The study explores the factors influencing Microsoft Dynamics AX implementation in small- scale textile enterprises in India's rapidly growing market. It identifies three main factors: cost- related aspects, integration with existing systems, and change management. Organizational preparedness is crucial, involving managing customization costs, employee resistance, and training. The effectiveness of MS Dynamics AX in logistics management depends on technological infrastructure and data migration operations. Efficient management of licensing and maintenance expenses, strong communication, and user acceptance can ensure long-term success