|With a 17% reduction in inventory turnover while still achieving a 50% increase in sales – Microsoft Dynamics® AX has far exceeded our expectations. Also, it was surprisingly easy and quick to set up and we felt like it was tailored to our needs.|
| Andrew Wong|
Chief Financial Officer
Dometic Group Asia Pacific
A global supplier of high quality and innovative products for the leisure and recreational vehicle (RV) and marine industries with offices worldwide, Swedish-based Dometic Group has an extensive product portfolio, including refrigeration solutions, awnings, climate control systems, windows, doors and sanitation systems.
Upon entering the lucrative but challenging mainland China market with several manufacturing plants and approximately 2,000 employees across its trading company and sales offices, the Dometic Group Asia Pacific (the DAP) discovered that Konto, its existing ERP solution, was not able to fully support its growing business in both China and other Asia sales territories. The company has to rely on a solution that used a domestic Chinese ERP provider, U8, to supplement Konto in maintaining daily operating needs. However, the combined system soon encountered difficulties in maintaining a bridge between U8 and Konto. With the DAP’s ever expanding commercial needs and growing business complexity within Asia Pacific markets, the Hong Kong subsidiary, acting as the DAP’s Asia Pacific headquarters, decided to adopt one centralized system to meet its complex corporate compliance and business information reporting requirements. The ERP system needed to provide a quicker and easier solution to meet the DAP’s on-going and future needs for data extraction, analysis, compliance, standardization as well as meeting statutory reporting requirements in China, Japan, India and Singapore. The centralized system also needed to enhance overall efficiency and business performance with ease. Because of this, the DAP began searching for a single integrated solution that could be easily tailored to serve their needs in any market. The solution needed to meet two criteria: be easy-to-use in any region, and strike a good balance between flexibility and user-friendliness.
The DAP conducted a thorough review of several leading ERP solutions, including Microsoft Dynamics® AX, Microsoft Dynamics Navision, the global standard, as well as a solution from SAP. In the end, it went with Microsoft Dynamics AX over Microsoft Dynamics Navision due to its out-of-the-box multilingual support and sophisticated manufacturing suite, while SAP’s solution was not considered, as its training was too complicated, its implementation process was time-consuming, and the product itself was not user-friendly. Moreover, the DAP felt the SAP solution would be too costly, as it only provided a basic set of standard settings, with additional functionality available only as a paid add-on. Ultimately, the DAP selected Microsoft Dynamics AX because it is easy to deploy and use, and since end-users were already familiar with Microsoft’s popular software, it was no challenge for them to adapt to, saving the company a great deal of time on training.
Enables shorter inventoryturnoverandincreases sales– The DAP took a phased approach in implementing Microsoft Dynamics AX starting in Q3, 2009.
The impact of the inventory module has been inspiring: from November 2011 to November 2012 inventory turnover days dropped 17% from 30 to 25 while the company’s sales increased 20% and 50% during 2010-2011 and 2011-2012 respectively. “The advanced settings of the master planning module included in Microsoft Dynamics AX allowed us to improve our materials planning effectiveness so well that we didn’t feel the need to edit any of the default settings, something our top management appreciated a lot,” said Kaiser Cheng, IT Manager, Dometic Group Asia Pacific.
Creates cost savings without headcount reductions– Since 2011, Microsoft Dynamics AX has helped the DAP cut its administrative costs from 3% to 2% of total expenditures — all without reducing headcount or staffing costs due to increased business volume. “With Microsoft Dynamics AX’s inter-company module, which allows us to inter-link our various entities’ data systems, administrative staff are now able to trace back data with much greater ease and clarity, thus saving time and reducing costs while enhancing our effectiveness,” said Andrew Wong, Chief Financial Officer, Dometic Group Asia Pacific.
|Inventory Turnover (Days)|
Facilitates business expansion – The DAP was only able to support 60 simultaneous users with its previous ERP solution, forcing it to terminate other end-users when utilizing the ERP system. This is especially disruptive to business during monthly financial reporting periods when staff have to meet tight deadlines, which was not conducive to business. However, with the use of Microsoft Dynamics AX, 130-140 concurrent users can retrieve data while an additional 99 web users can make data enquiries. In 2012, the total number of ERP users increased by 22% year-on-year.
|(From left to right): Kaiser Cheng, IT Manager; |
Andrew Wong, Chief Financial Officer,
Dometic Group Asia Pacific.
In the past, the lead-time for customizing, extracting and consolidating data from each subsidiary was frustratingly long, lengthening the month end closing period, adversely affecting overall business performance and restricting business expansion. Microsoft Dynamics AX helped streamline the process by leaps and bounds.
Strong support and shorter implementation time– “Microsoft began providing technical support well before we decided to purchase, demonstrating a level of commitment that we didn’t see from our other ERP vendors. This helped us accelerate our implementation plan, well beyond our initial expectations,” said Cheng.
The implementation of the solution started in 3 factories and 4 sales offices in Q3, 2009, and was completed in Q4, 2012. Due to its ease of use, the implementation of Microsoft Dynamics AX in other subsidiaries across Asia was largely burden-free following the first implementation in Hong Kong.
Higher user adaptability with a user-friendly interface– With robust multilingual support, the enterprise portal in Microsoft Dynamics AX is incredibly versatile, which is especially important for a multi-national company. It also provides the DAP with full access and visibility of all of its finance, sales, purchase and inventory data. Since Microsoft Dynamics AX features the same interface as Microsoft’s other products, users adapted to it extremely fast, allowing most data to be retrieved with a single click. It is also easily customized, allowing fields to be added in the portal for easy sharing and filtering.
|“We didn’t have to worry at all after the |
implementation. Microsoft Dynamics AX was
an ideal fit for our operation and moreover,
helped us to boost sales and enhance our
effectiveness" said Wong.
"The DAP is a global company that needed an integrated and user-friendly solution that could be easily applied in different countries across Asia. The success of its introduction to the company’s first site alone far exceeded expectations. The DAP is now looking to deploy Microsoft Dynamics AX worldwide at subsidiaries in over 30 countries. “We have achieved truly outstanding benefits with Microsoft Dynamics AX. There is no other solution that is so user-friendly and easy to tailor. I look forward to sharing this exciting and user friendly solution out to the rest of our counterpart teams around the world,” said Wong.
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 provides your people with the business software tools that work like and with the tools they use every day, such as Microsoft Office. As a Microsoft product, it integrates seamlessly with other technologies deployed in your organization. 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
For More Information
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