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Case Study — Digitek Corporation

Digitek

PVBS’ Microsoft-based Solutions Help Fast-Growing Technology Products Distributor Implement Sales and Financial Management Solution to Help it Sell More Efficiently to its VAR and Government Contractor Customers Worldwide.

At-a-Glance

Company/Industry: Digitek Computer Products is an industry leading distributor of IT consumables that prides itself on customer service, order flexibility and technical advances to make the customer experience quick and reliable. Digitek employs aggressive procurement procedures, capitalizing on relationships with vendors and manufacturers to capture outstanding pricing on wholesale consumable computer products. The company is headquartered in Dulles, VA. The company distributes products to government contractors and resellers across the country.

Champion: Digitek’s president Paul Martorana wanted an enterprise software system that included inventory management, order management (purchasing and sales) and financials that had the capability to support enhanced sales functionality, past customer pricing, order history, normal distribution price, current costs, and different costing models, as well as other capabilities to help him better oversee his business. As a growing technology products distributor, management needed more insight into sales growth and customer development.

Critical Issues: They outgrew the current DOS-based accounting software that had been in use for the previous 8 years. They wanted access to more information quickly and wanted a flexible system that could support them as they grew. They needed a system that would help them differentiate themselves from their many competitors. As a multinational company, they also wanted to make it easier to operate with vendors and customers around the globe.

Existing System that Needed to Be Replaced: FACTS, a DOS-based system for wholesale distributors.

Strategy: Digitek looked to the Dynamics NAV (at the time called Navision) solution which helps distributors reduce lead times, increase responsiveness, and better collaborate with their suppliers and customers. Ultimately, the system intends to offer distributors more competitive pricing thanks to their new, lower operational costs. The system helped efficiently manage sales and purchase prices and line discounts with customers and vendors. Digitek looked forward to using the system to specify sales/purchase prices and line discounts for individual customers and vendors. They also looked to use the system to manage general sales prices and line discounts for groups of customers or all of their customers.
Item tracking and tracing of items at any time during the sales, purchase, transfer process, and afterwards. Robust returns management functionality to handle returned inventory and account for additional costs such as restocking charges. System capability also automates and organizes credit memos, replacement goods, returns to vendors. They also wanted a solution that handles foreign currency exceptionally well, since a portion of their business is done globally.

The Result: The company decided early that it wanted to go with the Microsoft Dynamics NAV (then called Navision) solution and contacted Microsoft to identify the top Microsoft Business Solutions suppliers in the mid-Atlantic region. Digitek was most pleased with PVBS’ focused customer service and commitment to Digitek’s business success. PVBS helped Digitek by providing a solution that would help them meet its business objectives.

“We’re still finding ways to improve our processes based on the system. The Dynamics NAV solution we acquired from PVBS is extremely flexible versus existing basic accounting systems on the market. It provides the flexibility to do what you need to truly see the possibilities,” said Martorana. Digitek was impressed by how well Dynamics NAV could be tailored to meet his industry’s specific requirements. They were also impressed by how their sales force now had easier and better access to critical data.

The multi-currency capability of the system was a mandatory feature. They will be looking to capitalize on the system’s e-commerce capabilities, which include the Dynamics NAV Commerce Portal, a customer self-service portal and Commerce Gateway, an EDI commerce solution.

Martorana said that the transition from the previous software product to the Dynamics NAV enterprise solution from PVBS has gone well. The purchase management, sales, and general ledger solutions are operating well and are still being refined to what they need. It’s a very flexible system that can be modeled to what you want it to be.”

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