A Journey with Cloud ERP: Transforming Automotive Distribution

August 20, 2024 Ken Jacobsen

A Journey with Cloud ERP: Transforming Automotive Distribution

Software tools facilitate prompt product distribution.

A multinational distribution company provides auto manufacturers with the industrial supplies vital to keep assembly lines running. Despite fluctuations in the auto industry, the distributor has expanded its footprint, growing from a main office and warehouse to multiple facilities throughout the Americas.

The TM Group (TMG) had completed this client’s Dynamics SL implementation 20 years earlier, picking up the project when a previous partner had failed to deliver. Now, with Dynamics SL becoming obsolete, the distributor needed a more modern, cloud-based ERP solution. They decided, with TMG’s guidance, to migrate to Dynamics 365 Business Central. The key objectives were to improve operational efficiency through single-source data visibility for stakeholders, and to enable greater process controls between Business Central installations.

The Challenge 

The primary challenge involved transitioning six companies across multiple countries from SL to Business Central. In addition to the key objectives stated above, the client wanted to:

Eliminate the onsite SL server while retaining access to historical SL data.

Improve visibility for customers into item sales data by program lines.

Transition from SL’s robust but dated project tracking and automation abilities to Business Central’s order management and project functionality—not an exact match.

Retain the custom design of printable reports, sales order confirmations and invoices while processing 200 invoices per day.

Track quality controls and corrective action records for various customer and government reporting requirements.

The transition posed logistical hurdles that required meticulous planning and execution. After the switch to Business Central, another challenge arose as the distributor desired to integrate data between D365 CRM and Business Central databases for streamlined reporting and vendor management.

The Solution 

Transitioning from Dynamics SL to Business Central marked a pivotal move for the client. The solution combined Business Central’s key features with various tools and integrations to cater to the client’s different requirements for their multiple companies. It also eliminated most of the extensive customization that had been required with SL.

While Business Central was at the core of the new setup, it was complemented by an array of supporting technologies. Leveraging Microsoft Power BI Data Warehouse and Azure Data Lake empowered the client with strong data analytics capabilities, facilitating informed decision-making and strategic insights. Integration with third parties like CoreIntegrator for document management and SKGlobal’s eBanking further fortified operational efficiencies, while SmartConnect seamlessly bridged Business Central with the customer’s purchase order management system.

The transition encompassed six companies. Over a span of more than two years, a series of projects with distinct go-live dates ensured a phased and meticulous approach to implementation.

For the distributor’s largest company, TMG’s consultants employed a set of standard extraction scripts for SL data migration, allowing us to migrate all purchase orders, sales orders and inventory quantities within three to five days. The migration of this historical SL data into Azure Data Lake ensured continuity and accessibility of vital information.

TMG used SmartConnect to build an integration for their purchase order management solution. Employees can order specific items through this platform. These orders are then processed in Business Central using SmartConnect. Additionally, TMG created an integration to update item availability in the customer’s order management system. The integrations and automations that were once used with SL are now more efficient with Business Central.

Business Central lacks some of the built-in functions that were available in SL. Replacing SL’s Process Manager functionality was a specific requirement, so TMG’s development team built several applications to fulfill this customer’s specific business requirements. One major enhancement TMG made was adapting the jobs entity for a distribution environment, since Business Central Jobs doesn’t include standard warehouse functions like generating shippers and pick lists.

Other enhancements included:

Developed “pick-and-bill” functionality, which allowed workers to walk through the warehouse and pick the items needed to fulfill orders. Immediately, the customer was billed, and inventory quantities were updated. The pick list filters data by program line, availability and sort-by location, which guides workers through the warehouse and avoids the search for items not yet restocked. Although it was a “fill in the gap” solution, this functionality took efficiency a step further since SL had not easily allowed tracking the number of products shipped to individual programs.

Customization of printable reports ensured that report design was carried through to the new system, as requested by the client. TMG also added Azure services on top of Business Central to leverage real-time analysis and scheduling.

Using CoreIntegrator for AP automation and document management transformed the client’s 200-per-day invoice processing. The client can now match invoices against POs by part numbers, quantities and values, with an additional verification step.

Migrating Microsoft Dynamics 365 for Sales (CRM) to the cloud, the client enhanced their ability to track quality controls and meet various reporting needs, including those for government agencies such as OSHA.

The client also had to maintain the Mexican subsidiary as a separate entity in Business Central. Although workflows and reporting requirements vary, the subsidiary’s data easily flows into Azure Data Lake to provide a comprehensive view for consolidated reporting.

The Impact 

The transition from Dynamics SL to Business Central launched a profound transformation within the client’s operations, yielding tangible improvements across various facets of their organizational structure. From streamlined inventory management to enhanced customer relationship management, the switch has permeated every aspect of their operations.

In addition, the strategic selection of Business Central as a scalable ERP solution has positioned the client for sustained growth and adaptability in a dynamic business landscape. The migration to the cloud has not only streamlined operations but has also led to tangible cost savings, allowing the retirement of seven servers.

Furthermore, the transition has afforded the client better visibility into program lines, enabling more tailored reporting capabilities.

If you find yourself in a similar situation, we invite you to connect with The TM Group today. Schedule an appointment with one of our expert consultants to discover how the right platform can drive success.

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