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12/4/2024

Maxim’s brews success in Starbucks operations across Southeast Asia with Dynamics 365

Maxim’s Group wanted to harmonize business operations with a modern ERP system to optimize resources and boost productivity.

Dynamics 365 Finance and Supply Chain Management were chosen to transform Maxim’s distribution operations to deliver exceptional value to its customers.

Today, Maxim’s enjoys seamless collaboration between its Supply Chain and Operations teams and supply chain processes are optimized with consolidated fulfillment and streamlined transfers.

Maxim's

Maxim’s Group, a pioneer in specialty food and beverage services across Asia, has delivered exceptional culinary experiences under its homegrown brands and renowned global brands since 1956. Maxim’s introduced Starbucks Coffee to Hong Kong in 2000 and now operates more than 1,000 Starbucks stores in Hong Kong and Macau S.A.R., Vietnam, Cambodia, Singapore, Thailand, and Laos. Maxim’s relies on Dynamics 365 Supply Chain Management and Finance for optimized supply chain processes, automated store order fulfillment, and simplified month-end closing.

Setting the standards for coffee in Southeast Asia

Maxim’s understands the distinctiveness of each market. It caters to local preferences and cultural nuances while striving for the same level of operational excellence everywhere. In 2022, Maxim’s launched a strategic initiative to harmonize business operations across its Starbucks Coffee Concepts stores. The initiative focused on enhancing efficiency and supporting growth by standardizing processes such as procurement, inventory management, and financial operations in a modern enterprise resource planning (ERP) system. Key goals included:

  • Enhancing risk management with advanced security measures.

  • Optimizing resources through a shared service model.

  • Improving cost efficiency by eliminating redundancies.

  • Boosting productivity with automated processes and insightful business analytics.

  • Increasing adaptability to swiftly respond to market changes.

  • Standardizing business processes across all markets to ensure consistency and quality.

Standardizing our operations across the region is a testament to our belief in the power of collaboration and shared values. Our Dynamics 365 initiative will enable us to respond swiftly to market dynamics while ensuring consistency in quality and service delivery.

Norbert Tan, Chief Operating Officer (SEA), Maxim’s Group

Although the company’s legacy ERP system, Microsoft Dynamics AX 2012, was aging, Maxim’s was generally happy with the platform and decided to upgrade rather than replace it with a solution from another vendor. Maxim’s transitioned from the on-premises system to cloud-based Dynamics 365 to integrate company data and standardize tools and business processes across its Starbucks stores in Southeast Asia. The comprehensive project serves as a template for adoption of Dynamics 365 by Maxim’s diverse restaurant group in the region including Shake Shack, The Cheesecake Factory, and Japanese brands such as Genki and Yakiniku Like.

The company started with a regional ERP blueprint initially rolled out in Vietnam and Singapore, with plans to expand the deployment to Cambodia, Laos, and Thailand through 2025. “Our commitment to Southeast Asia drives us to integrate our operations under a regionally connected, AI-powered platform,” says Keith Siu, Chief Operating Officer for Maxim’s Group. “The transition to Dynamics 365 not only enhances our innovation and efficiency but also ensures leadership in delivering exceptional value to our customers.”

Our commitment to Southeast Asia drives us to integrate our operations under a regionally connected, AI-powered platform. The transition to Dynamics 365 not only enhances our innovation and efficiency but also ensures leadership in delivering exceptional value to our customers.

Keith Siu, Chief Operating Officer, Maxim’s Group

Louis Mah, Director of Group IT, concurs. “In today’s dynamic business environment, adapting our ERP system to meet specific market needs while upholding regional standards is vital.”

Cultivating optimized distribution with automation

By automating previously manual processes, Dynamics 365 has transformed Maxim’s distribution operations, with benefits that filter throughout the company.

Optimized processes- Supply chain processes are optimized, with streamlined setup of master data and daily mark-out tracking of food and raw materials.

Better collaboration- The platform's tools enhance coordination and efficiency, fostering seamless collaboration between Maxim’s Supply Chain and Operations teams.

Consolidated fulfillment- Custom store order automation consolidates each store’s cross-dock order into one bulk purchase order and delivers it to the distribution center for picking, packing, and dispatching according to store transfer order instructions.

Streamlined transfers- Consolidated order shipments automatically generate picking lists at the distribution center for both ambient and chilled items, facilitating a faster and more streamlined transfer process.

In today’s dynamic business environment, adapting our ERP system to meet specific market needs while upholding regional standards is vital.

Louis Mah, Director of Group IT, Maxim's Group

Infusing automation in in-store experiences

Automations and machine learning capabilities in Dynamics 365 save time for store employees, too.

Integrated algorithms- A machine learning algorithm built in Google Platform forecasts the next week’s sales for each store. An integration with Dynamics 365 triggers the creation of supplier purchase orders and transfer orders at the distribution center, where the orders are automatically filled and shipped.

Automated recordkeeping- At the end of the day, data from each store’s point-of-sale system flows into Dynamics 365. Built-in rules record the cost of raw materials and revenue, reducing manual effort, saving time, and improving the accuracy of financial records.

Dynamics 365 significantly simplifies month-end closing, too. Previously, all stores submitted their accounting information simultaneously, swamping local IT teams with rush data entry requests that often-required additional support from vendors. Now, thanks to the Microsoft infrastructure and the power of the cloud, local teams can easily support high-volume usage without strain.

Sipping success, now and in the future

“Standardizing our operations across the region is a testament to our belief in the power of collaboration and shared values. Our Dynamics 365 initiative will enable us to respond swiftly to market dynamics while ensuring consistency in quality and service delivery,” says Norbert Tan, Chief Operating Officer (SEA), Maxim’s Group.

Maxim’s is continuing the expansion of its Dynamics 365 framework to include its other businesses as it lays the groundwork for further innovation and efficiency improvements. “Dynamics 365 boosts our operational agility and ensures consistent value delivery across our entire operations,” says Louis Mah. “This strategic shift not only cuts costs but also significantly improves operational efficiency across Southern Asia.”

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