Project Overview
A premium dairy and ice cream manufacturer specializing in milk, ice cream, juice, and third-party food resale products was preparing for a major ERP implementation. Their existing system had become significantly underutilized and lacked the flexibility and support needed to deliver the functionality the business required.
As the organization worked toward a January go-live date, product costing became a critical component of implementation success. Costing setup needed to be completed by mid-November, leaving a narrow window to build the foundation required for accurate manufacturing data and future operational decision-making.
The project involved creating work centers, routings, and bills of materials within the new ERP environment, along with recalculating labor and overhead rates to support product costing functionality. Without internal resources available to own the work, the company engaged DLC to provide focused support and execution.
Business Challenge
The organization faced multiple challenges beyond the typical ERP implementation effort.
First, internal bandwidth was limited. The company had been unable to successfully hire a full-time resource to manage the product costing work needed to support the ERP transition. Existing team members were focused on day-to-day responsibilities and could not dedicate sufficient attention to the project.
Second, project timelines were tight. With go-live scheduled for January and costing work required by mid-November, there was little room for delays.
The project also presented a significant information challenge. Documentation was limited, and answers often varied depending on who was asked. Without a consistent source of information, building an accurate costing structure required assembling details across multiple inputs and creating clarity where it did not already exist.
At the same time, outdated labor and overhead assumptions were limiting cost visibility. Without more current and reliable costing data, leadership risked making pricing and operational decisions using information that no longer reflected reality.
The Approach
DLC stepped in to provide hands-on execution and specialized product costing expertise during a critical phase of the implementation.
Our team focused on developing the product costing framework required for the new ERP system, using offline modeling and analysis to calculate updated labor and overhead rates before loading validated information into Business Central. This work included creating and evaluating costing structures, comparing newly developed costs against existing standards, and helping establish a process that supported future updates.
We worked closely with implementation partners and participated in training sessions to ensure information could be properly incorporated into the new ERP environment.
The goal was not simply to complete system configuration. It was to create a list of manufactured items that had been costed under the new structure, evaluate differences between systems, understand those variances, and establish a more sustainable path forward.
The Results
- Established a faster and more reliable process for updating standard costs on a monthly basis.
- Reduced dependence on extensive manual spreadsheet work by allowing the ERP system to handle more of the underlying calculations.
- Shifted routine cost maintenance from finance leadership responsibilities toward a process that can be managed by a future cost accounting role.
- Improved visibility into current labor and overhead costs by replacing outdated assumptions with refreshed rates.
- Increased confidence in product pricing decisions through a clearer understanding of actual manufacturing costs.
- Created a foundation for long-term cost management within the new ERP environment.