Microsoft Dynamics Customer Solution Case Study Specialty Baker Raises the Bar with Manufacturing Data Management Overview Country or Region: Australia Industry: Food and beverage manufacturing Customer Profile Continental Biscuit Manufacturers (CBM) supplies baked foodstuffs for the infant and toddler market. Founded in 1976, the Brisbane company employs between 30 and 40 staff. Business Situation The company was growing, but its financial and production systems couldn’t manage new business processes and more complex customer management. Solution CBM implemented Microsoft Dynamics® AX 2009, running on Microsoft® SQL Server® 2008. It manages manufacturing and distribution. Benefits On demand access to manufacturing and financial information Rapid tracking of product inputs Better customer management “We can view up-to-date financial information whenever we need to.” Rod Bower, Operations Manager, Continental Biscuit Manufacturers Established in 1976, Brisbane-based Continental Biscuit Manufacturers (CBM) produces baked goods for the infant and toddler market. The company’s manufacturing and financial systems were heavily dependent on manual processing so performance data took a long time to compile. With output increasing and plans to upgrade its manufacturing equipment, CBM wanted a system that would help manage planning and production and ready access to key business data. Microsoft® Certified Partner Transform Solutions recommended Microsoft Dynamics® AX. With a single enterprise resource planning system, CBM streamlined its production processes and gained access to up-to-the-minute financial information. “Dynamics AX had the right breadth and depth of functionality. It was user-friendly and fitted with our manufacturing processes.” Rod Bower, Operations Manager, Continental Biscuit Manufacturers Situation Established in 1976, the Brisbane-based C.B.M. Pty Ltd – which trades as Continental Biscuit Manufacturers (CBM) – produces baked foodstuffs for infant and toddlers, and sells primarily to a leading food multinational. CBM wanted to expand its operations and upgrade its manufacturing processes. At the same time, it wanted to improve the way it worked with its principal client. However, the company’s decade-old manufacturing management system threatened to hold the company back and a majority of CBM’s finance and reporting processes relied on manual inputs. “The system was cumbersome and difficult to use, and we struggled to get our month-end financial reports done on time,” explains Rod Bower, Operations Manager, CBM. “Data had to be compiled by external accountants, and it could take two to three weeks before we saw our finalised financials. “Nor did we have an instant picture of our inventory, supplier contracts and pricing information.” CBM relied on manual processes to track the raw materials used in production. It wanted to link customers’ forecasts of how much they wanted to buy and when, with its production planning, which governs the purchase of ingredients and packaging. “We had to improve our ability to trace raw materials through more streamlined, automated processes,” says Bower. “If a product needs to be recalled from supermarket shelves, we need to trace that product’s ingredients back through the supply chain – and quickly.” Most importantly, the company wanted better quality information from its business, so it could make informed decisions faster. “We tended to waste a lot of time checking prices from multiple vendors,” says Bower. “Whilst we are a small operator in terms of business size, the majority of our customers are very large. We are expected to react to their operations as though we are part of their organisational structures.” Solution CBM investigated several vendors and chose Microsoft® Certified Partner Transform Solutions. “Transform listened to what we wanted,” says Bower. “That’s really important when you’re a family owned and operated company.” Transform Solutions recommended Microsoft Dynamics® AX 2009, running on Microsoft SQL Server® 2008. “Dynamics AX is well-suited to the food processing industry,” says Larry Cook, Director, Transform Solutions. “In particular, it could manage CBM’s core inventory, manufacturing and distribution activities.” According to Bower, CBM viewed the Microsoft system as a long-term investment in improving business operations and wanted a solution that enabled the growth of the business into the future. “Dynamics AX had the right breadth and depth of functionality,” he says. “It was “It helps us to negotiate with suppliers more proactively, and ensures our orders are correct and delivered on time.” Rod Bower, Operations Manager, Continental Biscuit Manufacturers user-friendly and fitted with our manufacturing processes.” CBM’s initial focus lay in controlling production orders, sales and purchases. Once these were bedded down in Microsoft Dynamics, CBM began to implement a full material requirements planning module, together with some of the quality management functionality. In addition, Microsoft Dynamics AX is being used to automate part of the production planning process, which previously consisted of hand-written forms. This will enable the company to electronically link customer forecasts with sales order planning. Benefits With Microsoft Dynamics AX, CBM can clearly track company finances from month to month against key performance indicators. The ability to access real time data means the company has more control over production, which improves business efficiency. “We can check prices quickly in AX,” says Bower. “It enables us to negotiate on prices more proactively with suppliers and ensures our orders are correct and delivered on time.” Time-critical traceability CBM’s ability to instantly trace batches of products is a huge benefit, particularly if an item needs to be recalled. “On one occasion, it took us a day to do a full trace-back on a product, from the raw materials used, to when it went out the door,” says Bower. “Now we can readily trace the relevant production information with minimal effort. This is extremely important when you are dealing with products for infants and young children.” Critical business visibility Microsoft Dynamics AX provides managers with a far more detailed overview of its business. The reports are also more up-to-date. Improved business efficiency Eliminating duplicated data entry among disparate systems has helped the company to improve its day-to-day operations. “Previously, we had not been able to view our financial position at any point in time,” says Bower. “Instead of taking a few weeks, compiling end of month financials now takes us one or two days. But far more importantly, we can view up-to-date financial information whenever we need to.” “With AX, we use one set of information,” explains Bower. “This reduces copytyping errors and mistakes transferring data. The information is entered once and can be viewed many times and presented in various ways.” Increased visibility has improved the focus on inventory levels and helped to reduce the tendency to manage risk by overstocking. In the longer term, this helps keep inventory costs lower and improves cash flow requirements. CBM can retrieve customer and supplier information faster and track contractual agreements with greater accuracy. “We can link customer forecasts with our sales order planning, and match quality control testing with our inventory data,” says Bower. “Matching inventory against For More Information For more information about Microsoft Dynamics® products and services, call 1800 197 960. To access information using the World Wide Web, go to: www.microsoft.com/australia/dynamics/ For more information about Transform Solutions products and services, call +61 7 3243 6800 or visit the Web site at: www.transformsolutions.com.au For more information about C.B.M. Pty Ltd t/a Continental Biscuit Manufacturers products and services, call +61 7 3865 7133 actual stock on hand also gives a better idea of our true financial position. Where we used to count every stock item manually, AX’s accuracy will mean we only need to count a few products to verify actual stock against system inventory. This saves our factory supervisors time at month end.” therefore we will expand this platform in the future.” Further development is envisaged to allow relevant KPI’s to be displayed and managed throughout the business operations. “We have few customers but very large ones who are driven by information,” says Bower. “This will mean we can continue to meet their high expectations.” Consistent customer service CBM has developed workflows in Dynamics AX that capture important information and automatically forward it to financial systems or managers. “If something is amiss, AX prompts me and I can quickly check, for instance, that a purchase order and invoice match up,” says Bower. “That means, I’m not tied down in the office checking paperwork. I can now move about the plant and talk to our production staff, customers and suppliers more frequently.” Microsoft Dynamics Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success. Platform for the future CBM envisages further savings and reduced overheads when it fully implements AX’s materials requirements planning. “We’ll be able to continue to control and fine tune our manufacturing operations,” says Bower. “The process manufacturing suite in Microsoft Dynamics covers all the important areas of the company’s operations; from strategic planning through to delivery of the product.” For more information about Microsoft Dynamics, go to: www.microsoft.com/dynamics “Even with a company of this size, small optimisations make good business sense, This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published March 2010 Software and Services Partners Microsoft Server Product Portfolio − Microsoft SQL Server 2008 − Microsoft Dynamics AX 2009 Transform Solutions