Avanade to compete in multichannel distribution with Microsoft Dynamics AX and TVH's ADAX

Last month, Seattle-based business technology solutions provider Avanade announced that TVH Consulting's Advanced Distribution for Microsoft Dynamics AX (ADAX) would be integrated into Avanade's Dynamics AX offering. The move strengthens Avanade's offerings for wholesale distributors, retailers, and manufacturers, building on ADAX's strengths in advanced distribution for food and beverage, life sciences, consumer goods, and distance selling companies.

Managing Economies of Scale

Bernd Weidenmueller, Avanade's vice president, Dynamics AX, says the new offering will be particularly applicable in the distribution environment, where managing volume, controlling costs, improving service, and maximizing margins are all key. With economies of scale largely driven by volume - and a strong focus on logistics - distributors must maintain a high level of automation in order to stay competitive.

Being able to respond to customers' specific needs and handle some or all of their non-core activities is equally as important, says Weidenmueller, and typically results in higher profit margins for the distributor.

"The result is a complex pricing structure to make sure that prices, charges, discounts, and rebates can be set for specific channels and customers," he says. "TVH, as part of Avanade ERP for Wholesale Distribution, is supporting these needs with a strong capability in the areas of pricing and logistics."

Coming to the Forefront

In assessing Microsoft Dynamics AX's overall supply chain capabilities - and the progress that the vendor is making in this area - Weidenmueller says the solution has traditionally focused on the midmarket and that it is now "extending its scope and becoming a good fit for companies in high-end midmarket."  He points out that Microsoft has already announced new and stronger capabilities ...