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, Microsoft Dynamics Subject Matter Expert, Bottomline Technologies
PUBLISHED: May 21, 2009
A few years ago, my days were spent in the African desert teaching ecology and conservation to students, teachers and government officials. I lived in a modest house powered by a combination of solar and wind energy, collected fog moisture to support daily water use and maintain a vegetable garden with refuse water. It was an experience solely focused on my place in the world and how everyday decisions impact how we interact with the environment - for better or worse.
Coming back to the United States and transitioning to the business world was quite a shock, not just culturally but also in terms of issues of environmental sustainability and conservation.
When Microsoft Business Solutions announced on PartnerSource the addition of an ‘Environmental Sustainability Dashboard' to Dynamics AX several months ago, I began thinking about different ways in which businesses could reduce the environmental impact of certain business processes and transactional documents.
Visibility Is the First Step
Before I dive into some simple ways to reduce consumption of natural resources and increase awareness, let's review some of the basic functionality offered by the Environmental Sustainability Dashboard. Through the use of the Environmental Sustainability Dashboard, organizations on Microsoft Dynamics AX can actively track energy consumption and the amount of greenhouse gas emissions being released into the atmosphere.
With the dashboard, users can enter additional fields of data when paying bills, for example, to capture information such as the kilowatt hours used for electricity in a month, the number of gallons of gasoline used by delivery trucks in a month, or the amount of paper used by the company for document processing. Using the additional data fields, baseline levels can be established for determining ‘green' initiative reduction levels and important audit trail metrics for gauging environmental impact.
Taking Action
Let's say a company decides to implement a two-phase program to reduce electricity use for lighting in one of its three offices. If the program provides strong ROI in the first office, it will extend the program to its two additional offices. The first step in this two-pronged approach is to install energy efficient bulbs throughout the office. The second step is to install automatic dimmers on overhead lighting systems that will turn off lights when the space is not in use.
Using Microsoft's Environmental Sustainability Dashboard, energy usage, which is measured in kilowatt hours, can be tracked for the office. The savings attributed to both parts of the approach can be tracked in kilowatt hours saved per month, while the energy usage rate can be used to calculate the total cost saved. In this hypothetical, the Microsoft Dynamics AX user can also include the cost to replace the energy efficient bulbs and the costs associated with installing the dimmer switches to determine the length of time required to realize a return on the investment for the energy-saving activities. With these statistics in hand, the organization now has hard data from which it can determine the feasibility of expanding the initiative to its remaining offices.
Using an Add-on Solution to Drive Further Environmental Savings
Are there ways in which an organization can leverage its Microsoft Dynamics AX investment for further environmental benefits? Most transactional processes rely heavily on paper documents and forms. Invoices, shipping documentation, checks, account statements. The list goes on and on. With the help of an add-on document process automation solution, Microsoft Dynamics AX users can leverage the transition from paper to electronic to drive environmentally conscious business practices.
It's not uncommon for a mid-size order processor, for example, to generate as many as 1,500 invoices per month. By transitioning away from paper through the use of a document process automation solution, a company could conserve more than 55 lbs of paper, more than 675 gallons of gas, and prevent nearly seven tons of greenhouse gases from being produced. Using the Environmental Sustainability Dashboard, the savings associated with a reduction, and possible elimination of paper in certain processes, can be tracked to create a comprehensive picture of the business and environmental savings.
By coming up with simple energy savings techniques and utilizing the environmental dashboard offered through Microsoft Dynamics AX, organizations can better track their costs associated with running a business. As paradigms continue to shift, the focus on understanding environmental "costs" are likely to increase and businesses will need to adapt - and work within - this new business environment. The addition of solutions such as those for document process automation helps organizations build upon the success of the dashboard's use and drive new levels of environmental responsibility.
The recent salmonella outbreak involving peanut butter and the subsequent recall is just the latest in a string of food contamination alerts that have consumers questioning exactly where their food is produced, and what measures are being taken to ensure food safety. Given this latest wave of questions, organizations associated with the food and beverage industry are under increasing pressure to provide well-defined and transparent product and shipment information.
Over the course of the last several months, my colleague Dan Gangai has examined various ways in which integrated solutions for document process automation can help Microsoft Dynamics AX users to create more efficiency and value around transactional documents. With food safety issues all over the news, what better time to take a closer look at the transactional document challenges related to the food and beverage industry?
To date, most nations have established some set of food safety guidelines. Food processors and distributors follow safety regulations based on Hazard Analysis and Critical Control Point (HACCP) standards or other requirements like the International Food Standard, which are enforced by entities such as the Food & Drug Administration and European Union. Through these guidelines, regulatory bodies determine the level and complexity of data recording, analysis and monitoring required during food processing and distribution as well as establishing control points and best practice safety requirements.
With food processing and distribution, the transactional documents most often associated with the exchange of goods (either to a customer or another manufacturer, who will in turn use the goods as ingredients in the final product), may include HACCP certificates, proof of inspection and analysis, and organic or kosher verification forms. All of these highly-specialized documents are in addition to more traditional standard processing documentation such as picking lists, packing slips and invoices.
Having to manage such a large number of inter-related documents is difficult enough, but when you consider that government specifications regarding the information presented on documents changes on an almost yearly basis, you begin to get a real sense for the challenges involved in trying to establish efficient processes.
Faced with such highly-specialized, frequently changing documents, attempts to transform native Microsoft Dynamics AX output for greater efficiency can prove to be quite costly without the assistance of a Microsoft Business Solutions Partner and a third-party solution for transactional document automation.
One approach for creating more efficient processes is to produce handling and analysis documentation automatically when packing slips or sales invoices are generated from Microsoft Dynamics AX. Both of these documents contain the key data elements required for the analysis certification and product tracking verification needed to comply with food safety regulations.
Data found in the document header, such as ‘ship-to country,' for example, can be used within a document process automation solution to automatically generate the appropriate version (i.e. proper language or format) of a certificate of analysis or inspection form. These documents can then be attached to create a shipping document package that includes the necessary documentation. Because the body of the invoice contains information relative to pallet, serial and lot number for each product, the document set can be used to complete the analysis documentation and provide corresponding tracking information for products as they continue to move through the processing line.
As recent events have shown, the ability to easily create and modify a statement of recall notification is critical. Knowing which lots include the ingredient or finished good in question; the location and scope of the distribution; and the ability to notify customers of a recall is vital to brand quality.
With the help of add-on functionality, companies can quickly send recall-specific documents to any customer and business receiving the goods via an electronic distribution channel such as email or fax. In this type of situation, the ability to create recall documents ‘on the fly' has an immediate impact on reducing risk, improving customer service and limiting any potential damage to the company’s reputation.
Without a doubt the food and beverage industry is complex but it’s not unique in the challenges associated with trying to efficiently and effectively manage the various documents required to comply with government mandates, and meet customer and consumer expectations. Coupled with the expertise of a Certified Microsoft Business Solutions Partner, add-on capabilities for document process automation make it possible to devise an approach to document output and reporting that not only helps to reduce costs, improve workflow and increase transparency but provide quality and timely information to customers and suppliers around the globe.