Customer Solution Case Study
/ / Tire Specialist Gains Competitive Edge with Centralised Business Management Solution
Overview
Country or Region:The Netherlands
Industry:Automotive
Customer Profile
Profile Tyrecenter is a leading provider of vehicle tires, related parts, and services to large fleet hire and trucking companies in Belgium, Luxembourg, and the Netherlands.
Business Situation
The company, which operates on a franchising model, wanted to deploy a centralised business management solution for enhanced connectivity with suppliers and customers, and improved customer service.
Solution
A new business management solution based on Microsoft® Business Solutions–Axapta® offers direct connectivity with suppliers and customers and helps to streamline sales, logistics, finance, supply chain management (SCM), and marketing processes.
Benefits
Streamlined supplier relationships
Efficient service for customers
Online information for customers
Cost-effective solution
Support for new regions and languages / "We now have business management infrastructure based on open Internet standards. This supports connectivity with customers and suppliers, and enhances communications across the board."
Luc van Bussel, Managing Director, Profile Tyrecenter
Profile Tyrecenter is a leading tire retail specialist in Belgium, the Netherlands, and Luxembourg (Benelux). The franchise organization, with 160 outlets in the Benelux region, delivers car services to lease companies, haulers, and consumers. Profile Tyrecenter was operating a highly-complex IT structure with 16 distinct IT systems, making it difficult to provide customers with accurate information on products and services. In addition, the company placed orders with suppliers using telephone or fax. To streamline the ordering process and improve customer service, Profile Tyrecenter decided to deploy a new business management solution based on Microsoft® Business Solutions–Axapta® (now part of Microsoft Dynamics™). This offers connectivity with supplier and customer systems and helps customers view their actual outgoings on tires and other items provided by Profile Tyrecenter, helping them plan and budget more effectively.
Situation
Profile Tyrecenter is a leading provider of vehicle tires, related parts, and services to large fleet hire and trucking companies in Belgium, Luxembourg, and the Netherlands. With 160 outlets, the company is the largest tire specialist in the region.
The organisation, which is built on a franchising model, has a highlycomplex structure. Historically, it has relied on a number of separate IT systems to support its business activities.
Luc van Bussel, Managing Director, Profile Tyrecenter, says: "We grant franchises to entrepreneurs and tire specialists who are already highly successful in the business. While our operations have not traditionally been centralised, we needed a single, fullyintegrated business management solution to help us work together and gain advantage over our competitors."
In 2000, Profile Tyrecenter embarked on a strategic five-year plan to deploy a new, centralised computing architecture and business management solution. The goals of this project were to streamline sales, logistics, finance, supply chain management (SCM), and marketing processes across all franchises.
Wayne Laagewaard, Chief Information Officer (CIO), Profile Tyrecenter, says: "When I joined Profile Tyrecenter in 2000, the organisation incorporated 54 different companies. In addition, there were 16 different IT systems spread across our sites. Due to the large number of sites, it was quite difficult to get a unified system into place.
"The main challenge was to deploy one uniform system that could handle all business needs across all locations. We also wanted to deploy a system that could change with our business needs and support planned expansion—initially into Poland and Romania."
Solution
After careful evaluation of all available technology solutions, Profile Tyrecenter decided to deploy a new system based on Microsoft® Business Solutions–Axapta®. As an early adopter of the system, the company has become a technology pioneer in the automotive market.
The business management solution, which was piloted for nine months before deployment, is centralised and fully integrated with systems at company headquarters and franchises. As a result, it provides online information to customers, such as costs incurred and tires used. It also calculates actual costs against planned budgets. Customers that operate large fleets can now see the cost of tires and related services provided by Profile Tyrecenter. This visibility helps customers improve control over their operations.
Microsoft Axapta is also fully integrated with supplier systems, providing a single interface for all SCM activities. If a customer orders a product that is not in stock, for example, customer service staff can check availability, pricing, and delivery dates without leaving the system.
Laagewaard says: "The new solution offers integration with suppliers and external applications, such as vehicle licensing systems, through XML. As a result, we can place orders with, say, Goodyear's centralised SAP systems in real time and create the required purchase order in Microsoft Axapta. Order-related information only has to be keyed into the system once, increasing efficiency and providing better service for customers."
Approximately 48 franchise sites are currently running Microsoft Axapta, with a total of 179 concurrent users. As the company plans to extend the system to all franchise sites in the near future, the number of users can easily be increased under the established licensing agreement to accommodate this growth. The system, which currently operates in Belgium, the Netherlands, and Luxembourg, will also serve new sites in Poland and Romania.
While the system currently offers the option to work in Dutch or French, new languages will be incorporated to support work in other regions.
Benefits
Connectivity with Suppliers for Enhanced Operational Efficiency
Historically, Profile Tyrecenter registered orders with key suppliers using telephone, fax, or paper orders. Requests for product information and pricing were also conducted manually.
The new system provides tools to access supplier systems quickly and effectively from the Microsoft Axapta system. As a result, Profile Tyrecenter has increased the effectiveness of the ordering processes.
Laagewaard says: "Microsoft Axapta connects us with our suppliers using XML. This means we have access to stock information in real time. In addition, our individual franchises can order directly from inside the system. They can then view delivery dates, pricing information, and invoices immediately online, increasing visibility and increasing the efficiency of our operations."
Van Bussel says: "We now have business management infrastructure based on open Internet standards. This supports connectivity with customers and suppliers, and enhances communications across the board. Suppliers benefit greatly from direct connectivity with our franchises. Not least, the system reduces the work they have to do to market and sell their products. This advantage means many suppliers are ready and willing to deploy the new system."
Competitive Differentiation Through Enhanced Customer Service
Microsoft Axapta gives Profile Tyrecenter customers direct access to a wealth of product and service-related information. In addition, customers can use tools provided with the new system to track actual costs and compare them with budgets.
Laagewaard says: "The use of Microsoft Axapta gives us new competitive advantage over our competitors. Because it's a uniform solution used by all our dealers, it provides us with one central knowledge base. We can now provide customers with up-to-the-minute information on cars, tires, and other services online. We can also help them manage their costs better, improving control over the budgeting process."
Support for International and Multilingual Operations
Microsoft Axapta provides support for multi-site, multi-currency, and multi-language operations. In addition, it offers tools to calculate all local requirements, such as government taxation systems.
Laagewaard says: "One of the strategic reasons for choosing Microsoft Axapta is that it's multilingual. We already operate across the Benelux region and we are planning to expand into Romania and Poland. The technology gives us the multilingual tools we need to demonstrate our capabilities to potential customers in new regions.
"In the automotive industry there is often a specific need for information or functionality, which is not available from a software solution product off the shelf. Microsoft Axapta allows us to quite easily and quickly adapt and add fields or even make changes at a database structure level. We can then immediately start using the solution with these changes."
"What tipped the scale for us, and convinced us to choose Microsoft Axapta as our leading business management solution was its state-of-the-art technology and its adaptability for the future."
Increased Scalability for Future Growth
As the company continues to grow and expand its operations, the scalability of the solution was crucial to its success. The ability to scale Microsoft Axapta as the company expanded made the business management solution ideal for Profile Tyrecenter.
Laagewaard says: "We chose Microsoft Axapta specifically for its scalability. The solution allows us to add on different servers, which allows us to continue the growth that we've had and continue to add users as we go along."
A Cost-Effective Solution in Comparison with Competitor Offerings
The new system is hosted centrally, making it a highly-affordable option for franchise managers. It is also more cost effective than competitive technologies from many established software providers in the business management solution market. Wayne Laagewaard adds that Profile Tyrecenter chose Microsoft Axapta over alternative software from other vendors due to the cost effectiveness of the solution.
Laagewaard says: "It would have been very easy to choose a technology that was already well established in the market, but our budget would have been twice or even three times larger than what we're spending today."
"I know SAP from my earlier professional career. When I saw Microsoft Axapta, I saw the possibilities to grow with this solution in the future. It would have been very easy to go with SAP, an established partner, and it would have helped me with custom improvements. But we would have come up with a budget that would have been maybe twice or three times what it is today using Microsoft Axapta."
Van Bussel says: "Reaction to the new system has been very positive. After all, I still have my job after choosing to deploy Microsoft Axapta. If I had selected another software company, I would not be sitting here. That in itself proves we made the right decision."
Microsoft Dynamics
Microsoft Dynamics™ is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systemsthat your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to: