From the first automobile to the first spacecraft to land on Mars, Haynes International has a history of innovation that factors into some of mankind’s greatest technological achievements. Founded in 1912 in Kokomo, Indiana, the company specializes in manufacturing and distribution of high-performance alloys for high-temperature or highly corrosive applications. Haynes alloys have been used in nuclear reactors, biochemical applications, and in rockets that have been to the moon and beyond.
|We picked Microsoft Dynamics AX because it was a global system that we could afford and that would give us advantages in the future.|
| Jeff Young|
Here on Earth, the company maintains a global enterprise, with manufacturing and service centers in major industrial centers across Europe, India, Asia, and North America. Until recently, the international operations had operated largely independently, with each site maintaining its own enterprise resource planning (ERP) and operational systems.
As early as the 1990s, the company had explored the rollout of a single, end-to-end ERP, but found that no single application was able to support the diverse needs of its many locations. CIO Jeff Young also recalls that at the time, the business case for consolidating systems did not justify the expense of a global implementation.
The disparate systems in use at Haynes’s subsidiaries in Switzerland and the United Kingdom included Navision and Axapta—two applications that would eventually become part of the Microsoft Dynamics family of business solutions. Although they were running independently of each other—and separate from systems at headquarters—both were working well. As a result, Young notes that Microsoft Dynamics business solutions were “on his radar” as he planned for the future.
In the late 2000s, recognizing that commercially available technology had matured significantly—and noting that Haynes customers were increasingly demanding globalization of their supply chain—Young revisited his vision of a global ERP. He felt that with the release of Microsoft Dynamics AX 2012, Microsoft had introduced functionality that would enable Haynes to unify its enterprise for the first time, including support for multiple local currencies, languages, and regulations from a single instance, and a metals-industry solution from Microsoft Gold Certified Partner Crowe Horwath.
“Microsoft Dynamics AX 2012 was the first version that had the robust international currency and consolidation capabilities that allowed us to pursue our globalization strategy,” says Young.
|We’d already had success on the Microsoft platform, with Office, Exchange, and Windows Server; it made sense to go all in with Microsoft Dynamics AX, too.|
| Jeff Young|
Haynes deployed a single instance of Microsoft Dynamics AX in the data center at its Indiana headquarters, rolling out ERP functionality to its subsidiaries in a sequential approach. Three European subsidiaries (Paris, Switzerland, and the United Kingdom— each with its own languages, datasets, and processes) simultaneously cut over to the new system in January 2013. Subsequent phases of the rollout will bring plant maintenance, purchasing, and general ledger online in January 2014, with sales and US locations and Asian subsidiaries following in early 2014.
Since bringing the European operations online with Microsoft Dynamics AX 2012, Haynes has already realized the advantages of a unified enterprise. Inter-company capabilities have streamlined cross-company purchase orders, eliminating a manual process that required re-entry of data as it passed between disconnected systems. In addition, the advanced planning features, production reporting capabilities, and cost capture have introduced efficiencies at each of the local sites.
Haynes also expects IT to gain efficiencies as a result of replacing more than 30 local systems with a single, global ERP. In addition to reducing the burden on IT support staff, Young notes that updates and new capabilities will be immediately available across the enterprise.
Young anticipates that the benefits will continue to accrue as Haynes adds departments and locations to the system. In particular, the ability to roll up data from all sites globally will provide headquarters with more timely information on costs and performance and dramatically simplify Haynes’s ability to consolidate financials globally for reporting purposes.
This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published January 2014