Magna Pacific upgrades its supply chain with ERP system
- 07 May, 2008 12:15
DVD distributor Magna Pacific has ditched ERP software it purchased from Sybiz and implemented Microsoft Dynamics NAV claiming the old system couldn't keep pace with company growth.
With a catalogue of over 1000 titles available on DVD and video, Magna Pacific needed scalability.
The company's administration manager, Sarah Dowling, said its previous system was unstable and counterintuitive to use.
"More importantly, it couldn't keep pace with growth and was hampering productivity and the bottom line," she said.
"In the warehouse, staff would frequently make errors while picking and packing orders.
"These errors could result in inappropriate product sent to customers so there was a great need for improved accuracy."
Magna Pacific decided to implement a new ERP system that could accommodate its planned expansion and approached Manhattan Associates for a solution.
Dowling said the company then carried out trials and research with several systems from Sage, Innicom, and Sybiz's Evolution before selecting Microsoft Dynamics NAV.
"It was selected for two main reasons. Firstly, it was already capable of carrying out many of the tasks required by the company," she said.
"And secondly, because it was so scalable, any adjustments could be made to tailor it to our needs."
After a three month phased implementation period, Dowling said the result was a system that enabled Magna Pacific to reduce operational costs, increase profitability and ensure that end consumers receive their goods when they expect them.
She said it has also helped the company process its accounting and sales ordering more expediently, increase visibility and has reduced reporting time.
Magna Pacific will achieve ROI within 12 months of implementation.
"We can now balance supply with demand. When orders are generated in the supply chain management system, data is synchronised in real-time with the solution automatically updating inventory details," Dowling said.
"This means there is no time wasted on replicating data. This was previously taking up to 60 hours each week.
"This figure was reduced to 20 following implementation. This is a saving of 66 per cent."
Dowling said another essential benefit has been the ability to see the status of orders and inventory from one end of the company to the other.
"The whole company has a very accurate representation of what stock we have and where it is. This has improved our customer service levels and enabled us to be far more responsive as an organisation," she said.
"With our sales team now spending less time searching for stock and carry out data entry - they can focus on their real job - sales."
With its new system in place, the company is planning to grow its retail channel and customer base.
"We have the visibility and confidence to take on new clients or new shipments with the knowledge that we can definitely deliver on what we promise," she said.
Asked about Magna Pacific's decision to switch suppliers, a Sybiz spokesperson said the company would prefer not to comment.