Upload
others
View
25
Download
0
Embed Size (px)
Citation preview
SOLUTIONS
Microsoft Dynamics AX
Master Complexity with
Apparel and Textile for
Microsoft Dynamics AX
White Paper
This paper discusses how the makers and distributors of apparel and textiles
can integrate item and process information, improve effi ciency, and enhance
profi tability using Apparel and Textile for Microsoft DynamicsTM AX.
October 2007
www.microsoft.com/dynamics/ax/product/industrysolutions.mspx
lueFox_AX_WP.indd 1lueFoox_AXAX_WP.inddd 11 10/4/07 10/4/4/074/0/07
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
2
Contents
Introduction ................................................................................................................................................ 3
Industry Trends and Challenges ............................................................................................................... 3
Turning Challenges into Opportunities: How Technology Can Help ................................................... 4
Manage complexity ........................................................................................................................................................................................ 4
Enhance fl exibility ............................................................................................................................................................................................ 4
Connect trade partners ................................................................................................................................................................................. 4
Increase effi ciency ........................................................................................................................................................................................... 4
Gain insight for improvement ...................................................................................................................................................................... 4
Apparel and Textile for Microsoft Dynamics AX .................................................................................... 5
Take control of multidimensional item variables ...................................................................................................................................... 5
Respond effectively to change with enhanced fl exibility ....................................................................................................................... 6
Improve supply chain collaboration ........................................................................................................................................................... 7
Reduce costs and increase profi tability ...................................................................................................................................................... 8
Make confi dent decisions .............................................................................................................................................................................. 9
Technology Overview ................................................................................................................................ 9
Solution map .................................................................................................................................................................................................... 9
Quick implementation and return on investment ................................................................................................................................. 10
System architecture ....................................................................................................................................................................................... 11
A quality product with dependable support .......................................................................................................................................... 11
Conclusion................................................................................................................................................. 11
lueFox_AX_WP.indd 2lueFoox_AXX WP.indAX_WP.indd 2d 2 10/4/07 10/4/4/074/0/07
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
3
Introduction
Driven by increased globalization, companies in the apparel and textile industry face a variety of challenges.
Delocalized production and complex, expanding supply networks make it harder than ever to coordinate effi ciently
with trade partners and maintain product and material traceability while still making a profi t. Price pressure,
intense competition, and demanding customers erode margins and increase the urgency of cost control and
fast time-to-market. Apparel and Textile for Microsoft DynamicsTM AX can help by connecting complex item
and order specifi cations with fl exible process management through an integrated, cost-effective business
management solution. When apparel and textile companies can achieve greater end-to-end control of item
and process variables and information, they gain the visibility and insight they need to enhance profi tability and
build a competitive advantage.
This white paper reviews current trends and challenges in the apparel and textile industry, which represents
businesses that produce a wide range of products including fi ber and yarn, consumer and industrial fabric, carpet
and other woven materials, and mass-market, designer, or luxury clothing and fashion accessories. This paper
also addresses the role of technology in helping companies turn these challenges into opportunities that can
drive business success, along with the specifi c features, benefi ts, and advantages of Apparel and Textile for
Microsoft Dynamics AX.
Industry Trends and Challenges
Although globalization is nothing new in the apparel and textile industry, the increasing geographic dispersal of
production, supply networks, and markets intensifi es competitive pressures and operating challenges. Production
delocalization continues, with wider, more complex supply networks creating challenges for effective communication
and supply chain management. More materials or processes may be subcontracted or outsourced, while new
distribution channels and markets emerge.
In addition to the challenges of conducting business across national borders and in foreign markets, apparel and
textile companies typically face:
• Upheaval from frequent acquisitions and mergers as companies increase their vertical integration, go after new
retail distribution options, or move into new markets.
• Bills of material (BOMs) and production routings complicated by the large number of item variables, from
seasonal collections or brands to multiple color-way and size dimension matrices.
• The need to maintain traceability from fi nished goods back to raw materials and suppliers despite complex
supply networks and variable production routings.
• Competition-induced pressure for higher quality at lower cost.
• Increased retailer demands for fast time to market, new higher-performance materials, or customized products,
put-up, and delivery.
• Existing stand-alone information systems that lack integration with each other, and technology solutions that are
inadequate to handle the industry’s complex item and process data.
Companies who survive in this dynamic and diffi cult environment are those that can quickly access critical
information; make fast, informed decisions; collaborate effectively with trade partners; and adapt rapidly to change.
lueFox_AX_WP.indd 3lueFoox_AXX WP.indAX_WP.indd 3d 3 10/4/07 10/4/4/074/0/07
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
4
Turning Challenges into Opportunities: How Technology Can Help
Fortunately, technology can help deliver the information, insight, and collaboration that apparel and textile
companies need to compete profi tably. When people, processes, and information come together in streamlined,
integrated operations, the entire organization can work effectively to drive business success. The right business
management solution can help by improving control of complex variables, automating tasks, speeding the fl ow of
information, connecting processes and partners, and delivering comprehensive business intelligence to support
strong decision-making.
Manage complexity
Apparel and textile companies routinely juggle material performance characteristics and customers’ item
specifi cations with the product complexity of seasonal lines, brand or trade show collections, styles, quality grades,
color-ways, size and color matrices, fi nishing variables, put-up, and delivery options. BOMs and manufacturing
orders add another layer of complication with size and color assortments for every item style. Technology is critical
simply for keeping track of all these item variables, along with managing production routings, handling distribution,
or helping ensure backward traceability to sources and suppliers. But the right business management solution can
also integrate multidimensional item coding with production, distribution, and accounting processes to streamline
tracking and fi nancial processes, speed production planning, increase supply chain visibility, and provide the insight
for effective item management.
Enhance flexibilityfl
Aging and disconnected information systems hinder an organization’s ability to respond to new market
opportunities or last-minute customer changes by limiting access to the data people need to make informed
decisions. A comprehensive, integrated business management solution can expand the fl ow of information and
increase organizational agility. That means companies can adapt to shifts in operational conditions, customer orders,
supply networks, distribution channels, and the organization itself. By reducing manual tasks and increasing the
synchronization of processes and information, technology can improve fl exibility and support quick redirection of
materials, production, or people to help ensure decisions that enhance profi tability and long-term success.
Connect trade partners
Technology is particularly well-suited for connecting and empowering the supply network by increasing
information transparency, speeding communication, and facilitating collaboration. A standards-based
management solution can make it easy to share information and even key business processes with trade partners,
regardless of their individual technologies or IT systems.
Increase efficiencyfi
With a technological solution that delivers tight integration and real-time information, companies can streamline and
automate processes, reduce manual or redundant data entry, improve production planning, and gain transparency
into operations. An integrated business management system can also deliver automated notifi cations that facilitate
workfl ow processes. Managers can stay aware of operational conditions, goods and information can keep moving,
and people can respond promptly to order changes or unexpected supply chain events.
Gain insight for improvement
With accurate, real-time information about seasonal collections or brand lines, production or subcontractor
performance, costs, profi tability, and trends, managers can make timely and effective decisions. Integrated item
and process information can facilitate assessment of costs and item, customer, or market profi tability, while the
ability to run “what if” scenarios in production, product allocation, and distribution makes it easy to manage change
with confi dence.
lueFox_AX_WP.indd 4lueFoox_AXX WP.indAX_WP.indd 4d 4 10/4/07 10/4/4/074/0/07
5
Apparel and Textile for Microsoft Dynamics AX
Apparel and Textile for Microsoft Dynamics AX is a comprehensive business management solution with the fl exibility,
integration, and industry-specifi c functionality to deliver unique advantages for companies that manufacture and
distribute apparel and textiles. A highly scalable solution designed to meet the unique requirements of growing
companies, Apparel and Textile for Microsoft Dynamics AX delivers robust item and production management
capabilities on a foundation of world-class fi nancial and business management functionality. The solution integrates
smoothly with advanced customer relationship management (CRM) and supply chain management (SCM) solution
extensions as needed.
Support for multiple sites, currencies, and languages makes it easy to conduct business across borders and
collaborate with members of global supply networks. And because the solution is highly fl exible, you don’t have to
change the way you do business. Apparel and Textile for Microsoft Dynamics AX can be adapted to your specifi c
business needs; customization is easy with the Microsoft Dynamics AX development tools.
Take control of multidimensional item variables
Apparel and Textile for Microsoft Dynamics AX features advanced multidimensional item coding to accommodate a
wide range of item identifi ers and traits, including:
• Lot, batch, dye bath, and serial number.
• Season, collection, brand, and style.
• Color-way, color, and size matrices.
• Decoration and fi nishing variables.
• Packaging and put-up.
Item coding is transaction-driven, which means that item codes can be automatically changed or appended
as circumstances dictate; for example, the completion of the dying process may require item codes to change
downstream. Integration with production planning and sales order processes makes it easier to plan sourcing and
track materials and goods through various manufacturing processes, fi nishing phases, inventory, and logistics.
Figure 1. Advanced item coding links the spectrum of item production and fi nishing variables with material sourcing, BOM generation, and
routing requirements to help ensure full traceability, cost accounting, and profi tability analysis.
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
lueFox_AX_WP.indd 5lueFoox_AXX WP.indAX_WP.indd 5d 5 10/4/07 10/4/4/074/0/07
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
6
Respond effectively to change with enhanced flexibilityfl
Apparel and Textile for Microsoft Dynamics AX delivers integrated and fl exible processes that your people can use
to assess and select the most effi cient alternatives for order entry, production planning, and fulfi llment. With these
processes, you can:
• Create multiple order types, including collection and showroom orders. Enter blanket orders that you can use to
begin planning materials sourcing and production while deferring entry of details, such as color and size arrays
or split-delivery specifi cations, until later. Save time by making mass modifi cations to existing orders.
• Generate neutral BOMs to plan materials and production resource requirements independent of product size,
color, or color-way.
• Manage and automate complex measurement conversions based on algorithms for improved accuracy and
consistency.
• Streamline work orders with multiple-line manufacturing orders for a given product, adding lines for various
sizes or colors of the same style. You can link manufacturing orders to one or more sales orders or, conversely,
to track fulfi llment and allocate fi nished goods and costs (see Figure 2).
• Incorporate subcontractors into variable or alternate routing plans based on the most cost-effi cient approach for
a given product and situation. Support either pull or push production strategies.
• Integrate quality assurance activities and grading results into pricing, distribution planning, item allocation, and
accounting processes.
• Develop pricing based on integrated cost information and easily generate price lists that consider various
product grades, sizes, quantities, promotional or trade-show discounts, or showroom rates.
• Run scenarios to assess the impacts of outsourcing, new suppliers, or altered processes. Simulate allocation
alternatives to help ensure optimal order fulfi llment and customer satisfaction.
Figure 2. Use multi-line production orders to streamline work orders. Set up a specifi c product with lines for color and size for each style once ff
and then automatically create production orders for each variation.
lueFox_AX_WP.indd 6lueFoox_AXX WP.indAX_WP.indd 6d 6 10/4/07 10/4/4/074/0/07
7
Apparel and Textile for Microsoft Dynamics AX also delivers the long-term fl exibility to grow with your business. Easily
tailored to your company’s changing needs, the solution takes advantage of a modular approach, so your company
not only gets what it needs today, but it can quickly add new functions later. Scale up as your business expands for a
long-term solution and a low total cost of ownership.
Improve supply chain collaboration
You can use Apparel and Textile for Microsoft Dynamics AX to share real-time replenishment, order, and delivery
information with people and partners both inside and outside the company. As a result, you can increase supply
chain visibility, improve synchronization, speed communication, and respond effectively to unexpected situations.
You can:
• Work with trade partners in the language and currency most convenient for them, thanks to multicurrency and
multilanguage support.
• Share Microsoft® Offi ce documents and key business information in other standard formats that are
familiar worldwide. Communicate with corporate or trade partner ERP systems using XML and Web service
technologies.
• Manage supplier records and subcontractor performance with help from integrated information about items,
purchase orders, deliveries and receipts, costs, and quality assurance results (see Figure 3).
• Save time by extending critical business information and key processes directly to trade partners through the
Internet. Offer security-enhanced, Web-based access to information and processes such as inventory levels,
order entry or status, and product pricing to put resources at trade partners’ fi ngertips.
• Speed transactions and communication with electronic data interchange (EDI) connectors and messages for
business information ranging from advance shipping notices (ASNs) to invoices and purchase requisitions. With
full integration of Microsoft BizTalk® Server or Commerce Gateway in Microsoft Dynamics AX, you can exchange
electronic documents with trade partners to save time and improve accuracy.
Figure 3. Generate a purchase order for services from the sales order for items to be produced by a subcontractor.
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
lueFox_AX_WP.indd 7lueFoox_AXX WP.indAX_WP.inddd 77 10/4/07 10/4/4/074/0/07
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
8
Reduce costs and increase profi tabilityfi
Your people can save time and effort with integrated processes and information and automation of manual tasks—
from the generation of shipping documents to customer invoicing. With Apparel and Textile for Microsoft Dynamics
AX, you can:
• Eliminate redundant data entry between information systems or operations areas.
• Streamline replenishment, enable suppliers to monitor inventory levels and initiate purchase requests, or shift to
vendor-managed inventory to free your people for higher-value activities.
• Improve the accuracy of inventory records across multiple showrooms, sample stock, off-site deposits, wholesale
or distributor inventories, and physical or virtual warehouse locations. Obtain a comprehensive view to help
you source goods from the most effi cient location, and consolidate records for purchasing management and
fi nancial analysis.
• Speed fulfi llment and streamline accounting with item, put-up, and delivery information fully integrated into
packaging, unitizing, labeling, and invoicing processes.
• Reduce time to market on new products with tighter integration and communication among design, sales,
production, and wholesale and/or retail distribution resources.
Figure 4. A single view shows multiple warehouse locations and storage dimensions to help you manage stock.
lueFox_AX_WP.indd 8lueFoox_AXAX_WP.indP.indd 8d 8 10/4/07 10/4/07/4/44/0/07
9
Make confident decisionsfi
You can use Apparel and Textile for Microsoft Dynamics AX to get the real-time information and process insight you
need to make smart decisions and drive business success. With it, you can:
• Easily access critical information about customers, suppliers, products, processes, and profi tability from across
the organization.
• Extend information to remote employees through the Internet so that sales and distribution teams have the
information they need at their fi ngertips, regardless of their physical locations.
• Create key performance indicators, share real-time results, and track trends.
• Use familiar tools such as Microsoft Offi ce Excel® to analyze critical performance and profi tability information
and present it to others in visual formats and reports.
• Run “what if” scenarios on item, production, and distribution alternatives and assess market trends.
Technology Overview
The apparel and textile solution from Microsoft is built on the Microsoft Dynamics AX platform and designed to
take advantage of a solid foundation of integrated technologies that includes the Windows® operating system,
Microsoft Offi ce system applications, and Microsoft SQL ServerTM for a security-enhanced, reliable, and easily
managed IT infrastructure. Microsoft Dynamics AX solutions can deliver role-based functionality tailored for the
apparel and textile industry that are familiar and easy to use, and support the way your business really works. And
Microsoft Dynamics AX provides your organization with the fl exibility to adapt these systems to an ever-changing
business environment.
Solution map
Apparel and Textile for Microsoft Dynamics AX provides industry-specifi c capabilities for an integrated, end-to-
end business management solution. The following diagram shows each industry-specifi c capability in Apparel and
Textile for Microsoft Dynamics AX and how that capability integrates with core Microsoft Dynamics AX functionality,
including fi nancial management, CRM, human resource management, and business analytics.
Industry-specifi c processes for textile and apparel include BOM and routing management; quality grading and
management; tracking for lots, batches, dye baths, serial numbers, and put-up; and other key production and
inventory functionality. The solution also delivers tailored supply chain management functionality, including the
ability to run shipment allocation simulations.
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
lueFox_AX_WP.indd 9lueFoox_AXAX_WP.indd 9d 9 10/4/07 10/4/4/074/0/07
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
10
As Figure 5 shows, an industry-specifi c data layer interfaces between the apparel and textile functionality and core
functionality from Microsoft Dynamics AX so that critical product and production information can be consolidated
and accessed along with fi nancial information. At all levels, integration of processes and information helps streamline
operations; minimize manual tasks; access accurate, real-time information across the business; and gain insight into
company performance and profi tability.
Quick implementation and return on investment
Because Apparel and Textile for Microsoft Dynamics AX includes industry-specifi c functionality right out of the box,
the solution can be implemented quickly and companies can begin to achieve benefi ts right away. A network of
Microsoft Certifi ed Partners can help you tailor the system to your company without extensive customizations to fi t
industry requirements.
Implementation tools help speed the process and include questionnaires and templates for confi guring the solution
to your processes and data. Smooth integration with the full range of Microsoft products helps maximize your
overall IT investment, and the familiar, easy-to-use interface helps ensure quick start-up with minimal training.
Apparel and Textile for Microsoft Dynamics AX
Figure 5. Apparel and Textile for Microsoft Dynamics AX provides industry-specifi c functionality that integrates complex item
and product data to help streamline global supply chain, inventory, and production management processes.
lueFox_AX_WP.indd 10lueFoox_AXAX_WP.indd 1P.indd 10 10/4/07 10/4/4/074/0/07
11
System architecture
Apparel and Textile for Microsoft Dynamics AX is built on a three-tier, object-oriented architecture that capitalizes
on the Microsoft technologies and uses the fl exible and powerful Microsoft .NET programming language. This
combination makes it easy to add functionality or customize one tier without affecting the others, so cost and risk to
upgrade or extend your solution remain low; the architecture helps ensure a long-term solution that will grow with
your business.
Either Microsoft SQL Server or Oracle databases can provide maximum database performance and easy
maintenance. Records and information for multiple sites, warehouses, deposits, show rooms, or companies exist
within one centralized database on a common server, saving on hardware expenditures and operational costs while
providing for easy consolidation of information across sites.
The solution takes full advantage of XML standards to share data through Web services. Built-in tools provide
everything you need to extend business processes on the Internet, giving trade partners access to key information
and tasks through familiar Web browsers. When the solution is combined with Microsoft BizTalk Server or Commerce
Gateway, your company can also conduct high-speed and high-volume e-commerce and document exchange
directly with trade partners using EDI.
A quality product with dependable support
As part of the Microsoft product family, Apparel and Textile for Microsoft Dynamics AX has been reviewed according
to the same high standard of quality as other Microsoft products. Technical reviews are performed prior to launch
and throughout the product life cycle to help ensure the overall quality, performance management, and stability
of the product. Apparel and Textile for Microsoft Dynamics AX is also supported by Microsoft Dynamics Support
Services globally, so your business receives support for its entire business management solution from one place,
rather than having to contact different organizations for your support needs.
Conclusion
Apparel and Textile for Microsoft Dynamics AX delivers the industry-specifi c functionality companies need to
overcome the challenges of complexity, globalization, and change. This fl exible, integrated solution can help
companies in fi ber-based and fashion-based industries create a competitive advantage by:
• Integrating information and processes to streamline operations and boost effi ciency.
• Managing and tracking complex item and process variables.
• Improving production, sourcing, order fulfi llment, and organizational agility.
• Increasing supply chain visibility and collaboration effectiveness.
• Implementing an integrated, long-term business management solution that delivers a positive return on
investment and a low total cost of ownership.
To fi nd out more about Apparel and Textile for Microsoft Dynamics AX and how it can help companies
successfully meet the challenges of their growing global business, visit
www.microsoft.com/dynamics/ax/product/industrysolutions.mspx.
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
lueFoox_AXX WP.indAX_WP.indd 11d 11 10/4/07 10/4/4/074/0/07
The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of
publication. Because Microsoft must respond to changing market conditions, this document should not be interpreted to be a commitment on the
part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication.
This White Paper is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE
INFORMATION IN THIS DOCUMENT.
Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document
may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical,
photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation.
Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this
document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any
license to these patents, trademarks, copyrights, or other intellectual property.
Published 10/2007
MASTER COMPLEXITY WITH APPAREL AND TEXTILE FOR MICROSOFT DYNAMICS AX
12
lueFoox_AXAX_WP.indd 12 10/4/07 10/4/4/074/0/07