16. February 2026

Challenge

An outdated ERP system with limited data visibility, no warehouse management capabilities and no support made it difficult for Smekab Citylife to work efficiently and flexibly.

Solution

Ongoing modernization through Dynamics 365 Finance & Operations and Dynamics 365 Sales supported by continuous improvements and close collaboration.

Result

A robust, flexible cloud-based business platform that provides visibility, stable workflows and a solid foundation for adopting AI.

A Nordic city is slowly coming to life. A group of schoolchildren head toward their first lesson of the day, passing the school’s safely enclosed yard where a sturdy railing marks the line between play and traffic. Further down the street, a discreet but effective traffic barrier helps manage car flow while commuters gather at the bus stop and take a brief rest on the benches before the day begins.

 

Every day, across the Nordic region, millions of people pass through safe, functional and welcoming urban spaces like these without knowing that Swedish manufacturing company, Smekab Citylife has delivered the products that make them possible.

 

But an obstacle had started to slow Smekab Citylife’s ability to meet its ambitions.

 

A system long past its expiration date

 

Their old ERP system, Microsoft Dynamics AX 4.0, could no longer keep up with the demands of a modern company, explains CEO Thomas Rydhagen:

 

“We didn’t have any warehouse management in our old ERP system, so we didn’t really have control of our inventory. It was time to switch to something more modern.”

 

IT manager, Fredrik Levin agrees:

 

“The biggest challenge was that the system was no longer supported. We had no choice, we had to do something.”

 

And in 2017, they did.

 

The company’s cloud-based business platform became a combination of Microsoft Dynamics 365 Finance & Operations, Microsoft Dynamics 365 Sales and analytics delivered by their long-term IT partner Cepheo.

 

“Flexibility is a key priority for us. To achieve this, we needed a system we could truly rely on. And now we have one.”

 

Thomas Rydhagen  
CEO, Smekab Citylife

A modern platform with plenty of possibilities

 

The impact has been clear in the years since the platform was implemented, the CEO explains:

 

“We now have a complete system that covers our entire process from sales and marketing to purchasing, production and delivery.”

 

He continues:

 

“We’ve put material management in place with WMS (Warehouse Management System), and we also have the CRM part covered, so information flows more or less seamlessly between the different parts of the company. It gives us better control of the flow from order to delivery. That’s a clear advantage.”

 

In addition, IT manager, Fredrik Levin highlights the benefits of the new business platform:

 

“We’ve gained a much more stable and modern solution that has been continuously updated and improved. This has also allowed us to optimize and simplify our processes and workflows. It’s not as static as it was before. New functionality is added on an ongoing basis, which we can benefit from.”

 

For a manufacturing company like Smekab Citylife, the ability to stay flexible and adaptable is essential:

 

“Flexibility is a key priority for us. We need to be fast and accurate when defining delivery times and adaptable in almost every process. Knowing where things are, having control of the supply chain and so on. To achieve this, we needed a system we could truly rely on. And now we have one,” says CEO, Thomas Rydhagen.

 

A steep learning curve strengthened the partnership

 

Implementing the new business platform also led to some challenging periods and a steep learning curve for both Smekab Citylife and their IT partner, Cepheo.

 

“When we started this project, it was very frustrating,” says CEO, Thomas Rydhagen.

 

“The challenge was that in 2017 the system was still very new, so Cepheo’s consultants also struggled to figure out what functionality existed and how it should work. It was tough and cost a lot of time.”

 

Smekab Citylife learned that even setbacks can be valuable:

 

“We struggled right after the implementation, so it was absolutely crucial that we could rely on Cepheo’s consultants. We ended up working very closely with them to challenge what was ‘need to have’ and what was ‘nice to have’.”

“We’ve gained a much more stable and modern solution. New functionality is added on an ongoing basis, which we can benefit from.”


Fredrik Levin
IT manager, Smekab Citylife

Open and honest communication made the difference

 

One of the consultants that the manufacturing company relied heavily on from Cepheo was service delivery manager (SDM) Jörgen Carlsson. He served as the company’s dedicated, proactive point of contact and was responsible for ensuring a stable, efficient and predictable journey.

 

“As an SDM, I work to make Smekab Citylife’s journey easy. They should be able to come to us, and we can help them move forward,” says Jörgen Carlsson.

 

His role working with Cepheo Evergreen managed services proved essential:

 

“We have direct and honest communication and we also have trust. Smekab Citylife has great confidence that we want the same thing and that we are working toward the same goal, which is to help them move forward.”

 

After nearly ten years on a cloud-based platform, Smekab Citylife is far more robust and competitive. But they’ve learned from being early adopters:

 

“You shouldn’t be afraid to adopt new technology, but you don’t necessarily need to be the first or among the first,” says IT manager Fredrik Levin.

 

Ready for AI

 

For a company committed to creating safe, functional and welcoming urban spaces, development never stops, especially as AI opens the door to so many new opportunities.

 

“We work in three-year cycles with our strategy. AI will definitely play an important role in our strategy going forward,” says CEO Thomas Rydhagen.

 

The plan is to begin with a small pilot to test the technology and the value it can create.

 

IT manager Fredrik Levin adds:

 

“I absolutely think finance is a good area to start, especially where we can eliminate manual, repetitive processes. Most likely with AI agents inside Dynamics 365 and outside using Microsoft Power Platform and related systems.”

 

Here too, Smekab Citylife looks to Cepheo for clear and straightforward guidance, says the CEO.

 

“We want input from Cepheo like ‘why don’t you do it this way instead’. We want them to challenge us and help us find smarter ways of doing things. That’s an important part of the relationship.”

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