Streamlining ERP Adoption for a Manufacturing Organization

In today’s fast-paced manufacturing environment, companies face unique challenges when transitioning from legacy systems to modern ERP platforms. The TM Group (TMG) recently completed a project with a specialized build-to-order machinery manufacturer that was shifting from a highly customized legacy system to Microsoft Dynamics 365 Business Central.

This organization is part of a group of companies owned by a family office and is the first of several planned ERP implementations. The primary objective was to help the company adopt the new system efficiently, minimizing unnecessary customizations while maximizing use of out-of-the-box functionality, laying the foundation for a scalable, phased rollout across the entire group of companies.

The Challenge

The client came to TMG after years of operating on an antiquated IBM AS/400 ERP system that had been heavily customized and was unsupported for some time. In addition to the AS/400, they were using several browser-based custom-developed systems that lacked integration to their ERP system. Like many manufacturing companies, their legacy business systems also relied on numerous workarounds and custom processes to support daily operations. As they prepared to transition to Microsoft Dynamics 365 Business Central, the client initially requested automation for many of these outdated processes, assuming the same level of customization would still be necessary.

However, much of the complexity they had grown accustomed to was driven by limitations in their old system. The real challenge was helping them see how Business Central could simplify and streamline operations using its native capabilities, eliminating the need for many of the modifications they previously relied on.

Besides functional challenges, they also had some cultural challenges. Many organizations, including this client, struggle when they depend solely on internal resources to lead major system implementations. While internal leaders often have strong operational expertise and understand the business deeply, they may lack experience in managing organizational changes, especially when it involves ERP software. This creates a critical gap. Change management isn’t just about learning a new system; it’s about preparing people, aligning processes, and building a culture that embraces transformation. Without a structured approach, even the most well-planned projects can face resistance or stall.

The Solution

TMG’s approach is highly consultative. Rather than immediately replicating legacy processes through custom development, our team worked closely with the client to evaluate which workflows could be handled more efficiently using Business Central’s standard functionality.

By encouraging the client to fully explore the system before committing to customizations, TMG helped avoid unnecessary automations that would have introduced added complexity, cost, and long-term maintenance challenges. This “standard first” mindset allowed the organization to take full advantage of Business Central’s robust, modern features while significantly reducing implementation risk.

The client’s prior reliance on heavily customized ERP systems made this shift in thinking especially impactful. Many capabilities that once required custom development were native to Business Central, allowing the team to operate with less custom development. 

In addition to implementing Microsoft Dynamics 365 Business Central, TMG deployed Insight Works’ Warehouse Insight and Shop Floor Insight solutions. Select enhancements were also made to streamline specific processes, including enhancements to requirements planning to accommodate their complex, high-volume BOMs and better account for lead times. As a highly engineered machinery manufacturer, they design equipment in their CAD system and then import the bill of materials into Business Central, though they are exploring BOM import automation in the future.

Reporting was another key focus area of enhancements, with improvements to support operational visibility. The most significant improvement was a custom report that ties all costs and revenues, including future parts sales and warranty work, to a single piece of machinery, providing a comprehensive view of product profitability. This was something they couldn’t do with their legacy systems.

The Impact

With TMG’s guidance, the client successfully adopted Business Central while keeping their environment streamlined, consolidating data into a single system and establishing scalable processes. Instead of spending time assembling information from disparate systems, the team can now focus on analyzing data to drive better decisions. For example, they previously had to manually calculate the cost of each machine to post cost of goods sold—a process that is now fully automated in Business Central. They can also capture actual labor hours at individual labor rates for each component, something they couldn’t do before.

As mentioned earlier, a lack of focus on change management did lead to some challenges with user adoption. Employees were expected to adapt to new tools and workflows without adequate communication, support, or a clear understanding of the “why” behind the change. As a result, the full benefits of the new system weren’t realized initially. Over time, however, the leadership team recognized that successful implementation goes beyond technical setup—it also requires intentionally guiding users through the change journey. With this change of philosophy, they were able to gain user adoption and enthusiasm for the new ERP solution.

By resisting the urge to over-customize early in the project, the organization was able to:

TMG’s collaborative, education-focused approach not only led to a smoother go-live but also positioned the company for long-term ERP success—without the burden of technical debt from excessive customization. Several future initiatives, including a customer portal and CRM system, are already in discussion.

Conclusion

With TMG’s expertise and consultative guidance, the manufacturing organization successfully embraced Business Central as a modern ERP platform tailored to their evolving business needs. By prioritizing the use of standard functionality, they achieved greater operational efficiency and long-term sustainability, demonstrating that, in many cases, less customization leads to more impactful results.

If your organization is facing similar challenges with your ERP system, TMG is ready to help you streamline your journey and deliver lasting success.