Controlling Inventory Costs: How Dynamics Square delivered 25% reduction for AV Health.

AVet Health Pvt Ltd is an Australian pharmaceutical company that provides veterinary clinics with a wide range of high-quality medical products. Since its launch in 2019, the company has experienced rapid growth and continuously looks for ways to improve and scale its operations.

As part of its growth plans, AVet Health needed a more integrated approach to financial planning and inventory management. While Xero, Excel, and a customised inventory system had served them well in the early years, they sought an alternative solution that could support their ongoing expansion in the veterinary pharmaceutical industry.

Identifying opportunities to streamline workflows and improve compliance with GMP and FDA standards, AVet Health aimed to reduce duplication, manual processes, and reliance on external accountants to improve services and operational agility.

With the industry projected to generate $1.3bn in revenue by 2025, the company looked to strengthen its competitive edge through smarter, more scalable systems.

To address these issues, AVet Health sought out a replacement for their legacy systems – preferably a unified, scalable solution capable of integrating all business functions. Partnering with Dynamics Square, a Crayon partner and seasoned systems integrator, AVet Health kicked off a momentous transition.

Dynamics Square recommended retiring AVet Health’s legacy software in favour of Microsoft Dynamics 365 Business Central Online. The cloud-based ERP system integrated finance, inventory, production, and compliance management into a single platform. Business Central’s cloud deployment promised greater accessibility to employees; better scalability without on-premises adjustments; and increased cost-efficiency relative to non-cloud-based solutions.

As Dynamics Square’s managed services provider (MSP) partner, Crayon supported the project from the start and provided deep technical expertise: facilitating joint workshops and product evaluations that led to Business Central being chosen as a perfect fit for Avet Health’s needs.

Crayon also onboarded AVet Health onto the PRISM Portal (now part of Cloud-iQ) to simplify license ordering and billing, and allocated Dynamics 365 Business Central licenses quickly and efficiently. Crayon’s proactive, partner-first approach ensured a smooth experience and helped Dynamics Square focus on delivering the core solution while Crayon stayed on their side of the table, supporting with cloud, licensing, and platform strategy behind the scenes.

To test Business Central’s potential, Dynamics Square ran a proof-of-concept (POC) phase that trialed a smaller subset of capabilities.

The new system proved to be easy to use and managed to effortlessly integrate data across departments. Employees particularly valued Business Central’s user-friendly interface and real-time reporting capabilities.

This positive feedback (along with Dynamics Square’s ability to tailor Business Central specifically to AVet Health’s unique needs) reassured the client that they had the right platform and implementation partner in place, motivating them to proceed with the full implementation.

The Dynamics Square team already had extensive prior experience in deploying Dynamics 365 Business Central for pharmaceutical and healthcare product manufacturers. They used this to streamline implementation, minimizing the overall project timeline while eliminating the need for redundant development or reinventing solutions.

With Crayon as its strategic ally, Dynamics Square was able to configure Business Central to enhance supply chain responsiveness and improve cost control. Crayon structured workflows across the platform to enable better collaboration between finance, sales, and operations.

The implementation of Dynamics 365 Business Central has had a transformative impact on the AVet Health’s operations.

Production management saw a marked improvement, as tasks like order tracking and allocating resources have now become simpler and more intuitive. Automated planning tools now help the team anticipate inventory and material requirements efficiently, streamlining AVet Health’s production schedules. Inventory holding costs have been reduced by 25% as a result.

Quality assurance has also seen clear benefits. AVet Health can now easily track product batches, ensuring they meet strict quality standards. Critical documents like Certificates of Analysis and lab reports are securely stored within the system, streamlining quality control and compliance processes.

In warehouse and inventory management, the system’s lot and serial number tracking capability has greatly improved accuracy and visibility, reducing errors and waste. Effective bin management and expiry date tracking further improve warehouse space use and product freshness.

Financial management processes have become more transparent and efficient. Real-time reporting has enabled self-sufficient decision-making, eliminating AVet Health’s former dependency on external accountants. Improved invoicing and payment processes – enhanced by Microsoft Copilot, advanced analytics, and automation – have significantly reduced manual workloads and improved cash flow management.

Dynamics Square played an important role in helping AVet Health adopt and gain confidence in Microsoft Copilot. They provided personalized training and simple user guides for finance and operations teams, ran live demonstrations using AVet Health’s own data, and set up dedicated internal support channels. This hands-on approach helped AVet Health quickly embrace Copilot’s capabilities.

Copilot’s automated financial reporting, purchase planning suggestions, and cash flow forecasting helped reduce reporting times from hours to seconds. The finance team saved over 50 hours monthly. Procurement accuracy improved, cutting last-minute orders and reducing costs. Staff could also use natural language queries to generate reports without IT assistance.

Crayon offered continuing support after go-live, facilitating periodic license renewals and compliance checks. Their proactive involvement kept AVet Health’s systems updated and aligned with business needs. This reflects Crayon’s partner and customer-first approach, ensuring long-term success rather than a one-time handover.

With Business Central in place, AVet Health reduced bank reconciliation times from four days to just 30 minutes, freeing resources for strategic tasks.

The full integration of business functions across departments has improved operational efficiency and strengthened AVet Health’s ability to meet its ambitious growth plans.

Looking ahead, Dynamics Square’s collaboration with Crayon will help AVet Health and other clients continue to harness the full potential of Microsoft Dynamics 365 Business Central Online.

After their success with AVet Health, Dynamics Square will explore additional modules and integrations to enhance the platform’s long-term functionality for the company. These include advanced analytics and reporting tools, powered by Microsoft Copilot, which has already been adopted within Business Central to help AVet Health’s sales team track customer balances and follow up on payments more effectively. They also plan to explore integration with third-party logistics providers, and AI-driven process automation to enhance financial forecasting and compliance monitoring.

The success of the AVet Health project underscores the power of collaboration between Crayon and Dynamics Square. Crayon’s role as an enabler allows Dynamics Square to focus on its core expertise – delivering cutting-edge business applications – while relying on Crayon for technical, licensing, and cloud infrastructure support. This reflects Crayon’s partner-first approach to distribution: staying on the partner’s side of the table, helping them grow their Microsoft business, and building long-term value for customers.

By combining Crayon’s technical expertise and cloud capabilities with Dynamics Square’s industry knowledge and implementation skills, businesses like AVet Health receive highly tailored and scalable solutions that drive long-term success.