Technology Used
Microsoft Dynamics 365 Finance and Operations and Supply Chain Management
Business Challenge
The Unico System is the leader in Small Duct High Velocity (SDHV) heating and cooling systems, located in Arnold, MO. Established in 1985, Unico manufactures SDHV systems designed to adapt to old homes, custom homes, and small spaces without compromising comfort, design, or efficiency.
Before Dynamics, Unico was primarily using legacy ERP systems for accounting and manufacturing was reported as an expense. Running on spreadsheets and paper with manual data entry, Unico knew it was time for a change, since their legacy ERP systems wouldn’t work for a company that would eventually own 95% of the small duct HVAC market. They needed a system that could scale with their growing business.
Solution
After spending a year on time studies in preparation for Dynamics 365 Finance and Operations, their initial implementation came in 2019. Contracting accounting resources from Turnkey Technologies allowed Unico to have a responsive, helpful partner throughout an involved process.
Taking advantage of the combined offering, Unico also implemented the Supply Chain modules related to warehousing and took the opportunity to make concurrent changes to their warehouse layout, enabling cohesion between finance and operations and their supply chain in manufacturing. Now, they are swiftly moving toward their goal to double inventory turns and seeing the cash flow benefits.
Results
Obsolete Inventory from 15%-0%
Reduced Labor: 30%
Business Benefits:
Benefit 1: Significant Improvement in Cost and Margin Understanding
With Dynamics for Finance and Operations, Unico is able to now track purchases and sales in real-time, informing the manufacturing costs and detailing their profit margins. Automation provides comprehensive financial records with valuable insights into the profitability of each product line and customer segment, making it easier for them to adjust operations to maximize profits.
Benefit 2: Improved Efficiency and Productivity
Instead of using rough forecasts, Dynamics allowed Unico to drive their inventory down by letting the system drive the process. Unico’s use of kit modules and phantom items for flat BOMs allows them to experience reduced lead times, quicker delivery of products to customers, and improved customer satisfaction. By utilizing single-piece flow, Unico is able to reduce costs for their mix and modest product line while increasing efficiency and productivity, rarely experiencing stockouts.
Benefit 3: Improved Inventory Planning
By using Dynamics to successfully transition to standard costing from their previous average costing model, Unico greatly improved accuracy in cost estimates, pricing, and materials budgeting. This improved inventory planning and execution is critical to their continued success.
Client Comments
“Turnkey Technologies and Microsoft Dynamics 365 helped Unico to drive obsolete inventory from 15% to 0.”
-Ken Tharp, Plant Operations Manager
About Turnkey
Since 1994, Turnkey Technologies has delivered real business process modernization, improvement, and Return on Investment (ROI) to hundreds of businesses from Small-Medium (SMB) to Enterprise. Our experienced team brings deep technical and functional expertise across numerous industries with an emphasis on Defense Manufacturing, Medical Device Manufacturing, Project Services, and more. Valet service and an extraordinary customer experience are the hallmarks of our mission, and we stand ready to deliver the real improvements that our customers need to compete in the 21st century.
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