SDS Global Manufacturing

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Supplying personalized solutionslocally and globally

ManufacturingProcurement & Logistics

Manufacturing, Procurement and Logistics

Inve

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Sales Orders

PurchaseOrders

Transfer Orders

Accounts Payable

Inventory Management

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Process Manufacturing

Accounts Receivable Advanced Credit

Management

Landed Cost

Vendor Rebates

Customer Rebates

Transport Management

Inventory

Advanced Credit Management

Manufacturing & MRP

Discrete, Batch,Made-to-Order,

Process

Sup

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Ch

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Man

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Purchase OrdersEDI

Landed Cost

Tran

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Sales OrdersEDI

Accounts ReceivableCustomer Rebates

Tran

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Buyer Contract Management

Customer Contract Management

Warranty & RepairCatch Weight

Cu

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Accounts PayableVendor Rebates

Voyage Management

Dynamics AX ERP SolutionCompliance Management• Compliance Center• Country-specific functionality• Audit trails and access control• Embedded workflow capabilities

Business Intelligence and Reporting• Standard, ad-hoc, and analytical reports with Microsoft® SQL Server® Reporting Services

• RoleTailored, predefined, multi-dimensional data cubes

• Dashboard views of key performance indicators (KPIs)

• Integration with Microsoft Office PerformancePointTM Server 2007

Human Resource Management• Organizational and workforce management

• Recruitment and selection• Employee development and performance

• Skills mapping• Training• Expense management• Employee self-service portal

Supply Chain Management

Project Accounting• Project finances and invoicing• Project cost control• Revenue recognition and work in progress (WIP)

• Integration with production• Consultant self-service portal

Manufacturing• Finite and infinite capacity and materials planning

• Job scheduling and sequencing• Resource management• Shop floor management• Work order management with job costing

• Product configuration• Quality management• Lean manufacturing• Process manufacturing

• Demand forecasting• Intercompany trade• Inventory management• Distribution planning• Procurement management• Vendor self-service portal• Business-to-business trading partner integration

• Distribution planning

• Multi-site warehouse management

• Order handling with trade agreements

• Item and lot number reservation and tracking

• Order promising• RFID-enabled

Financial Management• General ledger• Accounts receivable and payable

• Bank management• Fixed assets• Shared services support• Cost accounting• Intercompany accounting and consolidation

Collaborative Workspace• Enterprise Portal based on SharePoint® technology• Integrated unified communications

Service Management• Service orders and contracts• Service calls and dispatching

• Repair management• Service subscription

Microsoft Dynamics AX Solution Areas

Sales and Marketing• Sales force and marketing automation

• Lead and opportunity management

• Telemarketing and telesales• Sales management• Customer self-service portal• Document management

SCALABLEDATA SYSTEMS

Manufacturing, Procurement and Logistics 3Manufacturing, Procurement and Logistics

Microsoft Dynamics AX:Supply Chain LogisticsWith increased globalization and offshore sourcing, global supply chain management is becoming an important issue for many businesses. Organizations find that they must rely on an effective Supply Chain or network, to successfully compete in the global market. The seamless integration of all elements of the Supply Chain in one solution, with one data base and a single set of business rules provides improved performance, increased customer satisfaction and strengthened supplier relationships.

Other key elements of the Manufacturing and Distribution process are the procurement of materials for manufacturing including Commodity Contracts, Demand Planning, Inbound/Outbound Transport, Warehousing, Rebates and much more, all in the one integrated solution, Dynamics AX.

The secret to a successful Purchasing Process for Manufacturers is the incorporation of all types of procurement methods, combined with strong Logistics Management and full integration with Demand Planning.

Contents:Purchasing Streamlined.......................................................................4-5

Transport & Logistics..............................................................................6-7

Advanced Production Scheduling ...................................................8

Catch Weight...................................................................................................8

EDI...............................................................................................................................9

Advanced Credit Management................................................................9

Customer & Vendor Rebates....................................................................10

Repair & Warranty............................................................................................11


Manufacturing, Procurement and Logistics4

Purchasing Methods Traditionally Purchase Orders, or Blanket Orders

are used to acquire products necessary for

manufacturing.

Contracts come into play when raw materials

vary in price, quality and delivery schedule.

Many of these raw materials are high value

and high cost with volatile pricing on open

markets. Therefore the risk of not consuming

these goods in a timely manner or within the

contractual terms can have significant financial

implications directly impacting the company’s

bottom line.

Landed Cost Items have additional charges that

need to be allocated to inventory valuations.

With Landed Cost Items, manufacturers benefit

from the ability to combine shipments across

vendors and purchase orders to minimize

costs. In addition better control of the delivery

schedule of Landed Cost Items provides more

effective production planning.

Logistics and ShippingThe objective of the Logistics & Shipping

process is to ensure that procurement

contracts are executed in a timely manner to

meet the Manufacturing requirements. There

are a number of ways this can be handled in

conjunction with the Transport Management

and/or Voyage Management solutions. Logistics

needs to consider where raw materials,

components and/or subassembly is sourced

and where it is to be delivered. In addition

Logistics needs to ensure it can be done in the

most efficient and cost effective manner.

Material Contract ManagementContracts may be spread across several

delivery periods, where the parameters of

the contract, such as price, may vary. Each

spread may be considered a subcontract

within the primary contract. Commodity

and raw materials for example, can have

agreed quality specifications. The quality

specification may be a recognized industry

standard or agreed on a contract-by-

contract basis. The quality specifications

are used as measures to determine if the

raw materials supplied meet or exceed the

contracted quality. Each quality specification

may result in an adjustment to the price paid

for the raw material.

In the Contract Management Module

we can record the contractual quality

specifications and associated adjustment

formulae which are used at the time of

delivery to establish the actual quality and

automatically calculate any price or weight

premiums or deductions.

Purchasing - Streamlined

Purchasing and Contracts for:

Depending on what is being produced, there are a variety of ways in which raw materials or components can be purchased. There are three Purchasing Methods: Purchase or Blanket Orders, Contracts, and Landed Cost Items. An organization may use all of these methods, each of which need to be able to be integrated into the manufacturing planning process. Scalable provides solutions that bring all of these methods together with Dynamics AX for full visibility and control of supply-demand requirements.

Components

Raw Material

Commodity

Subassembly



Landed Cost

ContractsThe Purchase Order is not necessarily the first

phase of the Supply Chain. Contracts may

precede this step in the process. In many

organizations this purchasing method is

handled outside of the ERP solution until the

goods are delivered, and a PO is raised to pay

the vendor’s invoice.

The problem with this approach is that the

availability of the raw materials from these

contracts has a direct impact on Production,

but in many cases is not visible to Production

Scheduling.

There is also the need to accurately track and

monitor costs or charges associated with a

contract. The contract management module

allows costs associated with a contract – from

inception through to delivery – to be tracked

and allocated to inventory valuation.

Raw Materials Procurement for Dynamics AX

brings these contracts into the ERP system as

the first phase of the Supply Chain allowing

complete visibility of the Supply Chain and

all costs associated with Purchasing to flow

through to the Production Process.

Suppy-Demand VisibilityAt the time the raw materials are delivered,

inventory is updated and this inventory is

either available for consumption, or reflected in

the updated Master Plan. This tight integration

ensures the Contracts Purchasing process

can adapt quickly to changing business

requirements while adding efficiency, control

and visibility to the process.

Contract Allocation to Production RequirementsContract Management gives users the

material requirements. It shows what

materials, including the grade or quality

that need to be delivered. It also indicates

which location has the inventory to meet

the requirements. Finally, it also matches the

delivery timing of the materials to the meet

the production’s schedule.

At the same time this view leverages Master

Planning to identify supply chain demands

and constraints.

As master planning requirements change,

users are able to:

z Assign existing contracts to meet this

demand.

z Allocate from suitable alternative raw

materials.

z Distribute raw material inventory from

other locations.

z Create new contracts for procurement

if none of the above options are

applicable.

Contract Management

Purchase Orders Blanket Orders

Forecasting

MRP

Inventory

Fulfillment

Sales Orders

Finished Inventory



Whether by air, truck, rail or ship, the effective management of transport operations is vital to an optimized supply chain. Inbound, internal and outbound transportation: items procured from suppliers, inventory transfers between warehouses or stores and the final delivery of goods to customers must be streamlined in order to collaborate better with suppliers, lower transportation costs, and meet customer expectations. An effective system optimizes warehouse operations and aligns them with planned Multi-Modal freight movements to keep the Supply Chain in motion.

Landed CostMany Distributors, Manufacturers and even Retailers

struggle to keep up with the challenges associated

with importing goods. In Distribution and Retail

it is important to be able to accurately predict

and communicate lead time to customers. In

Manufacturing it is important to have accurate supply

lead times in order to optimize production.

Shipment Tracking With Shipment Tracking you can build shipments

that include multiple vendors, PO’s and even PO lines.

When the estimated delivery dates of the shipment

changes, all of delivery dates for the PO lines are

automatically updated. Updates to inventory allows

customer service to see what they have in stock, what

is ordered, and when those orders will be available.

Updates to Master Planning also allows production

to see changes in Net Requirements as shipments are

updated.

Voyage TrackingWith Voyage Tracking , you can utilize define and track

direct and/or tranship services provided by shipping

companies. Voyages can be created based on price

and /or delivery time. Depending on the number of

shipping services your use, you can choose to define

the whole service route or just the ports relevant to

your trading.

Default shipping document templates can be created

and applied automatically to new voyages as they

are created. Voyage tracking provides visibility to and

management of every step in the voyage process.

Accurate Inventory Costs - Financial Visibility - Import costs such as transportation

and handling fees, insurance, duties,

and taxes can make up a large portion

(upwards of 40%) of an item’s cost.

Adding landed costs to your inventory

valuation provides an accurate cost and

profit analysis of items, vendors, clients

and projects.

When costs and profit analysis is

accurately incorporated into the

overall financial picture and decision

process, it helps to maximize profits

and competitiveness.

Voyage Management takes this a step

further with the ability to haul bulk

materials and store multiple container

sizes and types – each with different

charge rates held against them.

Transport & Logistics

Transport Loads Inventory

Shipment Voyage & Landed Cost

Purchase Contracts

Transport Loads Sales Contracts



Distributors, Manufacturers and Retailers need

to optimize inventory levels in their warehouses

and stores. In addition, they need to take

advantage of the fastest and least expensive

shipping options. Transportation Management

supports all inventory movements and

shipments, from a simple point-to-point

operation, to complex multi-modal, multi-leg

and cross-docking operations. Transport allows

you to use a single interface that works across

business units and geographies to keep goods

moving through the supply chain.

Load ManagementLoad building is the foundation of Transport

Management. Loads can be planned and

built simultaneously for inbound shipments,

warehouse and/or store transfers as well as

outbound shipments. Transport Managers

can analyze all shipments based on origin

and destination and consolidate them into

loads which can be automatically or manually

generated.

Delivery RunsTransport Management allows Purchase

Orders, Transfers and Sales Orders to be

combined for delivery runs. Once the Waybills

for a delivery are grouped into a logical

delivery sequence, the Shipment Manifest is

printed with a suggested delivery sequence

for the driver to follow.

Least Cost CalculationsWith multiple carriers potentially servicing

the same delivery routes, the transport

management system allows you to run

scenarios to enable you to effectively select

the lowest cost option for your delivery

requirements. This analysis can be run for both

point to point deliveries as well as multi-drop

delivery runs, including multi-leg journeys if

required.

Transportation Management gives shipping

and logistics personnel the tools they need

to streamline transportation processes.

It provides visibility across operations,

facilitating collaboration between suppliers,

customers and carriers to increase Supply

Chain throughout. In addition it lowers

transportation costs and improves customer

service.

Inventory Movements And Outbound Shipments

Simple Freight Reconciliation and Customer BillingService charges and BAF charges for each

combination of container type and port can

be stored against each shipping company.

Transport Management will automatically

calculate and accrue the carrier charges

using flexible rules and criteria. The accrual

and commission values are calculated

based on pre-defined destinations, type of

service, (freezer or chiller) and the number

of pallets, pallet spaces, cartons as well as

weight or volume. Charges can be applied

by considering weight, volume, pallet

spaces, distance, zones, destination codes

and more. A fuel levy percentage can also

be added, as well as a minimum charge

amount.

All of this functionality allows for increased

financial visibility in the supply chain.



Advanced Production Scheduling

z Allows adjustment of production schedule from within the Gantt chart

z Adjust productions orders from a tabular Planning Grid

z Additional sort sequences applied from within the Gantt table to rescheduled work-centre tasks

In a manufacturing environment it is vital for production planners to have an overview of Production Schedules, both for Production Orders for which materials and resource capacity have been committed, and for planned Production Orders that have been generated by Master Planning.

Improved Gantt ChartThe advanced production scheduling

functionality for the Dynamics AX Production

module extends the Gantt table to provide a

production planning ‘dashboard’ from which

scheduled tasks may be examined in detail,

amended, sorted and re-scheduled.

The standard Gantt chart does allow re-

scheduling by dragging and dropping a task

on the chart. However re-scheduling a task is

only one re-scheduling option. Other options

such as deleting or amending an order quantity,

consolidating orders, or assignment to a different

resource, require the user to take action in other

parts of the system.

The easy to navigate screens allow for simple

and efficient adjustments to the production

schedules. Scalable’s Advanced Production

Scheduling is specifically designed to work

with Microsoft Dynamics AX making the whole

re-scheduling process as efficient as possible,

providing schedules that are accurate and easy

to maintain.

Key Features:

Catch WeightCatch Weight Management is designed for

organizations that need to keep track of stock

in a second unit (such as cartons, bags, crates,

pieces, gems etc.). For example, keep track of

the number of cartons as well as the weight

for each carton.

When items are purchased or sold, two

quantities may be recorded, there is the

movement quantity and the stock unit

quantity. Conversions are done from one unit

to the other based on the conversion factor

held.

The two quantities may be recorded for stock

transfers, stock taking quantities and all stock

journals in Dynamics AX for discrete, batch or

made-to-order manufacturers.

Shelf LifeMany customers require that the products

they take delivery of adhere to specific shelf

life and/or expiry date requirements.

These requirements could be at the product

level, or at the customer level, when the same

product is shipped to multiple customers.

Scalable’s Shelf Life module helps to simplify

the tasks of assigning these various date driven

requirements to products and customers.

Key Features: z Track inventory in two quantity units z Ability to handle two quantity fields for each order line z User defined quantity units with automatic conversion to base unit z Customer or Product based dates

Catch Weight & Shelf Life



Improve Cash FlowIn a volatile business environment

companies have to assess their trading

terms and credit risks constantly and often

have various credit control rules in place.

Credit Controllers need to identify breaches

of trading terms immediately and resolve

claims quickly to maintain cash flows.

Reduced Customer Credit RiskAdvanced Credit Management works

with Accounts Receivable in Dynamics

AX and automates credit control rules

and authorizations. The software reduces

customer credit risk and expedites credit

control review and authorization.

The Advanced Credit Management extends

the “warning” dates system to a “hold” if

the credit limit is exceeded, or credit term

exceeds, i.e. overdue transactions.

Streamline CollectionsAll remaining invoices entered in the

Accounts Receivable ledger are clearly

collectable – improving the collection

process. Invoices in the claims system are

either subsequently approved and closed,

or are transferred back to the Accounts

Receivable ledger for settlement.

Advanced Credit Management

Streamlined Trading Partner CommunicationsMany organizations require their business

partners (e.g. suppliers and service

providers) to utilize EDI technology as

standard for electronic communication of

common business documents.

To assist you with this process, Scalable

Data Systems offers a complete suite of

EDI solutions to enable your company

to achieve compliance, and benefit from

effective, streamlined communications

between trading partners.

Gain Competitive AdvantageEnjoy a competitive advantage over non-EDI

companies:

z Improved accuracy

z Better record-keeping

z Fewer data errors

z Improved inventory control

z Faster order processing.

z Reduced communication costs

z Greener, less paper

z Lower postage and handling costs

EDI z 810 - Electronic Invoices z 812 - Credit / Debit Adjustment z 816 - Store Information including z 820 - Payment Order/Remittance

Advice z 832 - Price / Sales Catalog z 846 - Inventory / Inquiry Advice z 850 - Electronic Purchase Order z 852 - Product Activity Data z 855 - Purchase Order

Acknowledgment z 856 - ASN - Advanced Ship Notice z 860 - Change to an Order z 864 - Text Document z 869 - Order Status Inquiry z 870 - Order Status z 997 - Acknowledgments

STD Documents supported:

z Posting is aborted if credit terms (financial limit or past due) are breached

z Exceptions displayed in latest to oldest date

z Ability to ‘release’ orders limited to a user group

z Claims Management for organizations with high volume of credit claims

Key Features:



Scalable Data Systems is a Dynamics AX Partner with 25 years of experience implementing ERP solutions for international Manufacturing and Distribution companies. Our extensive experience with Supply Chain Management has led to the development of a comprehensive suite of software solutions – fully integrated into Microsoft Dynamics AX – that extends and deepens the existing functionality of Dynamics AX.

Scalable Data Systems

Customer & Vendor RebatesCash flow is vital in today’s business environment and effective Credit Management plays an important role in maintaining a healthy cash flow.

Accurate RebatesRebates and promotions are the number

one controllable overhead in many

manufacturing and distribution companies.

Rebates Management for Microsoft Dynamics

AX reduces the administrative overhead

of customer/vendor rebate programs

and ensures accurate rebates for entitled

customers and vendors.

Rebate GroupingRebate grouping codes may be defined for

items and customers / vendors.

This enables the setting of rebates to be

managed at a group level. It is also possible to

define Rebate Group codes which enable an

additional level for reporting.

Flexible Rebate SchemesRebate Management for Microsoft Dynamics

AX can be set up to apply to single customer/

vendor and item, or to a combination of

customers/vendors and items. This offers you

the flexibility to tailor your rebate programs

whilst keeping administrative control.

Advanced RebatesThe optional Advanced Rebates module

incorporates the standard rebates

management and tightly integrates with

Advanced Credit Management including

Credit Claims Management together with

Trade Spend Pricing and Campaigns.

Minimum OverheadThe tight integration with Microsoft Dynamics

AX ensures that once the rebate calculations

have been finalised an invoice or credit note

can be printed and the rebate is posted into

a standard Microsoft Dynamics AX journal.

This drastically reduces the amount of un-

reconciled claims and deductions, and keeps

your administrative overhead at a minimum.

Rebate Calculation MethodsRebates can be calculated based on the

following:

z Sales exclusive of tax

z Item weight

z Item quantity

z Payments against product sales

z External sales value

z External sales quantity

z External sales weight

z Fixed amount

with rebates calculated using an amount,

percentage, per unit weight or per unit

quantity.

z The ability to set up, track and record rebates for customers, vendor(s) and item(s)

z Assignment of multiple rebate per customer, vendor and item. z Assignment of rebate programs to a time period z Rebates can be based on a percentage, fixed value or value per unit

purchased or sold z Budget, net price groups and rebate reconciliation z Periodic accruals can be calculated and posted for long term rebates. z Rebate finalisation by AP voucher, free text invoice, AR claim or AP

RCTI depending of the rebate type

Key Features:



Customer ServiceWithin the Customer Service role the module

gives the ability to record all contract and

general public inquiries. These inquiries can

be categorized i.e. product faults, product

information, company information, operation

instructions, nearest store and resolutions can

be entered. In addition escalation parameters

can be set to control the assignments of tasks

and the length of time an employee can work

on a task before it is reassigned.

Escalation ParametersThe ability to flexibly escalate inquiries

determined by Customer, Customer Groups,

Inquiry Type, the number of hours a job can

remain open before it is escalated and the

employee to whom the escalated inquiry will

be assigned can be setup using ‘Escalation

Parameters’.

Service DepartmentIn the role as a Service Department or Repair

Shop the Repair & Warranty module gives the

ability to track from an original inquiry to the

receiving of goods that are being returned for

either replacement or repair in a cost efficient

and professional manner.

The module can create and track a repair

or service whether it is inside or outside of

warranty. A list of generic known faults can

be attached. Repairs can be carried out and

recorded as a warranty job or chargeable job.

If the job is outside of warranty the repair

shop can provide an estimate that includes

freight, materials and labour.

WarrantyIn addition to repairs and returns this

module has the ability to track whether

a product is within the warranty period.

Using the serial tracking feature of

Microsoft Dynamics AX a number of

additional fields are used for warranty

tracking. This allows the organization to easily

and quickly determine whether a product is

still under warranty.

Outside of Australia, Scalable is committed to the Dynamics AX Partner Channel model. We serve the Global Manufacturing, Distribution, Retail and Commodity markets as a non-reselling ISV of Microsoft Dynamics AX solutions.

Repair & Warranty

Key Features:

z Quick and simple method of keeping track of all incoming requests.

z Warranty details by serial number

z List of spare parts for each item

z Return authorization forms and freight labels

z Ability to automatically create sales orders and credit notes

z Automatic escalation process to ensure that staff and supervisors

are aware of requests that need special attention

z Standard fault repair times

Repair & Warranty Management allows you to manage service inquiries/contracts as well as establish and maintain warranty agreements. This module complements two roles within an organization, Customer Service and Service Department.

ManufacturingProcurement & Logistics

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Supplying personalized solutionslocally and globally

SDS Global Manufacturing

Documents

accounts receivable ledger

microsoft dynamics ax

supply chain management

landed cost items

contract management module

manufacturing procurement

dynamics ax

landed cost