Summary

Our client, a supply chain management firm, completed a successful Microsoft Dynamics AX Financials implementation with Logan Consulting providing business process and AX functional expertise.

 

The Client

Our client is a supply chain management firm that provides unique solutions to each of their clients. The company provides customers in a wide range of industries, including consumer electronics, direct selling, eCommerce, furniture, health and fitness, home appliance and improvement, maintenance, repair and operations, mattress, and office equipment sectors, with specialized services in last mile delivery, order fulfillment, service parts management and transportation.

 

The Opportunity

A company that is highly focused on customer satisfaction, the client continues to go above and beyond to ensure that the many specialized solutions provided to their customers are delivered as promised. To do so, this has required the client to operate with several highly customized legacy ERP and WMS systems that have been expanded upon with custom solutions over the past 20+ years. Prior to the implementation of Dynamics AX Financials the client accounting department was utilizing more than three systems to carry out daily operations. The goal for the client’s new ERP project was to implement a single ERP platform with consistent processes, procedures, and systems across all companies in the the client’s umbrella. In addition to this goal, the client was seeking an ERP that could support all business requirements and allow for ease of customization where necessary and an implementation team that could guide the client to resist modification and embrace standard functionality where possible. The new ERP system would support all financials and supply chain activities and seamlessly integrate with the WMS solution of the client’s choosing.  The client engaged Logan Consulting to assist them in implementing Dynamics AX 2012 R3.

 

The Logan Consulting Solution

The client selected Microsoft Dynamics AX as its ERP and engaged Logan Consulting to lead the implementation and meet an aggressive implementation schedule. To support this goal Logan consulting made the recommendation to implement Dynamics AX using a two phased approach, to minimize risk and promote a successful project by introducing the solution to one area of the business at a time. The phased approach solution was well received the client and agreed upon by the two parties, with Financials being the first phase of the project and Supply Chain being the second. To support this goal, Logan Consulting began by uncovering all of the client’s business requirements, including both Financial and Supply Chain requirements during an initial scoping and planning phase. During those initial requirement sessions, a detailed project plan was built for each phase of the project. Collectively, the client and Logan built and carried out the plan for Phase I of this project that led to the highly successful implementation of General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets, and Budgeting, and Advanced Banking in AX to support all related companies.

 

The Results

By implementing Microsoft Dynamics AX in a manner that allowed the business process to dictate the design and configuration of AX, the client was able to recognize the following results and benefits:

General Ledger:

  • Ability to perform manual transactions as needed
  • Supporting the ability to reconcile inter-company transactions
  • Support recurring journal entries
  • Support cost allocations by various business units and dimensions
  • Security Controls for posting periods
  • Run Financial reports by legal entity and dimensions
  • Support import of general journal entries

Accounts Receivable:

  • AR Aging
  • Reporting by customer
  • Ability to bill customers for manual fees
  • Ability to bill Last Mile customers for fees
  • Support AR customer balance import
  • Support collections
  • Customer cash application

Accounts Payable:

  • Support non-inventory vendor invoicing
  • AP Aging
  • Payment Selection
  • Check Runs/Printing
  • Check Reconciliation
  • Support AP vendor balance import

Bank Management:

  • Support transaction types of check payments, ACH payments, wires
  • Support Positive Pay
  • Maintain bank accounts and associated financial instruments

Budget:

  • Creating Budgets by legal entity
  • Uploading budgets from Excel
  • Support Budget version control
  • Approval workflow for budget process

Fixed Assets:

  • Support tracking of each legal entity’s fixed assets
  • Ability to group assets
  • Ability to capitalize assets
  • Support depreciation of assets

Overall, each of the following project objectives was achieved:

  • Embrace best practices built into Microsoft Dynamics AX
  • Resist modifications to AX by requiring business case and Steering Committee approval of all source code changes
  • Train all key users to utilize the software to the optimum level – no compromising performance
  • To facilitate decision making, team consensus, not unanimity, will be the rule. Once consensus is reached, all team members will work towards the agreed direction.
  • No backsliding to old or sub-optimal processes – we will pursue every opportunity to automate processes and remove non-value added work
  • Consistent processes, procedures, and systems across the companies in the umbrella, where practicable and feasible.
  • On time and on budget implementation of standard AX functionality
  • No major disruption in the ability of the client to procure, manufacture, ship, and bill product
  • Support financial shared services to increase productivity, reduce costs, and better serve the customer

With the completion of Phase I, the team is now well underway with Phase II of this project, which will include the implementation of Product Information Management, Inventory Management, Sales and Marketing, Procurement and Sourcing and several custom solutions.

 

Next Steps

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