Modernizing Business Systems for an Industrial Company
Watch Video Summary
The Client
An established electrical engineering firm specializing in the design and construction of electrical panels for factories and organizations has been serving its clients since 1981. This company has grown substantially and now operates as part of a larger conglomerate. Despite this growth, they have retained an independent operational structure, with a strong focus on engineering, panel construction, service parts, and a dedicated service support team. This electrical company needed external support to address their current systems, so they turned to The TM Group (TMG) for help. They started working with Microsoft Dynamics SL in 2007.
The Challenges
Over the years, the firm’s reliance on Microsoft Dynamics SL became increasingly challenging. They operated multiple systems that weren’t fully integrated, leading to inefficiencies across departments. The service and support teams used their own methods for processing orders, invoicing and tracking, often relying on Access databases and Excel spreadsheets. These disparate systems caused significant delays and confusion, particularly when trying to conduct cost analyses or manage inventory effectively.
This fragmented setup led to inefficiencies across different departments:
Services: Each department had its own processes for handling orders and invoicing, which often resulted in delays and miscommunications.
Engineering: The team used separate databases for tracking time, costs and purchase orders, leading to cumbersome manual processes and data discrepancies.
Parts: There was no effective inventory control, making it difficult to track returns and unused items. This lack of control led to situations where parts were returned but untracked, causing issues in project management and inventory control.
These issues slowed down business operations and impacted the accuracy of their financial reporting and cost tracking. With the organization’s growing complexity and the limitations of their existing systems, the need for a more comprehensive, integrated solution to streamline operations and enhance visibility across all departments became apparent.
The Solution
To address these challenges, TMG proposed migrating from Microsoft Dynamics SL to Microsoft Dynamics 365 Business Central, a more robust and integrated ERP solution. This migration included the implementation of Power BI for enhanced reporting and analytics, providing real-time insights into their financials and project status.
The first phase of the project focused on unifying and streamlining business processes:
Centralized Inventory Management: TMG eliminated the use of multiple Access databases and created a standardized inventory item list. This action allowed for centralized purchasing and more accurate tracking of parts and costs.
Enhanced Visibility: The new system provided the accounting department with real-time access to cost and invoicing data, significantly improving financial transparency and efficiency.
Custom Extensions: Custom extensions were developed to enhance the functionality of Business Central, including a project management dashboard and a tool for tracking manufacturing numbers across different vendors.
Overcoming Challenges
Implementing an ERP system is never without its challenges, and this project was no exception. The team faced significant resistance from employees accustomed to the old systems, each with its own workflows and data sets. It took time to achieve consensus on using standardized processes and a centralized parts list.
Moreover, the project timeline was extended due to internal deliberations and a cautious approach to change management. However, even with some setbacks, TMG’s project team was able to guide the client’s team to the successful completion of the project. The lessons learned from this project underscore the importance of strong leadership and decisive action in ERP implementations, particularly when dealing with organizations that have long-standing, segregated systems.
The Benefits
The new system has already begun to show significant benefits:
Improved Efficiency: The elimination of disparate systems has streamlined operations, reduced manual data entry, and improved the accuracy of financial reporting.
Better Decision-making: The integration of Power BI dashboards has provided real-time insights into KPIs, aiding in better decision-making and reporting to the parent company.
Scalability: The new system is scalable and can accommodate future growth, including the potential addition of more advanced CRM systems and further customization.
Future Plans
The firm is exploring options to enhance their customer relationship management (CRM) capabilities. Currently, they are using some basic CRM functionalities within Microsoft Dynamics 365 Business Central to manage leads coming in from their website and to handle outgoing quotes. However, they recognize that these basic features may not be sufficient for their long-term needs.
The firm is currently considering the possibility of implementing some additional CRM functionality, potentially adding to Dynamics 365 for Sales. This move would allow them to have a more robust solution for managing customer interactions, tracking opportunities, and improving their sales processes. First, they plan to gain more experience with the existing CRM capabilities in Business Central. Additionally, the firm has prioritized CRM as a critical component of their overall strategy, even placing it ahead of other planned enhancements such as the possible implementation of Progressus for advanced project management.
Progressus would significantly enhance Business Central’s project management capabilities with their embedded solution by enabling the creation and management of multiple budget versions, a feature not available in the base system. It also allows for direct creation of purchase orders from job planning lines, providing more precise tracking and management of project-related purchases. This added control would help project managers stage purchases effectively, improving cash flow and project timelines. Additionally, Progressus being built within Business Central seamlessly works with the firm's existing custom extensions in Business Central, ensuring continuity while offering advanced features for better financial tracking and overall project efficiency.
Overall, the firm's future plans for CRM and Progressus involve a gradual and thoughtful approach, ensuring that they choose the right tools and solutions to support their growth and customer relationship needs.
Conclusion
This successful implementation of Microsoft Dynamics 365 Business Central is a testament to the importance of having a well-planned and executed ERP strategy.
If your business is facing similar challenges or looking to streamline its operations, The TM Group is here to help. Contact us today to learn how we can assist you in implementing a tailored ERP solution that meets your unique needs.
