Clothing Company ERP System (MS Axapta)
Industry
Manufacturing
Customer
Our client is a leading clothing manufacturer Milavitsa that specializes in women lingerie. The enterprise has sales offices and a trading network in Belarus and Russia. The enterprise's products are sold in more than 40 countries (CIS, Baltic States, Western Europe, Asia, and Africa).
Project Purposes
- Integration of full cycle business processes (sales — resource planning — production — marketing) in a single system
- Development of financial analysis and management tools for the company's top management
- Reduction of information system operation costs through the unification of diverse applications that were used to automate individual business processes
Project Overview
The project was implemented using ERP II Microsoft Business Solutions Axapta 3.0 and included:
- Reengineering of the company's information technology
- Development of software specifications to implement all business processes
- Expansion of the standard Axapta functionality to meet the specifications
The system functionality included:
- Three–tier planning based on ISO 9000 for sales, basic production, auxiliary production, supply, finance, human resources, equipment, and energy resources
- Calculation of expenses and multicurrency price lists (broken down by distribution area)
- Sales management (sales of basic products and other sales)
- Production management (basic production including four contractors and auxiliary production)
- Warehouse management (raw materials, semi–finished and finished products)
- Procurement management (for all company activities)
- Accounting of investments in fixed and intangible assets
- Accounting of fixed assets
- Supplier and customer payments
- HR management
- Payroll calculation
- Business accounting (including taxes and dues)
The following Axapta modules were used to implement the system functionality:
- Base Package (Oracle)
- Financials I
- Fixed Assets
- Payroll
- Staff Administration
- Trade
- Trade Agreements
- Logistics
- Production I & II (Routing Management)
- Master Planning
- Resources
- Warehouse Management I & II
- CRM (Sales Force Automation, Sales Management)
- Dimensions
- Business Analysis
- Database log
- Windows MorphX Development Suite, X++
The total number of users is 370 (company's top management; heads and specialists of financial, trading, production and technological departments; and production, warehouse, sales, and procurement managers).
Project Execution
The project was executed in close cooperation with the customer and using the IBA proprietary technology that meets DIN EN ISO 9001:2000 and SEI CMMI Level 4.
The IBA responsibilities included:
- Diagnostics
- Analysis
- Design
- Development
- Testing
- Deployment
- Warranty servicing
The IBA team was comprised of nine analysts and nine developers. The team members have 20 Axapta certificates (with GNAD, AGAT and AGGT certificates, the total number of certificates being 35).
Launched in January 2003, the project was successfully completed in November 2008.
Project Results
IBA and Milavitsa completed a full–scale acceptance testing of the ERP II Microsoft Dynamics AX (MsD AX)–based automated management system developed by IBA. On November 27, a special committee signed the acceptance test report, and IBA accepted the following 17 modules of the system to warranty support:
- Strategic planning of sales, production, procurement, finance, and other lines of activity (in compliance with ISO 9001)
- Long–term planning of sales, procurement, finance, shop floor and other types of production and activity (in compliance with ISO 9001)
- Short–term planning of sales, procurement and finance, shop–floor production, other types of production and activity (in compliance with ISO 9001)
- Pricing and costs
- Customer Relationship Management (CRM)
- Product Lifecycle Management (PLM)
- Settlements with customers
- Production: 20 production departments, including 14 departments of production cooperation (total: around 4000 employees)
- Settlements with vendors
- Vendor Relationship Management (VRM)
- Stock management: 6 warehouses of end products, including one that functions as a logistics center and ships to 5 shopping molls (Belarus, Kazakhstan, Poland, Russia and Ukraine) and directly to customers; 3 warehouses of raw materials and supplies, and storage rooms
- Personnel records (around 2500 employees)
- Motor transport inventory
- Non–current assets
- Fixed assets
- Cash assets
- Ledger
To date, the Milavitsa automated management system is the largest ERP II MsD AX–based project implemented on the territory of Belarus and Ukraine. Within the system, 370 users work in a double–shift mode. IBA carries out warranty support of the accepted system functionality free of charge and without time limit.
