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.
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
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
Project Summary
| Industry | Manufacturing |
| Employees | 200+ |
| Revenue | £45M |
| Source System | SAP ECC 6.0 |
| Target System | D365 F&SCM |
| Duration | 12 Weeks |
| AI Agents | 5 Deployed |
| Records Migrated | 2.4M+ |
Technologies Used
- Dynamics 365 Finance
- Dynamics 365 Supply Chain Management
- Microsoft Copilot
- Copilot Studio
- Power Automate
- Power BI
- Azure Data Factory