultants brought to the table, when no clear decision was available:

“We weren't presented with just one solution. We were given several alternatives and then worked together to determine which option was the best fit for our business.”

This approach ensured that Kährs remained in control while benefiting from deep technical expertise.

Jonas Bäck, the director of business development, digital and IT, highlights not just the expertise that Cepheo contributed with but also that the collaboration was constructive and transparent:

”Cepheo is a partner that understands our business and challenges us to not only do the right things, but to do them in the right way. The collaboration is not always frictionless, but we support each other and work together to find the best solutions.” 

Delivered on time and built to last

ERP projects at large companies are often complex and involve multiple stakeholders and dependencies. Despite this, the project was delivered on time. “Very few projects of this scale are completed on schedule. In this case, we met the deadline,” points out Niclas Klarke who is senior service delivery manager at Cepheo with responsibility for Kährs.

The strong preparation and structured approach made the difference ‒ avoiding scope creep and unintended complexities.

Today, Kährs runs on a modern Dynamics 365 platform that provides stability and flexibility across the business.

The impact is visible in everyday business operations and in the confidence it creates. As an example, Jonas Bäck references his IT manager who stated that he now might actually be able to go on vacation without being interrupted by system-incidents.

From implementation to continuous development

For Kährs, the ERP implementation is not the end of the journey with Cepheo.

“I would say the implementation is only the beginning. The really exciting work starts once the system is in place,” says Jessica Wolmhed and notes a level of curiosity in the organization about the new capabilities that Dynamics 365 offers.

With a modern platform in place, Kährs can now focus on the next phase of its digital journey. The organization has a stronger foundation for improving processes, simplifying workflows and exploring new opportunities across the business.

“This investment is about building a modern business and creating engagement across the organization,” says Jonas Bäck and adds: ”It creates the foundation for the continued development of our company.”

Today, the Dynamics 365 implementation represents more than a successful ERP transition. It provides the foundation Kährs needs to continue modernizing the business while maintaining the operational stability the organization depends on.

The collaboration with Cepheo also continues beyond go-live through Cepheo Evergreen managed services. This allows Kährs to combine day-to-day support with ongoing optimization and development as new needs emerge.

After more than 160 years of continuous development, Kährs can continue combining craftsmanship and innovation while evolving the processes and digital capabilities that power the business.

What other manufacturers can learn according to Kährs

• Invest time in a pre-study and make important decisions before moving ahead.  

• Choose standard solutions over customizations. 

• Focus on long-term scalability. 

• Treat implementation as the starting point. 

• Work with a partner who can both support and challenge you.