Optimizing Supply Chain and Warehousing with Microsoft Dynamics AX

Sandeep WaliaCEO Ignify

Eric ShussPresident – ERP DivisionIgnify

Changing customer demand patternsMulti-Channel complexitiesComplex Intercompany and partner dependenciesPressure to drive down inventory but maintain service levels

Too much data, too little insight across full supply chainHistory versus real time informationInter company and business partner collaboration hurdlesCustomer satisfaction

Lack of visibility to inbound supplyAdvanced warehousing requirementsMulti-site, 3PL and Vendor warehouse visibility Automation costs and complexities

Many routes of ordering and fulfillmentNeed cost controlIntegration across organization(s)“One version of the truth”

Supply Chain and Warehousing Pain Points

» Forecasting accuracy is becoming more critical as our lead-times are diminishing» Our suppliers and business partners are trying to cut cost, maximize resources and reduce intermediation» To stay competitive and add value to the chain, integrated business management systems need to have:

» Infrastructure flexibility, » Automation and increased integration requirements» Efficiency and coordination with suppliers and buyers,» Core business process improvement of financial management, order, warehouse and transportation management, e-

commerce and CRM.

Forecasting Business Insight Inventory Management Multi-channel

Consumers

Shoppers

Consumers

Our CompaniesSuppliers’ Suppliers

ChannelsSuppliers

Farms

Ingredients

Suppliers

ContractManufacturers Factories Plants

Warehouses

HQ

Retailers

DC’s

Direct

Distributors

The Traditional Linear Supply Chain is Becoming Demand Driven

WebRaw Material

Suppliers

Supply Chain and Warehousing Optimization Goals

» Improve customer service. » Reduce costs by optimizing supply chain

management processes..» Control and streamline inventory. » Increase visibility and cooperation

throughout the supply chain. » Lower the costs of supply chain integration» Better Manage Multi-Channel Challenges

Improve Customer Service» Increase service levels with more accurate forecasting and demand

management tools to reflect shifting customer and channel needs. » Leverage Dynamics AX 2009 CRM for marketing campaigns and opportunity

forecasting» Use Questionnaire for customer surveys and market research» Take advantage of Excel Pivot Point for integrated forecast analysis

» Enhance the security and reliability of deliveries with the global available-to-promise (ATP)» ATP provides up-to date delivery dates tied to the Transport calendar» Provides delivery alternatives in the event of unexpected disruptions.

» Integrate your sales and fulfillment across traditional channels, eCommerce and Retail » Give your sales teams and customers one version of the truth » Let them order by Phone, Email, EDI, eCommerce or in retail settings» Let the customer choose if it is shipped, delivered, picked up, downloaded, etc.

Reduce Costs by Optimizing Processes.» Improve productivity, adapt internal processes quickly to meet

new demands, and optimize processes across sites in the supply chain.

» Update or install warehouse automation technologies» Bar code scanners» Voice picking, Pick to Light, RFID» Conveyer integration

» Use Advanced Warehouse features of AX 2009 WMS II» Store Areas and Zones» Pallet control» Consolidated picking and put-away

» Integrate document handling to improve data entry accuracy and manage quality, shipping, customs, etc. docs.

» Use AX workflow and Alerts

Control and streamline inventory» Use AX Master Planning to improve forecasting and

planning, match supply with customer demand, and create sales and purchasing forecasts based on specific items and time periods with seasonality and product mix.

» Consider Lean initiatives with Lean Manufacturing for Dynamics AX

» Use Vendor Warehouses to track vendor owned inventory for better visibility into your supply chain

» Extend to Retail environments with AX for Retail» Deploy web services to integrate into your suppliers,

partners and customers inventory systems for up-to-date inventory levels.

Increase visibility throughout the supply chain» Deploy Role Centers that provide quick access to tasks

and critical business intelligence (BI) information, such as key performance indicators (KPIs) and custom reports.

StrategicCorporate focus

OperationalRole and Task focus

TacticalProcess or Team focus

Increase visibility throughout the supply chain

With SharePoint Portal:

• Vendor and Customer Self Service Portals

• Schedule data refreshes to keep your analysis up-to-date

• Secure and Relevant data delivered to those who need it.

• Share single or multi-company reports, graphs, documents, etc.

Deploy Vendor and Customer Self-Service portals to increase collaboration on forecasts, capacity and delivery

Lower the costs of supply chain integration» Application Integration Framework (AIF) – Exposes business logic to other

internal or external systems. AIF enables you to integrate functionality and exchange data with other systems.

» Web services (synchronous) - Web services can be generated automatically from the Microsoft Dynamics AX business logic. Developers with limited Web experience can easily expose services through Web services.

» Adaptors (asynchronous) – Documents across the systems are moved in queues and processed by the batch jobs. Adapter transports supported by AIF are Microsoft Message Queuing (MSMQ) and file system.

» BizTalk integration (allows the use of BizTalk adapters and development platform).

» Business Connector – Enables external applications to access Microsoft Dynamics AX data and invoke business logic. Extremely powerful and is a full functionality client operated through a connector interface

» Common language runtime (CLR) – Provides interoperability with external components and interfaces

SOAP

.NET API

Extensive Integration Technologies Available

CLR Intero

p Dynamics AX Services and AIFAsynchronous AdaptersWeb

Services

X++ API

BC.NET Dynamics AX Service Clients

XML

EDI, etc.

IIS MSMQ, File

Dynamics AX Adapter

Manage Multi-Channel Sales and Fulfillment In AX» Strive for one system, one version of the truth.» Integrate your Ecommerce directly into AX with a web store

e.g. ecommerce for Dynamics http://www.ecommercefordynamics.com

» Integrate retail stores, company stores, will call etc. with AX for Retail

» Deploy AX Master Planning for intra and intercompany forecasting and scheduling

» Automated Safety Stock recommendations based on demand from multiple channels

» Use ATP, Sites, coverage groups and shipping integration functionality to fulfill orders in the most economic method while still respecting service levels and customer expectations.

CASE STUDY

Ellison

» Ellison is one of the largest manufacturers and distributors of die-cutting systems for educational institutions and leading crafts supplier, with its well-known Sizzix brand of products, and distributes globally.

Who is Ellison?

Business Challenges

» Ellison business has evolved significantly over the past 30 years and its ERP system did not align with the current business model. Ellison needed a system that reflects the current global business scenario and processes that improve operational efficiencies. Axapta 3.0 was installed but overly customized and not optimized

» Business complexity increased as geographical boundaries and customer groups became less defined

» Difficult to forecast with changing markets

» Lack of visibility into incoming supply chain and fulfillment

» Automation was needed in the warehouse and shipping

Solution

Ignify was engaged to come in and re-imagine the Ellison environment and streamline existing processes.

By upgrading to Dynamics AX and leveraging the standard functionality, Ellison was able to eliminate most of the customizations and take advantage of the power of Microsoft Dynamics AX

Ellison had a number of third-party applications that helped its system process sales as smoothly as possible. Microsoft Dynamics AX has the functionality to integrate with these various products so Ellison did not have to customize or reinstall key processes.

A major advantage of the new Dynamics AX implementation was the in-system shipping management that integrates with Clippership, reducing the amount of shipping stations Ellison needed in the warehouse by nearly 50%

Benefits

Ellison’s fresh start began with its Microsoft Dynamics AX implementation. With the new system, the company was able to increase efficiency and analyze its data more accurately.

Sophisticated forecasting and sales analysis now provides real-time Sales Revenue, Margin Analysis and Expense reporting like never before.

Not only did processing time improve dramatically with the fresh start but Customer Service Reps saw an increase in on-time delivery, reduced back orders and customer satisfaction. Fill rate improved from 75% to over 95%

Improvements made by Ignify in the inbound tracking process allowed for better tracking and management of in-transit inventory never before possible. Landed cost values were now accurate and reduced maintenance of costing by over 50%

What does Ellison say?

“This project is a showcase example of a client-partner relationship at the highest quality, delivering the project on time and on budget, with improved business processes and seamless information flow across systems, resulting in operational cost efficiencies and improved sales forecasts.“

Ram Kanagala, IT Director, Ellison

THANK YOU!

Sandeep WaliaCEO IgnifyQuestions: dynamics@ignify.com

Eric ShussPresident – ERP DivisionIgnify