Case Study: Legacy System Assessment Leads Distribution And Logistics Company On A Path To ERP Modernization

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Executive Summary

Using a specialized technique called the Customer Journey, Withum reviewed and analyzed the current state of a distribution and logistics company’s people, processes, technology, and data to quickly expose potential gaps and facilitate a collective understanding of the company’s needs and priorities. The outputs were presented in a simple and easy-to-understand format combined with future state alignment that helped the company make informed, actionable technology investment decisions. The goal of the project was to reduce complexity, drive value, and achieve growth through operational efficiencies with modern technology.

The Client

A distribution and logistics company headquartered in New Jersey, with multiple locations along the east coast. To service a wide
variety of customers ranging in size and industries, the organization was in need of strong logistics and inventory management
technology. Through multiple recent acquisitions, the client has expanded their geographic reach and the need for additional warehouses.

The Challenge

The distribution and logistics company operated on Navision 2017 (Microsoft NAV) and was contemplating a transition to the cloud
by migrating their existing NAV system to Microsoft Dynamics 365 Business Central. The company has been operating on Microsoft NAV for almost 20 years and has grown significantly to a $100+ million corporation. With this growth came an increase in
headcount and warehouses, and new technology requirements to run these large-scale operations efficiently and effectively.

The client’s Microsoft NAV solution was heavily customized to support the uniqueness of their business. Due to the reliance on non-native features of the system, Withum needed to spend time not only understanding how the distribution and logistics company processes worked but which of these processes would be impacted by the customizations added on over the years. The need for outside technical resources to support, maintain, and test the system was causing unneeded stress on the organization and its management. It is vital that the company’s management does not get bogged down in the intricacies of their legacy system but focus their attention on the rapid pace in which they are growing.

The Approach And Solution

Withum was asked to help assess the client’s current software along with supporting:

Strategic growth objectives
Migration to the cloud
Reduction of complexity and simplifying their technology footprint
The streamline/re-engineering of key processes to achieve operational efficiencies
Use of technology as an enabler to the business

After reviewing the distribution and logistics company’s IT landscape, Withum examined the business processes taking place in NAV 2017. Using the customer journey approach, Withum conducted meetings with various process owners focused on inventory, finance, purchasing, sales, reporting and existing technology. By speaking with the process owners over a two-week period and receiving a walkthrough of how business was being conducted, Withum consultants were able to document detailed requirements and observations about the current state of the business. In addition, Withum’s developers were utilized to assess the modified objects within NAV and determine the extent to which the system had been customized.

The Results, ROI

This information, presented to the distribution and logistics company’s executives through a summary of findings for their validation, laid the groundwork for a collaborative approach on the Future State of the organization. Having already received and documented input from business process owners and key executives through the interview process and Future State Workshop, Withum began formulating a path forward for the organization. Withum presented multiple options to the client in addition to a managed services plan for software and hardware support. Out of these options, with the help of the Withum team, the client ultimately made the business decision to transition to the cloud with a new ERP system, selecting Microsoft Dynamics 365 Business Central. Phase Two of the project will consist of this modernization.

The distribution and logistics company can rest assured that Withum will continue to support them throughout their decision-making process as a trusted advisor and business partner.

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