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Proven supply chain cost reduction at Sodexo with Dynamics AX

Business Situation

Despite being an essential part of its core operations, the company’s exiting SAP system was too complex, too difficult, and too costly to adopt on a local, case-by-case basis. One of the main hurdles was the wide range of local needs: many of Sodexo’s 34,000 locations include sites in remote and difficult-to-access locations in Africa and Australia, as well as Europe, India, Asia, Turkey, and North America. Almost every location could cope with a set of core processes, but many local requirements had to be taken into account.Sodexo was looking to achieve the following:

  • Better IT integration to mitigate its existing disjointed operations
  • A need for common processes to achieve greater visibility and improve compliance
  • More control over supply chain costs and an improved bottom line
  • Lower total cost of ownership and cost-per-user of its ERP systems

Solution

Sodexo asked Avanade to provide Microsoft Dynamics AX consulting and integration services to support the implementation of a global two-tier Dynamics AX ERP system to work alongside the SAP system.

Together with Sodexo, Avanade developed the “core model”, an easy to replicate model of Microsoft Dynamics AX that could be adapted to the needs of local Sodexo businesses.

Results

Three years later, Sodexo has witnessed the following results:

  • A significant fall in food supply chain costs over a 12-month period in various countries – indicating a general cost saving around the world. With food accounting for 35 percent of Sodexo’s cost of sales, this equates to many millions of dollars saved.
  • Cost per user of the new system is already equal to that of SAP, which itself has taken more than a decade to reach the cost-efficiency it has today
  • A system that is fast to deploy and easy to use for the audience of 1,500 Sodexo staff (2,500 by 2017)
  • Flexibility: the benefit of a single core model for common group best practices but with all the adaptations required by the local business

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