4-page Case Study
Posted: 11/9/2012
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Univa Technologies New ERP Solution Sharpens Operations, Reduces Inventory Costs by 25 Percent

Univa Technologies Pte Ltd, the Singapore based company manages its inventory and warehouse from its Singapore office, while its Indian associate handles back office operations, from generating quotations, sales and purchase orders to dispatching goods to clients. The latter was relying on multiple standalone and legacy applications, which meant manual processes and duplication of tasks resulting in unnecessary delays. In association with Microsoft Gold Certified Partner, Tectura, it deployed Microsoft Dynamics AX 2012. Since then, the company has seen an improvement in the entire procurement cycle, shipment planning and inventory management. This has led to significant growth, and also enabled the team to reduce costs. Visibility into all aspects of the business allowed the management to take quick, strategic business decisions.

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* Dynamics AX has accelerated growth and efficiency exponentially with sound business planning and strategic business decisions. *

Bharat Jain, Director, Univa Technologies
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Situation

Univa Technologies Pte Ltd is a Singapore based company dealing with sourcing and supply of electronic components. Its Indian associate company is responsible for sales, procurement and back office operations for supplying electronic components to worldwide Original Equipment Manufacturers (OEMs) and Electronic Manufacturing Service Providers (EMS). The parent company in Singapore operates as a warehouse and facilitates dispatch to its worldwide customers. Besides India, it has associate companies in Hong Kong and the United States.

With 60 employees in India, Univa offers an on-time global delivery model with high quality products at affordable prices in the shortest possible lead-time to its customers. The annual revenue of the organization in financial year 2011–12 was US$ 16 million (INR 83.7 crore).

Historically, Univa was using an elementary accounting application for managing accounts and financial information, in addition to Microsoft Office Excel worksheets for sales and purchase orders, lead management and inventory tracking.

Comprehensive information, such as sales status, purchase orders ― executed or pending, ― were maintained manually, and therefore fragmented at various places. “Creating reports meant merging data from various sources, and reformatting the reports. Based on individual skills, each employee took somewhere between 1–2 hours to prepare them,” says Mahavir Jain, Director, Univa Technologies. As a result, no standard, defined reports were available and the business reviews did not have adequate MIS for analysis. Mahavir Jain continues, “We would manually prepare schedules and assign responsibility, based on our understanding of employee skills. But we could not track status.”

As business increased, a negative financial inventory and managing the warehouse manually began to create problems.


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* .... Invoices that earlier took 15 minutes are now ready in three minutes. Likewise, the reports that earlier took up to two hours are now readily available within 10 minutes. *

Mahavir Jain, Director, Univa Technologies
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Solution

Univa Technologies reviewed a range of ERP solutions, such as SAP B1, Infor ERP LN, along with Microsoft Dynamics NAV and AX. Finally, after in-depth market research and evaluation, the company decided to deploy Microsoft Dynamics AX, a global solution with localization of over 40 countries available in one single database.

“Dynamics AX was the best fit for our trading business model,” states Viral Doshi, Project Manager, Univa Technologies. “Besides, we trust Microsoft and were already using its products from the Office productivity suite. We were sure that Dynamics AX would integrate easily with our existing processes.”

Univa approached Microsoft Gold Certified Partner, Tectura, for implementation as it too, has a presence in multiple countries and is well-known for its expertise and performance.

After studying Univa’s business requirements, Tectura deployed all the out-of-the box features with little customization. It started with Microsoft Dynamics AX 2009 in April 2011, but in August 2011, when Dynamics AX 2012 was released, the company switched to the latest version. In December 2011, the solution went live for 49 concurrent users at its Indian associate company (48 plus a single user in Singapore). Accounts Payable, Accounts Receivables, Inventory Management and General Ledger modules were deployed.

With this implementation, Univa has automated all the processes from generating sales and purchase orders to the delivery cycle. Inventory, warehousing and financial management is administered from within Dynamics AX. For example, status of vendor payments along with a detailed ledger allows the finance team to ensure payments are made in time and there is no discrepancy.

Reports are available directly in Dynamics AX, while Tectura has customized the solution to meet the need for department-specific reports. “We have also seen standardization of some basic reports and documents such as sales quotations, purchase orders, packing lists, and sales invoices. This brings greater transparency and accountability across the organization,” comments Michael Brown, Technical Lead, Univa Technologies.

In the next six months, the Customer Relationship Management (CRM) module for lead management will go live. With a central list of vendors, with purchase orders and associated processes raised against each , the company will be able to control the entire purchase process, bringing in efficiency and transparency. This will help to analyze the performances of vendors.

The company is also hoping to start using automatic email alerts and workflows in the near future.

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* After the Dynamics AX implementation, we have seen a 25 percent reduction in inventory costs, primarily because of better planning, tracking and forecasting, and visibility. *

Viral Doshi, Project Manager, Univa Technologies
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Benefits

Dynamics AX delivers a truly global and versatile business solution which brings efficiency and visibility into every aspect of the business.

Fuels Efficiency, Saves Time

Efficiency in processes and work management, and seamless streamlined business operations with enforced legal compliance is the biggest benefit for Univa Technologies. Using a single, integrated solution brings significant efficiency to smaller activities, which, contribute over 90 percent to some core processes. This increases the organization’s ability to respond quickly to customer queries, and handle higher volumes.

“Faster processing of sales and purchase orders and invoices saves up to 45 percent time,” states Mahavir Jain, Director, Univa Technologies. “Invoices that earlier took 10–15 minutes are now ready in three. Likewise, the reports that earlier took up to two hours are now readily available within 10 minutes.” The possibility of errors is eliminated, as there is little or no human intervention. Hence, with the same workforce, the team manages more business, thus supporting tremendous business growth.

Reduces Inventory Cost by 25 Percent

Inventory for large global shipments is a series of processes from allocation to documentation and reporting, including order management, storage, shipment instructions, etc, which are now handled efficiently, bringing down costs. Dynamics AX maintains the inventory for Univa’s customers, each of whom usually has a set of preferences for receipt and delivery schedules, storage mandates, reporting and accountability, and so on.

Viral Doshi, Project Manager, Univa Technologies, says, “After the Dynamics AX implementation, we have seen a 25 percent reduction in inventory costs, primarily because of better planning, tracking, forecasting and visibility.”

Speeds up Decision Making

With all the relevant information, reports and process flow managed within Dynamics AX, there is consistent information availability. Dynamics AX presents a consolidated picture of sales, inventory and receivables for management reviews and analysis. The implications of this on decision-making are evident. “Our business planning and strategy is much faster and more accurate because we can see the business statistics at any given point,” says Bharat Jain, Director, Univa Technologies. “Our managers take control, and respond to changes quickly and efficiently now.”

Empowers Employees to be Self Sufficient

Employees are clear on their roles and the actions required as the process workflows prompt them to take relevant action. “Simply put, better information access and clear workflows makes every individual pull his or her weight within the organization because (s)he knows what’s expected from him,” remarks Viral Doshi, Project Manager, Univa Technologies.

Facilitates Easy Back-up of Data and Code

Back-ups are easy as only two databases which hold data as well as the code. This is a one of the very powerful features of Dynamics AX 2012. Says Michael Brown, Technical Lead, Univa Technologies, “Layered code architecture is a marvel; we can write our customizations without touching the standard code. If anything goes wrong, we can roll back by simply deleting the changes in our layer.”


Microsoft Dynamics

Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success. 


For more information about Microsoft Dynamics, go to:

www.microsoft.com/dynamics

About Tectura

Tectura provides business consulting services, delivering exceptional service and sustainable value through consulting, software and IT implementation. The diverse clientele includes mid-sized companies and divisions of larger enterprises in the aerospace, life sciences, manufacturing and distribution, retail and service industries. With a team of more than 1,800 members in more than 20 countries, Tectura applies its industry knowledge and best practices philosophy to provide Microsoft Dynamics® ERP, CRM and technology solutions throughout the Americas, EMEA, and Asia Pacific. It is a Microsoft Gold Certified Partner, and maximizes its vast technology resources and deep Microsoft expertise to deliver increased efficiency, project acceleration and a competitive edge.

For More Information

For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers in the United States and Canada who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to:

www.microsoft.com

For more information about Tectura products and services, call (91) (120) (4616661) or visit the website at:www.tectura.com

For more information about Univa Technologies products and services, call (91) (80) 26706677 or visit the website at:www.univatech.com

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Solution Overview



Organization Size: 60 employees

Organization Profile

Singapore-based Univa Technologies is a leading player in sourcing and supply of electronic components globally. It has associate companies in India, Hong Kong and the United States.


Business Situation

Lack of accurate information on sales, purchase or inventory was a grey area across the Singapore office and its Indian associate company. Also, the time spent on collating accurate information was making employees inefficient.


Solution

Univa Technologies deployed Microsoft Dynamics™ AX 2012 across India and Singapore to improve operations, bring in greater efficiency and transparency.


Benefits

  • Fuels efficiency, saves time
  • Reduces inventory cost by 25 percent
  • Speeds up decision making
  • Empowers employees to be self-
  • sufficient
  • Facilitates easy back-up of data and code


Hardware
  • Dell R720(Xeon E5-2609, 32 GB RAM, 300 GB x 4 HDDs in RAID 5)
  • Dell R510 (Xeon E5620, 16 GB RAM, 300 GB x 4 HDDs in RAID 5)

Software and Services
  • Microsoft SQL Server 2008 R2 Standard
  • Microsoft Dynamics AX for Retail Management
  • Microsoft Dynamics

Vertical Industries
Wholesale Distribution

Country/Region
India

Languages
English

Partner(s)
Tectura

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