FOOD & BEVERAGEMANUFACTURING

AUSTRALIA • USA • SINGAPORE • UK

Industry solutions brought to you by Dynamics AX

Manufacturing Partner of the Year, Scalable Data Systems

2 FOOD & BEVERAGEFOOD & BEVERAGE

Growers & SuppliersWhen raw materials vary in price, quality and

delivery schedules, contracts come in to play.

Many of these contracts are 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 bottom line. Traditional purchase

orders or blanket orders are not robust enough

to handle these types of orders, but Dynamics

AX’s Commodity Procurement is designed to

manage these unique contracts and terms.

When the materials arrive, Dynamics AX’s

Commodity Procurement module records

the contractual quality specifications and

associated adjustment formulae used at the

time of delivery to establish the actual quality

to automatically calculate the contract price.

Other ingredients ordered through standard

purchase orders may also be needed for

production. These items may have additional

charges that need to be added to establish a

true Landed Cost. With Dynamics AX’s Landed

Cost, manufacturers can benefit from the ability

to combine shipments across vendors and

purchase orders. In addition better control of

the delivery schedule of these items provides

more effective production planning and cash

management.

Transportation of raw materials inbound,

and finished goods outbound, are handled

by Dynamics AX’s Transport Management

System “TMS” with consolidations across orders

and least cost calculations. Other features

include carrier charges & levies, delivery run

management and vendor reconciliation.

Many businesses need to manage rebates from

vendors or customers and both are catered

for in the Dynamics AX Rebates Management

solution.

Dynamics AX’s Rebates Management allows

manufacturers to take advantage of vendor

rebates by tracking all purchased items. Rebate

schemes can be set up as a matrix which may

apply to a single vendor and items or to a

combination of vendors and items. Multiple

rebate calculation methods and different time

periods can be set up.

Production Dynamics AX’s Commodity Procurement and

Landed Cost streamline supply to production

for required materials. They show what

ingredients, including the grade or quality

that need to be used by the production line.

Visibility of which warehouse has the inventory

to match the delivery timing of the materials

needed to meet the production schedule.

At the same time this view leverages master

planning to identify supply chain demands and

constraints.

Dynamics AX’s integration of Master Planning

with Commodity Contracts provides enhanced

production flexibility as demand and/or supply

requirements change. Purchasing can simply

review, assign or re-assign existing contracts

or raise new purchase orders/contracts to meet

production demand.

Order Processing/DistributionFinished product can be supplied to customers

with standard sales orders, or in instances

where there are contractual terms by utilizing

Dynamics AX’s Contracts module. Invoices can

be electronically submitted to the customer via

Dynamics AX’s EDI module. Logistics can access

both sales orders and contracts with Dynamics

AX’s Transport module to consolidate loads and

schedule shipments with least-cost delivery

options for specified delivery routes. Sales

personnel can reduce exposure to customer

credit risk and support fast credit control

review with Dynamics AX’s Advanced Credit

Management module. If a transaction exceeds

a customer credit limit, or if payment terms

have been exceeded, it is placed on credit hold.

ConsumersMarketing & Sales can use Dynamics AX’s

Rebates module to set up customer rebates

schemes. These schemes can be set up as a

matrix which may apply to a single customer

and items or to a combination of customers

and items. Multiple rebate calculation methods

and different time periods can be set up.

The Dynamics Ax Advanced Credit Management

module facilitates the processing of credit

claims simplifying the accounts receivable to

provide positive visibility of what cash can be

collected. Invoices in the claims system are

either approved, closed or transferred back to

accounts receivable for settlement.

Modules for Food & Beverage

• Finance

• Distribution

• Manufacturing

• CommodityProcurement

• TransportationManagement

• LandedCostwithShipmentTracking

• AdvancedProductionScheduling

• EDI

• AdvancedCreditManagement

• Customer&VendorRebates

Bottlenecks can appear in the Food & Beverage Supply Chain as early as the procurement process and have a

domino effect throughout the remainder of the Supply Chain. These bottlenecks can severely impact planning,

production and delivery schedules and cause devastating cost overruns and delay.

Food & Beverage manufacturers must find ways to introduce innovations to their business processes in order to be

profitable in the face of price and demand fluctuations, quality and safety requirements, production capacity and

variations in raw materials availability.

Food & Beverage

3FOOD & BEVERAGE

Does this scenario seem familiar?A company manufactures food & beverages.

It relies on sales demand and forecasts to

estimate its production requirements and on

the procurement department to ensure the

timely supply of raw materials for its production

plant. The procurement department has to

know the production requirement before it can

arrange to have the commodity drawn against

the contracts it has in place with trading

companies or with growers. This is a typical

example where procurement, production and

sales are all inter-dependent but in many cases

all, or certainly the procurement department,

work almost in isolation to the other parts of

the business, using disparate systems. In this

case, Management is unable to see the whole

picture of the business to determine better

processes to streamline and reduce costs, as

well as asses the organization’s risk.

Dynamics AX for the Food and Beverage

industry specifically delivers:

•Purchasingnegotiates,recordsandmanages

contracts using Commodity Procurement.

•Planningutilizesthesalesforecastto

determine raw material requirements.

•Purchasingselectscontractstosatisfy

Inventory and Commodity Requirements.

•Logisticsarrangesinboundtransportwith

Transport Management and ensures the

raw materials are available when production

needs it.

•Productionmanagesthelineswith

Advanced Production Scheduling to

optimize throughput.

•Salescreatesarebatesschedulewith

Rebates, and manages credit with

Advanced Credit Management.

•Logistics schedules the outbound transport

with the Transport module.

•Managementbenefitsfromvisibilityto

Commodity positions and Foreign Exchange

exposure to better implement and execute

risk strategies.

• Contract Management » Local and international

purchases » Cost tracking

• Risk Management » Future Contracts » Position Reporting » Mark to market valuations

• Vendor rebates

• Transportation » Inbound load planning » Bulk shipments

• Contract Allocations » Master planning » Plant schedules

• Purchase Invoicing » Raw materials » Freight » Accruals

• Interface with Master Planning

» RM Purchase Contracts• Inventory Management

» Dynamics AX• Least Cost Formulation

Integration (possible) » Contract formation » Inventory » Transport

• Allocations of RM Contracts and Inventory Holdings to production Schedule

» Updating of RM contract details

• Inventory Transfers » Transfer between Inventory

holdings/warehouses » Transport » Additional costs

• Finished goods sales » Orders » Contracts

• Transportation » Outbound Loads » Bulk Shipments

• Invoicing » Finished goods » Additional Charges

• Customer discounting & rebates

• Master Planning » Demand » Forecasting

• Risk Management (S ales contracts)

» Futures hedging » Foreign Exchange » Position » Mark to market

SOLUTION

SOLUTION

SOLUTION

Inventory/Production Requirements

Sales Requirements

Raw Materials Requirements

• Inventory Management

• Master Planning

• Least Cost Formulation Integration

• Production Scheduling

• Inventory Transfers

• Finished goods sales

• Transportation

• Rebates

• Invoicing

• Links with master Planning (demand)

• Local RM Purchases

• International RM Purchases

• Risk Management

• Transport

• Links with Production Planning

• Rebates

• Invoicing

Stock enquiriesBill of Materials

Sales Orders

PurchaseOrders

Forecast

ProductionOrders

Transfer Orders

Accounts Receivable

Net Requirements

Resources

Accounts Payable

Master Planning

Process Manufacturing

Process Formula Management

Inventory Management

Supply Chain Managem

ent

Landed Cost

Vendor Rebates

AdvancedProduction Scheduling

EDI

Contract Management

Raw Materials Procurement

Commodity Trading

Risk Management

Commodity

Stock Movem

ents

Transport Management

Commodity Quality

Quality Managem

ent

Formula Optimisation

Scalable Module

Core AX Function

Core AX Framework

Interface

Customer Rebates/

Discounts

Advanced Credit

Management

Weighbridge

Interface to production control system

Inventory

Sales Orders

PurchaseOrders

Transfer Orders

Accounts Payable

Inventory Management

Supply Chain Managem

ent

Production Routes and MRP

Catch W

eightContract

Managem

entW

arranty &

Repair

EDI

Process Manufacturing

Accounts Receivable Advanced Credit

Management

Landed Cost

Vendor Rebates

Customer Rebates

Transport 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 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

Stock enquiries

Bill of Materials

Sales Orders

PurchaseOrders

Forecast

ProductionOrders

Transfer Orders

Accounts Receivable

Net Requirements

Resources

Accounts Payable

Master P

lanning

Process Manufacturing

Process Formula Management

Inventory Management

Supply C

hain Managem

ent

Landed Cost

Vendor Rebates

AdvancedProduction Scheduling

ED

I

Contract Management

Raw Materials Procurement

Commodity Trading

Risk Management

Commodity

Stock M

ovements

Transport Management

Commodity Quality

Quality M

anagement

Formula Optimisation

Scalable Module

Core AX Function

Core AX Framework

Interface

Customer Rebates/

Discounts

Advanced Credit

Management

Weighbridge

Interface to production control system

Stock enquiries

Bill of Materials

Sales Orders

PurchaseOrders

Forecast

ProductionOrders

Transfer Orders

Accounts Receivable

Net Requirements

Resources

Accounts Payable

Master P

lanning

Process Manufacturing

Process Formula Management

Inventory Management

Supply C

hain Managem

ent

Landed Cost

Vendor Rebates

AdvancedProduction Scheduling

ED

I

Contract Management

Raw Materials Procurement

Commodity Trading

Risk Management

Commodity

Stock M

ovements

Transport Management

Commodity Quality

Quality M

anagement

Formula Optimisation

Scalable Module

Core AX Function

Core AX Framework

Interface

Customer Rebates/

Discounts

Advanced Credit

Management

Weighbridge

Interface to production control system

USA303-91st Ave Ne SteE502 #127Lake Stevens WA 98258United StatesF: +1 (425) 512 8711 UNITED KINGDOM13 West Crook Way Crook of Devon Kinross KY13 0PH T: +44 (0) 15778 40675

SINGAPORELevel 25, North TowerOne Raffles QuaySingapore 048583T: +65 (0) 6622 5793F: +65 (0) 6622 5999

BRISBANE Level 2, 97 Warry StreetSpring Hill QLD 4000T: +61 (0) 7 3851 7300F: +61 (0) 7 3851 7399

SYDNEYSuite 501 Level 5, 153 Walker StreetNorth Sydney NSW 2060T: +61 (0) 2 8908 4500F: +61 (0) 2 8908 4599

PERTHSuite C1, 1139 Hay Street West Perth WA 6006T: +61 (0) 8 9216 7700F: +61 (0) 8 9216 7799

MELBOURNESuite 444, Level 4 St Kilda Rd Towers 1 Queens Road Melbourne VIC 3004T: +61 (0) 3 9864 2500F: +61 (0) 3 9863 8932

CUSTOMER SERVICET: 1300 650 499 (AU only)T: +61 (0) 7 3851 7300helpdesk@scalable.com.au

MEDIA ENQUIRIEST: 1300 650 499 (AU only)T: +61 (0) 7 3851 7300marketing@scalable.com.au