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BERG is a forward-thinking manufacturer and wholesaler of outdoor toys, such as go-karts, trampolines, and outdoor playsets. The company is constantly working on optimizing its business processes. Their old ERP system was end-of-life and contained a lot of customization, which was the starting point for the implementation of a new ERP system. Henk van de Stroet, ICT Manager at BERG, was working towards this implementation with a sense of anticipation. The previous migration was quite a task. However, with the Dynamics Wholesale Distribution solution based on Microsoft Dynamics 365 Finance & Supply Chain Management, this implementation went much smoother.
Delayed response to market developments due to customization
"Our old ERP system, Dynamics AX 2012 R2, was still functioning well," Henk explains. "But we once waited a long time to migrate to a newer version because we had so much customization. A cumulative update of Dynamics AX took us six months with a team of 10 people working on it. The same applied to adding new functionality; it often took months before it became operational. This made it difficult for us to quickly adapt to changes in the market."
Henk: "We are constantly working on improving our processes, including logistics, finance, and the supply chain. That's why we preferred a cloud solution that is continuously evolving. Together with our key users, I evaluated different systems, and in the end, we chose Dynamics 365 and HSO. We were also interested in Business Central, but Dynamics 365 offered much more functionality that aligned with our operations, logistics challenges, and growth ambitions. Moreover, HSO is a trusted and valued IT partner of BERG. We were also drawn to the ERP template because we wanted standardization without customization."
ERP software for wholesale distribution
Dynamics Wholesale Distribution is a flexible and user-friendly ERP template for mid-sized businesses.
It is based on Microsoft Dynamics 365 Finance & Supply Chain Management and provides extensive reporting capabilities. We implement the system using a standard project methodology, which ensures fast realization at lower costs. With Dynamics Wholesale Distribution, you stay up-to-date with the latest version of Microsoft Dynamics 365 and can easily adapt to changes in your business and the market.
Despite BERG's preference to avoid customization, the analysis phase revealed some company-specific processes that determined the identity of the wholesaler. "When a customer buys a go-kart from us, it is not delivered as a whole," explains Henk. "They receive two boxes: one with the go-kart frame and another with a package that determines the appearance of the go-kart. So we had a total of ten points of customization. We adjusted some of our business processes to fit the system, while HSO standardized and incorporated the remaining requirements into the template. This way, our ERP system can keep up with updates, and this functionality is also available to new customers of HSO."
With the ERP template Dynamics Wholesale Distribution, HSO follows a guiding approach. The HSO consultants propose a specific setup instead of gathering all requirements first and then configuring the system. Once the foundation is in place, they delve deeper. "This allowed us to start working much faster in a functioning environment," says Henk. "We agreed to work with HSO in July 2021, standardized our customization in October that year, and had the basic ERP system running in December 2021. It was a flying start."
Henk: "In the years following our last migration, our IT landscape had grown significantly. We now have more integrations with other applications, and our business intelligence capabilities have expanded. So, once the foundation was established, the key users began extensive testing of data migration and building all the integrations. After the summer of 2022, we integrated our webshop and provided comprehensive training to all end users. We took ample time for testing and training, as that was one of the lessons learned from the previous implementation. Additionally, we also built a brand-new warehouse. In January 2023, we went live with our new ERP system."
Logistics manager highly satisfied
Thorough testing paid off. "We knew everything was working before going live: sales orders were coming in, discounts were applied, and all warehouse operations were functioning properly," says Henk. "During the Christmas break of 2022, we confidently made the transition. It took us even fewer days than we had initially anticipated. Of course, we were prepared for post-go-live considerations, but they turned out to be minor. We hardly needed the extra month of consultancy. Meanwhile, we have completed two updates, and the third one is coming soon. I would almost say we handle them 'on the side.'"
Satisfied with the outcome
Henk: "The logistics management has undergone significant changes. The old system was replaced with standard warehousing in Dynamics 365. Our order pickers had to work with different software, and we had a brand-new warehouse. It was a major transformation. We were concerned about the efficiency of logistics processes in Dynamics 365 and whether our orders would be processed on time. However, our logistics manager is highly satisfied with how all the software is functioning."
Smooth launch of wholesale ERP solution
BERG made every effort to ensure a smooth go-live. "Our experienced and dedicated key users, along with the senior consultants from HSO, formed a winning combination. Their knowledge and skills contributed to the success of the implementation. Ultimately, this is all about people, and when the knowledge and communication are strong, and there is a desire to achieve something great, it reflects in the results."
Want to know more about Wholesale and Distribution?
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