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NAV-X

Drilling Fluid Manufacturer/Distributor Switches from QuickBooks to NAV-X for Industry Specific Capabilities


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    If you’re in touch with the news, you’ve heard about the recent oil booms popping up all over the United States; North Dakota, Kansas, and Texas are all experiencing a huge economic shift because of oil and gas in those regions. Due to these booms,  manufacturers and distributors of drilling fluids are in high demand to produce the products needed to get the oil and gas out of the ground and into the downstream market.

    One of these companies manufactures and sells Fracturing Fluid or “Frac Fluid,” a liquid meant to help control well pressure while oil and gas is being forced out of shale rock and into the pipeline. This manufacturer produces Frac Fluid as well as additional additives that improve the end product.

    A couple of years ago, this company used QuickBooks to manage their business, but they couldn’t keep accurate costing information and also lacked insight into supply chain logistics, such as shipping. Despite these issues, the company went from $5-$10M in revenue to $50-$100M in just two years! They desperately needed a solution that could keep up and could meet unique requirements such as…

    -        Long Lead Time for Inventory: The product they need to produce Frac Fluid comes from India by boat. They need to know the exact time it leaves the port in India as well as the time it will arrive in the U.S. because they receive financing based on where the materials are in the shipping process.

    -        Accurate Forecasting: Because of this long lead time, they need to provide accurate predictions of when to expect products, when to fulfill orders, and when to promise shipment dates to customers.

    -        Blending: They need to mix a number of components to improve Flac Fluid’s viscosity and ability to handle high pressure. For this reason, they need to know costs associated with each additive to figure out profitability and effectively manage the blending process.

    -        Electronic Data Interchange (EDI): Traditional “Big Boy” vendors in the drilling business such as Baker Hughes, Halliburton, or Select Energy require the use of EDI, so they have to meet these requirements in order to optimize on this big business.

    This manufacturer had a lot at stake. They needed to meet specific requirements of their industry while keeping up with the huge boom in their market.  They soon learned about NAV-X, an extension to Microsoft Dynamics® NAV, and haven’t looked back…

    1. Accurate Job Costing: With NAV-X, they can associate any process with any product and then price it appropriately. With this deep insight, they’re able to see accurate costing information, portraying a complete and dependable profitability analysis.
    2. Long Term Forecasting: With NAV-X, they can have longer lead times for inventory. They can be more forward looking, instead of dwelling on the past. This new perspective helps them make smarter business decisions.
    3. Timely and Accurate Financial Statements: With NAV-X, they can produce timely and accurate financial statements in less than a week where it took 3-4 weeks before.
    4. Reduced Headcount: After quadrupling their revenue, they’ve only hired 3 more people instead of hiring 8-10 to keep up. This savings in headcount alone has paid for the system. They don’t need to add headcount to support growth; they can instead leverage the technology at their fingertips. With NAV-X, they can do more with less and if they decide to grow even more, they have a system that can handle that.

    This manufacturer is experiencing all-around efficiency that they would never have been able to achieve with QuickBooks. They can do things quicker, while integrating data between financials and inventory. If you’re interested in learning more about NAV-X for Distribution and Manufacturing, watch this 15 minute demo or contact us for more information: http://www.distributionsoftware.co/contact/

     

    By Sheldon Kralstein of NAV-X for Distribution, a comprehensive extension to Microsoft Dynamics NAV for manufacturers and distributors

     

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