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The Case for Using Microsoft Dynamics AX in Chemical Manufacturing

by Scott Hamilton
Consultant and Author, The Manufacturing Guild

Microsoft Dynamics AX 2009 offers an integrated ERP system for chemical manufacturers by providing solutions to their common and unique requirements.  Many of these solutions have been recently introduced with the addition of standard functionality for process manufacturing, so that Dynamics AX should be considered in the short list for those firms making an ERP selection decision.  In order to determine whether chemical manufacturers were actually considering Dynamics AX, I recently participated in an ongoing survey by Solugenix of 500 large and mid-size companies . Some of the survey results indicate differences between these two groups.

  • Large companies.  A high percentage currently employed the SAP Business Suite as their ERP system.  The respondents typically cited that the large investment for implementing SAP precluded any consideration of a change in their ERP system.  Many respondents indicated that the scope of the SAP implementation did not yet cover their decentralized subsidiaries or divisions.   
    A two-tiered ERP strategy utilizing Dynamics AX at the spokes may be the better approach in cases where these decentralized divisions are not being forced to use SAP.  A previous article summarized the two-tier strategy and arguments for using Dynamics AX in these decentralized divisions. For example, the two-tiered strategy supports financial consolidations and intercompany supply chain integration with the corporate SAP system.
  • Mid-size companies.  These firms employed a variety of ERP systems.  In many cases, the ERP software package was past the prime of its product life cycle, where new developments were non-existent, the technology platform was outdated and extensive customizations were common.  A significant subset of these firms were already considering or implementing Dynamics AX, since it helped solve their common and unique requirements.

In summary, the survey indicated that ...

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About Scott Hamilton

Scott Hamilton has consulted globally with several hundred manufacturing/distribution companies on SCM and ERP issues. His publications include multiple books about SCM using Dynamics 365FO/AX, two textbooks about SCM/ERP, and 100+ articles in MSDynamicsWorld.com. Scott has been a frequent speaker at Microsoft and user group conferences around the world, and a 10-time winner of the rarely given Microsoft MVP award.

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