Manufacturers can no longer rely on traditional methods to manage supply chains but a sophisticated Supply Chain ERP System. In this digital era where everyone is using technology to their benefit, it becomes mandatory to stay on the latest technology for optimizing supply chains.
A supply chain consists of planning, sourcing raw materials, manufacturing, delivery, and returns. Planning is the primary aspect of supply chain management and then comes raw material sourcing. Both contribute majorly to adding or cutting costs. Without a legit plan, raw material sourcing can cause issues like excessive costs, overstocking, and understocking. Furthermore, a lack of proper raw material sourcing, planning can be disturbed as well. Microsoft Dynamics 365 for Supply Chain helps tackle challenges like:
- Lack of demand forecasting leading to stocking problems: overstocking and understocking.
- Poor business insights lead to poor strategies.
- Sudden change in customer demands causes running out of a particular inventory.
- Material scarcity fosters raw material sourcing.
- Poor vendor management and insufficient documentation.
Dynamics 365 Supply Chain Management for Planning and Raw Material Sourcing
Dynamics 365 Supply Chain ERP System enables businesses to get a centralized view on the warehouse, inventory, manufacturing, services, and logistics using predictive analysis which converts information into business insights while helping businesses to reach their goals via the most efficient routes.
Priority Based Planning
One of the greatest challenges that manufacturers have to come across is when multiple orders for the same item are in front of them, and they lack stocks on hand to fulfill every demand. Management plays a key role in this. However, it is often hard to decide which store or center should be filled and in what order? While guesswork can lead to adverse repercussions.
It might be easy to manually review and allot accordingly. However, it still lacks a systematic process to automate these decisions. Hence, a systematic and automated approach is required. Planning Optimization helps with master planning for manufacturers. The priority-based planning feature can ensure the configuration of optimal replenishment based on priority, not dates. This way businesses can boost their service levels, cut on-hand inventory and optimally prioritize replenishment orders in their supply chain. Therefore, enabling fulfilling more important demands first.
The Supply Chain ERP System calculates inventory levels for minimum, reorder, maximum, and projected on-hand which consists of planned receipts and distributions. The data is then utilized to compare more important orders throughout locations and products.
The organization can perform the following with Dynamics 365:
- Calculate, default or edit manually on planning priorities.
- Sets reorder point parameters and help check handle replenishment.
- Uses planning ranges to spit and optimize allocation.
- The firming group planned orders.
- Apply planning priority capabilities to intercompany ordering.
Predictive Insights for Demand Forecasting
This Supply Chain ERP System uses Power BI to get demand forecasts. It calculates historical data from different points and generates a report on forthcoming demands. This is one of the crucial functions that support effective decision-making. The raw material is sourced in accordance with demands. It becomes a lot easier to allocate them according to the right store or center. Predictive insights prevent understocking and overstocking as well as spending on unnecessary items.
Dynamics 365 uses valuation methods of the user’s choice to evaluate and account for costs of raw material. It helps improve product costing by assessing the cost ramifications of your items. The user can handle manufacturing accounting and inventory accounting within a single application.
Quick and Easy Vendor Collaboration
The Vendor Collaboration Interface in Dynamics 365 Supply Chain Management facilitates vendors to confirm orders and request quotes. They can also view and modify typical company data with circumscribed exposure to information about orders, invoices, etc.
Dynamics 365 Supply Chain Management Software is a robust and assemblable ERP in Logistics and Supply Chain solutions that transform your company’s productivity. It facilitates retailers, manufacturers, and distributors to form an interconnected, digital, and resilient supply chain management with enhanced operational visibility, boosting planning agility and maximizing asset uptime. It extracts data from almost any source and creates real-time reports by leveraging AI and Machine Learning. It also detects opportunities. If you’re looking for a Supply Chain Management Service Provider, contact Trident Information Systems. We are a Gold Microsoft Dynamics 365 Implementation Partner.