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Posted: 10/18/2012
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George AbuZeid & Co. ERP Solution Opens More Growth Opportunities for Jordan Company

Without an effective enterprise resource planning system, Jordan-based George Abuzeid & Co. (GA) struggled to know what went on in different parts of its business, keep track of inventories, and deal with customers responsively. To pursue more growth opportunities, GA deployed Microsoft Dynamics AX 2012. The deployment led to integrated business processes, optimized inventories, greater customer responsiveness, and better decision-making.

Business Needs

With over 40,000 items that it distributed to more than a thousand customers and with over a thousand customer calls that it received each day, Jordan-based George Abuzeid & Co. (GA) felt weighed down by the absence of an effective enterprise resource planning (ERP) system. GA had enjoyed significant growth since its beginnings in 1949 when it started as an auto spare parts business

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* The first decision Microsoft Dynamics AX 2012 helped us with was the establishment of more branches. We know that having Microsoft Dynamics AX 2012 was a wise investment. *

Anton Abuzeid
General Manager (Auto Spare Parts)
George Abuzeid & Co.

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with only two employees. However, GA’s management felt that, with the right tools, there were more opportunities for growth. GA already expanded into office furniture and employed 120 employees across four offices in Jordan; still, “we had plans to put up more branches in Jordan and abroad,” said Anton Abuzeid, General Manager of GA’s auto spare parts business.

Without an effective ERP system though, GA struggled to: know what went on in different parts of its business, keep track of and optimize its inventories, deal with customers fast and responsively, make forecasts and master plans, and place procurement orders accurately and efficiently. For instance, “even for us to place an order with a supplier,” said Anton, “we used to have to print many different reports. It would also take three days just to prepare a single purchase order. It was burdensome!”

At that time, GA used locally developed ERP software that had limited functionalities for inventory, sales and finance. “Inventory and finance were not 100% linked. I could see my customers and statements of account, but there was no visibility for vendors. We also experienced some problems with it and knew that it could not help us grow,” said Anton.

Solution

GA reviewed the ERP solutions available in the market and contacted some of its suppliers, including those in Europe, for recommendation. “They recommended Microsoft Dynamics 2009 because it is powerful, simple to use, easy to deploy, versatile across different industries and comprehensively supports all key business functional areas,” said Anton. “The fact that Microsoft Dynamics AX is also purpose-built for manufacturing was a big plus because of our plans to get into manufacturing in the near future,” he added. “We were also very careful with our choice since many of our competitors reported major problems with their ERP solutions. Other solutions were missing key functionalities and difficult to integrate,” said Esmaeel Awisat, GA ERP Project Manager.

Deploying Microsoft Dynamics AX 2009 in GA, however, went off to a rocky start. “Two years after working on the implementation, the Microsoft partner that we originally worked with collapsed and went bankrupt,” rued Anton. A careful search for a new implementation partner led GA to Pavilion IT, a leading Jordan-based Microsoft Business Solutions Partner, that provides business and IT consulting services and has an operational office in Doha, Qatar.

“When they came to us,” recalls Shafiq Naserddin, Pavilion IT Solutions Director, “GA had a lot of concerns, given their failed implementation. We went over their business needs, explored solutions to their problems, and pinpointed the reasons for the failed implementation. Years of working for Microsoft Corporation and our specialist background enabled us to suggest a quicker implementation timeline of six months and deployment without customization,” said Shafiq.

Just a month before the project was to go live at GA, Microsoft Dynamics AX 2012 came out. The new version had more than 1,000 new features and enhancements that made it difficult to resist. It was also designed to deliver pervasive interoperability, making it more agile and flexible to use across other business and productivity applications and technology platforms. GA made the decision to invest in the new version.

Benefits

The deployment of Microsoft Dynamics AX 2012 in GA has led to significant benefits, including integrated end-to-end business processes, optimized inventories, greater customer responsiveness, and better decision-making.

Integrated end-to-end business processes
Whereas GA management used to struggle with knowing what went on in different parts of its business, with Microsoft Dynamics AX 2012, “we are now able to see what goes on in all parts and functional areas of the business, using just one system” said Anton. “In addition, our business processes are so integrated that any sale that is generated triggers a cascade of instantaneous changes in our procurement, inventory, and financial reports,” he added.

Optimized inventories
Microsoft Dynamics AX 2012 enables viewing of inventories across offices and locations, allowing optimization and better management of inventories. “Now, we can distribute stocks from the main warehouse to the branches without increasing total inventory. We can also stock smaller orders with suppliers and have more regular shipments” said Anton.

Greater customer responsiveness
With the integration of sales, call center operations, logistics, and warehousing, GA now deals with its customers faster, more accurately, and more efficiently. “Effectively, we are now able to produce 50% more orders per week than we used to,” said Anton. GA is even working with Pavilion IT on a mobile solution, powered by Microsoft Dynamics AX 2012, that would allow its outdoor salespeople to place customer orders directly on their laptops and have the data captured directly by GA systems online. This would mean, “We will be able to prepare and ship goods to customers while the salesperson is still in the field,” said Anton.

Better decision-making
Microsoft Dynamics AX 2012 allows a comprehensive view of a company’s entire operations and optimization of its inventories. This capability enhances management decision-making. “The first decision Microsoft Dynamics AX 2012 helped us with,” said Anton, “was the establishment of more branches. We know that having Microsoft Dynamics AX 2012 was a wise investment.”

About Pavilion IT
Pavilion IT is a leading Jordan-based Microsoft Business Solutions Partner that provides consultations, solutions implementation and support services to clients using best-in-class technology. Its head office is in Amman Jordan and it also has an operational office in Doha, Qatar. Pavilion IT has worked on large-scale Microsoft Dynamics AX implementation projects across different regions and has the expertise to deal with distinct local, cultural and regulatory environments. It also has a structured process for scoping, planning and executing Microsoft Dynamics AX, Microsoft Dynamics CRM and Microsoft SharePoint projects. The company has worked with customers in the manufacturing, distribution, construction, project management and financial investment sectors.

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



Organization Size: 120 employees

Organization Profile

Began as an auto spare parts business in 1949 with just two employees, Jordan-based George Abuzeid & Co. expanded into office furniture and employs 120 staff across four offices in Jordan.


Software and Services
Microsoft Dynamics AX 2012

Vertical Industries
  • Wholesale Distribution
  • Motor Vehicle Parts Dealers

Country/Region
Jordan

Languages
English

Partner(s)
Pavilion IT

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