Tenax's 36% Cost Cut with Dynamics AX - Nexer United States
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    A single ERP to manage all operations, languages and currencies 

    Nexer helped multinational company achieve 36% cost reduction 

     Italian based Tenax implemented Dynamics AX on Microsoft Azure Cloud.

    case /

    TEnax
    + Nexer

    About Tenax

    Tenax is a multinational company based in Italy, with offices on 3 continents and in 7 countries (Italy, Turkey, United States, Brazil, India, Spain, and South Africa). It started its activities in 1956, initially producing mastic for local and international markets. Over time, its offerings expanded, and it currently manufactures diamond-coated tools, resins, mastics, abrasives, polishes, and waxes, primarily used for working with stones and their byproducts.

    Previous Scenario

    The ERP used became obsolete. And, as it is an international company with subsidiaries worldwide, the Tenax group needed a single ERP to manage all its operations, including various languages and currencies. Microsoft Dynamics AX was chosen because it met all these needs and was robust enough to support the entire company’s control.

    Solution
    Microsoft Dynamics AX 2012 R3 (modules: accounts payable, accounts receivable, treasury, purchasing, sales, invoicing, export, and import) + Microsoft Azure

    Key Challenges

    Italy used Ax versions 2012 R2 and R3, and when it was implemented in Brazil, it was a complete project and not just a rollout. The project team had to model Brazilian processes based on the Italian ones, taking into account different product versions and the challenging Brazilian localization. Moreover, operations in Turkey, India, and the United States also use the applications that are currently hosted on Azure.

    Project: Implement Dynamics AX on Microsoft Azure

    With the aim of integrating all its businesses, centralizing and consolidating the management of headquarters and subsidiaries in the same ERP system, Tenax replaced its internally developed business management system with Dynamics AX. They trusted that it could accommodate all the company’s operations, enabling the analysis of local markets and allowing it to encompass all the languages and currencies of its operations without compromising its global management. The main differences in the project presented by Nexer to Tenax were:

    1. Using Microsoft Azure as the infrastructure for Dynamics AX.
    2. The timeline for the localization project was significantly reduced. In just 60 days, the company’s financial operations were fully supported by the new ERP.
    3. The project allows for a 180-day period, post-implementation, for potential adjustments and improvements in the performance of the support system.

    Nexer estimates that if Dynamics AX 2012 had been deployed on local servers, the maintenance and investment cost for Tenax would be 36% higher than the costs for credits on Azure. Additionally, opting for cloud infrastructure made it possible to reduce the Dynamics AX implementation project timeline by 15 days. This resulted in cost savings and faster implementation, which were the initial objectives of Tenax with the project.

    Current Scenario

    Today, Tenax has commenced the data consolidation process among all its subsidiaries, including sales, accounting, etc. This is aimed at providing managers with a clearer view of information, facilitating business control, and gaining a better understanding of local market dynamics.

    Key Benefits

    • Data consolidation for Tenax and all its subsidiaries.
    • Multi-language and multi-currency support.
    • A 36% reduction in cost for infrastructure and hosting of Microsoft Dynamics AX ERP on Azure.

    Testimonial

    “We chose Azure and Nexer because internally we lacked the know-how to manage and provide support for this type of technology, and we didn’t want to increase our costs by hiring professionals for subsidiary teams. In this regard, cloud infrastructure offers a complete service that is always up-to-date, with no need to forecast licensing or infrastructure updates. Another highlight is that Nexer not only helped us implement Dynamics AX in Brazil but also forecasted the values we needed to invest in Azure and managed it. Nexer is recognized by Microsoft for its expertise in understanding how two solutions complement each other.”

    Paola Simoncelli, Project Manager at the Tenax Group.

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