BPW Aftermarket Group drives enterprise standardization with Dynamics 365

The standardization journey

BPW AMG recognized the need for one system throughout their growing multinational business unit. This prompted the strategic decision to implement uniform business processes in their local entities based on standardized master data and a uniform, standardized enterprise resource planning (ERP) platform. The expectation was that a uniform, standardized ERP platform would offer efficiency improvements and a reduction in the complexity of the current heterogeneous ERP infrastructure of the local entities. The project would entail replacing seven ERP systems across Europe.

The core of the ERP program, code-named Genesis, was the implementation of Dynamics 365. The goal was to use the industry standard and reduce adaptations as much as possible.

Additional goals for the project included:

• Replace the legacy ERP system with a state-of-the-art cloud solution.
• Automate intercompany processes for BPW AMG entities.
• Incorporate the highest information technology (IT) security standards possible (in cooperation with BPW).

The search begins

Moving to the cloud was the most sustainable option. Maintaining the current software and hardware would have cost more time and money—and it would need to be done again every five years. Modernization and unification were the only logical solution when taking roughly 20 local entities into account. “When the rollout was complete, the cloud would be dominant anyway, so it wasn’t really a tough decision anymore,” said Ingmar Froehlich, head of the Genesis program. “So we decided to move forward by consolidating systems in the cloud to better serve our customers.”

BPW AMG narrowed the initial list of 30 ERP providers to 7. After reaching out with more questions and requirements, they concluded that they wanted to find a system that was out-of-the-box as much as possible—and they wanted guidance from the provider on what they needed, not a long list of features to choose from.

Finally, with two providers still in the running, the team gave them 3 to 5 use cases and 10 days to configure their system. The BPW AMG team wanted to know how far the implementation partner would be able to go in a 10-day timeframe. They also invited around 15 users from several local entities to test the use cases in the same room as the providers.

“I remember the Microsoft partner showing us how an order was to be entered in the system,” said Froehlich. “There were no important functions missing, and more or less everyone in the room said ‘yes, we can work like that.’ This demonstrated the standard in Dynamics 365 and how we wanted to work.”

After an extensive analysis, BPW AMG identified the best fit: Microsoft Dynamics 365 Finance and Supply Chain Management, including sales order management, procurement, and logistics. They also chose an IT service provider from Germany, GWS, and their gevis 365 solution, which is designed to support wholesale and retail companies operating internationally.

A long-term journey

The Genesis program is a long-term journey in which Dynamics 365 Finance and Supply Chain Management will be rolled out across multiple European regions. Implementation was scheduled to begin in 2019 but was delayed by the COVID-19 pandemic and suspended until the beginning of 2021.

The pilot rollout was at the German entity BESKO Nutzfahrzeugteile GmbH, with more legal entities to follow. “We wanted to follow the standards of the system, so we took the fit-to-standard approach,” said Froehlich. “Our goal was 90 percent standard, 10 percent deviation. This was our approach to control complexity since we wanted to be online in November. But many people confronted us with the question, ‘Are you crazy?’ How can you start a completely new ERP system from scratch within 11 months?”

The fit-to-standard approach resulted in 90% standard functionality with Dynamics 365 Finance, Supply Chain Management, and gevis 365. The go-live was successful—and completed within 11 months.

Benefits and impacts

Best process, best practice. The new system offers BPW AMG simplicity and enterprise standardization regardless of location. For example, Johanna Möhle, IT Manager, found that setting up the system in the sales department was fast, easy, and intuitive.

Greater transparency through automation. The new system also offers greater transparency in data and processes. Users have access in the system to all the links between processes, from sales to purchasing.

Virtually error-free. Another improvement is the replacement of a significant number of manual, error-prone paper processes with streamlined, automated digital workflows in the warehouses. With the new processes, picking the right parts is faster, easier, and more accurate.

Never out of stock. Froehlich noted increased efficiencies when a part a customer needs is out of stock. Now the product can be quickly bought and drop-shipped directly to the customer.

Templated process. BPW AMG is creating a template that they can use for the rollout of other entities in the future. The template will capture new learnings from each upcoming deployment, continuously improving and becoming a best practice over time.