Modernizing Snack Food Manufacturing with Dynamics 365 F&SC [Case Study]

A leading snack food manufacturer transforms its operational infrastructure for enhanced efficiency and business growth.

Background

A prominent private-label and contract manufacturer in the snack food industry is known for its diverse production capabilities, including potato chips, tortilla chips, cheese curls, popcorn, cookies, crackers, and more. With a large-scale operation spanning 11 plants in the USA and 4 in Canada, the company employs 5,000 people and generates multi-billion-dollar annual revenue.

Despite their success, the organization faced a critical need to modernize its technology landscape, transitioning from a legacy ERP system that no longer supported the complexity and growth of the business. With their current system approaching the end of its lifecycle, the manufacturer sought a solution that would enhance efficiency, streamline production planning, and provide greater visibility into their operations.

Challenges

Before partnering with RSM, the organization faced significant operational challenges, which impacted their ability to scale and optimize production:

• Outdated ERP System: The existing solution created fragmented operations and relied heavily on complex Excel spreadsheets for financial reporting and production scheduling.
• Limited Visibility: The lack of accurate data hindered the company’s ability to account for material losses, properly manage costing, and maintain traceability across production lines.
• Inaccurate Costing Models: Costs could not be accurately attributed at the plant, customer, or product level, complicating financial decision-making.
• Inefficient Production Planning: Scheduling adjustments caused ripple effects that were difficult to predict, leading to operational inefficiencies.
• Compliance and Security Gaps: The company needed better Segregation of Duties (SoD) capabilities to meet compliance requirements.

Solution

To address these challenges, the organization partnered with RSM to implement Microsoft Dynamics 365 Finance & Supply Chain Management (F&SC), a robust ERP solution tailored to the needs of complex manufacturing environments. The multi-year project is valued over $10 million.

Key Solution Components:

• ERP Digital Transformation: Replaced legacy systems with a modern, integrated ERP solution to centralize data and eliminate manual processes.
• Advanced Financial Management: Streamlined financial processes, moving from Excel-based financials to automated, real-time financial tracking.
• Enhanced Production Planning: Implemented advanced scheduling and production planning capabilities, providing greater agility and responsiveness to changes in demand.
• Improved Costing and Profitability Tracking: Enabled precise costing at plant, customer, and product levels, allowing the manufacturer to optimize profitability and operational efficiency.
• Traceability and Compliance: Enhanced traceability across the supply chain, ensuring compliance with industry regulations and improving quality management.

Results and Impact

Although the project is still in its early stages, the organization has already realized key benefits through their partnership with RSM and Microsoft:

• Visibility and Control: The company now has greater visibility into production costs and can better manage plant-level profitability.
• Scalability and Flexibility: Dynamics 365 provides a scalable platform that supports the organization’s growth strategy and future technology needs.
• Strong Partnership Support: With RSM’s deep industry expertise and proven success with other snack food manufacturers, the organization is confident in their path to a successful digital transformation.

Why the Manufacturer Chose RSM and Microsoft

The decision to move forward with RSM and Microsoft Dynamics 365 was driven by a combination of trust and proven results:

• Industry Expertise: RSM’s track record with snack food clients demonstrated a deep understanding of industry challenges and the ability to deliver tailored solutions.
• Executive Confidence: The organization’s leadership team expressed trust in RSM’s ability to lead the transformation, noting that the team’s snack food experience was a key differentiator.
• PreSales Excellence: RSM’s preparation and demo execution showcased a deep understanding of the manufacturer’s needs and built confidence in the proposed solution.

Looking Ahead

With phase 1 underway, the organization is set to continue its multi-phase implementation over the next three years. As the project progresses, the focus will shift to refining production processes, enhancing supply chain management, and achieving full ERP integration across all facilities.

Through this digital transformation, the company aims to become more agile, data-driven, and capable of navigating the complexities of a rapidly evolving snack food industry.

Alyssa Juris

Senior GTM Coordinator for RSM's Business Applications Technology teams, specializing in digital content development for Microsoft + NetSuite Consumer Product's Teams.