Manufacturing Procurement & Logistics

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Manufacturing, Procurement and Logistics

Dynamics AX ERP Solution

Compliance Management Compliance Center Country-specific functionality Audit trails and access control Embedded workflow capabilities

Collaborative Workspace Enterprise Portal based on SharePoint technology Integrated unified communications

Business Intelligence and Reporting Standard, ad-hoc, and analytical reports with Microsoft SQL Server Reporting Services RoleTailored, predefined, multidimensional data cubes Dashboard views of key performance indicators (KPIs) Integration with Microsoft Office PerformancePointTM Server 2007

Microsoft Dynamics AX Solution Areas

Service Management Service orders and contracts Service calls and dispatching Repair management Service subscription Sales and Marketing Sales force and marketing automation Lead and opportunity management Telemarketing and telesales Sales management Customer self-service portal Document management

Financial Management General ledger Accounts receivable and payable Bank management Fixed assets Shared services support Cost accounting Intercompany accounting and consolidation Project Accounting Project finances and invoicing Project cost control Revenue recognition and work in progress (WIP) Integration with production Consultant self-service portal

Human Resource Management Organizational and workforce management Recruitment and selection Employee development and performance Skills mapping Training Expense management Employee self-service portal

Supply Chain Management

Demand forecasting Intercompany trade Inventory management Distribution planning Procurement management Vendor self-service portal Business-to-business trading partner integration Distribution planning Multi-site warehouse management Order handling with trade agreements Item and lot number reservation and tracking Order promising RFID-enabled

Manufacturing Finite and infinite capacity and materials planning Job scheduling and sequencing Resource management Shop floor management Work order management with job costing Product configuration Quality management Lean manufacturing Process manufacturing

Buyer Contract Management

Supply Chain Management

Inventory Management
Transport Management

Manufacturing & MRP

Discrete, Batch, Made-to-Order, Process

Customer Contract Management Customer Rebates

Transport Management

Accounts Payable Vendor Rebates

Inventory

Transfer OrdersAccounts Receivable

Customer Rebates

Landed Cost

Warranty & Repair Catch Weight

Sales Orders Advanced Credit Management

Management

Transport

Voyage Management

Purchase Orders Accounts

Landed Cost

Customer

Purchase Orders EDI

Accounts ReceivableSales Orders Advanced Credit

EDI

Production Routes and MRP

Supply Chain Management

Warranty & Repair

Management

Inventory

Catch Weight Contract Management

EDI

Manufacturing, Procurement and Logistics

Microsoft Dynamics AX: Supply Chain Logistics

With increased globalization and offshore sourcing, global supply chain management is becoming an important issue for many businesses. Organizations find that they must rely on an effective Supply Chain or network, to successfully compete in the global market. The seamless integration of all elements of the Supply Chain in one solution, with one data base and a single set of business rules provides improved performance, increased customer satisfaction and strengthened supplier relationships. Other key elements of the Manufacturing and Distribution process are the procurement of materials for manufacturing including Commodity Contracts, Demand Planning, Inbound/Outbound Transport, Warehousing, Rebates and much more, all in the one integrated solution, Dynamics AX. The secret to a successful Purchasing Process for Manufacturers is the incorporation of all types of procurement methods, combined with strong Logistics Management and full integration with Demand Planning.

Contents:
Purchasing Streamlined.......................................................................4-5 Transport & Logistics..............................................................................6-7 Advanced Production Scheduling ...................................................8 Catch Weight...................................................................................................8 EDI...............................................................................................................................9 Advanced Credit Management................................................................9 Customer & Vendor Rebates....................................................................10 Repair & Warranty............................................................................................11

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Manufacturing, Procurement and Logistics

Purchasing - Streamlined
Depending on what is being produced, there are a variety of ways in which raw materials or components can be purchased. There are three Purchasing Methods: Purchase or Blanket Orders, Contracts, and Landed Cost Items. An organization may use all of these methods, each of which need to be able to be integrated into the manufacturing planning process. Scalable provides solutions that bring all of these methods together with Dynamics AX for full visibility and control of supply-demand requirements.

Purchasing Methods
Traditionally Purchase Orders, or Blanket Orders are used to acquire products necessary for manufacturing. Contracts come into play when raw materials vary in price, quality and delivery schedule. Many of these raw materials are high value and high cost with volatile pricing on open markets. Therefore the risk of not consuming these goods in a timely manner or within the contractual terms can have significant financial implications directly impacting the companys bottom line. Landed Cost Items have additional charges that need to be allocated to inventory valuations. With Landed Cost Items, manufacturers benefit from the ability to combine shipments across vendors and purchase orders to minimize costs. In addition better control of the delivery schedule of Landed Cost Items provides more effective production planning.

Purchasing and Contracts for:

Subassembly Raw Material Components Commodity

Logistics and Shipping

The objective of the Logistics & Shipping process is to ensure that procurement contracts are executed in a timely manner to meet the Manufacturing requirements. There are a number of ways this can be handled in conjunction with the Transport Management and/or Voyage Management solutions. Logistics needs to consider where raw materials, components and/or subassembly is sourced and where it is to be delivered. In addition Logistics needs to ensure it can be done in the most efficient and cost effective manner.

Material Contract Management

Contracts may be spread across several delivery periods, where the parameters of the contract, such as price, may vary. Each spread may be considered a subcontract within the primary contract. Commodity and raw materials for example, can have agreed quality specifications. The quality specification may be a recognized industry standard or agreed on a contract-bycontract basis. The quality specifications are used as measures to determine if the raw materials supplied meet or exceed the contracted quality. Each quality specification may result in an adjustment to the price paid for the raw material. In the Contract Management Module we can record the contractual quality specifications and associated adjustment formulae which are used at the time of delivery to establish the actual quality and automatically calculate any price or weight premiums or deductions.

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Manufacturing, Procurement and Logistics

Contracts
The Purchase Order is not necessarily the first phase of the Supply Chain. Contracts may precede this step in the process. In many organizations this purchasing method is handled outside of the ERP solution until the goods are delivered, and a PO is raised to pay the vendors invoice. The problem with this approach is that the availability of the raw materials from these contracts has a direct impact on Production, but in many cases is not visible to Production Scheduling. There is also the need to accurately track and monitor costs or charges associated with a

Contract Management Purchase Orders Blanket Orders

Forecasting

Fulfillment

contract. The contract management module allows costs associated with a contract from inception through to delivery to be tracked and allocated to inventory valuation.

MRP

Sales Orders

Raw Materials Procurement for Dynamics AX brings these contracts into the ERP system as the first phase of the Supply Chain allowing complete visibility of the Supply Chain and all costs associated with Purchasing to flow through to the Production Process.

Landed Cost

Inventory

Finished Inventory

Contract Allocation to Production Requirements

Contract Management gives users the material requirements. It shows what materials, including the grade or quality that need to be delivered. It also indicates which location has the inventory to meet the requirements. Finally, it also matches the delivery timing of the materials to the meet the productions schedule. At the same time this view leverages Master Planning to identify supply chain demands and constraints. As master planning requirements change, users are able to: z Assign existing contracts to meet this demand. z Allocate from suitable alternative raw materials. z Distribute raw material inventory from other locations. z Create new contracts for procurement if none of the above options are applicable.

Suppy-Demand Visibility
At the time the raw materials are delivered, inventory is updated and this inventory is either available for consumption, or reflected in the updated Master Plan. This tight integration ensures the Contracts Purchasing process can adapt quickly to changing business requirements while adding efficiency, control and visibility to the process.

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Manufacturing, Procurement and Logistics

Transport & Logistics

Whether by air, truck, rail or ship, the effective management of transport operations is vital to an optimized supply chain. Inbound, internal and outbound transportation: items procured from suppliers, inventory transfers between warehouses or stores and the final delivery of goods to customers must be streamlined in order to collaborate better with suppliers, lower transportation costs, and meet customer expectations. An effective system optimizes warehouse operations and aligns them with planned Multi-Modal freight movements to keep the Supply Chain in motion.

Landed Cost
Many Distributors, Manufacturers and even Retailers struggle to keep up with the challenges associated with importing goods. In Distribution and Retail it is important to be able to accurately predict and communicate lead time to customers. In Manufacturing it is important to have accurate supply lead times in order to optimize production.

Shipment Tracking
With Shipment Tracking you can build shipments that include multiple vendors, POs and even PO lines. When the estimated delivery dates of the shipment changes, all of delivery dates for the PO lines are automatically updated. Updates to inventory allows customer service to see what they have in stock, what is ordered, and when those orders will be available. Updates to Master Planning also allows production to see changes in Net Requirements as shipments are updated.

Transport Loads

Inventory

Shipment Voyage & Landed Cost

Purchase Contracts

Transport Loads

Sales Contracts

Voyage Tracking
With Voyage Tracking , you can utilize define and track direct and/or tranship services provided by shipping companies. Voyages can be created based on price and /or delivery time. Depending on the number of shipping services your use, you can choose to define the whole service route or just the ports relevant to your trading. Default shipping document templates can be created and applied automatically to new voyages as they are created. Voyage tracking provides visibility to and management of every step in the voyage process.

Accurate Inventory Costs - Financial Visibility Import costs such as transportation and handling fees, insurance, duties, and taxes can make up a large portion (upwards of 40%) of an items cost. Adding landed costs to your inventory valuation provides an accurate cost and profit analysis of items, vendors, clients and projects. When costs and profit analysis is accurately incorporated into the overall financial picture and decision process, it helps to maximize profits and competitiveness. Voyage Management takes this a step further with the ability to haul bulk materials and store multiple container sizes and types each with different charge rates held against them.

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Manufacturing, Procurement and Logistics

Inventory Movements And Outbound Shipments

Distributors, Manufacturers and Retailers need to optimize inventory levels in their warehouses and stores. In addition, they need to take advantage of the fastest and least expensive shipping options. Transportation Management supports all inventory movements and shipments, from a simple point-to-point operation, to complex multi-modal, multi-leg and cross-docking operations. Transport allows you to use a single interface that works across business units and geographies to keep goods moving through the supply chain.

Load Management
Load building is the foundation of Transport Management. Loads can be planned and built simultaneously for inbound shipments, warehouse and/or store transfers as well as outbound shipments. Transport Managers can analyze all shipments based on origin and destination and consolidate them into loads which can be automatically or manually generated.

Delivery Runs
Transport Management allows Purchase Orders, Transfers and Sales Orders to be combined for delivery runs. Once the Waybills for a delivery are grouped into a logical delivery sequence, the Shipment Manifest is printed with a suggested delivery sequence for the driver to follow.

Least Cost Calculations

With multiple carriers potentially servicing the same delivery routes, the transport management system allows you to run scenarios to enable you to effectively select the lowest cost option for your delivery requirements. This analysis can be run for both point to point deliveries as well as multi-drop delivery runs, including multi-leg journeys if required. Transportation Management gives shipping and logistics personnel the tools they need to It streamline provides transportation across processes. operations, visibility

Simple Freight Reconciliation and Customer Billing

Service charges and BAF charges for each combination of container type and port can be stored against each shipping company. Transport Management will automatically calculate and accrue the carrier charges using flexible rules and criteria. The accrual and commission values are calculated based on pre-defined destinations, type of service, (freezer or chiller) and the number of pallets, pallet spaces, cartons as well as weight or volume. Charges can be applied by considering weight, volume, pallet spaces, distance, zones, destination codes and more. A fuel levy percentage can also be added, as well as a minimum charge amount. All of this functionality allows for increased financial visibility in the supply chain.

facilitating collaboration between suppliers, customers and carriers to increase Supply Chain throughout. In addition it lowers transportation costs and improves customer service.

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Manufacturing, Procurement and Logistics

Advanced Production Scheduling

In a manufacturing environment it is vital for production planners to have an overview of Production Schedules, both for Production Orders for which materials and resource capacity have been committed, and for planned Production Orders that have been generated by Master Planning.

Improved Gantt Chart

The advanced production scheduling functionality for the Dynamics AX Production module extends the Gantt table to provide a production planning dashboard from which scheduled tasks may be examined in detail, amended, sorted and re-scheduled. The standard Gantt chart does allow rescheduling by dragging and dropping a task on the chart. However re-scheduling a task is only one re-scheduling option. Other options

such as deleting or amending an order quantity, consolidating orders, or assignment to a different resource, require the user to take action in other parts of the system. The easy to navigate screens allow for simple and efficient adjustments to the production schedules. Scalables Advanced Production Scheduling is specifically designed to work with Microsoft Dynamics AX making the whole re-scheduling process as efficient as possible, providing schedules that are accurate and easy to maintain.

Key Features:
z Allows adjustment of production schedule from within the Gantt chart z Adjust productions orders from a tabular Planning Grid z Additional sort sequences applied from within the Gantt table to rescheduled work-centre tasks

Catch Weight & Shelf Life

Catch Weight
Catch Weight Management is designed for organizations that need to keep track of stock in a second unit (such as cartons, bags, crates, pieces, gems etc.). For example, keep track of the number of cartons as well as the weight for each carton. When items are purchased or sold, two quantities may be recorded, there is the movement quantity and the stock unit quantity. Conversions are done from one unit to the other based on the conversion factor held. The two quantities may be recorded for stock transfers, stock taking quantities and all stock journals in Dynamics AX for discrete, batch or made-to-order manufacturers.

Shelf Life
Many customers require that the products they take delivery of adhere to specific shelf life and/or expiry date requirements. These requirements could be at the product level, or at the customer level, when the same product is shipped to multiple customers. Scalables Shelf Life module helps to simplify the tasks of assigning these various date driven requirements to products and customers.

Key Features:
z Track inventory in two quantity units

z Ability to handle two quantity fields for each order line

z User defined quantity units with automatic conversion to base unit z Customer or Product based dates

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Manufacturing, Procurement and Logistics

EDI
Streamlined Trading Partner Communications
Many organizations require their business partners (e.g. suppliers and service providers) to utilize EDI technology as standard for electronic communication of common business documents. To assist you with this process, Scalable Data Systems offers a complete suite of EDI solutions to enable your company to achieve compliance, and benefit from effective, streamlined communications between trading partners. z Improved accuracy z Better record-keeping z Fewer data errors z Improved inventory control z Faster order processing. z Reduced communication costs z Greener, less paper z Lower postage and handling costs

STD Documents supported:

z 810 - Electronic Invoices

Gain Competitive Advantage

Enjoy a competitive advantage over non-EDI companies:

z 812 - Credit / Debit Adjustment z 816 - Store Information including z 820 - Payment Order/Remittance Advice z 832 - Price / Sales Catalog z 846 - Inventory / Inquiry Advice z 850 - Electronic Purchase Order z 852 - Product Activity Data z 855 - Purchase Order Acknowledgment z 856 - ASN - Advanced Ship Notice z 860 - Change to an Order z 864 - Text Document z 869 - Order Status Inquiry z 870 - Order Status z 997 - Acknowledgments

Advanced Credit Management

Improve Cash Flow
In a volatile business environment companies have to assess their trading terms and credit risks constantly and often have various credit control rules in place. Credit Controllers need to identify breaches of trading terms immediately and resolve claims quickly to maintain cash flows. The Advanced Credit Management extends the warning dates system to a hold if the credit limit is exceeded, or credit term exceeds, i.e. overdue transactions.

Key Features:
z Posting is aborted if credit terms (financial limit or past due) are breached z Exceptions displayed in latest to oldest date z Ability to release orders limited to a user group z Claims Management for organizations with high volume of credit claims

Streamline Collections
All remaining invoices entered in the Accounts Receivable ledger are clearly collectable improving the collection process. Invoices in the claims system are either subsequently approved and closed,

Reduced Customer Credit Risk

Advanced Credit Management works with Accounts Receivable in Dynamics AX and automates credit control rules and authorizations. The software reduces customer credit risk and expedites credit control review and authorization.

or are transferred back to the Accounts Receivable ledger for settlement.

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Manufacturing, Procurement and Logistics

Customer & Vendor Rebates

Cash flow is vital in todays business environment and effective Credit Management plays an important role in maintaining a healthy cash flow.

Accurate Rebates
Rebates and promotions are the number one controllable overhead in many manufacturing and distribution companies. Rebates Management for Microsoft Dynamics AX reduces the administrative overhead of customer/vendor rebate programs and ensures accurate rebates for entitled customers and vendors.

define Rebate Group codes which enable an additional level for reporting.

Advanced Credit Management including Credit Claims Management together with Trade Spend Pricing and Campaigns.

Flexible Rebate Schemes

Rebate Management for Microsoft Dynamics AX can be set up to apply to single customer/ vendor and item, or to a combination of customers/vendors and items. This offers you the flexibility to tailor your rebate programs whilst keeping administrative control.

Minimum Overhead
The tight integration with Microsoft Dynamics AX ensures that once the rebate calculations have been finalised an invoice or credit note can be printed and the rebate is posted into a standard Microsoft Dynamics AX journal. This drastically reduces the amount of unreconciled claims and deductions, and keeps your administrative overhead at a minimum.

Rebate Grouping
Rebate grouping codes may be defined for items and customers / vendors. This enables the setting of rebates to be managed at a group level. It is also possible to

Advanced Rebates
The optional Advanced Rebates module incorporates the standard rebates management and tightly integrates with

Rebate Calculation Methods

Rebates can be calculated based on the following: z Sales exclusive of tax z Item weight z Item quantity z Payments against product sales z External sales value z External sales quantity z External sales weight z Fixed amount with rebates calculated using an amount, percentage, per unit weight or per unit quantity.

Key Features:
z The ability to set up, track and record rebates for customers, vendor(s) and item(s) z Assignment of multiple rebate per customer, vendor and item. z Assignment of rebate programs to a time period z Rebates can be based on a percentage, fixed value or value per unit purchased or sold z Budget, net price groups and rebate reconciliation z Periodic accruals can be calculated and posted for long term rebates. z Rebate finalisation by AP voucher, free text invoice, AR claim or AP RCTI depending of the rebate type

Scalable Data Systems

Scalable Data Systems is a Dynamics AX Partner with 25 years of experience implementing ERP solutions for international Manufacturing and Distribution companies. Our extensive experience with Supply Chain Management has led to the development of a comprehensive suite of software solutions fully integrated into Microsoft Dynamics AX that extends and deepens the existing functionality of Dynamics AX.

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11

Repair & Warranty

Repair & Warranty Management allows you to manage service inquiries/contracts as well as establish and maintain warranty agreements. This module complements two roles within an organization, Customer Service and Service Department.

Customer Service
Within the Customer Service role the module gives the ability to record all contract and general public inquiries. These inquiries can be categorized i.e. product faults, product information, company information, operation instructions, nearest store and resolutions can be entered. In addition escalation parameters can be set to control the assignments of tasks and the length of time an employee can work on a task before it is reassigned.

Key Features:
z Quick and simple method of keeping track of all incoming requests. z Warranty details by serial number z List of spare parts for each item z Return authorization forms and freight labels z Ability to automatically create sales orders and credit notes z Automatic escalation process to ensure that staff and supervisors are aware of requests that need special attention z Standard fault repair times

Escalation Parameters
The ability to flexibly escalate inquiries determined by Customer, Customer Groups, Inquiry Type, the number of hours a job can remain open before it is escalated and the employee to whom the escalated inquiry will be assigned can be setup using Escalation Parameters. The module can create and track a repair or service whether it is inside or outside of warranty. A list of generic known faults can be attached. Repairs can be carried out and recorded as a warranty job or chargeable job. If the job is outside of warranty the repair shop can provide an estimate that includes freight, materials and labour. additional fields are used for warranty tracking. This allows the organization to easily and quickly determine whether a product is still under warranty.

Service Department
In the role as a Service Department or Repair Shop the Repair & Warranty module gives the ability to track from an original inquiry to the receiving of goods that are being returned for either replacement or repair in a cost efficient and professional manner.

Warranty
In addition to repairs and returns this module has the ability to track whether a product is within the warranty period. Using the serial tracking feature of Microsoft Dynamics AX a number of

Outside of Australia, Scalable is committed to the Dynamics AX Partner Channel model. We serve the Global Manufacturing, Distribution, Retail and Commodity markets as a non-reselling ISV of Microsoft Dynamics AX solutions.

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