Microchip Embraces Digital Transformation for Enhanced Competitiveness & Operational Efficiencies

Microchip logo
Region
USA, North America
Industry
Trade & Distribution
Solutions
D365 BC I D365 Sales I D365 Customer Insights | Power BI | Cosmo DB

Overview

Microchip USA Inc. (Microchip) is a premier independent distributor of board-level electronics, specializing in sourcing of hard-to-find, obsolete, and back-ordered electronic components, including chips and integrated circuits. Serving industries across gaming, AI, automotive, and cryptocurrency sectors, the company sources products from leading manufacturers like AMD, Intel, Texas Instruments, NXP, and Xilinx.

Microchip has built a strong supplier network across geographies, ensuring a reliable and responsive supply chain. However, to unlock growth opportunities in a rapidly evolving digitalfirst environment, the company needed to overcome operational bottlenecks and scalability issues posed by legacy systems.

Alletec played an important role in our digital transformation. They designed a solution, built on the One Microsoft Platform, that effectively addressed our needs across Customer and Vendor Portals, Finance, Supply Chain, Sales, Marketing, and Analytics. This partnership has enabled us to scale inventory, foster innovation, and quickly respond to business requirements.

Neil Marr - Director of Technology, Microchip USA

testimonial

Key Challenges

  • Scalability for Growth: The company aimed to scale its operations to support tens of millions of SKUs, a leap from the current portfolio of hundreds of thousands.
  • Customer Responsiveness: Rapid response times were critical, as customers typically approached Microchip only after exhausting traditional channels.
  • Unlocking New Growth Channels: Diversification from an RFQ-based business model to an eCommerce-driven approach was crucial to tap into new revenue streams.
  • Legacy Systems Limitations: Existing siloed systems for Sales, Marketing, Vendor Management, Finance, and Supply Chain lacked integration, relied heavily on manual processes, and hindered scaling due to performance degradation from excessive customizations.

Solution Highlights

  • Comprehensive Digital Transformation Roadmap: Alletec designed a scalable, integrated solution using the Full-Stack Microsoft Platform, focusing on automation, modern architecture, and seamless data flow.
  • Microsoft Dynamics 365 Integration: Implemented D365 Business Central (ERP) for finance, inventory, and sales management, D365 Sales (CRM) for vendor bidding automation, and D365 Customer Insights for personalized marketing campaigns. 
  • Advanced eCommerce & Vendor Portal: Developed a high-performance eCommerce platform and a self-service vendor portal, ensuring real-time inventory updates, automated order processing, and seamless vendor collaboration. 
  • AI & Data-Driven Insights: Integrated Microsoft Power BI for real-time dashboards and AI-powered analytics to enhance demand forecasting, decision-making, and vendor performance evaluation.

Impact at a Glance

Operational Scalability
offering tens of millions of SKUs
Robust eCommerce platform
Created a new revenue channel
Faster RFQ processing
Boosted satisfaction & competitiveness

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