Topic 2, Case Study B Deliveries
Overview
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Background
Best for You Organics Company is a mid-sized wholesale distributor of organic produce and other
food items to national retail grocery store chains. Over half the company’s revenue is from produce
with an average shelf life of less than a week. The remaining revenue comes from shelf-stable
canned and packaged items.
Best for You Organics experienced substantial growth in the last two years. They expanded from one
location to three locations, increased the number of employees from 25 to over 100, and more than
doubled their revenue. The company’s business forecast predicts a steady rate of growth of at least
20 percent annually for the next five years.
As a result of their expansion, Best for You Organics is experiencing delays and bottlenecks in their
processes. The company has decided to implement Dynamics 365 Business Central as a new
Enterprise Resource Planning (ERP) solution to increase efficiency and automation to support their
continued growth.
Current environment
Deliveries
The company receives daily truckloads of products from their vendors, warehouses the products
briefly, and then ships orders based on a weekly delivery cycle to each customer’s store.
Customers have regular standing orders that are revised and finished one week prior to delivery.
Best for You Organics has a fleet of trucks that make deliveries according to planned routes.
The company also has a floating route for trucks to deliver rush orders. The route is being used more
often by customers and has overwhelmed the warehouse with exception processing.
Duties
The company wants to provide greater separation of duties between activities in the office and
activities in the warehouse.
The accounting team enters orders for the sales team, sends pick tickers back to the warehouse, and
organizes shipping documents. The accounting team invoices the orders when they receive
instructions from the warehouse that an order shipped.
Employees have expressed frustration because they need to work longer hours to accommodate the
increase in sales.
The company does not use the Advanced Warehousing function.
Requirements
Salespeople
Salespeople must be able to manage opportunities that are converted to quotes.
Salespeople must be able to release orders to the warehouse to be fulfilled once a quote is final.
Salespeople must be trained on how to determine if inventory is available when they are completing
the quote to avoid promising inventory that is not on hand because all orders are processed one
week in advance of delivery.
Team responsibilities
Deliveries must be shipped daily by employees in the warehouse. The office must be responsible for
completing the invoicing process.
The current team responsibilities are shown in the following graphic:
https://kxbjsyuhceggsyvxdkof.supabase.co/storage/v1/object/public/file-images/MB-800/page_24_img_1.jpg
The required team responsibilities are shown in the following graphic:
https://kxbjsyuhceggsyvxdkof.supabase.co/storage/v1/object/public/file-images/MB-800/page_25_img_1.jpg
Vendor management
The company contracts with each vendor for regular discounts at the invoice level.
The company requires a pre-set discount percentage to calculate automatically when the purchaser
completes a purchase order.
The company must be able to see a copy of the completed purchase order in the system when they
have new contract negotiations with their vendors.
Customer and inventory management
Sales invoices must be automatically emailed by the system to customers.
A template must be used for emails sent to customers. The template must not be altered.
Customers who pre-pay their invoices must not receive a copy of their invoices.
The company warehouses all products as Case quantities. The company has difficulty recording
accurate costs for product returns. The company wants to expand their capabilities for managing
returns by setting up all inventory in a quantity of Each.
Reporting
The company must be able to answer two key questions when they report financial results:
Which customers are buying which items?
Which salespeople are selling in which regions?
When discussing customers, the company must refer to each Customer Group as follows:
Big Box
Franchise
Private
When discussing items, the company must refer to each Item Group as follows:
Fair Trade
Free Range
Grass Fed
Heirloom
Organic
Salesperson names that must be used are:
SalespersonA
SalespersonB
SalespersonC
SalespersonD
Region names that must be used are:
North
South
East
West
Commission
The company must be able to track salesperson performance within certain regions to calculate
commission.
Each salesperson must be assigned only to a single region.
This commission data is currently recorded inconsistently, resulting in incorrect combinations that
require manual correction. The company must have some level of automation to manage this.
Issues
Issue 1
The accounting team needs an improved process for reconciling inventory to the general ledger.
Posted transactions are changing financial reporting in periods that have been closed.
Unexpected changes in inventory cost for previous months are causing costing inaccuracies.
The system must restrict the adjustment of costs for closed months.
The new policy will be to restrict all users to posting in the current month only, with the exception of
a few employees from the accounting team.
The calendar fiscal year for company must begin on June 1.
Issue 2
The accounting team uses a complex manual accrual process to determine the accounting impact of
items received but not invoiced. The system must streamline the item accrual process.
Issue 3
The company often receives a higher quantity of produce items than what they order because
vendors allow for spoilage or damage of produce in transit. The company does not want to allow
over receipt on non-produce items.
Issue 4
The company has received comments from their auditors that invoices are not being properly
compared to received inventory documents before they are posted. The company does not use
warehouse management and always handles processes directly from the purchase order. The
company always has the following documents:
purchase order from the procurement department
receiving document from the warehouse
electronic invoice from the vendor
