Software for the Agile Business.

Software for the Agile Business. Microsoft Business Solutions Axapta Pushes Out the Wheelie Bins at Sulo MGB Company Profile Australia s largest manufacturer of wheelie bins, Sulo MGB (Mobile Garbage Bins) Australia, is using Microsoft Business Solutions Axapta to provide a better service to customers and gain a competitive advantage in a mature market. Sulo manufactures and distributes more than a million wheelie bins and waste disposal containers (domestic and commercial) each year for local government and commercial sectors across Australia. Business Scenario With the ubiquitous and ever popular wheelie bin in the market for more than 20 years, Michael Huston s challenge three years ago was to find ways to grow the business in a mature market. Following legislation set down for the Environment Protection Authority (EPA) to reduce the amount of waste going to landfill, councils have upgraded from the one bin system of the 1980s to the two or three bin system. The two bin system features a standard bin and one split bin for plastics and aluminum in one part and paper in the other. The three bin system has a smaller general waste bin plus a recycling bin and a green waste bin. With more than 300 customers across Australia, each with their own configuration requirements with different lid and bin colours, different sizes and different instructions on the lid, Sulo was required to manufacture more than 15,000 configurations of bins. Michael Huston s vision was to replace the company s outdated IT system with a one fully integrated solution that would provide a complete overview of Sulo s operation and offer sophisticated CRM capabilities that would result in more efficient customer service. Business Solution A number of different software products were reviewed, but in June 2000, Sulo chose Microsoft Axapta because it was integrated and the newest technology available. It was a big decision to go with the system because there weren t many people using it at that stage, Mr Huston said. Being on the leading edge is always a bit scary. But it could be customised to suit our business, it was at the beginning of its lifecycle and we saw its long-term potential as a platform for our The software solution had allowed them to gain a much more comprehensive grasp of their total business. It is a very powerful system for us because it has centralised all our corporate information and has enabled all of us to have a complete picture of our business at any time. Mr Michael Huston, Sulo MGB Australia, Managing Director Organisation Sulo MGB Australia Web Site www.sulo.com.au Industry Manufacturing Business Scenario Summary Previously, Sulo was using a basic system that was not integrated and could not take advantage of new technology. Michael Huston s vision was to replace the company s outdated IT system with a one fully integrated solution that would provide a complete overview of Sulo s operation and offer sophisticated CRM capabilities that would result in more efficient customer service. 1 Sulo MGB Australia Microsoft Business Solutions Axapta

growth. Like all manufacturing and distribution companies, Sulo has a specific set of business processes that had to be solved from an IT perspective. Mark Leary: We have a unique manufacturing environment. We manage the whole process from the sales and marketing to sourcing and recycling our own materials to production, warehousing, assembly and distribution of huge wheelie bin orders to ratepayers doors. Sulo required their bin and production configurations to be programmed into Microsoft Axapta so that a customer order could be completed all the way from the front end the sales desk to final delivery. To address this, SDS used Microsoft Axapta s advanced development tools to create an enhanced Scheduling module and Product Configurator solution. The configurator is used by sales staff online during the order process and this saves many days in getting the order onto the schedule. The creation of a new bin configuration through to completion of a new bin production order has been dramatically streamlined, cutting at least five days off the average order. Ensuring success with a Microsoft Certified Partner Scalable Data Systems (SDS) is an Australian owned software development and distribution company. The company is celebrating its 20th year of providing quality services and products to organisations in the private and public sectors. SDS is based in Brisbane and has offices in Sydney and Melbourne as well as consultants and resellers throughout Australia. Sulo chose to work with Microsoft Business Solutions Partner Scalable Data Systems (SDS), an experienced software services company, to integrate its sales, production and financial information within the one solution. Mark Leary, Financial Director of Sulo MGB, said it was important to have a strong partner who had the expertise to implement a new system. We looked at SDS and found they had 20 years experience in the installation of IT systems in various industries including manufacturing. They have been supportive and worked hard to achieve such a successful outcome, Mr Leary said. Benefits Sulo is realising major improvements in all areas from master planning through to production and management which is benefiting from analysis and up-to-date reporting. We have aimed to make this the most effective bin production in Australia and we believe that we have done that. Business Solution Summary Sulo required their bin and production configurations to be programmed into Microsoft Axapta so that a customer order could be completed all the way from the front end the sales desk to final delivery. To address this, SDS used Microsoft Axapta s advanced development tools to create an enhanced Scheduling module and Product Configurator solution. The configurator is used by sales staff online during the order process and this saves many days in getting the order onto the schedule. Partner Details Scalable Data Systems Tel: (07) 3852 5555 Email: sdssales@scalableds.com.au Web: www.scalableds.com.au Increased market share We have demonstrated to the market that we are able to increase our marketshare and improve our customer service at the same time. We now want to consolidate that leadership, Mr Leary said. Another benefit for Sulo has been the huge reduction in IT and administration costs. 2 Sulo MGB Australia Microsoft Business Solutions Axapta

Reduced costs Prior to using Microsoft Axapta, Sulo s IT costs were around $300,000 each year. Sulo has slashed this by half by employing a Systems Administrator, negating the use of expensive IT consultants. This was possible because Microsoft Axapta has an advanced set of development tools which can be effectively modified in-house. While there are no definitive figures at this stage, cumulative savings in administration are anticipated to be substantial over the next few years. One example is the cost of an invoice which, prior to Microsoft Axapta, was 15 cents an invoice and is now three cents. Sulo senior management said that staff acceptance of Microsoft Axapta has been high. Michael Huston: It was very easy to get acceptance from staff, much easier than we thought. There is always resistance to change, particularly in computer software. People think they have just got used to what they re using when you want to change it. The fact the system is Microsoft based gives them a level of familiarity and comfort. It s easy to transfer of information to separate files within Microsoft Office, for example. But our people also recognise the huge advantages of having this level of integration and new technology. Mr Huston said the new CRM module will have major benefits for Sulo. Centralisation Because of the way Microsoft Axapta CRM works, every contact with each customer is done through Axapta so that every time a query or order is entered, it automatically goes through the CRM system and is logged. This means all customer information is centralised and shared through one screen. Staff can see the history of all contacts between Sulo and each customer. This includes data recorded remotely by salespeople in the field. When you know both the history and the most up-to-date current situation, it improves your ability to better service the customer, Mr Huston said. Mr Huston said the other exciting advantage for Sulo was the valuable market intelligence CRM would bring. It will allow us to look at the number of contracts held by our competitors. There are a limited number of councils and wheelie bin manufacturers in Australia. We will be able to know exactly when a new contract has been issued for new, additional and replacement bins. It s all about using information to maintain a position or improve it in comparison to your competitors. Benefits Provides more accurate and economical forecasting and production Provides sales with all the required information for faster, better service to customers Improves tracking, monitoring and streamlining of all processes from sales through to delivery of the finished products Technology Microsoft Axapta is an enterprise resource management (ERM) solution designed to support business operations quickly and cost-effectively and includes integrated functionality across finance, supply chain management, customer relationship management (CRM) and business analytics. Sulo has been using the full Microsoft Axapta suite including manufacturing, production 1 & 2, logistics, warehousing and financial management since January 2002. The company is currently implementing Microsoft Axapta s customer relationship management (CRM) module which is expected to be operational by August. Microsoft 3 Sulo MGB Australia Microsoft Business Solutions Axapta

Axapta CRM is an enterprise wide system so it encompasses the entire company. More importantly, it will provide access for customers who will be able to view stocks or the production schedule for an update on the production of their bins. They can also slot new requirements into the schedule at various points. Mr Huston said it will further empower the company. CRM was one of the major reasons we installed Microsoft Axapta in the first place. Anything that allows us to service our customers better is going to give us an edge in the marketplace and that s all we re looking for, Mr Huston said. Maximising Success Since the company started using Microsoft Axapta 18 months ago, Sulo s marketshare has grown from 60% to 70% with revenues increasing by 25% in the same period. Michael Huston, Managing Director of Sulo MGB, said that the software solution had allowed them to gain a much more comprehensive grasp of their total business. It is a very powerful system for us because it has centralised all our corporate information and has enabled all of us to have a complete picture of our business at any time, Mr Huston said. We can now analyse quickly what the total production costs and our available capacities are so we can service our customers far better. This ability has given us the opportunity to grow our market share. It has been exciting. Microsoft Technology Microsoft Business Solutions Axapta Other Technology Windows Server 2000 The Future Sulo s main manufacturing plant is located at Somersby in New South Wales with offices in Brisbane and Melbourne. The interstate staff are online permanently to Microsoft Axapta which gives them simultaneous access to the same data as the Somersby based staff. Flemming Beisner, Managing Director of Microsoft Business Solutions Australasia, said Sulo s relatively early adoption of the Microsoft Axapta technology was paying huge dividends for the manufacturing company. Because this integrated system is powerful yet easy to use, it has allowed Sulo to increase their marketshare by 10% in the past 18 months. Once CRM is up and running, customer service will be further enhanced. Together with features like market intelligence, Sulo can expect to gain an even greater competitive advantage in their market, Mr Beisner said. 4 Sulo MGB Australia Microsoft Business Solutions Axapta

For Further Information: Vannessa McCamley Marketing Communications Manager Microsoft Business Solutions 1 Epping Road PO Box 91 North Ryde New South Wales 2113 M: 0416 148 338 E: vmccamle@microsoft.com Media Enquiries: Kay Nicol Managing Director Star PR Ph: 07 3007 6900 Mobile: 0408 751 697 kay@starpr.com.au For more information For more information about Microsoft products or services in Australia, contact Microsoft on 13 20 58. To access information via the Web, go to www.microsoft.com/australia/business 2001 Microsoft Corporation. All rights reserved. This customer solution is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, IN THIS SUMMARY. Microsoft, the Microsoft logo, SQL Server and Windows are registered trademarks or trademarks of Microsoft corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. 5 Sulo MGB Australia Microsoft Business Solutions Axapta