Client Stories

Daiso USA LLC ("Daiso USA") operates a large network of stores across the United States. As the company continued to expand its store count and product lineup, it needed to modernize core operations spanning accounting, inventory, and procurement. Under its previous Dynamics GP environment, the growing number of stores and legal entities had increased the operational burden of accounting and inventory management, and integration with external systems as well as cost calculations required significant manual work and reliance on Excel.

Creating a single consolidated P&L or management accounting reports across multiple entities was also difficult. With further business expansion on the horizon, Daiso USA needed a more scalable ERP platform. While continuing to use Dynamics GP remained an option, the company ultimately decided to migrate to Dynamics 365 Finance & SCM as part of a broader system transformation strategy to support its growth.

SYSCOM built an integrated core system centered on Dynamics 365 Finance & Supply Chain Management, unifying accounting, sales and procurement management, and inventory control. The full migration from the legacy Dynamics GP system took approximately a year and a half. Azure Data Factory was used to connect the new system with POS, WMS, procurement, and inventory management systems through file and API integrations, enabling automated data exchange with external systems and unifying operations across Daiso USA's multiple locations.

Throughout the project, SYSCOM addressed four major challenges by making full use of Dynamics 365's standard functionality and limiting customization to external integration points. This approach helped keep implementation costs and timelines in check while improving the efficiency of ongoing maintenance and operations.

■ Challenges
1. Adhering strictly to a "Fit to Standard" approach, per the client's request, to avoid excessive customization of the core ERP
2. Managing complex data integration across multiple external systems, including POS, procurement, and inventory management
3. Addressing performance challenges specific to a cloud environment when processing large volumes of data
4. The need to rethink business processes themselves, rather than simply carrying over the legacy system's workflows

■ Solutions
・Business process redesign: Business processes were redesigned from the ground up through Fit & Gap analysis and Conference Room Pilots (CRPs)
・Leveraging standard functionality: Dynamics 365's standard features were used as extensively as possible to keep customization to a minimum
・Automated data integration: Azure Data Factory and Data Management capabilities were used to automate file and API integrations
・Phased migration: A phased approach, rather than a single cutover, minimized risk throughout the transition

SYSCOM took an approach focused not simply on migrating systems, but on building an operational foundation with an eye toward the future. Providing on-site support as needed and maintaining close coordination with the client's IT team in Japan proved to be key factors in the project's success.

For example, when testing POS sales data integration, the team visited Daiso USA's personnel in California in person to finalize specifications and accelerate debugging. The system was also designed with scalability in mind, anticipating future store growth as well as the eventual use of Power BI and Power Automate, resulting in a foundation built to support long-term business growth.

Given an environment where end users were based in the United States while decision-makers were based in Japan, SYSCOM's bilingual support enabled smooth communication and fast decision-making. Consultants led the effort to establish standard US operations built on Dynamics 365's core functionality, and by bringing in team members with expertise not only in ERP but also in surrounding technologies like Azure Data Factory and custom coding, SYSCOM addressed the challenge of development work being concentrated around external integrations.

Over the course of the year-and-a-half implementation, Daiso USA achieved significant business outcomes:

SYSCOM continues to provide ongoing maintenance and support, ensuring stable system operations. The frameworks and expertise developed through this US implementation have also been shared across SYSCOM's teams and applied in other regions, leading to additional ERP modernization engagements in other markets.

SYSCOM is a comprehensive IT solutions provider dedicated to delivering the right digital solutions for each client's unique challenges and goals. For ERP modernization projects, SYSCOM provides end-to-end support, from the initial consultation phase, including requirements definition and system selection, through implementation, operations, and maintenance.

In this Daiso USA LLC case, engineers, project managers, and sales team members worked closely together throughout the migration from Dynamics GP to Dynamics 365, driving the project forward with close communication and hands-on support. By grounding the process in a deep understanding of the client's operations, SYSCOM minimized the risk and burden of migration while delivering a core system built for future growth.

Beyond ERP and CRM implementation and migration, SYSCOM offers a wide range of solutions tailored to each stage of a company's growth, including business process automation and data utilization powered by Microsoft Copilot and Power Platform, and AI-driven operational improvements. If your organization is facing challenges with core system modernization or operational improvement, please feel free to reach out to us.