ERP (Enterprise Resource Planning) – We often talk about how an ERP implementation or upgrade can improve your business. Recently we learned of a major success story from recognized tech company Dell using one of our favorite ERP systems, Microsoft Dynamics AX.
Here’s how they did it!
Dell Saves With Dynamics AX
A recent headline in Forbes claimed that Dell saved $50 million a year through “software rationalization”. Dynamics AX was given credit for bringing in these savings, with the Microsoft ERP system being implemented across seven different Dell facilities. By consolidating their complicated legacy ERP systems, Dell was able to streamline their processes and experience vast ROI.
Dell started the initiative to rationalize their manufacturing and supply chain facilities in 2008. Since then they have replaced almost 75 highly customized applications with a single Dynamics AX implementation, enabling them to streamline all of their teams and processes across multiple factories.
How Did Dynamics AX Help Dell?
Dell’s primary goal during their initiative was to reduce the IT cost of running their factories. By consolidating all of their customized applications into one ERP system, Dell has seen $50 million in savings due to standardized manufacturing procedures and lean manufacturing principles.
The second goal for Dell during this implementation was to improve business process consistency across all their manufacturing operations. Dell factories were often developing new products or processes on different platforms which led to complications for the development teams involved. Dynamics AX has helped to streamline their development teams, reuse testing across factories, and fix defects across the whole business in one fell swoop.
Lastly, Dell wanted to evolve their business model. Their classic offering of Configure-to-Order (CTO) products is now accompanied by more standardized products for today’s consumers who want more consistency across different form factors such as tablets. By leveraging the Lean model in Dynamics AX, Dell was able to change their business processes to take advantage of this shift in consumer demand, and they are now seeing cost and efficiency gains as a result.
Using Microsoft Dynamics AX, Dell has been able to improve the efficiency and productivity of not just their factory processes, but their development teams as well. With a streamlined ERP solution, your business can achieve the same kind of ROI. Contact an ECI representative today to learn more!
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