Customer Solution Case Study
/ Business Management Solution Provides Accurate Financial Data to DIY Members
Overview
Country or Region:Denmark
Industry:Retail
Customer Profile
Ditas is Denmark’s largest purchasing company for building materials and products for DIY centres.
Business Situation
Ditas used an aging proprietary IT system to handle purchasing. The company needed all members to manage orders, supplier contracts, and advertising campaigns from a single place.
Solution
Using the Web tools available in Microsoft Dynamics™ AX 3.0, Ditas and Microsoft® partner Daab developed a browser-based extranet—through which member companies view accounting information and track purchase orders.
Benefits
Reduces paper-based processes
Ensures discounts for members
Improves business decision-making
Provides accurate and up-to-date data
Offers flexibility for growth / “Now our members have the most up-to-date information at their fingertips, which streamlines our operations….”
Peter Clausen, IT Manager, Ditas
Ditas, a Danish purchasing company for do-it-yourself (DIY) timber merchants, posted paper documents, which detailed purchasing contract information and invoices. This was expensive and time consuming. Ditas also used an aging proprietary IT system. As the organisation grew, Ditas needed its 240 member companies to be able to manage orders, supplier contracts, and advertising campaigns centrally. Using the Web tools in Microsoft Dynamics™ AX 3.0, formerly known as Microsoft® Business Solutions–Axapta®, Microsoft partner Daab developed a browser-based extranet, through which members can view accounting and purchasing information, track purchase orders, and obtain electronic copies of invoices. The solution significantly reduces paper-based processes and improves decision-making across the business. It also gives members access to accurate and up-to-date information, ensuring that they can take advantage of discounts and savings.
Situation
Ditas is one of Denmark’s largest purchasing companies for timber merchants and do-it-yourself (DIY) centres. The organisation purchases goods for a number of Danish DIY store chains, including Råd og Dåd, Byggekram, and Proffen. In total, Ditas deals with approximately 240 stores and 400 suppliers on a daily basis.
Ditas handles all the invoicing to and from suppliers and member companies. But these member companies are independent organisations, responsible for their own administration and IT systems. So many disparate IT systems meant that direct, electronic integration between them and Ditas was not possible. As a result, invoicing relied heavily on paper-based processes.
Peter Clausen, IT Manager at Ditas, says: “Every time we make a new agreement with a vendor, all 240 member companies have to know about it. We posted two or three copies of the details to every member, which was expensive and time-consuming. Each week we were sending up to 4,000 paper documents.”
The organisation used an old proprietary IT system to handle the purchasing. The system was cumbersome and offered few features to support the organisation’s needs. “The business was also growing rapidly, and we needed to update the system to ensure that it could handle more data,” says Clausen.
“We also manage the supply of DIY stock—there are up to 70,000 different parts available at any one time. Ditas purchasers add or remove parts or update details daily. But there was no way for our members to keep track of these changes, or access up-to-date parts information.”
Ditas was keen to find a solution that could help it manage advertising campaigns, contracts, invoicing, and other business activities, from one place. Most importantly, it needed to find a way to better manage the invoicing process and ensure data was up-to-date and accurate. Ditas required a flexible, but cost-effective solution that could be adapted to meet future needs, adhere to purchasing specifications, and ensure that data could be shared across all 240 member organisations.
Solution
Working with Microsoft® partner and software developer Daab, Ditas chose to roll out a solution based on Microsoft Dynamics™ AX 3.0, formerly known as Microsoft Business Solutions–Axapta®. “We had worked with Daab before. The organisation knows our business and is also very experienced in building IT solutions for purchasing,” says Clausen.
In addition to customer relationship management (CRM), supply chain management, human resource management, and analytics features, Microsoft Dynamics AX delivers a range of financial modules. These help businesses like Ditas to consolidate accounts with subsidiaries. In addition, employees of these organisations can access accounting, reporting, and detailed analysis.
Using a Web-based version of Microsoft Dynamics AX, Ditas and Daab developed a central extranet to offer unified access to data for the organisation’s various suppliers and member organisations. The solution is based on a common administration system, with which any authorised user can access information and tools through a standard Web browser.
A secure private network requires users to enter their login and password to access accounting and purchasing information, track their purchase orders, and obtain electronic copies of invoices.
Store buyers can obtain data about product ranges and order products directly. Marketing departments access information about the latest offers and campaigns, and compile individual publicity brochures based on accurate details and prices.
Ditas and member organisations also use the human resources features in Microsoft Dynamics AX. For example, users from across the business can search for training courses on the site, access detailed information about them, and register online. Clausen says: “It’s a very easy system to use. It intuitively guides the user through different processes so employees need very little training.”
Karl Ib Roed Sørensen, Head of IT, Daab, says: “Ditas uses Microsoft Dynamics AX for all its business processes. Information about suppliers, turnover, agreements, products, campaigns, and prices is available to users through the Internet. It also means that the same business logic is used at Ditas as by its members.”
The system also integrates directly with the finance systems of the member companies, regardless of the technology on which they are based, ensuring that information can be transferred electronically.
Benefits
Electronic Data Increases Efficiency
Accounts staff from the member companies can now print out invoices, or transfer them directly to their own finance system electronically, eliminating the need for Ditas to send paper copies or manually input data. “They can look directly into our data systems and see what we are paying and charging,” says Clausen. “Managers can monitor turnover and view the latest commercial contracts with suppliers, where previously, they often had to call us to check that they had the latest version.”
DIY centres use the system to access product parts information and assembly instructions, saving time, and ensuring customers receive the most efficient, informed service.
Ditas has significantly cut down the amount of printed material it sends out. “We have virtually eliminated the need to post paper documents to our member organisations. They can get the latest information they need from the system, without having to rely on printouts. The solution saves substantial costs and administrative time,” says Clausen.
Savings Through Increased Visibility of Information
Member stores can receive a discount calculated on the basis of the volume of goods that they purchase. However, in the past, it was extremely difficult for stores to keep track of their orders and purchase goods cost effectively.
Clausen says: “Now, they can access the information quickly to obtain the most up-to-date figures and, if necessary, make repeat orders to meet the bonus limit. There are a number of similar instances where discounts can be achieved and savings made by keeping on top of figures. They can now easily see from day to day how much they need to buy to take advantage of these discounts.”
Increases Data Accuracy
Purchasing information at Ditas changes constantly, which meant that when printed material was sent to member organisations, it was out of date almost immediately. “In the past, they saw the information days later. Now our members have the most up-to-date information at their fingertips, which streamlines our operations, and ensures managers have better quality information to make more informed business decisions,” says Clausen.
Ditas can also ensure that contact details and personnel records are accurate. Clausen says: “We correspond with all member companies regularly and it’s important that our information is accurate. Members keep their own lists and enter the information directly into Microsoft Dynamics AX through the Web site so that the information we have is always correct.”
Future-Proofed Solution
Development of the solution is ongoing, with Daab working closely with Ditas to open up new possibilities as the business grows.
Clausen says: “It’s vital that we provide members with more functionality and extend the solution for member companies to improve efficiency across the entire business. Microsoft Dynamics AX provides us with the flexibility we need to do this.”
Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systemsthat your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to: