Built on

Microsoft Dynamics™ AX
 MICROSOFT DYNAMICS™ AX

“Every other day I seem to come across companies that have resolved to evaluate Microsoft
Dynamics™ AX (formerly Axapta) as a potential legacy enterprise resource planning replacement
strategy or regional (spoke) system under a large enterprise (hub) deployment. Microsoft
Dynamics™ AX is recognized for its architectural prowess. It is structured well and
is easily expanded. It is also receiving enormous attention from Microsoft’s
research and development team, so the functionality of the core product
is maturing rapidly. It should also take advantage of the upcoming
enhancement to the Windows environment.”

-Nigel Montgomery, AMR Research

Junction Solutions, a Gold Certified Microsoft Business Partner, provides innovative software
solutions built on the Microsoft platform to address the complex requirements of your industry,
while providing the consulting, integration services, and customer support needed to make the
most of your investment.

“Microsoft Dynamics™
AX is the foundation
for each of our
industry-specific
solutions based on its
combination of unique
flexibility, advanced
technology, low cost
of ownership and
global capabilities
– and its use of .NET
technologies and
integration to Microsoft
SQL Server 2005 are
key to delivering an
unmatched powerful
and adaptable business
solution.”
Brian Carpizo,
President and CEO,
Junction Solutions
Unique Flexibility
Microsoft Dynamics™ AX enables you to run your business the way you want, and quickly
make changes as your business needs change. With more functionality than any other
mid-market solution, including manufacturing, distribution, supply chain management,
project management, financial management, customer relationship management, human
resource management and business analysis, you can choose only the functionality you
need, and simply turn on new features as your business grows.
Advanced Technology
Microsoft Dynamics™ AX gives you a powerful 3-Tier architecture. It includes the advanced
object oriented MorphX development environment is structured for straightforward
development. With Microsoft Dynamics™ AX’s unique layered technology, customizations
are kept in separate upper layers, which leave the original application code unchanged
and make it easy and cost effective to perform upgrades.
Global Capabilities
As your company operations extend globally, Microsoft Dynamics™ AX can help
effortlessly scale real-time connectivity across different locations using one common
database. Microsoft Dynamics™ AX includes multiple language and currency capabilities
for over 30 countries.
Microsoft Platform
Microsoft Dynamics™ AX takes advantage of the business intelligence, data management,
enhanced performance and high-availability features of SQL Server 2005. Customers who
choose Microsoft SQL Server as their chosen platform can benefit from improved access
to application data, simplified deployments, ease of maintenance and faster application
response. .NET technology is integrated throughout Microsoft Dynamics™ AX, providing
the capability to quickly build, deploy, manage, and use connected, security-enhanced
solutions through the use of Web services.

Microsoft Dynamics is a trademark of Microsoft Corporation in the United States and/or other countries.
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 Microsoft Dynamics™ AX for Food & Beverage

“Junction Solutions’ industry-specific features, integrated with the

Microsoft Dynamics™ AX proven and flexible ERP application,
provide food & beverage companies with a powerful and
flexible system.”

JunctionF/B™
JunctionF/B™ addresses your unique challenges of improving control over
operations and finances, simplifying compliance with regulatory and customer-
driven mandates, and connecting with customers, suppliers and employees
across your business. The JunctionF/B™ solution brings you the benefits of a
highly specialized business management system that adapts to the way you do
business - now and in the future.

The JunctionF/B™ solution is the clear choice for any food processor ready to make a change
in information technology. The solution provides the insight and flexibility to pursue new
strategies, operate across borders, and expand internal capabilities as your business grows.
Our customers include food & beverage processor who share our vision for a fully-integrated
enterprise with reduced operating and production costs, improved product quality and safety,
and enhanced customer service.

Food processors face increased regulatory control requirements,

and must manage multiple, complex variables such as seasonal
supply, fluctuating market demand and variable quality ingredients
in order to produce and deliver quality food products to consumers.
To successfully meet market demand for seasonal items, food
processors are uniquely challenged to not only streamline the
production of goods, but also to accommodate variability in ingredient
quality, availability, specifications and cost to produce consistent,
high-quality products.

At Junction Solutions, we extend and tailor the Microsoft Dynamics™

AX solution to help food & beverage producers make effective use of
raw materials in this complex processing environment. We provide
integrated solutions, which not only account for the variables of
the incoming raw materials but can also maximize production and
processes to drive economies of scale.

22
JunctionF/B™

PRODUCT FEATURES

Sales and Customer Service

JunctionF/B™ sales tools cover the details of product sales and distribution while your sales
and marketing team turns its full attention to responsive customer service and competitive
selling.

Real-time sales order entry and commitment, repetitive order processing, price list
management, on-line credit control, transaction routing, product holds, delivered pricing, off-
invoice and bill back promotions, sales contracts and bookings, project-oriented buying and
selling, and automated brokerage commissions drive down the cost of processing every
order and every shipment.

Performance measurement tools such as integrated distribution and product costing, gross
margin analysis by customer, product, broker, and market area help you direct your attention
to your most profitable opportunities.

ALL DATA ABOVE IS FICTITIOUS-NOT ACTUAL DATA

Figure 1 - Powerful date sensitive inventory definition allows unlimited
combination of item and customer factors

ALL DATA ABOVE IS FICTITIOUS-NOT ACTUAL DATA

Figure 2- Potency is fully supported including flexible potency levels and
specifications

3
 Microsoft Dynamics™ AX for Food & Beverage

Commodity Supplier Relationship Management and Grower Accounting

The Supplier Relationship Management (SRM) module is designed to enhance and manage the
relationship between a company and its suppliers for the acquisition of commodities that are
variable in nature. Variable commodities can not be described by just an item number. They usually
require additional information such as grade, multiple units of measure or attribute information.
Payment for these types of commodities may also be based on similar factors. Some examples of
these products includes: fruits, vegetables, grains, nuts, and raw or frozen meats and seafood.

The acquisition of these commodities

cannot easily be handled through normal
purchase orders and supplier schedules. It
requires a more complex system to manage
the definition of contractual relationships,
purchase methods, payment and pricing
rules, delivery planning and scheduling,
receipt process, quality review, and crop or
harvest activities.

Our SRM module provides a complete and

ALL DATA ABOVE IS FICTITIOUS-NOT ACTUAL DATA
Figure 3 - Production management provides tools to manage scaling
of inputs and outputs
ALL DATA ABOVE IS FICTITIOUS-NOT ACTUAL DATA
Figure 4- Recipe Designer supports visual
multi-level recipe management
integrated solution for contract manage-
ment, delivery planning and authorization,
receipt processing, settlement, and cost
variance management.
Production Management
JunctionF/B™ speaks to the special needs of
the food and beverage industry with a unique
approach to managing production resources,
raw material usage and processing costs.
The solution addresses the issues that
are unique and critical to food-related
materials: raw material variability, batch
and continuous processing, yield reporting,
custom processing by and for others, lot
tracing, process costing, product and co-
product costing, variance analysis, multiple
recipes, multiple manufacturing facilities
and processes, and integrated financial
reporting. In addition, our Production Line
Workbench provides sophisticated graphic
and math optimization tools to schedule
and sequence jobs. It also provides the
scheduler with immediate feedback on line
loading, material availability and key output
metrics such as tonnage.

4
 JunctionF/B™

Catch Weights
JunctionF/B™ allows companies that process or produce items such as fresh meat to use
actual weight throughout their supply chain. Since the actual weight of each instance of
an item varies (each chicken has a different weight), the actual variable weight must be
captured and tracked for each instance of an item. This actual variable weight is known as
the “Catch Weight” of the item. JunctionF/B™ supports catch weight throughout the supply
chain including:
Accounts payable, purchasing, receiving
Warehousing and distribution
Production
Accounts receivable, sales, order processing, invoicing and returns

For catch weight items, the actual variable

weight determines the financial value of the
purchase, production, or sale of the item.
Commissions, inventory, scrap, etc. are all
valued and calculated using catch weight.

In order to reduce transaction requirements,

JunctionF/B™ supports both full and limited
visibility models. It is possible to receive and
pay for an item by catch weight, warehouse
it by standard weight, and sell or consume it
at catch weight. If an item is tracked by catch
weight and standard weight, JunctionF/B™
provides the costing and financial reporting
necessary to accommodate the conversion
between the weights.

ALL DATA ABOVE IS FICTITIOUS-NOT ACTUAL DATA

Figure 5 – Production Line Workbench provides
sophisticated job sequencing and line loading support

Date-Based Batch Trace and Enhanced Product Recall Reporting

Batch trace functionality designed for the food industry.
Designed for food processing environments where date-based batch
trace is typically employed
Low transaction overhead requirements
Enhanced recall reporting capability
High level of safety

5
 Microsoft Dynamics™ AX for Food & Beverage

Financial Management
With JunctionF/B™, your accounting and finance team can play an active and valuable role in
management and day-to-day operations. Flexible account structure and seamless integration with
all business operations provide easy access to the financial effects of operations. Automated
accounting entries eliminate errors and save time for reviewing, analyzing and acting on financial
information. JunctionF/B™ contains the financial tools to support dairy pricing, catch weight,
multiple output recipes and potency.

PRODUCT BENEFITS

Improve Production Management

Our industry-specific features for food processors are integrated with Microsoft Dynamics™
AX, and can be implemented according to the way you want to do business. Built-in flexibility
means that you can adapt your solution easily as your requirements change. For food & beverage
companies, improved control over production processes reduces costs and increases margins.
Pre-defined compliance allows you to meet customer and regulatory mandates efficiently.

Streamline Cross-Enterprise Operations

Integration of processes across departments streamlines cross-enterprise operations including
purchasing, production, sales, cost management, and accounting. Tighter workflow and broader
visibility with suppliers increases the efficiency of your supply chain, and tighter connection to
your customers cements and grows your share of their business.

Lower Total Cost of Ownership

The JunctionF/B™ solution is cost effective to purchase, implement and maintain over time and is
easy to adapt and upgrade, as business needs change, reducing long-term total costs. In addition,
we provide high value business consulting expertise and efficient implementation skills that result
in efficient, cost effective implementation projects.

Operate Across Borders

Multi-country capabilities let you operate across borders, languages and currencies.
The JunctionF/B™ solution conforms to the legal and market requirements of 32 individual
countries right out of the box. Your global employees can work in the language of their choice,
and you can send trading documents to your suppliers and customers in their native language
and country currency.

6
PROJECT FOCUS

H-E-B Case Study

Customer Summary
Founded in Kerrville, Texas in 1905, H-E-B has more than 300
grocery stores in Texas and Northern Mexico with more than 60,000
employees. It is the largest privately held company in Texas with
sales nearing $11 billion. H-E-B processes much of its own bread,
dairy products, cookies and snacks, meat, and tortillas.

Business Needs
H-E-B needed to consolidate the legacy systems supporting their
11 manufacturing plants in Texas and Monterrey, Mexico into one
integrated, multi-location, multi-lingual ERP solution. The solution
needed to work specifically for food processing and distribution
needs in order to improve control over production processes and
simplify compliance with regulatory mandates.

Business Impact
The JunctionF/B™ solution has allowed H-E-B to improve efficiency
by streamlining processes across various manufacturing facilities.
The solution also provides the solid foundation needed to improve “We required a flexible,
forecasting, inventory control and production processes while
facilitating compliance with critical food safety requirements for
innovative technology
H-E-B’s private label brands. solution that would allow
us to improve our efficiency
Technology Solutions
Junction Solutions, installed JunctionF/B™ to handle food-specific while streamlining processes
needs such as recipes, co-products, disassembly operations, lot across all of our various
costing, lot traceability, commodity pricing, variable grades and manufacturing facilities. We
quality management. Its flexible technology provides unprecedented
capability to tailor best practices to fit the uniqueness of H-E-B’s wanted a solution that worked
business. specifically for food processing
and distribution needs, and
after a thorough product
evaluation of several industry-
leading solutions, JunctionF/B™
was the clear winner.”

Bob McCullough
Group Vice President of Manufacturing,
H-E-B

Contact Us
To learn more about JunctionF/B™, visit our website at
www.junctionsolutions.com, or call us at (847) 947-7950.

7
 JunctionF/B™: AT A GLANCE
Order Management/Customer Service
Full order event handling including sophisticated hold processing
Three-panel customer service screen puts all customer
information at your fingertips
Real-time capable-to-promise (CTP) available at time of order
entry
Human Resources
Track core employee information including payroll information,
positions, skills, absences, and benefits
Administer recruiting programs
Professional development including training & competency
mapping
Supply Chain Management
Integrated forecasting and demand management
Catch weight support configurable by supply chain area to
support full-visibility and limited-visibility tracking
Sophisticated trade agreement and supplier selection capability
Product configurator for complex, rule-based item definition
Definition of inventory specifications and test methods
Marketing
Plan supply chain across multiple plants and distribution centers
Capacity and material-based constrained planning
Plan inventory replenishment based on a combination min/max,
period of supply, forecasted demand, safety stock, and user
defined time fences
Manage procurement from multiple vendors including import
capability and container tracking
Purchase by potency
Production Management
Integrated support for production lines and capacity loads
Graphic production workbench that supports order scheduling
and line balancing
Math optimization engine for production sequencing and
changeover minimization
Forward and backward scheduling
Sub-contractor management
Backflush of materials and resources by operation
Support for parallel operations
Scaling workbench that provides rule-based batch and ingredient
scaling
Ability to scale production orders based on potency of
ingredients
Collaborative e-Commerce
Support for all standard EDI transactions
UCCNet synchronization
Easy to create vendor and customer web portals allows external
partner integration
Quality Management
HACCP (Hazard Analysis and Critical Control Point) support
Flexible management of date sensitive inventory
Sample testing support featuring flexible frequencies, multiple
testing methods, qualitative, and quantitative tests
Tight integration between quality and inventory modules
supports automatic QA holds if specifications not met
8 and profit
Flexible item specifications
Powerful quality workbench for recording and tracking quality
information
Automated production of Certificate of Analysis documentation
Definition and tracking of product certifications
Inventory Management
Data sensitive inventory
Support for FIFO (first in first out) and FEFO (first expired first
out) picking logic
Enhanced unit conversion support
Store inventory at a warehouse, location, pallet, lot, and serial
number level
Optimize space by categorizing warehouse zones and areas
Directed picking and inventory put-away
Location tracking at the aisle, rack, shelf, and bin level
Dynamic hard and soft inventory reservation
Full support for touch screen, barcode and wireless devices
Technology
Touch screen and mobile wireless deployment options
 uilt from the ground up to be customized by customers
B
– very easy to upgrade
 ully scalable three-tier architecture supports thousands of
F
concurrent users
Uses an advanced Microsoft object-oriented integrated
development environment
Runs on both Microsoft SQL Server and Oracle databases
Financial Management
Full set of financial modules including GL, AP, AR, Project
Accounting, and Fixed Assets
Supports multi-currency, multi-company, and multi-language
(32 languages) requirements
Sophisticated, multi-dimensional financial reporting
Flexible sales commissions structure
Support for broker commissions
Full landed cost support
Pricing/Promotions/Rebates
Price by potency
Special pricing formulas supported
Sophisticated and flexible promotions offer pricing model
 owerful marketing campaign management tied to Projects
P
allows P&L by promotion/campaign
Robust Deductions module manages customer deductions and
allocates back to the individually shipped case
Commodity Supplier Relationship Management /
Grower Accounting
Contract management allows definition of rules for purchasing
and paying for products
Delivery planning and authorization provides a workbench to aid
in the planning and management of deliveries
Receipt and quality process defines control and validates the
receipt of product based on contract and quality rules
Settlement process for receiving payments for product received
based on the rules of the contract
Commodity cost and variance management for monitoring,
tracking and adjusting cost variances to finished goods, COGS,
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Junction Solutions 847.947.7950 www.junctionsolutions.com