The project

The family-run manufacturer and distributor of food products needed a sophisticated IT solution which would be capable of integrating all its business operations and providing an effective view of the group’s performance, whilst decreasing the time to administer outlet sales, purchases and inter-company transactions. Furthermore, they needed to significantly enhance the synergies between departments in order to achieve visibility of the overall operational cycles.

Following careful assessment, the group entrusted KPMG Crimsonwing with the complex Enterprise Resource Planning (ERP) implementation of Microsoft Dynamics AX, to support the growth strategy of their business. They chose KPMG Crimsonwing for this complex implementation due to the company’s mixture of the right industry experience, competence, professional project approach and capability to deliver this on the Microsoft Dynamics AX platform.

Client information

Established in 1900, the manufacturer and distributor of food products is synonymous with Maltese bread and considered one of the country’s leading brands. The product range includes a wide selection of bread, frozen products, snacks and pastry items, which are sold through a number of stores.

During 2011, the company started operating from its modernised factory in Handaq Industrial Estate and strives to deliver freshly baked products at any time of the day to its outlets and franchise operators across the island. The group now comprises 7 different companies. The retail operations arm of the group directly operates its own stores, whilst supervising its franchise operators. Their outlets are a reflection of its clients demand and have evolved from pure bread shops to more complex food outlets with an extended product range, opening 7 days a week.

Dynamics AX will serve the group very well as a solid foundation for their future plans and business requirements. With its flexibility and guarantee of future support, AX is an excellent choice for sizable local companies with a growth strategy. The licensing model of AX is based on concurrent users, has a low entry price similar to other Dynamics products in Microsoft’s ERP suite. Customers will achieve a better ROI with AX, as customizations are kept to the minimum, making upgrades less costly. This product is a great solution, empowering them for many years to come,” said Stephen Abela, Head of Dynamics, KPMG Crimsonwing Malta

Background and Requirements

As a group of companies, the manufacturer and distributor of food products needed a solid platform that was capable of combining processes at an enterprise level and streamline operations across the group. The bakery wanted to enhance intra company accounting and reporting, in line with future-proofing their accounting system to meet their growth ambitions. During the analysis phase of the project, it became evident that the group needed a solution that covers the whole trading cycle, including the Sales Ledger and Purchases Ledger as well as General Ledger, Bank Management and VAT. In addition to that, it was also needed for their point of sale (POS) system, Retail Pro, to be connected with the back office operations, so that accurate and timely analysis of sales information across stores is possible.

The solution

As Microsoft’s flagship ERP solutions, Dynamics AX is designed for enterprises providing a purpose-built foundation for the manufacturing industry in particular,along with comprehensive ERP functionality for financial, human resources and operations management. All of this is packaged in a single global solution giving businesses rapid return on investment.

An interface to integrate Retail Pro POS to communicate with Dynamics AX was developed to allow for the shop sales to be integrated with the overall accounting system. This interface was a key deliverable to reduce the time in processing outlet sales and purchases at Head Office. Furthermore, KPMG Crimsonwing’s team ensured that their system users had the appropriate knowledge transfer via comprehensive training sessions to migrate to and efficiently use the new system.

Furthermore, the group chose for KPMG Crimsonwing to implement KwikTag, a Document Management System, tightly integrated with Dynamics AX that allows users to manage the incoming Sales and Purchase invoices through a scanning and workflow solution. KPMG Crimsonwing worked hand in hand with them to review their current business processes and optimised these during the implementation.

The implementation of Microsoft’s Dynamics AX facilitates the integration of key business functions that help in the performance of innovative manufacturing and operational processes. AX caters resourcefully for complex operations of individual entities, and for the network of transactions within the group, giving management visibility across the various businesses, and assistance in the standardisation of processes facilitating the efficient application of resources,” commented Joseph Muscat, Group Finance Officer at the manufacturer and distributor of food products.

Business benefits

Considerable cost savings have been achieved as a result of the reduced time now taken to administer outlet transactions through the Retail Pro / Dynamics AX integration. The group now benefits from reduced administration time on inter-company transactions, together with enhanced management reporting. Thanks to Dynamics AX, they now also have increased the synergy between departments brought in evidence by an integrated solution.

We chose KPMG Crimsonwing for this complex ERP implementation, since their Dynamics AX Consultants and Engineers are renowned for their solid experience with integration projects. The Dynamics team fully understood our particular industry and business processes, and provided the solution exactly suited to our needs. We would recommend KPMG Crimsonwing to any enterprise embarking on such critical system changes,” concluded Joseph Muscat, Group Finance Officer.