Microsoft Dynamics AX in the Manufacturing Industry

Whether you’ve managed a business in the past or currently manage one today, you have most likely heard of Enterprise Resource Planning or ERP. This industry term for the broad set of activities which help an organization manage its business entered the manufacturing lexicon in the early 60s. An outgrowth of MRP (manufacturing Resources Planning) this software facilitates flow of information to enable data-driven business decisions.

Should you use ERP?

Implementation of ERP software comes highly recommended. Its ability to streamline mission-critical components across departmental channels makes this software an optimal choice for managers. However, the perceived stresses surrounding ERP deployment too often prevent those in need to give it a fair shot.

Microsoft attempted to solve these issues with their ERP release, Dynamics AX. The multi-language, multi-currency, industry specific ERP supports operational and administrative processes for organizations in manufacturing, retail, service industries and the public sector. With more and more businesses implementing ERP software, it’s important to determine whether or not deployment worked.

Does it work?

An independent consulting firm, Panorama Consulting, investigated several larger ERP Vendors (including Microsoft AX) and found businesses’ overall experience leaned toward the positive side:

• Average implementation time ranged from 13-18 months. Much shorter than previously perceived.
• 58% of businesses considered their implementation of ERP a success in 2014
• Almost half of businesses that deployed ERP last year rated their overall experience as either “Satisfied” or “Very Satisfied.” Only 11% rated their experience as negative.

Specifically, customer satisfaction and experience with Microsoft Dynamics AX featured more positive feedback than SAP or Oracle (two of the more common systems). Users experienced the highest percentage of benefit realization and fastest implementation time with Dynamics AX.

Industry experts agree on the indispensability of a good ERP system in the modern economic scenario. It’s advantageous for businesses trying to improve their financial reporting and overall efficiency. According to the Corporate Communications at Microsoft this year, out of the businesses that implemented ERP software:

• 30% Saw an increase in productivity
• 75% Reduced staffing costs
• 44% Reduced IT Costs
• 75% Improved Operations and Visibility
• 25% Witnessed positive ROI

Nowadays, much of the hassle involved in ERP implementation no longer exists. Instead it provides a solid operational backbone manufacturers and production managers require to improve the volume of production and meet consumer demands while reducing costs. In this optimization of your manufacturing operations with ERP, you’ll soon discover the freedom to focus on new business opportunities. As a result, your business’ room for growth vastly expends.