Microsoft Dynamics Customer Solution Case Study

Defense Contractor Helps Save Lives and Sees 100 Percent ROI with ERP Solution

Overview “ Dynamics SL handled the government Country or Region: United States Industry: Aerospace And Defense contracting requirements just as well as the Deltek Manufacturing—Defense system, but it did a much better job of meeting our

Customer Profile light manufacturing needs.” Based in College Station, Texas, BMI Traci Gholson, Vice President of Finance, BMI Defense Systems Defense Systems works with program offices and field-level units in the U.S. BMI Defense Systems designs and manufactures protective military to design and manufacture lifesaving force protection equipment. equipment with patented energy-absorbing designs for the U.S. military. In 2008, the company won a multimillion-dollar contract Business Situation When BMI Defense won a multimillion- to ship a gunner platform and restraint system in direct support dollar contract with the U.S. Marine of the military operations in Iraq and Afghanistan under the Corps, it needed an enterprise resource planning system that would meet both Mine Resistant Ambush Protected vehicle program. Faced with its government contracting and light a need to exponentially scale up its operations, BMI Defense manufacturing needs. worked with Microsoft Partner, SIS. LLC to implement Microsoft Solution Dynamics SL for accounting, supply chain, and manufacturing. With help from Microsoft® Gold Certified Partner SIS, BMI Defense implemented The solution helped BMI Defense better demonstrate to the ® SL in just four government its direct and indirect costs for the new contract, weeks, strengthening compliance with Defense Contract Audit Agency rules. thereby saving the company more than the amount it cost to implement the system. In addition, BMI Defense now tracks Benefits inventory with greater accuracy and is better able to meet  100 percent return on investment in weeks shipment schedules.  Smooth bid and audit processes  80 percent improvement in inventory accuracy  Stronger scheduling and planning capability

“We can plan product Situation BMI Defense Systems began fiscal year Up to this point, BMI Defense prepared shipments with much 2009 with less than 10 employees and indirect cost proposals for government QuickBooks from contracts by exporting data from greater accuracy, which Intuit. The company holds important QuickBooks and then doing calculations in not only saves us money patents for energy-absorbing protective Office Excel. Because BMI Defense did not equipment that can save soldiers’ lives if an have a system in place to confidently but also helps save lives improvised explosive device hits their propose more aggressive cost structures to vehicle. The urgent need for this equipment the government, the company’s cost by getting our protective in Iraq and Afghanistan meant that BMI allocations calculations were necessarily equipment to the Defense had to scale up its operations conservative and based on estimates. To quickly when it won a multimillion-dollar recoup all its allowable costs associated soldiers on the frontlines contract from the U.S. Department of with a government contract, the company Defense. The company ships its products needed a way to quickly and accurately faster.” directly to Iraq and Afghanistan, as well as categorize costs according to labor rate, Traci Gholson, Vice President of Finance, to supply depots in the United States, supplier, and other criteria. BMI Defense BMI Defense Systems where the equipment is installed in vehicles also needed to tighten up its that are currently in service as part of the manufacturing operations, not only to U.S. military’s Mine Resistant Ambush ensure shipments went out on time, but Protected (MRAP) vehicle program. also to accurately track inventory as manufacturing accelerated. “The U.S. military has made the MRAP program a priority and allocated roughly $1 Solution billion to upgrading the protection on its To solve these problems quickly, BMI fighting vehicles,” says Traci Gholson, Vice Defense performed an expedited survey of President of Finance at BMI Defense. “As enterprise resource planning (ERP) systems part of that program, the Department of suitable for government contractors, Defense awarded us a large contract to including those from Deltek and Microsoft. manufacture specially designed gunner The company chose Microsoft Dynamics® harness and restraint systems. Suddenly, SL because of its affordability, excellent our company grew exponentially.” government contract accounting capabilities, ease of installation, and After BMI Defense won the MRAP contract, extensibility. Says Gholson, “Microsoft the company not only had to hire many Dynamics SL handled the government more employees but also needed to contracting requirements just as well as the upgrade its business systems to handle the Deltek system, but it did a much better job increased warehouse, manufacturing, and of meeting our light manufacturing needs.” financial accounting activity. “We went from a handful of employees to about 80 Implementation in Just Four Weeks people,” says Gholson. “We ran our With help from Microsoft Gold Certified company by using QuickBooks and Partner SIS, BMI Defense set up the Microsoft® Office Excel® spreadsheets, but solution in just four weeks, including the it was obvious those tools and processes financial, manufacturing, and warehouse would not scale. We needed a system that capabilities, and integrated it with an would tighten up our processes, help us existing timekeeping system. “We are very eliminate opportunities for error, and make happy with the help SIS provided us,” says tasks more efficient.” Gholson. “The company understood the

components from suppliers when inventory reaches a predetermined level.

“Now, we have real-time inventory and greater visibility into our supply chain,” says Gholson. “We can plan product shipments with much greater accuracy, which not only saves us money but also helps save lives by getting our protective equipment to the soldiers on the frontlines faster.”

Future Plans Going forward, BMI Defense plans to continue adding to its implementation of Microsoft Dynamics SL. The company has plans to add Business Portal so that managers can easily access up-to-date operational and financial information online. BMI Defense also intends to install a

barcode system in its warehouse that would work with the solution to further pressure we were under and moved quickly improve the inventory and scheduling BMI Defense supplies gunner to finish the implementation.” accuracy. platform and restraint equipment to help protect soldiers from Government Contract Compliance improvised explosive devices. BMI Defense used accounts and Benefits In less than a year, BMI Defense grew from subaccounts in the chart of accounts to less than 10 employees to approximately categorize overhead costs. This lets the 80 employees with a comparable increase company quickly determine its total in revenues. With Microsoft Dynamics SL, allowable and unallowable costs according the company better manages this to Defense Contract Audit Agency (DCAA) exponential growth by better organizing rules. “After we had our cost structures set the company’s financial accounting up in Microsoft Dynamics SL, we could according to government contract rules detail exactly what the indirect costs were and providing visibility into supply chain, for any particular contract by running a inventory, and manufacturing operations. report on a subaccount,” says Gholson. BMI Defense continues to grow with

Microsoft Dynamics SL and recently used ERP for Light Manufacturing the system to win a contract to provide BMI Defense also strengthened its supply ballistic blankets to the U.S. Marine Corps chain, warehouse, and manufacturing for direct deployment in light armored operations with its new solution. The vehicles in the field. company used the kitting capabilities in

Microsoft Dynamics SL to create multitiered “Our company now operates like a much bills of materials for its products, some of larger firm,” says Gholson. “The which are complex and include dozens of components of the solution are integrated components. Now, using its new solution, so that we have much less margin for error BMI Defense can reorder these and much greater efficiency.”

When the government contract officer assigned to BMI Defense came to audit the company, Gholson could quickly provide the contract officer with the necessary audit information. Says Gholson, “Our contract officer was impressed with the sophistication of our processes given that we are a relatively small company. We attribute this efficiency to Microsoft Dynamics SL and the rigor that we’ve been able to institute with that solution.”

80 Percent Improvement in Inventory Accuracy Because orders, manufacturing, and inventory are all linked together, BMI Defense now has much greater visibility into the company’s inventory. “We’ve been able to improve the accuracy of our

inventory by approximately 80 percent,” BMI Defense used kitting 100 Percent Return on Investment in says Gholson. “Now, we can manage capabilities in Microsoft Weeks inventory levels to reduce costs and ensure Dynamics SL to handle Because BMI Defense was able to more that we don’t run into out-of-stock multitiered bills of material. precisely define its allowable costs for the situations that can delay shipments.” MRAP contract by using Microsoft

Dynamics SL, the company’s assigned BMI Defense typically stocks several million government contract officer agreed to dollars’ worth of inventory at a given time, adjust the amount paid to BMI Defense. and the company can free up significant These recovered costs more than paid for amounts of cash by increasing the accuracy the licensing and implementation of the and timeliness of information from the solution. Says Gholson, “After we set up warehouse. BMI Defense plans to push its Microsoft Dynamics SL, we were able to “Our company now inventory accuracy even further with a demonstrate to the government what our barcode system that will connect with operates like a much true allowable costs were for the contract. Microsoft Dynamics SL. Because of that effort, our recovered costs larger firm. The paid for the solution within weeks.” Stronger Scheduling and Planning components of the Capability Smooth Bid and Audit Processes With the manufacturing capabilities in the solution are integrated Now, doing business with the government solution, BMI Defense was able to quickly is much easier for BMI Defense than when so that we have much ramp up its operational capacity and the company relied on QuickBooks and minimize delays. Says Gholson, “We take Office Excel spreadsheets. “Before, it would less margin for error and our role in providing force protection take me up to two days to prepare an equipment to the soldiers very seriously. much greater efficiency.” Indirect Cost Proposal, which the DCAA Microsoft Dynamics SL helps us coordinate requires,” says Gholson. “Now, I can report Traci Gholson, Vice President of Finance, our manufacturing operations so that we BMI Defense Systems the same information in greater detail in can adhere to tight schedules much more less than one hour.” rigidly.”

For More Information Microsoft Dynamics For more information about Microsoft Microsoft Dynamics is a line of integrated, products and services, call the Microsoft adaptable business management solutions Sales Information Center at (800) 426- that enables you and your people to make 9400. In Canada, call the Microsoft business decisions with greater confidence. Canada Information Centre at (877) 568- Microsoft Dynamics works like familiar 2495. Customers in the United States and Microsoft software such as , Canada who are deaf or hard-of-hearing which means less of a learning curve for can reach Microsoft text telephone your people, so they can get up and (TTY/TDD) services at (800) 892-5234. running quickly and focus on what’s most Outside the 50 United States and important. And because it is from Canada, please contact your local Microsoft, it easily works with the Microsoft subsidiary. To access systems that your company already has information using the World Wide Web, implemented. By automating and go to: www.microsoft.com streamlining financial, customer relationship, and supply chain processes, For more information about BMI Defense Microsoft Dynamics brings together Systems products and services, visit people, processes, and technologies, forceprotectionsolutions.com increasing the productivity and effectiveness of your business, and helping For more information about SIS products you drive business success. and services, call (678) 336-8775 or visit the Web site at: www.sisn.com For more information about Microsoft Dynamics, go to: www.microsoft.com/dynamics

Software and Services Partners  Microsoft Dynamics  SIS − Microsoft Dynamics SL

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Document published October 2009