Navigating a Global ERP Implementation
Jeff Young
Vice President and
Chief Information Officer
Agenda for Discussion
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System implementations are critical events for corporations
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Decision points to focus on
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Requirements
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Software selection
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Infrastructure selection
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Partner selection
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Overview of Haynes project and process
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Discussion of Haynes partner and partner qualities
We operate in the specialty high-performance alloy market
Nickel-and cobalt-based high-performance alloys
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Primarily flat product producer
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Specialty high-performance alloy flat product sector is 200
million lbs versus a total metals market in excess of a billion tons
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U.S. producer supplying products to a global customer base
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Producer of over 50 different alloys in a variety of product forms
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19 U.S. patents and approximately 200 foreign counterpart
patents
High-growth, technically demanding end markets
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Aerospace
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Land-based gas turbine
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Chemical processing
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Emerging markets: Solar Power, Ultra Supercritical Boilers,
Nuclear, Fuel Cells
Positive industry dynamics and customer requirements
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Direct to customer sales model
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Recurring MRO business
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Increasing customer demand for value-added processing
services
We have a unique business model
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Manufacturing support at mill level
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Distribution through service centers
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•
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Cultivate closer customer relationships to
help customers solve technical issues
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Increase value-added capabilities
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Moving up the customer supply chain
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Faster response times
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Facilitate MRO business
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Create barriers to entry
Our service centers allow customers to
outsource non-core activities
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Working capital management
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Material processing/cutting
Technical support
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Problem solving
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New application development
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New alloy development
Net Revenues by Route to Market (FY 2015)
Direct to Customer
Sales
23%
77%
Distribution &
Sales Agents
Net Revenues by Mill/Service Center (FY 2015)
Mill Direct Sales
37%
63%
Service Center
Sales
Our unique business model generates strong customer relationships and results in high
customer retention rates
Global presence facilitates superior customer service
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Our locations are well positioned to supply value-added services to both existing and
emerging areas of growth
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Only high-performance alloy manufacturer operating its own service centers with locations
in North America, Europe and Asia
Our Facility Locations
U.S. Production Facilities
Europe Service and Sales Centers
Kokomo, Indiana
Arcadia, Louisiana
Mountain Home, North Carolina
Openshaw, England
Cedex, France
Zurich, Switzerland
Milan, Italy
Openshaw,
England
Lebanon &
Kokomo, IN
La Mirada, CA
Windsor, CT
Mountain Home, NC
Arcadia, LA
Cedex,
France
Zurich, Switzerland
Milan, Italy
Shanghai, China
Tokyo,
Japan
Houston, TX
U.S. Service Centers
Lebanon, Indiana
Windsor, Connecticut
Houston, Texas
La Mirada, California
LaPorte, Indiana
Chennai, India
Singapore
Asia Service and Sales Centers
Shanghai, China
Singapore
Chennai, India
Tokyo, Japan
Planning for the Future
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Desire to move to single ERP system for company
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Customer base global, systems regional
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Need for efficient material movement between facilities
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Need for consolidated general ledger
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Five different systems to ship product
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Corporate support unfamiliar with remote installations
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Need for multi-lingual and multi-currency capability
Framing the Decision
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Do needs assessment
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Build a requirements matrix by functional area
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Investigate value of doing nothing
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Find software alternatives
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Find partners
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Hardware and network last
Software Selection
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Fit of software
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Architecture and ability to tailor without losing upgrades
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Mapping migration
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Training
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Query tools
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OGS options and cost
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Licensing as low as you can … vendor gets OGS
Partner Selection
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Track record
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Cost
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Experience
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Offerings to enhance
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Location of support staff
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Right to remove resources
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Resource locking
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Fixed cost
Partnerships versus Technology
When you select a software solution, remember the personnel
behind the solution that will interface with your key users are
far more critical than the solution itself.
Software projects of any magnitude require a solid, flexible, and
understanding team of analysts to launch the new solution.
Infrastructure … Servers and Network
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Capacity needed with growth
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Bandwidth needed
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Desktop needs
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Partner support
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Maintenance options
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Uptime documented by vendor solution
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Cloud vs in-house decision (Risk, Cost)
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Backup / replication then recovery
Partnerships versus Technology
No matter how well the hardware solution may appear to fit an
organization need, the most critical thing to consider is the
implementation partner and their support framework.
When help is needed at midnight on a Friday that is when you
find out who your true partners are.
Aside from contracts and agreements, the key is what partner
will go the extra mile to support in a time of need, and those are
rarely between 8-5 Monday through Friday.
Implementation Planning (Time=$$)
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Phased versus big cut
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Bridges to be built
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Risk to assess
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Urgency of move
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Merger, etc
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Team capacity
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Number of sites and location
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Time for data migration
Project Execution
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Communication to management team
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Set goals, sell project, measure results
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Communication on progress to Board
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Measure milestones against time and cost
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Stress training and prototyping
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Freeze modifications in time to cutover
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Cannot hit a moving target
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Get area champions to be subject matter experts
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Don’t let other priorities take over focus on project
Why Dynamics AX?
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Seeking global system to replace 5 separate ERP systems
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Prior utilization of both NaVision and Axapta in Europe
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Architecture advantages
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Kernel – Industry layer – Company specific
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Company already committed to Microsoft products
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Consolidated ledger without add-on layer (no Hyperion)
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Multi-currency and Multi-lingual capabilities with 2012 version introduction
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Ease of integrations to required existing systems throughout company
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Inter-company processing features and capabilities
Why Crowe Horwath?
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Proven Partner, delivered current US ERP system to Haynes in late 90’s
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Industry expertise, Crowe Metals Accelerator
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Consistently provides support personnel with core competencies
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Excellent user interface, trusted and respected
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Knowledgeable about product and ability to tailor to requirements
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Focused on success of organization with budget in mind
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Project leadership with technical capability
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Excellent knowledge transfer and documentation
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Resource retention and consistency unmatched
Conclusion
The bottom line is find hardware and software solutions that fit the needs of your organization
but be sure to address the relationship with your partner(s) and set clear expectations before
you launch any solution.