MDSL streamlines supply chain management

Fast food chain and domestic appliances manufacturer Muammad Din Sons Limited (MDSL) wanted a business management solution for its expanding interests in Pakistan. Having considered systems from Oracle and SAP, the company standardised on Microsoft Dynamics AX 2009. After this implementation, the firm’s stock levels are managed more effectively, and accuracy in specifying materials requirements at the factory has improved by 400%. Business managers are now in a good position to get performance reports in real time.

Business needs

Muammad Din Sons Limited is a conglomerate of businesses with manufacturing units as well as the Hardee’s burger fast food franchise in Pakistan. It is a subsidiary of the Super Asia Group, a Pakistani domestic appliances and automotive company.

The award of the fast food franchise in the last quarter of 2009 resulted in a significant diversification of the company and the need for greater visibility over the supply chain.
Sohail Yousaf, CEO, Muammad Din Sons, says: “For our manufacturing side of the business, we were previously using in-house developed software, but the solution was no longer fit for purpose—it couldn’t specify materials requirements, assist with planning, or help increase efficiency. Many of our business processes, including financials and warehousing, were largely manual.”

The company, which is has its base in Gujranwala in Punjab Province, frequently experienced stock shortages or even surpluses at different depots because it lacked real-time information from its principal factory and sales depots.

With the opening of the first of around 25 restaurants, the company needed to make sure the supply chain was working effectively. Yousaf adds that  group wanted to ensure a quality dining experience for customers and maintain a competitive edge in the quick-service restaurant market. “The goods required by the restaurants are highly perishable so accurate supply chain management was essential,” he says.

Muammad Din Sons was interested in working with an experienced systems integration partner capable of offering in-country support and training on the new software for its staff. It approached Microsoft Gold Certified Partner Maison Consulting and Solutions, a leading Microsoft Dynamics provider of business management software for systems integration.

Solution

The company considered business management software from Oracle and SAP before making a final choice in favour of Microsoft Dynamics technology. “We made cost and benefit comparisons of all three vendors, and found that Microsoft Dynamics AX 2009 was the most cost-effective enterprise resource planning solution for us,” Yousaf says.

Sultan Hamdani, COO, Maison Consulting and Solutions, says a key reason for choosing Microsoft Dynamics technology was based on the company’s experience as a Microsoft partner, having already worked with 60 companies in Pakistan. “The customer was very happy with our implementation capabilities compared to Oracle and SAP partners,” Hamdani says.

Muammad Din Sons purchased the advanced management features of Microsoft Dynamics AX 2009, which gave the company a diverse set of modules, including business intelligence, as part of the licence. There are around 10 users. Hamdani adds that in the case of SAP, the customer would have had a longer implementation time. “All training was provided by us as the partner for Microsoft Dynamics AX 2009 and we have also signed a support contract. In fact, we rarely need to go on-site except when we open a new Hardee’s outlet,” Hamdani adds.

Because Muammad Din Sons was ready to re-engineer its business processes to use best practice in Microsoft Dynamics AX 2009, no customisation of the support system was required. The exception was the integration of the weighbridge at the factory for checking the loading of materials and stock, which was handled by the partner.

Benefits

With the implementation of its new business management software, Muammad Din Sons Limited has gained full control of its inventory and sales and has minimised the risk of theft from its business. Yousaf remarks that with the help of Microsoft Dynamics AX 2009, stock levels are now maintained effectively, and have improved the company’s stock forecasting accuracy in specifying materials requirements by around 400%. Other benefits that have come about as a direct result of this implementation include:

•Capacity planning aids profitability. With a 400% improvement in specifying materials, the company can manage capacity planning and scheduling in an automated way. This helps ensure it has minimum holdings in raw materials and avoids disruption to production cycles.

•Managers get reports in real time. The business intelligence features of the solution have helped ensure better data for decision making. Yousaf adds: “Real-time reporting has always been a management dream—and now it is a reality.”

•Familiar Microsoft interface speeds adoption. Users were already familiar with Microsoft Office products such as Word and Excel spreadsheet software, which make it easier for them to adapt to the Microsoft business management software.

•Software helps deliver better customer service. The customer relationship management features in Microsoft Dynamics AX 2009 ensure that on the domestic appliance side of the business, distributors and retailers have the right stock for people to buy. Previously, this was done manually, which resulted in frequent stock shortages or surpluses.

•Restaurants avoid losses through theft. With automated inventory controls in the fast food business, the company can minimise the risk of employee theft. Yousaf points out that every employee interacts with patrons of the restaurants and that sometimes increases the potential for theft. “We now have a reliable inventory system and can control the business properly,” he explains.

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