What is supply chain management in Dynamics 365?

One of the most popular ERP systems, Microsoft Dynamics 365 was transformed into a set of two separate applications for finance and supply chain management (SCM). Although they are available separately, they can also be implemented together.

Here, you will find the areas covered by the app dedicated to SCM and the functionality it provides.

Goal of Microsoft Dynamics 365 Supply Chain Management

The app for SCM designed by Microsoft aims to increase the competitiveness of enterprises through the optimization of supply chain, production and warehouse management. This element defines the quality of services and goods offered by companies and has profound significance for customer satisfaction.

Microsoft Dynamics 365 Supply Chain Management helps to increase the speed and accuracy of designing and manufacturing products and makes procurement, production and retailing more cost-effective. In addition, it takes care of logistics augmentation.

SCM Functionality

This Microsoft application can solve a number of core tasks of supply chain and production management.

It has powerful financial tools for cost accounting and management. Due to its Master Planning feature, companies can accurately calculate production requirements and compare them to the existing capacities. This is powerful for assisting sourcing and procurement as well as inventory management.

Microsoft Dynamics 365 Supply Chain Management also supports production control and asset management to enhance quality and reduce downtime. Its capabilities include service and product information management as well as monitoring the warehouse’s condition.

The application for SCM also has effective functionality for logistics and transportation.

SCM can be enhanced by other applications provided by Microsoft. For instance, Sales and Marketing solution will store the relationships with customers who have purchased your goods or used your services, perform marketplace analysis, conduct marketing campaigns and assist you in developing marketing plans.

Cutting-Edge Technologies to Support SCM

Microsoft Dynamics 365 is fueled by artificial intelligence and its application for SCM is not an exception. Power BI and artificial intelligence are invaluable tools for forecasting, which is an essential part of a successful supply chain. They carefully analyze your data and predict the demand for your goods or services as well as your company’s ability to satisfy it.

The Internet of Things (IoT) is a powerful technology connecting machinery, equipment and your ERP system. With its help, you can keep a track of your equipment whether it is used on the production floor or utilized for field services. This feature is highly helpful for improving your conservation routine.

Another example of an application of the IoT in Microsoft Dynamics 365 Supply Chain Management is logistics and transportation optimization. For instance, it can be used for smart routing and dynamic readjustment to changing delivery requirements. Furthermore, similarly to asset maintenance, you can manage the conservation routine of your vehicles better and prevent severe and costly damage.

Flexibility of Microsoft Dynamics 365 Supply Chain Management

As mentioned above, companies have a choice of deploying FSCM applications with one implementation or separately. Yet, it is not the end of the flexibility of this software.

It has a convenient licensing plan that allows companies to adjust the costs to the exact business needs. Instead of an annual subscription for the complete functionality of the ERP system, the payments are monthly and depend on the number of users. This means, adding or resigning from users affects the licensing costs.

Moreover, the price you will pay for each user will differ, too. Users with the least access to Microsoft Dynamics 365 will generate the lowest expenses.

This payment approach makes the supply chain management application highly scalable, adaptable to real-world business scenarios and creates more possibilities for saving.

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