Destil BV employs more than 230 staff across 21 branches, mainly in the southern Netherlands with headquarters in Tilburg. The company supplies some 25,000 products including hand tools, machinery and, building hardware for the construction and interior design industries. Customers can submit written or telephone orders at the headquarters in Tilburg or one of the other branches.
As a modern, efficient wholesaler supplier, Destil’s success and reliability are linked to high customer satisfaction. Efficient automation is essential. Destil’s advanced computerised inventory management and logistics systems enable it to despatch orders within 24 hours, with free delivery within the Netherlands. Destil owns the entire order-to-delivery chain, with a fleet of vans and trucks to transport goods from its warehouses to customers.
Destil initially used the Digis system in a Unix environment to handle the administrative and logistical process of order capture and handling. However, it found that the ageing system was holding it back.
“Our old Digis package was pretty customised,” says Johanna Mast, Project Manager at Destil. “This had consequences every time we needed to implement small changes in the software. Another problem was that it was really no longer supported and updates frequently failed to materialise. It hindered us in our growth. We decided to end its use in 2005 and looked at the market for new ERP systems.”
Destil drew up a shortlist of several major ERP packages, including SAP and Microsoft Dynamics AX. In order to get to know Dynamics AX, Destil managers visited the Microsoft Technology Centre in Copenhagen, and they were impressed with what they saw.
Destil knew that HSO was a Microsoft Gold Partner and was impressed by the company’s industry knowledge. “Our great confidence in HSO as our partner was a decisive factor in choosing the Microsoft solution,” says Mast. “HSO knew our market sector and clearly demonstrated to us the benefits of Dynamics AX. We had no further need to involve other suppliers in the selection process. It was also logical to choose a platform on which all our systems could run. For us at Distil this was the Microsoft platform.”
The Digis system provided a variety of automated systems and processes, and Destil needed Dynamics AX to provide an interface to communicate with a number of systems.
“Purchasing, billing, sales and supply to the branches should all be conducted using Dynamics AX,” says Mast. “We wanted to achieve interfaced links with our warehouse management system (WMS), which handles the picking and packing of items. Information on the consignments should then be sent back to Dynamics AX and the system will decide which method of despatch to use – mail or Destil’s own fleet. If Destil’s fleet is used, then the information goes to our route planning system, which calculates the optimal delivery route.”
Destil also wanted Dynamics AX to communicate with other systems, including inventory management and credit management. “Because our employees were accustomed to the old Unix environment and we wanted the acceptance threshold of the new environment to be as low as possible, we made the Microsoft Dynamics AX solution work the same way as the old system where possible," explains Mast. “However, we didn’t adapt the operating software, and that meant that any customisations could still be developed. We have kept the system standard as much as possible.”
The project began at the end January 2006, with HSO and Distil agreeing on the implementation approach. HSO did the bulk of the implementation work and established the Dynamics AX environment. After several test conversions the Destil project team accessed the new system with their own practice data. Modules were added during the construction industry holiday periods. In the second half of the year, the data was converted for the finance system. "We have four key users and 12 designated super-users,” says Mast. “The key users were well trained by HSO so they could educate our 200 end users.”
During the implementation phase HSO developed interfaces in Dynamics AX to communicate with the inventory system SLIM 4, the WMS, the Inter Tour Roadmap for Regulation, and OnGuard for credit management. It also established a direct link with the Fortis bank.
"Besides these interfaces we had a few customisations,” adds Mast. “For example, we have special requirements for shop orders. If a customer’s order stated ‘counter top priority’ then a link to the WMS would be created. We also built a solution for giving advice about the appropriate hanging hardware to be used on buildings, and we adapted the system to make transfers from one location to another. HSO completed all of this work too.”
The new system went live in less than a year, with the conversion taking place in December 2006. In addition to current data, historical data from 2005 and 2006 was transferred to the new system. “The transition to Microsoft Dynamics AX was realised within one year and we were very pleased," says Mast.
For Destil the new system has enabled greater transparency. “Processes have been speeded up because we can easily click through to further information screens,” says Mast. “Our logistics processes are considerably easier. An example is creating a sales order for an item which is not in stock. With Dynamics AX, we can enter a sales order and go directly to a purchase order screen to order the item. Within 10 minutes it is purchased from the supplier. When the item arrives, we can see immediately who it is for and can deliver it.”
The interfaces with other systems make Dynamics AX a seamless fit with Destil’s traditional business processes. They also provide an insight into such things as the WMS, inventory and accounts receivable status. Mast says that this has enabled more accurate and efficient working: “The interfaces enable our systems to deliver clear reports and quickly identifies any problems and errors.”
Check for more information: www.destil.nl
Destil BV supplies many construction companies and industries. The company has over 230 employees spread over 21 branches, primarily located in southern Netherlands. They supply customers with hand tools, machinery, building hardware and other products for the construction and interior design industry. The product range comprises of some 25,000 items. A customer can also submit a written or telephone order at the headquarters in Tilburg or one of the other branches.
Full in-house logistics
Because of advanced computerized systems for inventory management and logistics, orders are despatched within 24 hours of order capture and delivered free within the Netherlands. Destil has a fleet of vans and trucks for the transportation of goods from warehouse to customer locations. The entire order to delivery chain is owned by Destil.
Situation calls for new platform
Prior to Dynamics AX the administrative and logistical process of order capture and the order-handling were carried out in the "Digis' system within a UNIX environment. Johanna Mast, Project Manager at Destil: "Our old Digis package was pretty customized. This had consequences every time we required small changes in the software to be implemented. Another problem was that it was really no longer supported and updates frequently failed to materialize. It hindered us in our growth. We therefore decided to end its use in 2005 and looked at the market for new ERP systems. "
After an investigation there were several major ERP packages, including SAP and Microsoft Dynamics ™ AX on the shortlist. Ms. Mast said that in order to get to know Microsoft Dynamics AX the Destil Management visited the Microsoft Technology Centre in Copenhagen, and what they saw was impressive.
Destil knew that HSO was a Microsoft Gold Partner and particularly liked the industry knowledge that this partner had. Ms Mast said: “Our great confidence in HSO as our Partner was a decisive factor for choosing the Microsoft solution. HSO knew our market sector and clearly demonstrated to us the benefits of Dynamics AX. We had no further need to involve other suppliers in the selection process. It was also logical to choose a platform on which all our systems could run. For us at Distil this was the Microsoft platform”.
Several challenges
As a modern, efficient wholesaler supplier, Destil’s successes and reliability is linked to high customer satisfaction. Good automation is essential. Traditionally the Digis system provided a variety of automated systems and processes. Microsoft Dynamics AX would have to have a number of systems that would communicate with it.
Ms. Mast explains: "Purchasing, billing, sales and supply to the branches should all be conducted using Dynamics AX. Through interfaces, we wanted to achieve links with our Warehouse Management System (WMS). This system provides the 'picking' and packing of items. Information on the consignments should then be sent back to Dynamics AX. The system should then decide which method of despatch to use, mail or transportation. For example: via Destil’s own fleet or otherwise. If it is to be via Destils own fleet then the information goes to our route planning system, which calculates the optimal delivery routing.
We also had a number of interfaces to be created in Dynamics AX to communicate with other systems, including an inventory management system and one for credit management. Because our employees were accustomed to the old UNIX environment, and we wanted the acceptance threshold of the new environment to be as low as possible, we made the Microsoft Dynamics AX solution work the same way as the old system where possible. "We did not however, adapt the operating software," said Ms. Mast: "That meant that any customizations could still be developed. We have kept the system standard as much as possible."
Operational in One year
The project started at the end January 2006. It was then that the Microsoft Partner, HSO and Distil and agreed on the implementation approach. HSO did the bulk of the work and established the Dynamics AX environment. After several test conversions the Destil Project Team accessed the new system with their own practice data. Modules were added during the construction industry holiday periods. In the second half of the year, the data was converted for the finance system.
"We have four key users and 12 designated super users. The key users are well trained by HSO so they could educate our 200 end users.
The 'go' decision came in Christmas week, December 2006 and the conversion took place. In addition to current data, historical data from 2005 and 2006 was taken over to the new system. The transition to Microsoft Dynamics AX was realized within one year and we were very pleased." said Ms. Mast.
During the implementation phase HSO developed interfaces in Dynamics AX to communicate with the inventory system SLIM 4, the Warehouse Management System, the Inter Tour roadmap for Regulation, and OnGuard for credit management. Furthermore, a direct link was established with the Fortis bank.
Ms. Mast: "Besides these interfaces we had a few customisations. For example we have special requirements for the shop orders. If a customer's order stated the counter top priority then a link to the Warehouse Management System would be created. Furthermore, we also built a solution for giving advice about the appropriate hanging hardware to be used on buildings. We also adapted the system to make transfers from one location to another. HSO completed all of this work also”.
Clear advantages
For Destil the new system gave greater transparency than the old. "Processes go faster because we can easily click through to further information screens," believes Ms Mast. "Our logistics processes are considerably easier. An example is creating a sales order for an item which is not in stock. With Dynamics AX, we can enter a sales order and go directly to a purchase order screen to order the article. Within ten minutes it is purchased from the supplier. When the item arrives, we can see immediately who it is for and can deliver it."
The interfaces to other systems make Dynamics AX a seamlessly fit with the usual Destil business processes. They also provide an insight in to such things as inventory and accounts receivable statuses. Ms. Mast: "The interfaces include the Warehouse Management System and Accounts Receivable management that delivers very clear reports and quickly identified problems and errors."
Check for more information: www.destil.nl