Implementing Microsoft Dynamics 365 Supply Chain Management can increase production capacity by 15%, enhance overall efficiency by 3%, maximise developer productivity by 50%, increase revenue by 5%, and give you a 90% ROI. 

Aren’t these numbers noticeable?

Businesses calculate growth or downfall based on specific numbers. If a business has the above numbers, it grows at a fast pace with outstanding amounts of revenue. 

However, the above data is based on a study appointed by Microsoft in August 2021: - Forrester Total Economic Impact™ Report.

Before understanding the various modules of Dynamics 365 Supply Chain Management, we should discuss the top challenges of supply chain management that businesses are facing globally.

Top Challenges of Supply Chain: Understand the Root Cause of Unbalanced Management

The supply chain is becoming more complex day by day. Businesses have to deal with a lot of such complexity and supply chain challenges to make things work. Based on global business operations, some of the top challenges are given below:


Despite pandemic or war scenarios, customers still want their product delivered on schedule, regardless of the geo-location. This pressurises businesses to maintain fast delivery, irrespective of all odds.

If businesses can control stockouts and overstocks, most of the complexity in the entire supply chain will be eliminated. This will help the businesses fill out the right stock at the right time and at the right place, resulting in reduced costs and enhanced cash flow.

Rapidly Changing Market

The choices of customers are changing, and so are the market demands. You need to analyse the changing market demands, understand the customer, and offer innovative products to align with the changing needs.

You need to consistently put effort into building products to match ever-changing market demands. To deliver products with a shorter life cycle, you need to build a flexible supply chain management system so that you can adapt to the changes with ease.

Boundary Deference 

With each crossing of a boundary, you need to follow a new set of rules to ensure your product is safe and follows all regulatory hurdles. The global supply chain has to cross different regional, national, and international standards while packing, handling, manufacturing, and shipping a product. 

To process all orders on schedule, you need to assure all regulatory compliance by getting permits, certificates, and licences from the respected authority. 

Fluctuating Costing 

The cost of the supply chain is increasing as the cost of labour, raw materials, and energy increases, resulting in an increased cost of each product. To offer quality products at cost-effective prices, the supply chain process must be optimised to lower the overall cost of each product. 

Businesses have to build some strategies to reduce the cost of the overall supply chain by efficiently monitoring all information in real-time and enhancing warehouse efficiency. 

Quality Customer Service 

Offering a great customer experience is one of the essential keys to building a successful business with minimal resources. When you start to offer the right number of products with optimum quality, you will start offering the best customer experience to all your customers. 

Delivering products on time, offering good quality, and offering global delivery are some of the top factors in offering great customer service.  

What is Dynamics 365 Supply Chain Management? 

Microsoft Dynamics 365 Supply Chain Management is a complete solution to achieve and sustain operational excellence while ensuring operational success, agile distribution, and smooth manufacturing. 

With embedded AI and other modern technologies, it can help you establish a resilient supply chain that is able to adapt and operate quickly. Businesses use this solution to automate most of their processes with standard real-time data requirements. 

You can also estimate product demand using AI and stock up based on priority. It lets you minimise the risks of overstocks and stockouts while also availing of a centralised price management system. 

With different Dynamics 365 Supply Chain Modules, you can streamline the entire procurement process by managing portals for supplier collaboration. Even so, you leverage the power of AI, BI, and IoT to build a sustainable manufacturing process. 

Earlier known as Dynamics 365 Finance and Operations, the D365 Supply Chain Management system automates most of the recurring and manual warehouse operations while optimising stocks. 

The proper utilisation of this powerful solution empowers modern enterprises to optimise their operational flow, increase their resource utilisation, and drive profitability with improved visibility in real-time and built-in AI efficiency. 

Dynamics 365 Supply Chain Management Capabilities 

Being a powerful, agile, and effective solution, it offers various capabilities for all businesses, regardless of size. Some of the major capabilities are given below: 

Centralised System 

The Microsoft Dynamics 365 Supply Chain Management solution lets you manage all data centrally, including product information, for global business operations. 

It enables the employees to communicate, cooperate, and share plans to improve the manufacturing process while reducing costs. 

With AI-based process flow forecast reports, you can easily manage your product revisions, fix product quality issues quickly, and speed up time to market. 

Bring Agility to Operations 

D365 Supply Chain Management uses AI insights to plan and forecast demand for better sales and operational performance. It ensures the business delivers and drives on-demand customer satisfaction in real-time with collected data. 

With data automation, this supply chain solution helps prioritise and manage restocking for popular products. 

It has different modules that are designed to efficiently automate the resource allocation and scheduling processes. Also, you can proactively monitor and maintain your equipment to prevent your operational efficiency from being affected at any level. 

Optimise Inventory & Logistics 

Optimising inventory is vital for all businesses. With Dynamics 365 Supply Chain Management (Dynamics 365 ERP) features, you can enhance inventory visibility across all locations with real-time data insights. This can streamline your whole production flow while ensuring accurate fulfilment. 

It enables the business to smoothly connect and collaborate with vendors and direct & indirect suppliers to maximise efficiency. D365 Supply Chain Management has cost estimation that can help you use customizable templates for maximum profitability. 

Dynamics 365 Supply Chain implementation (Microsoft ERP) helps to drive integrated warehousing management and workforce planning with a seamless inventory flow. You can easily track warehousing performance and quickly scale your distribution capabilities to ensure business continuity, even in remote locations. 

AI-Embedded Manufacturing

Effectively manage your shop floor with the help of real-time data analytics. It lets you get a complete view of your whole production, along with precise insights to improve the quality level.

It proactively lets you manage your manufacturing & distribution processes and ensure continuity in your production. Implementing Dynamics 365 Supply Chain can help you enhance safety levels during your operations and reduce manual errors to empower your workforce.

Also, you can enhance the capabilities of the D365 SCM manufacturing module by integrating Microsoft native applications that include the suite of Microsoft D365 applications, Power Platform (Power BI and Power Apps), and Microsoft Office. 

Maximised Asset Uptime

Stay updated with the real-time status of your equipment's performance, stocks, and timely maintenance to avoid system downtime or failure. With built-in AI capabilities, optimise machine scheduling and enable maintenance of remotely located equipment. 

It can even enable field service executives to integrate the D365 SCM with Dynamics 365 Field Service. It lets you establish a smooth connection between your in-house employees and field executives to ensure collaborative performance while satisfying the customers at their locations. 

Why Should you Implement Microsoft Dynamics 365 Supply Chain Management? 

The D365 Supply Chain Management solution is a powerful yet cost-effective solution that can streamline your entire business, from purchasing raw materials to shipping quality products to customers. 

Implementing this solution will help you accelerate core supply chain operations while adhering to simplicity. As per market standards, Microsoft has justified Dynamics 365 Supply Chain Management pricing and licencing for all businesses. 

If you are not sure whether to opt for this solution or not, you can also avail of the Dynamics 365 Supply Chain Management trial to check its capabilities based on your business needs. 

Maybe you are facing any kind of issue while understanding the pricing or availing of the free trial. If so, feel free to contact Dynamics Square, a business-centric Microsoft Solutions Partner. We have been offering our cost-effective and reliable services to all businesses, helping them grow and scale at a faster pace. 

See other post Power BI implementation

Kapil Jangid

Kapil Jangid is a Digital Marketing expert with an aim of uplifting businesses through cloud-based software as a service (SaaS). He has more than 8+ years of experience working with numerous SaaS companies, driving brand awareness, and enhancing revenue opportunities.


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