Sampford & Staff expects to double growth with Microsoft Dynamics AX
Sampford &Staff, a leading importer, manufacturer and distributor of luxury appliances, expects to double its growth to £42 million over the next 3 years following the implementation of Microsoft Dynamics® AX (formerly Axapta).
MICROSOFT DYNAMICS AX BENEFITS
- End-to-end real time view of the business
- 60% efficiency improvement in sales order processing
- Overall productivity gain of 25% and increase in bottom line
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BUSINESS CHALLENGE FOR MANUFACTURER & DISTRIBUTOR
In the 2 years to 2000, Sampford & Staff’s business had grown by 80% but they were experiencing a lot of pain. The harsh reality was that the more the company expanded, the more inefficient they became.
Sampford was using an ERP system with seven different data sources. Their systems were in disarray and staff didn’t have the tools to do their jobs. Despite an expensive upgrade, the systems’ inefficiencies continued and confusion reigned. Everything that went wrong – from customers receiving the wrong fridge to stock regularly disappearing from the warehouse - was blamed on the computer system.
While the staff grew more frustrated, the company was going backwards fast. Sampford & Staff’s Managing Director Paul Bridgeford realised he needed to get the company back on track. He devised a bold corporate restructure based on a 3 point strategy: the installation of a new ERP system; a new 10,000 square metres warehouse and an overhaul of the HR system.
ERP SOLUTION
Following a rigorous evaluation process, Microsoft Dynamics AX was chosen along with Tectura because, according to Bridgeford, both the product and the IT services company stood head and shoulders above the others.
The implementation of Microsoft Dynamics AX 3.0 at Sampford & Staff began in June 2003 starting with Financials and followed by Service Management and CRM in June 2004. The final components, Projects and the Warehouse Management System including wireless barcoding, were finalised in January 2005.
The Service Management module has completely automated the unreliable paper system and now manages all after-sales service bookings and warranties. From this, staff can analyse what’s going right and wrong with the products. If there is a major fault with any product, Sampford can go back to the manufacturers immediately with comprehensive details.
The Projects module manages the commercial operation selling appliances to developers and builders in multi-unit sites. It has automated the sales-to-delivery cycle so that the system advises in advance exactly when, for example, 150 Gaggenau ovens need to be delivered to a construction site. Previously, product was often delivered late which did not win friends.
Prior to Microsoft Dynamics AX, the warehouse was a totally paper-driven operation. The stock would come in and out of the warehouse sometimes with paperwork and often without.
This resulted in significant stock losses over a number of years. Now, the 10,000 stock items, from taps to large, stainless steel refrigerators are barcoded, logged and tracked in the Axapta system.
MICROSOFT DYNAMICS AX BUSINESS BENEFITS
Microsoft Dynamics AX has provided an end-to-end view of the business with visibility of all operations in real time. Paul: "The bottom line is that you can see if everyone is doing what they’re meant to be doing. You can also identify and solve issues before they become problems, whereas previously, you wouldn’t know."
Brett Jones, IT Consultant at Sampford & Staff, said that since using Microsoft Dynamics AX, the Service Management division has had a 60% efficiency improvement in sales order processing. This is based purely on dispatching stock faster. It used to take staff an hour to process a sales order, now it takes 10-15 minutes.
In warehousing, efficiencies in managing stock could generate an extra £1.3 million in cash. While efficiencies have been created in all operational areas, the company has already achieved an overall productivity gain of 25% and increased its bottom line.
One of the most compelling advantages of Microsoft Dynamics AX is that once we start really growing, we are going to be able to achieve more with the same staff, Paul said.
We told our people before we started that this project wasn't about redundancies. What it's about is the ability to expand the business with as few additional people as possible.
What is interesting is that because we've now got our systems right, we have been able to identify areas that were inefficient and have been able to improve productivity across all departments. At the same time, we've brought new people in and now were more skilled at both the operational and managerial levels than before.
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