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What is Dynamics 365 Supply Chain Management? Features and Capabilities

#DrivingExpertLedTransformation
Dynamics 365 Supply Chain
Neha Bhagat
Senior Director – Microsoft Dynamics (Practice Head)
November 28, 2023

Table of Content

What is Dynamics 365 Supply Chain Management?

Dynamics 365 Supply Chain Management is an entirely cloud-based ERP system that integrates end-to-end supply chain processes, planning, procurement, manufacturing, warehousing, asset management, and transportation with AI, IoT, and real-time visibility to drive efficiency, resilience, and agility.
It’s hardly unexpected that inefficient supply chains can impose significant costs on your business, affecting expense management, customer service, supplier relationships, and risk management. Many organizations, however, lack the necessary visibility and control over their supply chains to identify and address these issues. So, what steps can be taken to address this challenge?
The starting point involves making the right technological investments.

Technology Can Enhance the Efficiency of Your Supply Chain

Today, there is a growing demand for tightly integrated business applications. Digital solutions significantly influence the functionality of your supply chain, and the selection of your ERP system should not be underestimated. For instance, Microsoft Dynamics 365 provides D365 Supply Chain Management, empowering your business to efficiently optimize its supply chain operations.

Key Features of Dynamics 365 Supply Chain Management

Let’s discuss Dynamics 365 supply chain management features:
  • Strategic planning, predictive forecasting, and inventory control: Utilize AI to anticipate demand and employ priority-based supply planning in nearly real-time for improved inventory management, effectively eliminating both stockouts and overstocking.
  • Acquisition and sourcing: Enhance procurement operations and optimize cost control by leveraging vendor collaboration and advanced analytics to mitigate shortages of critical components.
  • Production and shop floor supervision: Establish adaptable manufacturing procedures by leveraging the Internet of Things (IoT) and mixed reality technologies, all while seamlessly integrating with your current manufacturing execution systems (MES).
  • Enhance order fulfillment to ensure punctual deliveries: Utilize delivery alternatives, including on-hand inventory and future availability data, to make informed decisions about the optimal fulfillment location, ensuring both punctuality and sustainability in deliveries.
  • Improved warehouse management: Dynamics 365 Supply Chain Management encompasses more than just inventory and logistics. It necessitates solutions that extend beyond these aspects. Utilize machine learning models for rapid identification of out-of-stock or overstock scenarios to enhance stock management effectively.
  • Optimize asset uptime and expedite time-to-market: Leverage Microsoft Dynamics 365 Supply Chain Management to harness the capabilities of AI and IoT intelligence for automating manufacturing operations, decreasing machine downtime, and expediting product time-to-market.
  • Automation to streamline your supply chain: By incorporating predictive analytics, businesses can elevate their supply chain operations. Microsof Dynamics 365 Supply Chain Management offers automation for essential SCM functions like fulfillment, material sourcing, and logistics processes, resulting in improved planning and product delivery.
  • Comprehensive Visibility and Analytical Insights: Microsoft Dynamics 365, equipped with cutting-edge analytics and real-time data functionalities, delivers all-encompassing transparency throughout the complete supply chain. By integrating every facet of the supply chain, from procurement to warehousing, manufacturing to distribution, Dynamics 365 empowers businesses to oversee and manage all supply chain operations. This holistic perspective is complemented by advanced analytics that produce actionable intelligence, facilitating the detection of bottlenecks, anticipation of potential disruptions, and the optimization of processes for heightened efficiency.
  • Smart factory capabilities: Leverage Sensor Data Intelligence to digitally transform your supply chain using IoT devices, sensors, and data signals to monitor essential checkpoints within the supply chain. Enhance predictability, reduce manual data entry, enable remote monitoring, shift to paperless operations, and boost production uptime. The analytics empower proactive management of your business processes, shifting from a reactive approach.
  • Versatile Manufacturing Support: Dynamics 365 Supply Chain Management provides automation and seamless IoT system integration, catering to various manufacturing processes, including discrete, lean, process, and mixed-mode manufacturing. Furthermore, it enhances capacity planning through a combination of demand forecasting and real-time adaptable resource management, ensuring efficient manufacturing operations.
  • Efficient Purchase Order Management with AI-Driven Insights: Dynamics 365 Supply Chain Management's Copilot and AI advancements empower users to effectively manage substantial quantities of purchase order modifications, evaluate their consequences, and enhance sourcing choices. It offers summarized insights into purchase order adjustments, driven by generative AI, to facilitate more informed decision-making.
  • Mobile Business Management with Cloud: Access up-to-the-minute data from any device, simplify alterations in business processes, facilitate integration with legacy systems, ensure worldwide compliance, effortlessly adjust your capacity, and effectively oversee your business while on the move.

Benefits of Implementing Dynamics 365 SCM

Microsoft Dynamics 365 Supply Chain Management implementation empowers organizations with quantifiable gains in their operations throughout the value chain.

Enhanced Forecasting Accuracy

With demand planning using AI, companies can better forecast sales patterns and design production accordingly.

Lower Stock-Outs

Real-time inventory monitoring supports the optimal levels of stock, avoiding lost sales from unavailability.

Improved Vendor Coordination

Integrated supplier collaboration capabilities enhance communication and automate procurement cycles.

Streamlined Logistics and Fulfillment

Better warehouse and transportation management expedites deliveries and reduces logistics expenses.

Dynamics 365 SCM for Warehouse and Inventory Management

Dynamics 365 SCM caters to sophisticated, multi-warehouse operations with centralized management of stock levels and locations. It automates the movement of stock, optimizes replenishment, and supports mobile barcode scanning for enhanced accuracy and speed, making it perfect for distribution-intensive industries that demand agility, accuracy, and real-time control of inventory.

Real-Time Visibility & Analytics Across the Supply Chain

With native Power BI, IoT data integration, and embedded analytics, the platform gives real-time insights into procurement, production, and fulfillment. These features wipe out blind spots, improve responsiveness, and empower decision-makers with actionable intelligence to take proactive control of disruptions and optimize supply chain performance.

Integration Capabilities with Finance, Sales & Production Modules

Dynamics 365 SCM integrates natively with Finance, Sales, and Manufacturing modules to form one combined system that aligns operations, budgets, and demand planning. It allows end-to-end visibility and unified workflows, eliminating duplication, enhancing cross-functional alignment, and speeding up business results across the entire enterprise continuum.

Industry Use Cases for Dynamics 365 SCM

Industry Key Benefits
Manufacturing
Improves shop floor automation, asset management, and production planning. Facilitates just-in-time production, waste reduction, and order accuracy.
Retail
Centralizes stock, automates restocking, and enables omnichannel fulfillment. Supports faster delivery, reduced carrying costs, and demand responsiveness.
Healthcare
Controls medical inventory, rationalizes procurement, and maintains compliance. Avoids stockouts, monitors expiration dates, and aligns supply with patient care needs.

Dynamics 365 SCM vs. Other ERP Supply Chain Tools

ERP Solution Strengths for Mid-Sized Enterprises Considerations
Dynamics 365 SCM
Seamless integration with the Microsoft ecosystem, modular deployment, real-time insights via Power Platform, ideal for scaling operations.
May require additional Microsoft licenses for full functionality.
Oracle NetSuite
Cloud-native with strong financials and decent SCM capabilities for smaller businesses.
Limited manufacturing depth; customization can become complex as needs grow.
SAP S/4HANA
Robust global supply chain features, strong for large enterprise use cases.
High implementation cost and complexity may not suit mid-sized budgets.
Infor Cloud Suite
Industry-specific capabilities, good UX, and cloud flexibility.
Less ecosystem breadth compared to Microsoft or SAP; integration with other tools may need customization.

Cloud vs. On-Premise Deployment Options

Organizations considering supply chain solutions need to account for deployment flexibility according to their business requirements and IT plan. Cloud SCM has considerable benefits, such as automatic software updates, high scalability, and reduced infrastructure costs. It allows for rapid implementation, remote accessibility, and easy integration with contemporary analytics and AI tools. For mid-size companies planning growth or modernization, cloud deployment is usually the more flexible option.
Still, on-premises deployment might be applicable for firms operating in highly regulated sectors or having stringent data residency needs. It encompasses greater management of infrastructure and customizability, at a higher IT expense and with an innovation lag.

Why Korcomptenz?

Korcomptenz, recognized as a Microsoft Gold Partner, provides comprehensive and budget-friendly ERP solutions, including Dynamics 365 supply chain optimization services aimed at expediting business processes, deriving valuable business insights, and driving digital transformation.

Our supply chain optimization solution empowers organizations to enhance the transparency, efficiency, and resilience of their supply chain operations. With Korcomptenz, you can harness these benefits and beyond by customizing a unique SCM system tailored to your specific business requirements. Our supply chain optimization solutions cater to diverse industries, including manufacturing, retail, eCommerce, and logistics. We offer a wide array of services, encompassing implementation, management, advisory, consultancy, upgrades, system integration, and ongoing support. Reach out for a consultation today.

How to Get Started with Microsoft Dynamics 365 Supply Chain Management?

Starting with Dynamics 365 Supply Chain Management starts with a solid definition of your operational requirements. Begin by performing an extensive needs assessment to establish gaps and priorities. Then, select a reputable Microsoft implementation partner with industry specialization and a history of successful deployments. Start with a pilot deployment to validate functionality within a test environment, obtain feedback, and develop configurations. Once proven, follow with a phased mass rollout to reduce disruption. Lastly, invest in change management and user training to allow for easy adoption and ultimate success throughout your organization.
Dynamic-Knowledge-Base

    FAQs on Dynamics 365 Supply Chain Management

    Dynamics 365 Supply Chain Management uses AI for several functions. This involves
    predicting demand and performing priority-based supply planning in real-time. This helps in
    managing inventory by handling stockouts and overstocking situations.

    Dynamics 365 complements procurement operations with the assistance of seller
    collaborations and advanced analytics. This manner reduces shortages of important
    components for an efficient delivery chain system.

    Dynamics 365 combines IoT and mixed reality technologies to orchestrate flexible
    manufacturing processes. It can integrate with existing manufacturing execution systems
    (MES) to provide shop floor monitoring solutions.

    Automation in Dynamics 365 streamlines essential supply chain functions like fulfillment,
    material sourcing, and logistics processes through predictive analytics. This leads to
    improved planning, faster product delivery, and enhanced supply chain operations.

    Dynamics 365 is equipped with cutting-edge analytics and real-time data functionalities. It
    delivers comprehensive transparency throughout the supply chain. This integration facilitates
    the detection of bottlenecks, anticipates potential disruptions, and optimizes processes for
    increased efficiency.

    Sensor Data Intelligence is a smart factory capability of Dynamics 365. It helps transform the
    supply chain digitally using IoT devices, sensors, and data signals. This enhances
    predictability, reduces manual data entry, and enables remote monitoring. The same
    process enables shifts to paperless operations and boosts production uptime.

    Dynamics 365 supports discrete, lean, process, and mixed-mode manufacturing by providing
    automation and IoT system integration. It enhances capacity planning through demand
    forecasting and real-time adaptable resource management for efficient manufacturing
    operations.

    Korcomptenz offers budget-friendly ERP solutions, including Dynamics 365 supply chain
    management services. Our team provides implementation, management, advisory,
    consultancy, upgrades, system integration, and ongoing support for specific business
    requirements. This helps enhance transparency, efficiency, and resilience across all supply
    chain operations.

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