It’s been reported that nearly a quarter of distributors are seeing their growth hindered because of the limitations of their legacy ERP system. This means that one in four distributors are struggling due to missing functionality or slow-running systems. Many are using systems that are so outdated the software publisher no longer supports the solution or the sunsetting of the product is looming in the not-so-distant future.

So it comes as no surprise that the manufacturing and distribution companies that have moved to cloud-based ERP, specifically Microsoft Dynamics 365 Business Central, supply the following reasons for making the switch.

  • “Solutions that were created 30 or 40 years ago, which served us well for many years, simply can’t offer the integrations and connectivity that cloud-based solutions can offer. Cloud-based solutions offer a faster and more powerful path to optimized operations.”
  • “With BC all of our workflows – accounting, assembly, shipping, and receiving – are all in one place.”
  • “Our outdated systems had been pushed to the limit. We had long ago outgrown our legacy ERP.” 
  • “We were seeing an impact on our bottom line. Not having the right data when we needed it made us slow to address problems and slow to leverage areas of opportunity.”

Distribution and manufacturing challenges are further compounded by increased demands from customers. Product inventories have become more complex. External factors such as fluctuation in the supply chain can put pressure on the organization. Distributors and Manufacturers need to work smarter and faster – making real-time, actionable data a ‘must have’.

Why the Cloud? Why Now?

http://www.microsoft.com/en-us/dynamics-365/products/business-central#tabs-pill-bar-oce365_tab1

Cloud adoption in the worldwide B2B space is accelerating. Gartner Research reports that 85% of organizations with have a cloud-first strategy by 2025.

Since its inception the benefits of the Cloud have been numerous: anytime, anywhere access; greater security; simplified, meaningful presentation of key data; lower total cost of ownership than legacy systems; and scalability to name just a few.

However, in recent months the explosion of new technology such as Machine Learning (ML), Artificial Intelligence (AI), workflow automation, and the revolutionary Microsoft Copilot make the case for Cloud based ERP, specifically Microsoft D365 Business Central, acutely compelling. These new technological capabilities are being built into Microsoft D365 Business Central and other Microsoft products. With each behind the scenes updates to the solution, your organization will see more innovation and gain more insights and efficiencies from the system. [Refer to Copilot blog posts]

Microsoft commissioned Forrester Research to report on the ROI and benefits of moving from legacy systems to the Cloud. The results were published in the report ‘The Total Economic Impact™ of Microsoft Dynamics 365 Business Central’.

The report showed average system payback of seven months; up to 18% productivity improvements for finance and operations staff; improved business outcomes from data-driven decision; improved employee experience with the automation and integration of many manual finance and operations tasks and workflows; and the ability to serve more customers resulting in additional revenue and profits.

What is meant by real-time access and how does it benefit your operations?

Instead of being overwhelmed by spreadsheets or having to comb through volumes of raw data to get the information you need, Microsoft Dynamics 365 Business Central presents you with a real-time snapshot of financial and operational status.

Immediately know the answers to ‘what have we sold?’, ‘what is our cash status?’, ‘what is our average number of collection days?’, ‘what is scheduled to be purchased?’, ‘what have we purchased?’, and more – confident that the data is up-to-the-minute and accurate.

The top of the dashboard can include insights, labeled “Headlines” from the previous week, some examples include best-selling item; largest sale; top customer and their purchase.

The dashboard can also provide insights on your top five customers by sales value. Leverage other Microsoft solutions such as BI and track the KPIs that will deliver company goals and objectives. The best part is that dashboards can be customized by user – eliminating the clutter of data that is not of interest to the particular individual.

Powerful Distribution and Manufacturing Capabilities of Microsoft Dynamics 365 Business Central

With Microsoft Dynamics 365 Business Central you’ll have access to capabilities to optimize all areas of your business:

  • Financial management
  • Business Intelligence
  • Sales management
  • Supply chain management
  • Inventory management
  • Project management
  • Service management
  • Warehouse management
  • Manufacturing
  • And more

Inventory – Be part of the Better Half

Microsoft reports that almost half of small businesses don’t have inventory control. Customers will typically look to find an alternative source rather than wait for backorders. It’s the same with extended ship times. Is it possible to maintain high sales volumes? Maybe. But what is more likely is that profitability will suffer.

Join the better half of businesses that have Inventory as part of their ERP configuration. Inventory control puts you in a position to meet customer demand and protect your margins. Microsoft Dynamics 365 Business Central provides:

  • Quality control. Track and manage all aspects of your stock, including quality, to ensure pieces are rotated through your warehouse.
  • Organizational control. Ensure you have enough product to fulfill every order that comes through, as well as safety stock—stock that acts as a buffer to reduce an item being labeled “out of stock.”
  • Accounting accuracy. Keeping an accurate record of your inventory is vital for managing your assets, especially in audits. Knowing your product quantities allows you to know how much of your product is being lost, destroyed, or spoiled and understand the value of your business.

Precise inventory tracking means orders are filled quickly and accurately, with increased efficiency and productivity, while offering business owners more time, money, and returning customers—with product all coming from an organized warehouse or stock room.

Financial Management – The Power and Insights Today’s CFO Needs

Managing financials is every bit as important as managing your inventory. Microsoft Dynamics 365 Business Central’s financial are built on a powerful General Ledger enhanced by dimensional reporting. The Budgeting feature allows for interoperability with Microsoft Excel and Power BI.

If your business requires cost accounting, the ability to handle multiple currencies or recognize revenues and expenses in periods other than the period in which the transaction is posted – you’ll find a solution in Microsoft Dynamics 365 Business Central.

The financials also provide options for multi-site capabilities and fixed assets management.

As every CFO knows, cash is still king. Cash management capabilities such as bank account management, cash flow forecast, electronic payments and direct debits, easy payment process for customers, and more is available in this power business management system.

Best of all is the straight forward, affordable pricing: Microsoft Dynamics 365 Business Central starts at $70 per user/month.

With Microsoft Dynamics 365 Business Central you’ll have access to capabilities to optimize all areas of your business:

  • Financial management
  • Business Intelligence
  • Sales management
  • Supply chain management
  • Inventory management
  • Project management
  • Service management
  • Warehouse management
  • Manufacturing
  • And more

Summary

Change is never easy. However, working with a technology partner to manage the change can make the process easier and attain the desired outcome more quickly.

There are many reasons why LBMC Technology Solutions will recommend Microsoft Dynamics 365 Business Central to manufacturers and distributors: robust functionality out of the box; attractive subscription price point $100/per month per user beyond the implementation cost; and ever-accelerating technology enhancements, products, and platforms such as Azure, CoPilot, Power Apps, Business Intelligence, CRM, and more. All of which serve to make our customers successful today and well positioned for the future.