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Microsoft Great Plains Business Solutions Offices

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PO Box 414Findlay, Ohio 45839-0414 USAPhone: 419.424.0422USA & Canada: 800-4SOLOMONInternational: +1.419.424.0422Fax: 419.424.3400Sales Information E-Mail:sales@solomon.comwww.greatplains.comwww.microsoft.com

© 2001 Great Plains Software, Inc. All rights reserved. Solomon Software, Great Plains and the Great Plains logoare either registered trademarks or trademarks of Great Plains Software Inc., in the United States and/or othercountries. Great Plains Software Inc. is a wholly owned subsidiary of Microsoft Corporation. Microsoft is either aregistered trademark or trademark of Microsoft Corporation in the United States and/or other countries.

All features/functions mentioned within are subject to change.This document is for information purposes only.Great Plains Software, Inc. makes no warranties, express or implied, in this document.

Advanced Distribution:Higher Customer Service at a Lower Cost

SOLOMON FLEXIBLE BUSINESS MANAGEMENT AND ACCOUNTING APPLICATIONS

Advanced Distribution Series:Higher Customer Service at a Lower Cost

Balancing Supply and DemandMake short work of one of the toughest challenges manufacturing and distribution companies face:

providing high levels of service to customers while still keeping material and inventory costs low. Use

Solomon IV Advanced Distribution to manage every aspect of the process of delivering goods and

services more efficiently, from purchasing and maintaining inventory to processing and shipping

customer orders. The result? You exercise the tightest possible control over materials and inventory

requirements to keep your costs down. And, at the same time, you keep closer track of customer

requirements for goods and services to make sure that you have on hand what they need, when they

need it. With Solomon IV Advanced Distribution, increased customer satisfaction and improved

business operation is no longer an “either–or” proposition.

Maximum FlexibilityDeliver all the information and service your customers need, precisely the way they want it, by taking

advantage of the comprehensive, flexible capabilities of Solomon IV Advanced Distribution. Collaborate

effortlessly with customers – and with vendors and employees, too – by leveraging Microsoft products

such as Outlook, Excel, Word, SQL Server, Biztalk Server, and Commerce Servers. Exchange order

information with customers electronically, with electronic data interchange (EDI) capabilities. Provide

customers with anytime-anywhere access to order information via Web browser. (Or, if they prefer to

interact directly with your representatives over the phone when buying from you, make sure those reps

have instant access to all the information they need to negotiate prices and manage orders.) Even

quickly and easily handle special requirements for how and where shipments are delivered. No matter

how the people you do business with like to do business, accommodate them with ease by relying on

Solomon IV Advanced Distribution.

“We wanted a flexible program that would allow us to serve our customers based on their needs, notbased on some software’s requirements.”

Steve Wierenga, Vice President, Management Information Systems, Ajacs Die Sales

Drilling Down on CustomizationAjacs Die Sales Corporation is an industrial distributor

located in Grand Rapids, Michigan, that supplies products to

tool and die manufacturers. Ajacs was founded in 1964 and

over time has added many product lines for distribution.

They have also been able to provide a higher level of service

than most industrial distributors, making sure that what

customers are requesting is what they actually need.

The limitations of their existing DOS-based program did not

have the ability to interface with other programs, and they

needed an accounting system that automated a number of

processes which previously wasted time and created

possibility for error. Ajacs chose Solomon from Microsoft

Great Plains Business Solutions because it was affordable

and had all the functionality the company needed. More

importantly, it was flexible. “One of the main things we liked

about it was the fact that this program was designed to be

customized,” says Steve Wierenga, vice president of MIS at

Ajacs. “The open architecture and strong support by

Solomon for industry standards, such as the Visual Basic

programming language, make this possible. Also, the fact

that Solomon is based on SQL Server, which is supported by

many other third-party applications, makes it easy to

integrate with other applications.”

Ajacs’ customized accounting system automates a number of

processes that previously wasted time and created the

possibility for error. As a result, the costs that went into

customizing the software were quickly recouped. Now that

the software performs tasks such as calculating sales order

costs, applying correct customer discounts, and processing

purchase orders in batches, Ajacs operates more efficiently

and saves money. “Having the computer handle these tasks

gets them done faster, but it also prevents mistakes like

giving the wrong discount and losing profit on a sale,” says

Wierenga. “Each customization that we did improves

operations and contributes to our profitability.”

The Power of AutomationIncrease your operating efficiencies, reduce

sales cycle times, and reduce costly errors in

your manufacturing or distribution business by

automating your processes. With Solomon IV

Advanced Distribution, instead of entering

purchase orders, inventory counts, and other

critical data manually, do it all automatically

to save time and reduce the risk of error. And

eliminate the extra work and potential errors

associated with double entries, since

Advanced Distribution capabilities are tightly

integrated with each other – and with your

financials. (When you enter Purchasing data

that affects Inventory or Accounts Payable, for

example, information in those areas is

updated automatically). Automate business

rules with Solomon IV Advanced Distribution,

too, and eliminate the need to constantly

make subjective decisions on issues such as

how to allocate inventory when demand is

high and supply is low.

SolutionsMeet the unique demands of operating a manufacturing or distribution business with completecapabilities for managing inventory effectively, fulfilling orders efficiently, and tracking costs closely.It’s all available in Solomon IV Advanced Distribution.

InventoryMake sure your customers get what they want, whenthey want it – and that you get maximum return on your inventory investment at the same time. WithSolomon IV Inventory, enjoy the flexibility you need tostrike that critical balance between customer demandand your supply.

Set up inventory items, identification, locations,valuation methods, ledger accounts for posting, andevery other activity that’s related to inventory exactly theway you prefer, based on how your business operates.Then get instant access to information about availabilitywith extensive cross-references, the ability to drill downto source documentation, and a variety of reports. Tomaximize efficiency, combine Inventory with Solomon IVOrder Management so that managers, salespeople, andcustomer service representatives have direct access toavailability information on their Sales Orders screens,without having to contact inventory personnel.

Enjoy flexibility in every area of inventory management, includingquantity on hand, selling price, cost, stocking units, and posting rules.

Solomon Inventory supports increased efficiency for avariety of types of inventory-driven businesses. If youuse lot or serial numbers, streamline entry duringinventory transactions with automated lot/serialtracking. If you work primarily with kits, use SolomonInventory for kitting with unlimited kit items. If yourcompany performs physical inventory counts, gainadditional efficiency with features that simplify dataentry and reconciliation. (You can even do physicalcounts without having to close the warehouse.)

PurchasingCut costs and boost productivity in the purchasingdepartment by using Solomon IV Purchasing to increase accuracy, speed up processing, and maximizebuying power.

Reduce data errors and save processing time with robustintegration. Because Purchasing is linked with Inventory,Order Management, and Accounts Payable, there’s noneed to re-enter Purchasing data into those applications.For example, create an accounts payable voucherautomatically every time you receive a purchase order. Orsend information about arriving back-ordered items toOrder Management automatically, so back orders can befilled without additional effort or delay.

Use automated capabilities to enter data more efficiently,assign purchase orders automatically, and create receiptson the spot. Then process purchase orders in whateverway works best for your business, with capabilities tooverride unit costs, for example, or to receive quantitiesthat are larger than ordered.

Count on comprehensive reporting capabilities to get thereliable information you need to negotiate the best pricesand service from vendors. Generate a variety of targetedreports - such as purchase order history and vendorperformance analysis – to make effective, cost-efficientbuying decisions.

Use the straightforward, easy-entry screens to help maintain anorganized, efficient procurement system.

Order ManagementKeep everyone in the order process on task and keepyour customers happy, with the comprehensivecapabilities of Solomon IV Order Management. Equallysuited to companies engaged in distribution, service, andmanufacturing, Order Management improves customerservice with automated workflow, flexible processes, andfast, easy data entry and lookup.

Increase both productivity and customer satisfaction byexercising precise control over workflow, eliminatingunnecessary steps in the order process, requiring criticalsteps to continue the process, and automating routinesteps. Schedule and ship orders flexibly to meetcustomer requirements efficiently. For example, when acustomer orders the same item to be shipped todifferent locations across the country, take advantage ofunlimited shipping addresses and dates to edit withouthaving to break the order into separate line items.

Enter orders and look up information quickly andaccurately, so you can deliver the best possible service atthe lowest cost per transaction. Use a single,streamlined Sales Order screen to enter orders with onlythree pieces of information (customer ID, inventory ID,and quantity), and to instantly look up any type ofinformation from quotes to invoicing. Providesalespeople with immediate access not only to costs, butalso to the historical pricing information they need tonegotiate pricing over the phone, through the OnlinePrice Negotiator. It automatically calculates costaccording to the pricing rules you define, while at thesame time allowing users to manually change discounts,commissionable costs and other dynamic data.

Easily configure unique order types based on the way you dobusiness.

Work OrderPlan and track your costs to manufacture a product orprovide a service, capturing every cost associated withthe process. Using Solomon IV Work Order, handle allyour material or resource requirements with maximumefficiency, and keep your ledger accounts and inventoryquantities in balance at the same time.

Capture any cost – not just your own materials andlabor, but outside costs, too – and compare actual costsagainst your estimate or against established standards.In the event that you need to borrow from one order orproject to satisfy another, transfer costs from one workorder or project to the other one. Even distributecompleted products or projects to multiple locations.

For planning purposes, see exactly what materials orresources are available on a date-specific basis. Then,once they’re applied to an order or project, monitor thework in process for potential cost overruns andcorrective action. Evaluate the costs and profitability ofwork orders and projects anytime, online, and use theintegrated Event History function to minimize futurecosts by identifying and correcting mistakes.

Step up customer satisfaction by making it easy for themto place their own orders at their convenience, to checkinventory availability anytime, and to get immediateanswers to questions about the status of their orders –around the clock, from anywhere in the world.

Keep up with business growth and change with SolomonIV Web Order. This fully functional Web interfaceprovides the technology and tools to easily customizeyour application as your business requirements evolve.It’s built on the Microsoft Internet Information Serverand Microsoft Site Server, Commerce Edition, thefoundation for scalable, efficient, and expandable e-commerce solutions.

Make it easy for customers to do business with you online with easy-to-navigate Web Order screens.

Check the progress of a work order on the Work Order/Project Inquiryscreen.

Web OrderEmpower staff and customers to enter orders directlyinto Order Management over the Internet – and to checkorder status, inquire about inventory availability, and getpricing online, anytime.

Increase efficiency by enabling staff to enter customerorders, calculate costs (including shipping and taxes),make inventory inquiries (by part number, description orcross-referenced customer part number), and check orderstatus from the field – instead of having to phone or faxin orders and inquiries. This saves time and reduces theneed for support staff to respond to calls and faxes fromthe field.

Bill of MaterialDefine, manage, and analyze the products your companymanufactures, so you can cost and manufacture themefficiently. Solomon IV Bill of Material providescomprehensive functions in three key manufacturingcategories: bill of materials, production routing, andproduction costing. It supports every stage in theprocess: establishing product structures, determiningrouting, updating costs, executing manufacturing plans,and supporting work orders.

Use a single set of capabilities to handle all aspects ofproduction and assembly, even for environments thatinclude complex kitting requirements. Keep close controlover costs for materials and labor, with support formultiple costing methods, robust overhead allocations,and variance distributions to provide optimum costingvisibility. And enjoy the flexibility to build as planned orto change plans on the fly anytime your production,material, or labor needs change.

Generate more than a dozen reports, including Bill ofMaterial and Component Where-Used lists, ProductionPreview and Production Analysis, Shortage Reports, andTool and Machine lists. Other reports include StandardCost Change Preview, Actual Production Plan, ProductionPreview, Production Analysis, Shortage Report, andVariance Analysis.

Create a multi-level view of your product structure on the Bill ofMaterial Structure screen.

Advanced Shipment ManagementDramatically reduce the amount of work associated withproducing advance ship notice documents, no matter howmany types of products or components you ship. UseSolomon IV Advanced Shipment Management withSolomon IV Order Management and e-CommerceGateway to build shipment detail informationautomatically, print it on UCC-128 compliance labels, andcreate and print order pick tickets – all at the same time,and all without the burden of gathering informationmanually.

Simply choose the options you want to use to buildshipment detail, from weight and dimensions calculationto auto-generation of labels, and Advanced ShipmentManagement does the rest – creating pick tickets,building shipment detail, and printing labels. For fullflexibility to change shipments, take advantage of theContainer Builder screen. Use it to build shipment detail,build pallets, and create a bill of lading for your shipment.

Use the same integrated system to make changes ortrack shipments on the Web. To keep customers updatedon the status of their shipments, use the ContainerTracking Inquiry screen. With it, you can search forshipments or pick tickets by PRO number, serial containerID, or tracking number, all by simply clicking a button todrill down to detailed shipment information. You canalso track shipments instantly for carriers such as UPS,Federal Express, Airborne, and Viking. All capabilities arecompletely accessible through an ordinary Web browser.

EDI is a customer-proven solution that’s being used bycompanies every day for business-criticalcommunications with trading partners. With EDI as yourstandardized format for data exchange, you’ll saveprocessing time, reduce errors, and eliminate paperwork.And you’ll be able to exchange information withcustomers and vendors efficiently – even when they’reoperating on different systems.

Streamline order processing by using EDI to conduct these inbound(top) and outbound (bottom) transactions.

Create or change shipment detail using the Container Builder screen.

e-Commerce Gateway – EDI EditionIntegrate and automate your transactions withcustomers, vendors, and remote warehouses bycombining Solomon IV e-Commerce Gateway – EDIEdition and Solomon IV Order Management. Save time receiving, entering, and error-checking orders,processing them, and sending invoices to customers, thus streamlining your sales cycle and increasingcustomer satisfaction.

Process a variety of inbound or outbound data throughelectronic data exchange (EDI) rather than usingtraditional paper-based methods. Automatically convertEDI purchase orders into Solomon IV sales orders.Transmit transfer orders and shipping documentsbetween inventory sites. Receive important customerinformation such as PO changes and sales numbers.

Trans # Description

810 Invoice

850 Purchase Order

860 Purchase Order Change

864 Text Message

875 UCS Purchase Order

880 UCS Invoice

945 Warehouse Shipment Advice

Trans # Description

810 Invoice

850 Purchase Order

856 Advance Ship Notice

857 Invoice/Advance Ship Notice

875 UCS Purchase Order

880 UCS Invoice

940 Warehouse Shipment Order

997 Functional Acknowledgment

998 UCS Functional Acknowledgment

Landed CostManage profitability more effectively by capturinglanded costs - shipping, handling, insurance, import fees,duties – and rolling them into your total cost ofinventory. Record these costs at the same time thatinventory is received and then, though seamlessintegration with Solomon IV Accounts Payable,automatically create an accounts payable voucher foreach additional charge.

Take advantage of Solomon IV flexibility to record landedcosts after goods are received when circumstanceswarrant it, through accounts payable voucher entry, andthen simply distribute costs to the inventory that youpreviously received.

Whether you capture costs before or after receivinginventory, allocate them to inventory items based onquantities, costs, or weight. Multiple cost vouchers canbe distributed across multiple products on a singlepurchase order receipt.

Solomon IV Landed Cost works with LIFO, FIFO, andaverage cost items.

User defined Landed Cost Codes allow for set up of how landedcosts are captured and allocated leading to more accurate Costof Goods and Inventory Valuations.

Inventory ReplenishmentInstead of keeping excess inventory on hand to meetcustomer demand, stock only as much as you need andno more – by using Solomon IV Inventory Replenishmentto calculate optimal stocking levels and purchase theappropriate inventory automatically. You’ll cut the cost ofkeeping more product than you need in stock, withoutcompromising customer service.

Solomon IV Inventory Replenishment statistically trackshistorical usage and vendor performance and then usesthis information to scientifically calculate the optimalstocking level – allowing you to strike the perfectbalance between inventory costs and customer-servicelevels.

Use it to automatically calculate Optimal Order Points,Line Points, Safety Stock, and Economic Order Quantities(EOQ), and then automatically generate purchase ordersto replenish stock – so you always have the rightquantities of the right materials available at the right time.

Inventory Replenishment automatically generates planned ordersbased on key calculated values delivering optimal inventory andcustomer service levels.