Case 3

Commodity Pricing

This is a privately held Chicago food company with a 97-year history. Annual revenue is around $1B with worldwide locations in US, Canada, Mexico, Brazil, Colombia, Costa Rica, Belgium, UK, Spain, China, Thailand, Japan and India. This company wants to ensure their customers get the best products and ingredients no matter where they are or when they need it. The solution is a system automation of instant end-to-end integration and scalability and quick employee ramp-up. The benefits are immediate:

  • Direct data from shop floor tablet

  • Manual and paper processes eliminated

  • Instant BI​

Besides the immediate benefits, Microsoft Dynamics AX directly contributes to the company's success through it's CSF - The capability of accurately and timely tracking commodity market price fluctuations and constantly reviewing the purchase prices of the raw materials.

 

This was made possible by Microsoft Dynamics AX through the use of a flexible daily/weekly/monthly weighted average BI solution capable of capturing the fluctuating real costs and still allowing the industry practice of using the standard cost method.

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