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Home / Case Studies / Dynamics 365 for Finance and Operations Implementation Helps a Chemicals Supplier Improve Integration Between Warehouses and Boost Business Performance
September 1, 2020 - by Synoptek
Services: Dynamics 365 for Finance and Operations Implementation
The chemicals supplier had acquired 7-8 different companies in the last six years and grew from a $300 million company to $850 million. However, despite the impressive growth, the client was using a Dynamics AX 2009 system which was no longer supported by Microsoft.
In addition, since the supplier had acquired many companies, each with a different Warehouse Management System, inventory/ order management had become a big challenge. The supplier processed 11,000 orders every month, 70% of which were put on hold due to information residing in different systems across sixteen warehouses. This led to several roadblocks across mismatched inventory, SKU, and customer/credit information.
To overcome these challenges, the chemicals supplier had a 15-member dedicated team to work on these order holds every month, which was an additional investment on the client’s finances. Moreover, integration of these newly acquired entities was also a big challenge in the non-supported AX 2009 environment.
The client wanted Synoptek to undertake the Warehouse Modernization Project to replace outdated Warehouse Management System (WMS) and integrate Dynamics 365 for Finance and Operations WMS with the AX 2009 Live System which was used as the Finance system.
While the primary objective was to modernize the current ERP platform, the chemicals supplier had resource constraints to take up the ERP overhaul of this nature; the immediate need was to solve the pain of the inventory consolidation across 16 warehouses and overcome the order hold challenge. Several other challenges also had to be overcome with utmost precision and planning.
Despite the various challenges, Synoptek helped in successfully implementing and consolidating the warehouse in Dynamics 365 – without bringing in other functionalities like procurement and finance. We understood, early on, that the interaction and commitment between business users and the ERP implementation partner team is very critical for the project. Therefore, we:
Since every inventory transaction has its implications on the finance entries, the team at Synoptek had to build the live integration bridge between Dynamics 365 for Finance and Operations WMS and AX 2009 ERP. The project included the following services:
With Synoptek’s guidance and implementation services, the chemicals supplier was able to achieve a Technology Platform Upgrade which enabled it to get rid of the obsolete WMS systems and leverage the benefits of a single, consolidated platform. Since Synoptek helped in enhancing the order fulfilment process, the client was able to improve customer satisfaction and retention. In addition, the client could achieve several business benefits including:
Modernizing the existing business platform will help the client to run and grow business and easily acquire and integrate more entities in the future as it grows.