Chemcolour Industries (NZ) Ltd is a leading manufacturer and supplier of specialty chemicals and solutions to New Zealand and several international markets, servicing more than 700 customers. In July 2002, the company adopted Dynamics AX edition as the platform for future business growth. The new paperless solution has not only helped the company cut down on costs, but is also providing it with more detailed reporting to help run the business to an optimum.

New System Needed to Stay Step Ahead

Mavis Allan, Accounts Supervisor, Chemcolour Industries (NZ) Ltd explained how the company's 13 year-old legacy enterprise resource planning (ERP) system was not positioned to accommodate its future growth.

"Our legacy system was not Windows-based and therefore incompatible with many of our Microsoft desktop applications. For example, exporting data to Microsoft Excel was never an option, and meant we often had to replicate information," said Allan. "We also needed more in-depth reporting to support the business, which our existing system could not provide."

She added: "The system had already been heavily customised and there was just no more room for growth. Increasingly, our major customers and suppliers were demanding e-commerce capabilities and we needed a solution that would take our business to a B2B level further down the track."

Strong Partner is Key to a Winning Solution

Early in 2000, Chemcolour commenced the search for a new solution that would cater for its growing business needs. The company spent 18 months evaluating more than 10 vendors. It finally selected Dynamics AX edition, supported by Auckland-based Koorb Consulting.

 "Dynamics AX has strong financial and manufacturing capabilities and the functionality we need to accommodate our future growth. As a Microsoft Business Solutions' product, we also have the confidence that it will be supported long-term and continue to evolve," said Allan.

She added: "A strong and supportive partner is equally as important and Koorb Consulting demonstrated a very professional approach. They were a company with whom we could forge a positive and long-term relationship. Koorb were also very thorough and conducted an in-depth analysis of all our business processes and requirements."

The team at Koorb worked closely with Chemcolour throughout the five month implementation, which helped the company gain an in-depth understanding of the product.

"We thought it was really important to get involved in the project at a hands-on level from the outset. This helped us get close to the system by the time it went live and to stay informed at all levels," Allan continued.

Peter Ramsay, Business Development Manager, Koorb Consulting reinforced that the close partnership approach was vital to the project's success. 

"One of the vital ingredients of any successful implementation is the degree to which the customer is involved. The team at Chemcolour were committed to the project right from the start and strongly supported their staff to ensure the implementation was delivered successfully and on time and within budget."

Dynamics AX Provides Enhanced Capability

Since going live in July 2002, Dynamics AX has helped deliver to Chemcolour the functionality it needs to run the business to an optimum. The solution is hosted externally by an ASP as the company does not have a dedicated in-house IT team.

"Dynamics AX delivers far superior functionality. For example, we were never able to enter a product into our system unless it was costed. With Dynamics AX, we can allocate a nil value, thereby allowing the product to be dispatched," said Mavis Allan of Chemcolour Industries (NZ) Ltd.

More Information = Smarter Business

It is now easier and much faster for Chemcolour to update financial information and the data is also more in-depth and meaningful.

"We have been really impressed with the depth and versatility of the Dynamics AX reports - the analysis is very detailed."

The Chemcolour sales team is also taking advantage of Dynamics AX to better service customers.

"A dedicated logistics team place and track all overseas orders and shipping information, allowing us to track stock levels easily. Our storeman is also receipting goods as they arrive and are despatched.

"This means that sales staff can confirm customer requests immediately as order information is delivered in real time and can be easily accessed."

Paperless System Saves Costs

The company has also significantly cut down on costs as the new Dynamics AX system is paperless.

"All our financial and sales information is stored and easily accessed via the Dynamics AX system. With our legacy system, we had to print everything and file the information in hard copy.

"We now no longer have to manually search through hundreds of pieces of paper to find an invoice but can retrieve it electronically. The information is readily available to anyone and in a much more professional form."

More Compatibility with the Desktop Software

As Dynamics AX is Windows-based, Chemcolour staff are finding the system more user-friendly and compatible with their Microsoft desktop software.

"So far, everyone has found Dynamics AX easy to use. We can now import and export data with other desktop applications such as Microsoft Excel, saving us time and money because we no longer have to enter information twice."

Maximising the Dynamics AX Investment

Further down the track, Chemcolour plans to use Dynamics AX to take the business to the next level and adopt e-commerce functionality such as online ordering. The company also hopes to adopt the CRM module in order to centralise the company's customer information and make it readily available to all staff.

"We plan to take our business processes online in the near future and have the confidence that Dynamics AX will enable us to offer our customers and suppliers the features they need to remain competitive," said Allan.

David Guy, Partner Group Manager, Microsoft Business Solutions New Zealand, said that Chemcolour's decision to go with Dynamics AX showcases the products strong functionality and adaptability.

"Chemcolour investigated as many as 10 other vendors and chose Dynamics AX. This implementation really highlights how flexible the Dynamics AX solution is in meeting the current and future needs of New Zealand businesses," Guy concluded.

For more information about this case study contact
Anne Frith
09 362 5865
askdynnz@microsoft.com

May 2003

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