Previously, DAS used a legacy system called AS-400 which was outdated to run their business efficiently and effectively. The maintenance cost was high and due to the limited number of legacy engineers; the system was not easy to maintain. Furthermore, they were at risk of security problems due to production configuration. Because of this and an overall desire to modernize its systems, the company required an extensive review of the different enterprise resource planning (ERP) solutions that might fit its businesses.
DAS was using its legacy system to manage its large inventory of power inverters, cellular accessories, personal audio accessories and other items. The system was unable to drill down to the level of detail required to keep track of these items which led to issues of lost inventory, not knowing what was needed or when to buy replacement stock. With 30,000 item movements a day and annual inventory budget in excess of $30m, this presented a serious problem.
Key personnel at DAS decided that a specialist inventory solution was required and began the process of evaluating alternative systems. DAS chose Microsoft Dynamics AX solution, as it was able to manage the regular supply chain as well as reverse logistics (when customers returned units or contractors returned damaged equipment). A big advantage that Microsoft Dynamics AX version 2012 R3 had over its competitors was that it provided the ability to develop corporate reports detailing inventory holdings in each region, down to individual contractor level. These reports were able to pinpoint how long stock had been there, provide visibility of freight consignment, automatically update inventory movements and allow DAS Supply Chain and Logistics team to proactively manage inventory orders and dispatches. The reports also meant reconciliation of serialized and aged inventory was much easier.
Cost reductions - Because visibility is possible across all companies and departments.
Finance - Better sales focus & increased productivity.
AX has enabled DAS to standardize finance processes across the Group.