ABE'S Real Bagels grows business

Date:
27 Oct 2011
Posted By:
Nicholas Birch
Industry:
FMCG
Project type:
ERP implementation
ABE'S Real Bagels ABE's Bagels logo

With a system to grow with them ABE'S is set for the future.

Using Microsoft Financing and working with Koorb Consulting, ABE'S Real Bagels has been able to deploy flexible and powerful Enterprise Resource Planning system Microsoft DynamicsAX when it was needed most, enabling the business to capitalise on growth opportunities and better manage production and accounting processes.

ABE'S Real Bagels is a successful New Zealand manufacturer of fresh bagels and bagel crisps. After starting out in a small Auckland cafĂ© the company has rapidly grown into a wholesale manufacturer employing 45 full time staff with an annual revenue of $NZD5-10 million. ABE'S has undergone  rapid growth and change over the past year, entering into the Australian market and winning a contract to supply over 800 Woolworths supermarkets. With major changes and significant growth of 30-40% a year ABE'S urgently needed a new ERP system.

Taking the bagel market by storm

ABE'S had outgrown its existing custom-built legacy system and  required greater functionality and flexibility from an ERP system as well as needing a streamlined and scalable solution to manage both production and finances.

Due to a lack of integration between its legacy systems, the company's existing accounting system had to be updated monthly with information taken from a manual stock take. This resulted in a lack of visibility into stock levels and costs throughout the month.

"We couldn't do some of the stock analysis we wanted to do with the old system. We had to actually go and look to see how much flour we were consuming each month, which meant we had to have standing rather than flexible orders," explains ABE'S Director Brent Milburn.

"We really needed a system with real-time stock visibility and forecasting tools to better manage production schedules to meet customer demand and improve our service."

Another problem that ABE'S faced was that its legacy system couldn't work in multiple currencies. Developing their product offering from fresh bagels to include bagel crisps also required the management of more complex planning and production cycles.

"We'd literally outgrown the system we had and we wanted a platform that would be able to grow with us. We knew we were going to require even more functionality from our system in the very near future so a patch up job just wasn't an option," says Milburn.

A seamless solution

ABE'S evaluated several ERP systems and  chose Microsoft Dynamics AX for its superior flexibility, scalability and manufacturing capabilities, and the knowledge that Microsoft Dynamics AX would integrate seamlessly with existing systems. The Microsoft Financing package was the icing on the cake. "The financing rate was very reasonable and being able to finance the investment in software implementation against future earnings was a huge plus advantage for us," says Milburn.

Microsoft Gold Certified Partner, Koorb Consulting assisted ABE'S in finding and implementing the right solution for the company.

"We were impressed from the start with the obvious depth of understanding Koorb had of our industry," says Milburn. "They stepped forward with a large pool of experienced consultantsand developers, specific expertise in FMCG manufacturing, a large number of current Microsoft Dynamics AX sites and very importantly - strong site references. It was obvious that partnering with them would be a low risk option. Once we started working with them, Koorb matched us up with consultants who had skills to fit our specific business needs, and crystallised the phrase "Industry Best Practise" into actual workable solutions."

Koorb began implementing Microsoft Dynamics AX at the end of 2007 and the system went live on schedule and on budget in early April 2008 - just in time to provide the multicurrency functionality that ABE'S required for its entry into the Australian market.

To meet ABE'S key needs Microsoft Dynamics AX had almost everything ABE'S needed right out of the box, with a look and feel that was familiar to staff who were already accustomed to using other Microsoft products. However, Microsoft Dynamics AX also had the advantage of integrating easily with existing systems.

Using the Application Integration Framework (AIF) module, Koorb was easily able to integrate an existing planning system used to designate van delivery routes and take delivery orders with Microsoft Dynamics AX.

Financing a future

While Microsoft Dynamics AX was clearly the best technical solution for ABE'S, the availability of Microsoft Financing meant that the implementation of Microsoft Dynamics AX was achievable.

"Being able to finance it against future earnings was a definite advantage and made a real difference to us. Growing businesses are quite money intensive, requiring all of the earnings and more to be input into capital for machinery and working capital, so being able to finance it was a big plus," says Milburn.

A solution with room for growth

As the business continues to grow and develop, ABE'S Real Bagels will build further on its technology solution, taking advantage of the system's multicurrency and multiwarehouse capabilities and connecting a forecasting add-in. ABE'S also plan to  upgrade the company's smart phones to  enable mobile integration with Microsoft Dynamics AX if required.

"Microsoft Dynamics AX has the ability to grow with our business. With new versions being released regularly, we're pretty confident that no matter where we go or what we do the system will be able to cope with our evolving business," says Milburn.

Quick Facts:

Workstations: 13 Industry: FMCG Project Type: ERP implementation
Website:

www.bagels.co.nz

Customer Size: 70 Year: 2007

Solutions:

MS Dynamics AX 4

MS Windows Server 2008 R2

MS SQL Server 2000

Functional areas:

Financials, Fixed Assets, Trade, Logistics, Master Planning, Production and Business Analysis 

 

Scenario:

Enterprise Resource Planning, Financial reporting, Forecasting & planning

Benefits:

Immediate access to capital with Microsoft Financing

Scalability and flexibility to enable growth

Visibility to make more informed management decisions

Improved stock and production management

Streamlined production processes and financial management

Downloads / Dynamics Reference Library:

Paul McDowell-Hook
Director
Mob:
+64 27 567 5599
E:
pmcdowell-hook@koorb.co.nz
Paul McDowell-Hook