Project Success Story: Home Improvement Customer Spotlight

After Two Acquisitions and a Complex Split from Large Manufacturer, Home Improvement Firm Streamlines Production, Distribution, and Installations

Western Computer Deploys Microsoft Dynamics 365 Finance and Supply Chain Management to Meet Unique Business Unit Requirements

THE CHALLENGE

When companies that manufacture, distribute and install home improvement materials and products start to grow through acquisitions, managing operations quickly becomes complex. This is particularly true when the business units rely on different ERP platforms that are not integrated. Managers must bounce back and forth between systems, and it’s difficult for the business units to coordinate resources and leverage shared supply chain relationships.

This was the case faced by a firm in the U.S. that provides decks, railings, fencing, and outdoor lighting to homeowners and businesses. The company initially relied on a Sage ERP platform, and shortly after acquiring another business that also utilized Sage, then purchased the division of a large manufacturer that had deployed an SAP ERP system.

The three isolated systems made it difficult for the operations team to manage manufacturing, distribution, and installations as they had to keep switching applications. The complexity of SAP also forced many managers to rely on spreadsheets to coordinate production and material requirements planning.

From a technical support perspective, IT faced challenges as well. SAP was new to the team and is much more complex to maintain. Plus, the platform requires heavy customization that generates high software development costs.

Adding to these challenges, the company was under a tight deadline to move the acquired division off of SAP since the software license was held by the previous owner of the division. And although the other two business units were using Sage, that platform did not provide the advanced ERP capabilities the company required now that it had greatly expanded its operations. Senior management thus decided it was time to look for an alternative single ERP platform on which to consolidate the operations of all three business units.

THE SOLUTION

To solve the ERP challenge, the company hired a consulting firm to identify the requirements of the new platform, issue a request for proposals, and evaluate potential partners. Several solution providers submitted proposals that included a range of ERP technologies. These included Microsoft Dynamics 365 as well as NetSuite, SAP, and Sage.

One of the responding solution providers was Western Computer, which recommended Dynamics 365 Finance and Supply Chain Management. Western Computer won the project by demonstrating how Dynamics 365 provides powerful features—yet also simplifies production, warehouse, and project management processes without overwhelming end-users. The customer could see how Dynamics 365 offers the perfect balance of functionality and ease-of-use in comparison to other ERP solutions.

Western Computer won the project by demonstrating how Dynamics 365 provides powerful features—yet also simplifies production, warehouse, and project management processes without overwhelming end-users.

Another key factor in selecting Western Computer was its longtime partnership with Microsoft. The team knows how to fully leverage the complete functionality of Dynamics 365 for manufacturers and distributors and how to program Microsoft technologies to deliver the unique capabilities each customer requires.

Following the partner selection, Western Computer implemented Dynamics 365 financials for the three business units. The platform also includes processes for sales orders, purchase orders, inventory management, bills of materials, receiving, and shipping. 

Another key function Western Computer deployed is enterprise asset management, which helps increase shop floor machine utilization by helping the customer make sure preventative maintenance and inspections are done on time. The three business units can also execute intercompany resource and inventory transactions, and all the information can be rolled up from each of the business units to view financial and production performance from a corporate standpoint.

THE BENEFITS

Western Computer worked closely with Microsoft to optimize the cost of the customer’s software licensing for Dynamics 365 Finance and Supply Chain Management, which included adding Microsoft Power BI for reporting. Western Computer also collaborated with the three business units to set up Dynamics 365 to handle their specific workflow needs. With ERP now running in the cloud, the internal IT team spends less time on system administration as Microsoft manages the environment.

After creating the initial solution design, Western Computer made adjustments according to each business unit’s feedback and finalized the implementation after only four modifications, which is unusual for a company with multiple business units. This accelerated the deployment timeline and allowed the customer to beat the deadline established by the previous owner of the business unit running on SAP.

One of the capabilities the customer appreciates most from the new ERP platform is the embedded warehouse management system, which streamlines supply chain management and flows data automatically into the financials. This feature is in sharp contrast to other ERP systems that require complex customizations for warehouse management or the integration of a thirdparty solution.

One of the capabilities the customer appreciates most from the new ERP platform is the embedded warehouse management system, which streamlines supply chain management and flows data automatically into the financials. This feature is in sharp contrast to other ERP systems that require complex customizations for warehouse management or the integration of a third-party solution.

With the single, modern ERP platform deployed by Western Computer to run all three business units, the customer has improved operational efficiencies for manufacturing, distribution, and installations. The customer can also manage the supply chain and production resources more effectively to respond to market demands.

Dynamics 365 is also a boost to morale across all levels of the organization. Front-line employees can engage easily with user-friendly workflows, allowing them to increase their productivity. At the management level, the Power BI reporting capabilities built into Dynamics 365 make it easier to analyze company performance and to forecast what’s coming in order to better meet customer needs.

Another benefit comes from the integration Western Computer set up between Dynamics 365 and the customer’s Allen‑Bradley programmable logic controller system, which manages machines on the manufacturing floor. Using the Ignition manufacturing execution system to create the integration, Western Computer enabled the customer to more efficiently manage automated processes so that only a skeleton crew is required to operate the company’s four warehouses, which span nearly 200,000 square feet.

For installation projects, Dynamics 365 helps the customer manage budgets to make sure each project is profitable. Managers can also schedule resources (including subcontractors) and create work orders to detail the specific tasks for each job. From there, managers can track the cost of each project in real time and the cost of all projects for specific customers, business units, and job sites. The accounting team also receives alerts when project milestones are achieved to know when to bill customers.

With the single, modern ERP platform deployed by Western Computer to run all three business units, the customer has improved operational efficiencies for manufacturing, distribution, and installations.

WHY WESTERN COMPUTER?

One of the key reasons why the customer decided to partner with Western Computer is its experience in working with many manufacturing and distribution customers. The Microsoft solution provider offers ERP experts who understand the nuances of how production and warehouse teams operate.

The final inducement for the customer to select Western Computer came from the strong reputation Western Computer has established in the ERP market. The consulting firm conducting the search for the company was already familiar with the previous successes of Western Computer and recommended them as the best choice to migrate from SAP and Sage to a consolidated ERP platform.

The customer was also impressed with the broad expertise of Microsoft technologies that Western Computer offers. This will come in handy as the company looks to the next phase of modernizing its application environment— migrating from Salesforce to Dynamics 365 Customer Engagement. This solution will not only assist with marketing and sales, but also customer service, and Western Computer is in prime position to once again serve as a trusted advisor who knows how to fully leverage Microsoft technologies.

One of the key reasons why the customer decided to partner with Western Computer is its experience in working with many manufacturing and distribution customers. The Microsoft solution provider offers ERP experts who understand the nuances of how production and warehouse teams operate.