SAP to Dynamics 365 Migration Case Study

A UK precision manufacturing company with 200+ employees and £45M annual revenue migrated from SAP ECC 6.0 to Dynamics 365 Finance & Supply Chain Management -- on time, on budget, with zero business disruption.

30% Total Cost Reduction
92% Process Automation
12 Weeks Total Delivery Time
Zero Business Disruption

The Challenge

The client was running SAP ECC 6.0 with extensive customisations built over 15 years. With SAP's 2027 end-of-support deadline approaching, the annual licence and maintenance costs had become unsustainable at over £350,000 per year. Key challenges included:

  • Over 200 custom ABAP reports that needed to be replicated or replaced
  • Complex manufacturing processes including batch production, quality management, and lot traceability
  • Integration with 8 third-party systems including MES, WMS, and EDI
  • Zero tolerance for production downtime during migration
  • Tight 12-week deadline to align with fiscal year-end

Before: SAP ECC 6.0 Legacy

Annual Licence Cost£350K+
Custom ABAP Reports200+
Month-End Close8 days
Inventory Accuracy91%
8
3rd Party Integrations
15 yr
Legacy Customisation

The Solution

Pargesoft deployed its Agentic Migration methodology, using AI to accelerate every phase of the project:

  • AI Data Mapping: Machine learning models analysed SAP data structures and automatically mapped them to D365 entities, reducing manual mapping from 6 weeks to 5 days.
  • Automated Testing: AI-generated test scripts covered 97% of business scenarios, with continuous regression testing throughout migration.
  • Parallel Running: Both systems ran simultaneously for 3 weeks with AI agents reconciling transactions in real time.
  • Agent Deployment: 5 AI agents deployed at go-live: invoice processing, demand forecasting, quality alerting, inventory optimisation, and vendor performance monitoring.

The Results

Within 90 days of go-live, the client achieved measurable results across every dimension:

  • 30% cost reduction in total ERP operating costs, saving over £105,000 annually
  • 92% of manual processes automated through AI agents and Power Automate flows
  • Month-end close reduced from 8 days to 2 days with AI-assisted reconciliation
  • Inventory accuracy improved from 91% to 99.2% with real-time tracking
  • Zero production downtime during the entire migration and cutover process

After: D365 Finance & SCM

ERP Cost
£350K
-30%
Month-End Close
8 days
2 days
Inventory Accuracy
91%
99.2%
Process Automation
Manual
92%
Downtime
Risk
Zero
2.4M+
Records Migrated
12 wk
Total Delivery
5 AI agents live from day one

Project Summary

IndustryManufacturing
Employees200+
Revenue£45M
Source SystemSAP ECC 6.0
Target SystemD365 F&SCM
Duration12 Weeks
AI Agents5 Deployed
Records Migrated2.4M+

Technologies Used

  • Dynamics 365 Finance
  • Dynamics 365 Supply Chain Management
  • Microsoft Copilot
  • Copilot Studio
  • Power Automate
  • Power BI
  • Azure Data Factory

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