Navigating the Modern Challenges with Dynamics 365 Supply Chain Management

As ‘a powerful engine of economic activity’, according to Gartner, supply chain maintains the crucial balance between demand and supply of goods and services. It does so by enabling people to get what they want, at the right time. Any major disruption in this cycle means delayed supply of goods, inability to meet customer demands and increased prices. To put it concisely, the supply chain is the differentiating factor for customer satisfaction in the economic cycle.

Just like the business landscape has dynamically transformed post Covid-19, the supply chain has also faced a major shift. Where supply chains were previously only optimized for cost efficiency, the pandemic brought with it unforeseen shortages which indicated a major lack in supply chain KPIs (Key Performance Indicators). Instead of the conventional KPIs of cost, service and quality, the modern, post-pandemic supply chain had to be measured against the KPIs of risk and agility as well.

A sophisticated and digitized Supply Chain Management (SCM) solution has become the need of the hour, for businesses to stay ahead of their competitors and maintain the balance between the demand and supply of their goods and services.

This blog aims to take you through the focal challenges faced by businesses in managing their supply chains in the current dynamic business landscape. Then this blog will discuss Dynamics 365 as a stellar solution for building and maintaining resilient supply chains and curating a fool proof SCM system that holds the capacity to withstand global and economic crisis.

Focal Challenges in Supply Chain Management

After suffering a major economic collapse in 2020, the global market and core businesses functionalities were altered forever. The nature of challenges faced by supply chains since then has been modern, to say the least. Inflation, world politics, international conflicts and natural disasters are the factors that directly affect the supply chains.

Some modern challenges faced by businesses in supply chain management are:

Volatile Markets: With the rising costs and ongoing international conflicts, the market has become increasingly volatile. Factors like trade wars and shortage of raw materials make it increasingly difficult for businesses to maintain a sturdy supply chain. Production delays, changing customer demand, and price fluctuations turn out to be major disruptors for supply chains that need to be predicted by businesses, well in time, to be able to combat them.

Logistical Issues: International supply chains are spread over vast geographies like major phone manufacturers usually procure raw materials from US, Mongolia, Taiwan, manufacture phone parts in other countries and then get them assembled in China or India. Logistics plays a key role in international supply chains but is often considered to be very unpredictable due to issues like port congestion, changing regulatory compliances, rising fuel costs and even natural disasters. This causes longer lead times for procurement of goods and a high complexity in SCM.

Lack of Supply Chain Visibility: Supply chain visibility is the clear picture of all components of a supply chain, from international and local vendors, raw materials to final manufacturing and delivery of goods to consumers. With globally complex supply chains, it is a huge challenge to maintain visibility in real-time, for businesses. Lack of visibility leads to inefficient allotment of resources and inability of businesses to meet customer demands. It also makes it increasingly difficult for businesses to foresee supply chain disruptions and combat them in time.

Inaccurate Demand Forecasting: The inability of businesses to efficiently meet evolving customer demands and prepare for them accordingly is a major challenge in the supply chain. With multiple factors affecting customer demands, it becomes exceedingly difficult for operations managers to manually predict the seasonal changes in customer demands and manage productions accordingly.

To combat these and other varying supply chain challenges, businesses need a digitized SCM system that employs cutting-edge technologies like AI/ML, IoT and the Cloud, which can help businesses in making their supply chain operations seamless.

Optimized Efficiency with Dynamics 365 Supply Chain Management

Dynamics 365 Supply Chain Management is a sophisticated suite of supply chain management tools that empower businesses to maximize operational efficiency in supply chains by providing cutting edge technologies that enhance visibility and improves efficiency across the entire supply chain. According to Forrester, its implementations bring a 90% ROI over three years.

It empowers businesses by:

• Enhancing manufacturing operations
• Maximizing asset life
• Strengthening warehouse management
• Centralizing inventory management

Key Features of Dynamics 365 Supply Chain Management

Dynamics 365 SCM leverages the power of the latest cutting-edge functionalities to streamline and digitize supply chain management. It empowers the supply chain with operational agility and risk management tendencies, to stay resilient in a turbulent market. It does so with the help of the following key features:

Asset Management
It provides predictive and preventive analysis for assets, to enhance their longevity. It automatically points out if any of the assets, i.e., factory machinery or equipment, needs any form of maintenance. If any problem arises in any of the assets, it promptly provides a solution plan and alternate strategies to prevent any disruptions in the supply chain.

Warehouse Management
The Warehouse Management System (WMS) in Dynamics 365 SCM provides intelligent insights to maximize warehouse optimization. It suggests various layouts for the warehouse to incorporate high and low priority storage needs. It analyzes temperature needs and turnover rates for products and manages available space in an efficient manner. Businesses can optimize their inbound and outbound deliveries with the exceptional WMS capabilities available with Dynamics 365 SCM.

Data-driven Forecastin
Dynamics 365 SCM leverages the capabilities of Artificial Intelligence and Data Analytics to establish enterprise-level predictive and preventive analytics and forecasting. By centralizing your entire supply chain and customer data, SCM empowers operations managers with the integration of Power BI, to drive insights and build smart strategies for supply chain management, production, and inventory. This helps businesses maintain product quality, optimize inventories, and streamline operations.

Stellar Automation Capabilitie
SCM provides top-notch AI-powered automation for manual and repetitive tasks which empowers employees to invest their energies in productive tasks. It also minimizes the chances of manual errors and enhances optimization. This also adds to the supply chain visibility in the form of proper data.

Real-time Information
By updating every aspect of the supply chain operations in real-time, users can be aware of the status of supplies, vendors, production, warehousing, inventory, and be prepared for any unforeseen disruption. Real-time data also keeps the managers feeling confident about their operations and lookout for preventive and predictive assistance. It also enables strategic planning for optimal business efficiency.

Centralized Dashboard
Dynamics 365 Supply Chain Management’s intuitive dashboard efficiently centralizes all the management tools that are provided in the SCM suite. It is easy to learn and includes all product information as well as delivery and manufacturing information. It combines data from various sources and encourages data exploration as well.

Overall, these features and functionalities enable businesses to build supply chain resilience, detect profitable opportunities and increase their competitive advantage.

Employ Dynamics Solution and Technology for Supply Chain Resilience

Supply chain is the cornerstone of modern business operations. Its successful execution denotes business success and profitability. To stand tall in the face of business adversities, it is important for businesses to adapt the best digital SCM tools like Dynamics 365 Supply Chain Management. However, it does not just end at adapting to these tools, it is necessary to choose a trusted implementation partner that works with the best industrial practices and has a team of seasoned experts.

Dynamics Solution and Technology emerges in this competitive landscape as your trusted partner. With our talented pool of implementation and support executives, we have a wide range of digitally transformed clientele in GULF, Mena, and European regions. Our executive status as Microsoft’s Gold and Solutions Partner is an ode to our promise of excellence.

Contact us today and digitally transform your supply chain with our seamless implementation services of Dynamics 365 Supply Chain Management.