Case study

Fagerhult drives efficiency and innovation with Microsoft Dynamics 365 Business Central

Highlights:

A fully integrated Dynamics 365 platform provides Fagerhult with a clear, end-to-end view of projects, orders and financials to enable more confident decision-making.

Automated workflows and third-party integrations have reduced manual effort, minimised human error and improved productivity across finance and operations.

Business Central, Dynamics CE and Outlook work seamlessly together, creating a flexible foundation that supports ongoing innovation and future technologies such as AI.

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About the organisation

Fagerhult is part of the Fagerhult Group, one of Europe’s leading lighting companies with sales organisations in over 25 countries around the world. Fagerhult has 1,000+ employees and is one of the twelve brands in the Group’s portfolio. The UK-based business works with customers and partners in the European market to provide lighting solutions globally, with a focus on office, education, retail, healthcare and outdoor applications.

The challenge

Fagerhult had been using Microsoft Navision for over ten years, but significant system customisations prevented any future upgrades. These modifications had been driven by several business processes that differed from standard ERP functionality. But while Navision supported order processing, it was not integrated with a CRM system and was creating limitations as the business grew.

The Group had recently rolled out Microsoft Dynamics CE across the wider sales organisations, although Dynamics 365 Business Central had not yet been adopted. At the similar time, Fagerhult had recognised the need to modernise its ERP system, making a Microsoft-based solution a natural fit.

Solution

With the Group’s Microsoft strategy in place, Fagerhult selected Dynamics 365 Business Central, providing integration with the Group’s Dynamics CE system. Fagerhult chose Xpedition as its implementation partner, to work collaboratively with Fagerhult’s dedicated project team of representatives from each business function. Xpedition’s specialisation in Microsoft Business Central ensured the programme followed best-practice guidance and remained aligned with standard functionality.

Business Central underpins all financial operations, including invoicing, accounts payable and receivable and fixed asset management, providing Fagerhult with a single, integrated system to manage both operational and financial processes.

The system is used by virtually all Fagerhult’s internal teams and supports the entire operational journey from initial sales engagement through to delivery. Sales projects are created in CRM and automatically integrated into Business Central. Sales teams complete all quoting in Business Central, before orders are reviewed by Finance for customer setup and credit checks. Internal sales then manage end-to-end order fulfilment in Business Central. A direct link with Fagerhult’s manufacturing supplier in Sweden via Business Central, further streamlines the process by automatically converting purchase orders into sales orders.

In addition, by integrating third-party applications for automated invoicing and expense management, the business has reduced manual effort, mitigated financial risk and improved time efficiencies.

The flexibility of the Microsoft ecosystem has also opened new opportunities for Fagerhult to innovate. Looking ahead, the modern, API-enabled platform provides the potential to adopt AI-driven tools as the business continues to evolve and invest in new capabilities.

Working with Xpedition

Benefits

Improved visibility and control of orders: The business has real-time visibility and control of the forward-looking order book, enabling more accurate forecasting.

Reduced human error: Automation within job management and order processing has significantly reduced manual handling and human error, improving the overall customer experience.

Lower fixed costs: Fagerhult has reduced headcount while maintaining the same level of output, achieving productivity gains and lower fixed costs, even as turnover continues to grow.

Future-proof platform with regular upgrades: Regular automated updates provide confidence that the business is always running on the latest, best-practice technology, without the risks associated with legacy systems.

Greater confidence in data and reporting: Delivering consistent data flows across Fagerhult’s and the Group’s systems supports more reliable reporting, pipeline management and decision-making in challenging market conditions.

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