A manufacturer of chemical reagents saves resources with Microsoft Dynamics NAV

About client

Mirriko Group is a Russian group of production and service companies that manufacture and supply chemical reagents, provide engineering support to customers on the application of chemical solutions and maintenance services. The group of companies has 6 divisions and business units which are divided into financial responsibility centers/cost centers.

Background

Purchasing, production, and logistics are done centrally and separated into individual logistics and supply centers (LSC). Purchasing, production, and logistics planning is based on the sales orders processed by the business units. Since the business units and LSC are different legal entities, this gives rise to an intercompany purchase and sale chain. Based on the sales orders processed by the business units, LSC plans production, purchases, and transfers considering the clear balances of already placed production and purchase orders.

Prior to the deployment of Microsoft Dynamics, a sales order was created and processed separately semi-manually. The balances were analyzed, while reserves and orders for production, transfers and purchase were created. The possibility of using goods from other business units was considered. Given that Mirriko Group owns two manufacturing facilities and uses dozens of third-party production sites and warehouses with a global reach, such planning did not allow optimally organizing the supply chains. Moreover, the same product could be manufactured at different production sites, and raw materials were delivered to these sites from different sources. This, in the end, greatly affected production cost and delivery times. The Awara IT team had to offer a solution that would save the client’s resources and time.

Solution and results

The economic performance of Mirriko Group almost instantly improved after the implementation of this project. After the deployment of Dynamics NAV, the client was able to plan each option for the production and delivery of goods to choose the optimal one in order to save time and cut logistics costs.

Key tasks for the client’s business were completed:

  • Functions were developed for intercompany chains: inventory management, supply tracking, change broadcasting to both sides of the chain, automatic accounting upon shipment from warehouse;
  • Regenerative planning was introduced and improved: Mirriko group receives already at the planning stage cost estimates for the selected production planning option. The production plan and purchase plan can be changed when new requirements arise. Key deals are recorded, order completion dates can be managed and rescheduled;
  • A function allowing to plan production options considering the costs of transport and procurement of components and extra costs was developed. Comparison and selection of the optimal production and delivery option, planning considering selected routes планирование с учетом выбранных маршрутов, plan/actual cost analysis, operational control over prices and delivery options;
  • Introduction of planning of inventory in service contracts. Storage and use of specifications, production order creation and modification, recording of the actual consumption of components while drilling, visualization of well-drilling program;
  • Simplified web interfaces were created for warehouses and production. Users started working in the system on various devices;
  • A notification system was developed to reduce users’ response time to events;
  • Integration with Directum EDMS for inventory.

The project is still under development and entails ongoing cooperation and close joint work with the IT department of Mirriko Group.