Distributor or Manufacturer? Microsoft Dynamics NAV ERP is Fit for Both

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Many companies today sometimes are pigeonholed as either a manufacturer or a distributer, when in fact they are a combination of the two with both sides being important in the life of the business.  Companies that may consider themselves a manufacturer often have a smaller but important distribution portion of their business, and vice versa.  At Boyer & Associates, we have worked with distribution companies that not only started manufacturing products, but in a number of cases, the manufacturing became the primary focus of the company and what drove growth and profit. We have also worked with a number of manufacturing companies that distributed not only their products but sometimes the supplies those products require.

How do you select an ERP software package when you are so diverse that often software products that are rich in manufacturing features are lacking in distribution functionality, or distribution software is lacking manufacturing functionality?  This is a sweet spot for Microsoft Dynamics NAV, a feature-rich ERP/accounting solution for both manufacturing as well as distribution companies with a world-class financials package.

With Dynamics NAV, you get a manufacturing package that handles everything from the custom manufacturer to the standard product manufacturer.  Dynamics NAV’s MRP capabilities allow for the detailed planning of production and material requisitions. The planning tool even allows for the definition of constraints and supports constraint-based scheduling.  Combine these features with a manufacturing costing system that is without peer and you have a winning combination.  The superior serial and lot tracking capabilities of Dynamics NAV make it a great choice for the medical, food, defense, and aerospace industries.

For the distribution side of the business, Dynamics NAV handles multi-warehouse locations and full warehouse management.  The same planning tool that helps manufacturing plan production gives the purchasing people a tool to reduce inventory while increasing sales order fill rates.  The scalable warehouse management features not only allow you to define the level of process at each warehouse, but it can be changed and grow with your business.  The same serial lot functionality discussed in manufacturing carries over to the distribution side as well, and it can even be scaled to the level of tracking your want per item.

When you look at the combined functionality of the manufacturing and distribution areas within Dynamics NAV, you can see why it is the choice of many businesses that deal in both of these areas.

For additional background on Microsoft Dynamics NAV and how it can help your business, visit our video library to see the solution in action.

Jack Boyer, Boyer & Associates, Minneapolis, Microsoft Dynamics GP, NAV and SL Implementation & Support


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