Dynamics 365 Finance & Operations is used to manage core business processes across manufacturing organisations, including financials, production planning, inventory management, procurement, and supply chain operations. It helps connect demand forecasting with production and enables better control over quality, compliance, and operational performance.
Donaghys is the kind of business that carries its history with quiet confidence. Founded in 1876 in Dunedin, it has evolved from a local rope maker into a New Zealand company that now reaches into farming, horticulture, aquaculture, and manufacturing, always bringing science, practicality, and Kiwi ingenuity together.
Over nearly 150 years, the company has been through periods of expansion, consolidation, and refocus. What remains constant is the commitment to products that make a real difference on farms and in the field. And today, Donaghys is exactly where it wants to be: a business grounded in its heritage, proud of its craft, and focused on where it creates the most value.
Evolving the systems behind the business
David Beattie has been with Donaghys for more than two decades. As Chief Financial Officer and the person responsible for IT strategy and system decisions, he knows every corner of the business, from production planning to quality control and logistics. He describes Donaghys as a business that has continually refined and strengthened how it works.
So when their long-standing AX ERP system reached its natural limits, the choice was not about replacing something that was broken. It was about ensuring the systems behind the business reflected what Donaghys had become, and where it was heading.
The business had evolved. Our products had evolved. The expectations around quality, governance, regulation, and accreditation had evolved. Our systems needed to evolve with us.”
Over the last 20 years, Donaghys has transformed its product mix, expanded its agricultural range, and built manufacturing processes that require far more control, traceability, and planning precision than in the past. Compliance and accreditation requirements are central to how the business operates, particularly under New Zealand’s Agricultural Compounds and Veterinary Medicines (ACVM) regulations and the Good Manufacturing Practice (GMP) standards they must maintain. Active ingredient management, quality testing, batch accuracy, and multi-stage production are now everyday realities.
They needed a platform that could support the real engine room of the business: forecasting, master planning, production, quality, and compliance.
Choosing a platform fit for the future
When Donaghys reviewed the market, David was clear on one thing. Every leading ERP does finance well. Sending invoices, matching receipts, managing ledgers. That was not where the decision would be made.
What mattered were the parts of the business that sit at the heart of Donaghys operations. Forecasting. Planning. Production. Quality. Compliance. They needed a system that was strong where their business needed depth, not just breadth.
After reviewing several options, Donaghys selected Microsoft Dynamics 365 Finance and Operations, a familiar evolution of their AX platform but significantly more capable in the areas that mattered most:
- Master planning and production sequencing
- Quality controls and mandatory checks
- Procurement and sourcing
- Ingredient and batch management
- Barcode-driven accuracy throughout warehousing
- Cloud resilience and reduced operational risk
They also selected Fusion5 as their implementation partner, based on their experience successfully deploying D365 Finance and Operations for other organisations and their approach to understanding the nuances and unique characteristics of each business.
Together, Fusion5 and Donaghys mapped out a nine-month program of migration, training, testing, and deployment. It was a steady, structured plan designed to move the business forward without unnecessary disruption.
Strengthening the heart of the operation
The shift to D365 Finance and Operations has brought the biggest change to the places where Donaghys feels it most: production control, quality assurance, and day to day operational reliability.
Smarter, safer production
Much stronger governance of formulations and ingredient accuracy now supports production. Barcode scanning ensures the right materials are picked at the right stage, and fewer manual steps mean fewer opportunities for error. This tighter control has reduced the risk of faulty batches, which carries both a financial cost and a compliance cost.
For a business operating under Good Manufacturing Practice (GMP) standards and New Zealand’s ACVM regulations, these safeguards are essential.
Better planning, better decisions
Planning has also improved. Demand signals now flow cleanly into master planning, and production teams have a clearer view of what is coming. Inventory movements are more consistent and traceable, and overall planning accuracy is higher with fewer surprises downstream. The whole end to end process feels more connected.
A more resilient, modern platform
The move to a cloud environment has taken away much of the operational risk that came with on premise servers. Recovery paths and backup processes are clearer, and reporting is now centralised through Fabric and Power BI, so everyone sees the same numbers, at the same time, in the same way.
For David, these benefits are visible, some expected, and others only realised once the business went live.
We did not approach this as a big ROI project. We approached it as choosing the right system for the business we had become. The value shows up in fewer mistakes, stronger control, and far less operational risk.”
Knowledge shared more widely
With D365 Finance and Operations now supporting more parts of the business, Donaghys made a deliberate choice to build a broader group of super users across the teams who rely on the system every day.
Where once deep system knowledge sat with only a few people, it is now spread more widely. Time and effort went into training these super users, so they feel confident, capable, and well equipped to manage their areas without everything needing to flow back through IT or finance.
The system has helped Donaghys build stronger internal capability, not just stronger processes.
A long-standing business with a stronger foundation beneath it
For Donaghys, implementing D365 Finance and Operations was not about revolution. It was a heritage business choosing to evolve its systems with the same quiet confidence it applies to everything else.
A modern platform, carefully implemented.
Quality and planning strengthened.
Operational risk reduced.
Knowledge shared.
And a partnership with Fusion5 built on technical depth, experience, and a genuine understanding of how a manufacturing business runs.
Because when you have been in business for 150 years, you do not reinvent your foundations. You make them stronger.
Our D365 implementation was successful because we partnered with people who knew the platform inside out and took the time to understand our business. Fusion5 did both.”
David Beattie | CFO Donaghys
Tim Way | Content Editor
Tim spends time with tech leaders and customers to understand how transformation really plays out. He turns real-world examples into clear, practical content focused on what changed, what worked, and what others can learn.
Thinking about modernising manufacturing with Dynamics 365 Finance & Operations?
For many organisations, legacy ERP systems struggle to keep pace with the increasing complexity of modern manufacturing. As product mix, compliance requirements, and operational demands evolve, businesses need systems that can support accurate production planning, inventory control, and quality management in a connected and reliable way.
Microsoft Dynamics 365 Finance & Operations is a cloud ERP for manufacturers, supporting manufacturing, supply chain, and financial operations in one environment. As a modern D365 F&O implementation, it helps organisations strengthen their production planning system, improve visibility, support compliance, and reduce manual processes.
Q&A
What is Dynamics 365 Finance & Operations used for in manufacturing?
How does ERP improve production planning and control?
An ERP system improves production planning by linking demand signals to master planning and scheduling processes. This creates a more reliable production planning system, allowing manufacturers to better align inventory, materials, and production capacity with expected demand, reducing inefficiencies and improving accuracy across the production lifecycle.
Why is ERP important for regulated manufacturing environments?
In regulated environments, ERP systems play a critical role in maintaining compliance by supporting traceability, quality control, and auditability. Features such as batch tracking, ingredient management, and enforced quality checkpoints help ensure that products meet regulatory standards such as GMP and ACVM compliance, along with other industry-specific requirements.
What should you look for in a D365 F&O implementation partner?
A D365 F&O implementation partner should bring both technical expertise and industry understanding. This includes experience delivering ERP projects in manufacturing environments, a structured implementation approach, and the ability to understand business processes and adapt the system to fit operational needs. A strong partner helps ensure the system delivers long-term value and supports ongoing improvement.
