L&M’s legacy AS/400 ERP did not support integration, automation, or modern reporting, which slowed operations and limited the company’s ability to scale.
Dynamics 365 unified L&M’s fragmented tools, providing predictive analytics, automation, and real-time visibility across retail operations.
Efficiency improved dramatically: invoice processing time dropped by 83%, POS training time was reduced by 80%, and inventory tasks now take minutes instead of hours.
Founded in 1959 by James Luthen and Delbert Matteson in Grand Rapids, Minnesota, L&M Fleet Supply began with a simple philosophy: offer quality products for outdoor adventures and projects at discount prices, backed by excellent customer service. What started in a modest 30' x 60' wooden building has grown into a trusted regional retailer with 13 store locations and a central distribution center serving communities across Northern Minnesota, Wisconsin, and Michigan. When it came time to move to a new enterprise resource planning (ERP) system, L&M turned to Dynamics 365 to modernize the retail experience while staying rooted in hometown service.
L&M was among the first retailers to buy directly from manufacturers and pass the savings on to customers—a tradition that continues to define its approach today. As the third generation of the founding family took over the reins and the company’s growth exploded, the leadership team realized the company’s outdated AS/400-based ERP solution added friction on the path to progress. The legacy solution couldn't meet the evolving needs of a modern business. The system’s reporting capabilities were manual, system development was difficult, and it lacked integration options for working with external vendors or independent software vendors (ISVs).
After comparing Acumatica, NetSuite, and Microsoft, it was clear that Dynamics 365, implemented by Sunrise Technologies, offered the strongest long-term value. That’s because this wasn’t just about deploying Dynamics 365; it was about stepping fully into the Microsoft ecosystem.
The company dove in, replacing a patchwork of tools like Google Sheets, Google Docs, GoToMeeting, and Slack. Each group used whatever tools worked for them. There was no unified environment to foster collaboration or build organizational alignment. Introducing Microsoft 365 as the core business productivity solution provided the structure and flexibility needed in a modern company. The next step was to implement Dynamics 365 as the ERP and retail operations system, along with introducing new processes.
“The seamless integration across Microsoft tools gave us the clarity and consistency we needed to manage the scale of change we were driving,” says Dave Cowan, Executive Vice President, Strategy. “The ability to track, revisit, and align was essential.”
Invoice automation saves 30 hours per week
L&M Supply knows its customers well, and its buying and planning processes—determining how much of each product to allocate to each store—were largely based on historical sales data and institutional knowledge. Now, with the integration of JustRight for merchandising and demand management with Dynamics 365, L&M entered a new era of predictive analytics and algorithm-based forecasting.
The system uses real-time sales data, historical trends, and multiple forecasting models to provide accurate, data-backed recommendations. In a transformational shift, the company is reducing the amount of inventory carried in distribution centers and stores without negatively impacting sales. That directly translates to lower carrying costs, improved efficiency, and less guesswork.
Automation and efficiency improvements in purchasing resulted in faster fulfillment. Previously, identifying distribution center inventory and generating pick lists required nine hours of work by three employees. Today, the same task takes one person only 20 minutes to complete.
Buyers have more tools at their disposal, making their tasks more precise and cutting out busy work. Updating pricing used to be a tedious, manual process. Buyers had to go line by line in a legacy blue screen interface, updating each SKU individually, and then finding the correct function key to save the changes. It was time-consuming and frustrating, especially when dealing with large product catalogs.
Now, with Dynamics 365, buyers can simply export the product list, update prices in bulk, and re-import the data—all in one seamless step. What used to take hours now takes minutes. Buyers can handle large-scale changes quickly and accurately, enabling them to stay responsive in a fast-moving market.
“The seamless integration across Microsoft tools gave us the clarity and consistency we needed to manage the scale of change we were driving. The ability to track, revisit, and align was essential.”
Dave Cowan, Executive Vice President, Strategy, L&M Fleet Supply
An enjoyable shopping experience for customers is essential. It's not just about finding products; customers also want to experience a smooth and efficient checkout process. One of L&M’s most impactful changes was upgrading to Dynamics 365 Commerce with its modern point-of-sale (POS) system that is highly configurable and incredibly intuitive. Touchscreens replaced an outdated function key interface that made training a slow process. Now, with a modern, touch-friendly interface, the learning curve is drastically reduced—an 80% reduction in training time, leading to faster onboarding and more confident employees from day one.
Using mobile POS on handheld devices allows staff to start transactions on the floor, suspend them, and complete them at the register—a capability that enables a form of line-busting. It's especially useful for large equipment purchases like riding lawnmowers and golf carts. Employees can begin the transaction on the floor and walk the customer to the cashier for easy checkout.
Previously, the POS reconciliation process took five to six hours of a high-level store manager’s time each day to close out sales, reconcile payments, and generate reports. Now, with automated nightly closing, front-line cashiers complete the process in just 15 minutes. Store leadership is free to focus on higher-value activities, and financial reporting is timely.
Before using Dynamics 365, the in-store stock checking process was inefficient and, at times, frustrating for customers and employees. If a customer came in asking for a particular item, an associate had to leave them on the floor while physically searching for the item in the backroom. This led to inconsistencies in customer experiences and diverted associates from spending valuable time engaging directly with customers. But Dynamics 365 Supply Chain Management unlocked the ability to bring real-time inventory visibility to the store floor.
With Dynamics 365 Supply Chain Management, each store operates as a warehouse, capturing all of its inventory on-line and in real-time. Now, every team member has a mobile device that provides immediate access to inventory data. For example, if a customer asks for a green T-shirt in size XL, the associate can instantly check their device, confirm that four are in the backroom, and go straight to the correct location, drastically reducing the customer’s wait time. This capability is a game changer—customers experience faster and more reliable service, and employees have the right tools and information to do their jobs efficiently. “Simply knowing what’s in the backroom and exactly where it is has fundamentally improved how our stores operate,” explains Cowan.
The Inventory Visibility Add-in for Supply Chain Management brings innovation to how L&M manages and accesses inventory data. Associates in one store can check inventory levels in other locations as well as in the distribution center. The system seamlessly handles sales and transfers. “If we sell an item that's in another location, a sales order is created automatically, and we can easily generate a transfer order to fulfill it. It’s a smooth process that keeps our sales and buying teams in sync without unnecessary back-and-forth,” says Cowan.
Financial processes have been simplified, too. Before implementing Dynamics 365, the company was constantly printing, scanning, emailing, and re-entering data—especially between the distribution center, the office, accounts payable, and receiving. Today, all that data lives in the system and is accessible in real time. Users no longer must jump between systems, print and re-scan documents, or manually reconcile paperwork.
“With Dynamics 365 we’ve absorbed increased invoice volumes without needing to increase staff.”
Erik Anderson, CFO and Co-owner, L&M Fleet Supply
Time and effort are saved using invoice automation in Dynamics 365 Finance. That capability streamlined the payment process significantly, enabling faster payment to vendors and a reduction in reconciliation time. The Accounts Payable team used to manually process up to 2,500 invoices weekly—the equivalent of a three-quarter employee. But now, most invoices automatically flow into Dynamics 365. The remaining invoices are processed using optical character recognition to scan the invoice, extract the relevant data, and compare it against the purchase order and receiving information. When everything aligns, the invoice is automatically matched and pushed into the queue for payment with no human intervention needed. “With Dynamics 365 we’ve absorbed increased invoice volumes without needing to increase staff,” says Erik Anderson, CFO and Co-owner at L&M Supply.
Modernization of the month-end-close process allows L&M to move the general ledger function from an external accounting firm to an in-house team. Not only does the team anticipate a near total reduction in external accounting fees, but it is already seeing monthly financial statements that previously took 45-60 days now available within 10 days. This savings represents an 83% reduction in processing time. Further, the integration of SK Global Treasury Automation Suite with Dynamics 365 automated bank reconciliations across 25 complex bank accounts. Weekly treasury tasks that previously consumed up to a full day of senior staff time are now completed in under an hour.
While the initial goal was to streamline invoicing and payments, the solution ended up unlocking much more. To better serve customers who want to track their purchases or have in-house charge accounts, L&M worked with a partner to enhance the B2B billing experience.
Easy integration with Dynamics 365 enables customers to log into their own self-service portals to view and pay invoices, print receipts, and access their transaction history. In the past, getting a receipt required calling, waiting for someone in the office or even the IT team to dig it up, and often going through a drawn-out process. Today, that same task takes seconds and requires no staff intervention. This self-service capability not only improved customer satisfaction but also reduced internal workload and freed up time for teams to focus on higher-value tasks.
Working within the Microsoft ecosystem unleashes boundless potential. At L&M, unlocking the capabilities of Power Automate and Power Apps enabled the digitalization and streamlining of a variety of processes that were previously paper-based, manual, or heavily reliant on email.
For instance, large equipment purchases require an operational instruction overview with customers. Say a customer purchases a high-value item like a $15,000 zero-turn lawn mower. Rather than having to walk through a physical manual, the floor team uses a guided form on a mobile device. The form captures essential steps and product-specific guidance while also logging details like the serial number. Customer care is enhanced, and an electronic record can be used for future reference.
L&M Supply continues to strengthen its digital operations with plans to implement a headless e-commerce solution, a loyalty program to deepen customer engagement, and vendor collaboration enhancement. With AI capabilities like Dynamics 365 Customer Insights in Commerce, L&M Supply can unify in-store and online customer data, creating a real-time, 360-degree view of each shopper. This empowers frontline staff and digital channels to deliver highly personalized experiences—such as tailored promotions, product recommendations, and loyalty rewards—at the POS and beyond.
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