One of South Africa’s largest timber companies has partnered with DAC Systems, a leader in enterprise resource planning (ERP) implementation, to modernise its aging DOS-based system and implement a cloud-based Microsoft Dynamics 365 Finance solution.

DAC Systems was selected as the service implementation partner for the implementation, support, and training of Dynamics 365 Finance for the timber organisation.

The challenge

Prior to DAC’s involvement, the customer relied on an outdated DOS-based green screen system, which was hindering productivity. The project was not without its hurdles. The company’s employees were initially resistant to change. However, through robust change management strategies and training provided under the contract, the team was able to successfully transition to the new system.

The solution

DAC had to relook the entire ERP environment of the customer. Their existing environment was on-premises, but with DAC they migrated fully to the cloud.

The implementation includes their financials (including consolidated reporting) across their 25 legal entities.

The following modules were implemented:

  • Fixed assets
  • Human Resource Management
  • Consumable stock in stores management
  • Timber stock management between production points and into the finished goods stores (using both Standard Cost Management and Moving Average Cost Management at the different Mills).
  • Production Control of each machine/mill, receipt and dispatch using barcodes, a unit ledger for volume versus currency reporting, and plantation yield control (using the Projects Module) to manage the plantation profitability down to a segment level.

The benefits

Despite the initial resistance and delays due to the pandemic, the outcome of the implementation was positive. Using the old system, the finance manager could only generate a report within three days. However, with the DAC solution, this can now be done with a single click, demonstrating a drastic improvement in efficiency.

The successful ERP implementation has enhanced the timber company’s manufacturing processes, giving them complete control and visibility of their stock from the sawmill to the kiln. The new system also allows for selling at any point in the manufacturing process as customer demands require.

“DAC Systems have provided expert and professional service together with skilled resources and top-quality project management,” says a spokesperson for the company.

The future

DAC is looking forward to a strong ongoing relationship with the timber company, with potential future projects in the pipeline. To this end, the companies are already in discussions with the next phase likely to look at improving the workflow of the business.