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Large-scale approach to IT landscape by construction wholesaler DESTIL: new ERP, WHS, and WCS
Due to the discontinuation of support for the old ERP system, DESTIL decided to transition to Dynamics 365 in the cloud.
Since 1865, DESTIL has grown into a total supplier for the construction and industry sectors. The wholesaler offers over 150,000 items from more than 1,100 suppliers. These items are available through the webshop or in one of the 36 Dutch branches. Due to the discontinuation of support for the old ERP system, DESTIL decided to transition to Dynamics 365 in the cloud. This presented opportunities for the rest of the IT landscape: the Warehouse Control System (WCS) was replaced, and DESTIL switched to the new Warehouse (WHS) module in Dynamics 365.
Integrated warehouse processes with Dynamics 365
"We were using Dynamics AX 2009, and Microsoft would no longer support this platform in the future," says René Kars, General Manager at DESTIL. "That's when we made the choice to move to the cloud with the modern Dynamics 365. Furthermore, we wanted to stay as close as possible to the standard solution. Our old ERP system had a lot of customization that we wanted to move away from."
René: "Microsoft Dynamics 365 was a completely new ERP system, including WHS functionalities. So, the project was a big task, more than just a migration or upgrade. In addition, we started working on a new WCS, so that all systems would seamlessly connect to each other. All in all, our IT landscape received a thorough makeover."
In the old setup, orders from the ERP system were simply "thrown over the fence" to the WCS. That system would indicate which customer the order was for and generate a packing slip, which the order pickers would then use. The ERP system would later indicate that the order was ready.
"With Dynamics 365, we integrate these processes," says René. "The WHS functionalities provide more intelligence within the ERP system. The ERP system provides the WCS with information about the order: 'It concerns this type of screws, and they are located in that position in the warehouse.' The WCS ensures that the correct bin is filled, and during the final inspection, Dynamics 365 generates the packing slip and customer information. This data exchange happens online and in real-time, instead of being separated as it was before."
Project management by DESTIL
"Of course, we asked our trusted IT partner HSO for support in this ERP project. We have been working together satisfactorily for over 15 years. During that time, we started with Axapta 3.0 and then migrated to AX 2009. So, it was natural for us to involve HSO in this implementation," says René.
In this project, HSO had a different role than in the previous implementation and migration. "In recent years, the employees at DESTIL have gained a lot of knowledge about the systems," says Marcel Kroon, Director at HSO. "That's why DESTIL chose to take on the project management themselves. Our consultants were asked to bring in specific expertise and assist with the configuration of Dynamics 365."
"We knew exactly what we wanted: a standard ERP solution with WHS functionalities," adds René. "And this time, we wanted to lead the project ourselves. HSO trained our project team, which consisted of about 20 full-time DESTIL employees who worked on the implementation of Dynamics 365."
Improved performance with Dynamics 365
"Dynamics 365 is truly a newer version of what we had," says René. "Daily tasks are easy to perform, there is a lot of information available, and we can monitor our KPIs better with Power BI. Dynamics 365 is also well integrated with other systems, such as our CRM system."
Looking back
"It would have been better if we had replaced the ERP system first," says René. "And then made the transition to the new WHS functionalities later. That way, a large part of the systems and processes would have remained intact. Additionally, we would approach testing differently next time. Our key users tested the processes as they had configured them in the system. But an external expert would likely try out the processes in a less logical sequence, thinking outside the box.
That way, certain issues would have been identified earlier."
Fortunately, the warehouse processes at DESTIL are now back on track and even improved. René says, "We were able to accurately trace everything that went wrong after going live. This allowed us to resolve the issues effectively and make structural improvements to the processes. This would have been impossible with AX 2009."
Trust in HSO as an IT partner
It was a challenging journey for DESTIL. Fortunately, René doesn't feel that it has disrupted the relationship with HSO and Microsoft. "We embarked on this adventure together; we had to solve the problems together. That's why we stayed in constant communication and always sought collaboration. During the go-live, we sat together at the same table, not opposite each other. Otherwise, we would never have been able to resolve this in such a short time."
René adds, "Since we are now working in the cloud, there are regular updates. Initially, I found this a bit nerve-wracking. Would what we have configured still work in the new version? But we receive good support from HSO in this regard. They advise us on what to look out for and inform us when they are going to implement the update. And every time, it goes smoothly. So, I trust them completely with that."
"With Dynamics 365, we are ready for the future," concludes René. "And that's what we aimed to achieve with the implementation of the new ERP system."
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