Case Study: Sodexo achieves measurable supply chain cost reduction and lower ERP TCO with Avanade's Microsoft Dynamics AX

Proven supply chain cost reduction at Sodexo with Dynamics AX

Sodexo, a global leader in quality-of-life services operating in 80 countries with over 420,000 employees and €18bn in annual revenue, faced a fragmented ERP landscape after years of growth and acquisitions. Its centralized SAP system was too complex and costly for many remote and smaller sites, leaving Sodexo with poor integration, limited visibility, inconsistent processes, high supply-chain costs, and an urgent need to reduce total cost of ownership by consolidating systems down to two tiers.

Avanade implemented a two‑tier ERP approach—retaining SAP for core functions while deploying Microsoft Dynamics AX as a localized, cost‑effective solution for smaller and remote sites—using a reusable “core model” and roll‑out kit. The rollout covered 20+ countries and thousands of users, cutting run costs by up to 25% like‑for‑like, delivering an indicative ~2% reduction in supply‑chain costs (translating to multi‑million dollar savings given food is 35% of cost of sales), achieving SAP‑level cost‑per‑user, faster deployments, fewer change requests, and improved spend and vendor visibility.

Sodexo

Vincent Ribet

VP Business Coordination and Engagement Large Projects