Swiss Abrasives Company Automates Its Business Processes with an ERP Solution That Enables

Microsoft Dynamics Customer Solution Case Study

Swiss Abrasives Company Automates Its Business Processes with an ERP Solution That Enables It to Work in Multiple Languages and Currencies

Overview “We considered other ERP systems, but we're convinced that Microsoft Country or Region: International, Switzerland Axapta is ahead of the competition. We chose it because of its superb Industry: Factory Automation Industry Customer Profile state-of-the-art technology, the close link with other Microsoft products, The Swiss based group sia Abrasives Holding AG and the really great look and feel of the product that makes it so easy to is the third largest manufacturer in its field worldwide. The sia Group has companies in 12 use." countries and is present with agencies in more Andi Wethli, CIO, IT, Infrastructure & Logistics, sia Abrasives Group than 100 additional countries. The factories are Specializing in the development, manufacturing, and distribution of located in the U.K. and Switzerland. The headquarters is in Frauenfeld, Switzerland. complete abrasive systems for professional and surface processing Business Situation and refinement, sia Abrasives is the third largest manufacturer in The sia Group was using many local ERP systems, which was inefficient because it meant its field worldwide. that orders had to be entered twice. The sia Group wanted to standardize and consolidate all these small systems with an integrated ERP With sia Group companies around the world all using different ERP system that supported its international presence. systems, sia Abrasives wanted to standardize its systems and Solution The sia Group implemented Microsoft® Business business processes. It wanted to automate tasks and have a Solutions–Axapta® in eight quite diverse group solution that supported its international presence. After companies – from an Austrian sales company with five users to a U.K. manufacturing company implementing Microsoft Business Solutions–Axapta (now part of with 65 users. The sia Group streamlined its order Microsoft Dynamics™), sia Abrasives has streamlined the taking processes and can now easily react to changes in any country as well as saving costs on processing of orders while at the same time optimizing its supply development and training. chain. Employees and customers alike are also taking advantage Benefits  Streamlined processes and standardized of the country-specific functionality that Microsoft Axapta offers. company-wide procedures  International functionality  Savings in development and training With Microsoft Axapta, sia Abrasives expects to continue to enjoy  A technology infrastructure that grows with the profitable growth and be responsive to changing market business requirements. Situation although ultimately effective, was time- The internationally active sia Group consuming and inefficient." specializes in the development, The group needed a solution that manufacturing, and distribution of complete supported its global focus and international abrasive systems for professional surface presence. With companies in 12 different "We liked that it was an processing and refinement. With countries and with export to over 100 ‘out-of-the-box' solution headquarters in Frauenfeld, Switzerland, countries, the solution that the group chose sia Abrasives develops just the right had to have country-specific functionality. that had technology abrasive systems so customers can obtain The sia Group wanted a solution that that was scalable and the surface properties that they require for enabled it to work in multiple languages a wide range of materials, such as metal, and currencies and easily be able to adapt that could easily adapt plastic, or wood. to local accounting and legal requirements. to our business needs. The new ERP solution had to consolidate Over 1,100 employees worldwide handle all the sia Group's various local systems It has strong country- all of the various aspects of the abrasive and ultimately optimize its supply chain. specific functionality manufacturing process: research and development, production, quality Solution and we concluded that assurance, marketing, and sales. Out of the 14 group companies, sia it was the solution that Abrasives implemented Microsoft® The importance of global markets for sia Business Solutions–Axapta® in eight could best help us to Abrasives is reflected in the fact that more companies over a period of two years. It manage our supply than 90% of its production is exported to managed to do this with no or only limited over 100 countries. disruption to its daily processes. These chain more efficiently." implementations varied in size from a sales In the nine different group companies company in Austria with five users to a around the world, sia Abrasives was using production company in the U.K. with 65 Andi Wethli, CIO, IT, Infrastructure & nine different ERP systems. It urgently users. needed to standardize and consolidate its ERP system. As Andi Wethli, CIO, IT, "We considered other ERP systems," Infrastructure & Logistics explains, "We explains Wethli, "but we're convinced that needed to consolidate all Microsoft Axapta is ahead of the these different systems competition. We chose it because of its that made it difficult to superb state-of-the-art technology, the support and deliver quality close link with other Microsoft products, service across the sia and the really great look and feel of the Group companies. For product that makes it so easy to use." example, we had to enter sales orders twice: once "We liked that it was an ‘out-of-the-box' when they were received solution that had technology that was The sia Abrasives production building in Switzerland. outside the main office and scalable and that could easily adapt to our then again at the business needs," continues Wethli. "It has production headquarters. The process, strong country-specific functionality and we concluded that it was the solution that could best help us to manage our supply Wethli. "This has improved our chain more efficiently." effectiveness. Orders and other transmissions, such as confirmations and "Now, 8 out of 14 sia Group companies invoices, are processed online and with have a standardized solution and this greater accuracy. Wherever an order is means we have optimized our supply taken, in any of our Group companies chain," says Wethli. across the world, it is now treated in the same way. The whole process has been "We are very satisfied The sia Group improved, from when with the way that implemented the the order has been Commerce entered into the Microsoft Axapta has Gateway module system until product helped us to of Microsoft delivery and invoicing." Axapta together standardize our with Microsoft "We are very satisfied processes and improve BizTalk® Server with the way that and as a result Microsoft Axapta has the quality of our data. has been able to helped us to We can now get much automate its standardize our intercompany business in one streamlined processes and improve the quality of our better information from system. Overall, sia Abrasives has data. We can now get much better the system, with less improved the quality of the data that it can information from the system, with less extract from the system. The consolidation errors," reports Wethli. errors," of the various local systems means that the company can take advantage of more Multi-Language, Multi-Currency Andi Wethli, CIO, IT, Infrastructure & accurate data and more efficient With the multi-language and multi-currency Logistics, sia Abrasives Group standardized and streamlined processes. functions of Microsoft Axapta, sia Abrasives can react to changes and adapt Benefits to the specific requirements of any market Streamlined Processes, Automated or country. Microsoft Axapta helps sia

Since 1998, sia Abrasives has been sponsoring Switzerland's national bobsled team. It also supplies the team with abrasives to ensure the optimum treatment of the runners and bodywork of the team's sleds.

Orders As a result of implementing Microsoft Abrasives to comply with the local Axapta, sia Abrasives can now exchange accounting and legal requirements of the sales and purchasing information many different countries that it does electronically (in combination with the business with. Commerce Gateway module). "Orders are now automatically processed between our "In the U.K., our production site exports to group companies and our production sites more than 75 countries. There is a fantastic at Frauenfeld and Greetland," explains advantage to using Microsoft Axapta because the multi-language and multi- requires it," explains Wethli. "The solution currency features really improve the way is easy to adjust and it is great that it will we do business," says Wethli. grow according to our business needs."

"In all the Group companies where we have "We have already implemented Microsoft implemented Microsoft Axapta, we are Axapta in 8 of our 14 Group companies benefiting from the international support it and the plan is to implement the solution in provides," continues Wethli. "In Spain, for most of our larger companies over the next example, we export to Portugal, where our few years," says Wethli. customers work in another language. We are able to print reports and create "Overall, we've been really satisfied with documents in the appropriate language and the whole implementation. We are this is a big advantage." impressed that we can centrally support our Group companies around the world and In addition, sia Abrasives' employees are we can react to business and market able to work in the system in the language changes more quickly than before – in just of their choice. For example, Belgian a click, the solution will adapt to our employees can choose to work in their needs," concludes Wethli. native tongue (either Flemish or French) at the click of a button.

Savings in Development and Training The sia Group has cut costs in development and training. "We can now centrally produce training manuals to use in all countries," says Wethli. "We have also found Microsoft Axapta straightforward to develop and customize. We anticipate cheaper internal development costs in the future because we can easily develop a new report or function and target it to all our employees, so that everyone can take advantage of it."

Technology That Will Grow The company is already benefiting from Microsoft Axapta and believes that it will continue to benefit from the solution in the future. "We are extremely pleased with the way the solution can grow with the company – that it is a technology that we Microsoft Dynamics can adapt and build on as the business For More Information Microsoft Dynamics is a line of integrated, For more information about Microsoft adaptable business management solutions products and services, call the Microsoft that enables you and your people to make Sales Information Center at (800) 426- business decisions with greater confidence. 9400. In Canada, call the Microsoft Microsoft Dynamics works like familiar Canada Information Centre at (877) 568- Microsoft software such as Microsoft 2495. Customers who are deaf or hard- Office, which means less of a learning of-hearing can reach Microsoft text curve for your people, so they can get up telephone (TTY/TDD) services at (800) and running quickly and focus on what’s 892-5234 in the United States or (905) most important. And because it is from 568-9641 in Canada. Outside the 50 Microsoft, it easily works with the systems United States and Canada, please your company already has implemented. contact your local Microsoft subsidiary. By automating and streamlining financial, To access information using the World customer relationship Wide Web, go to: www.microsoft.com and supply chain processes, Microsoft Dynamics brings together people, For more information about KCS processes and technologies, increasing the Information systems AG products and productivity and effectiveness of your services, visit the Web site at: business, and helping you drive business www.kcs.net success.

For more information about sia Abrasives For more information about Microsoft Holding AG products and services, visit Dynamics, go to: the Web site at: www.microsoft.com/dynamics www.sia-abrasives.com

Software and Services − Microsoft Windows 2000 Professional  Products  Microsoft Dynamics Microsoft Office 2000 Professional Microsoft Business Solutions–Axapta © 2005 Microsoft Corporation. All rights reserved. This case − − study is for informational purposes only. MICROSOFT Microsoft Commerce Server 2002 MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN − THIS SUMMARY. Microsoft, Axapta, Microsoft Dynamics, Microsoft SQL Server 2000 Navision, BizTalk, and Windows Server System are either − registered trademarks or trademarks of Microsoft Corporation or Microsoft Business Solutions ApS in the United States and/or other countries. Microsoft Business Solutions ApS is a subsidiary of Microsoft Corporation. All other trademarks are property of their respective owners.

Document published June 2005