Supply chain

management
Table of
contents

Introduction

Transition to Cloud

Operational innovation

Technology modernization

Adaptable implementation

Next steps
INTRODUCTION

Do your systems
enable supply chain
innovation?
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Data & AI

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The world’s connected AI business cloud
Sales

Marketing Human Resources

Service Finance

Commerce Operations

Dynamics 365 & Power Platform

CONCERNS AND CONSIDERATIONS

Supporting modern
supply chain
management
Key considerations for delivering
modern supply chain management

Do you have a centralized supply chain

management solution that can deliver
insights in real time?

Do you have the technology and tools you

need to support your business?

Do you use analytics to predict issues

and provide proactive solutions?
Better tools for modern supply chain management

79% >30% 40%

of companies already use Internet of industrial manufacturers use sensors

of operational warehouse workers will
of Things (IoT) technologies to and other digital technologies to
be supplemented— not replaced—by
improve their operations by tracking monitor products sold to their
collaborative robots by 2030.
customers, products, and supply customers.
chains.
Typical supply chain management concerns

Lack of real-time Difficulty meeting customer Limited flexibility to add

intelligence and expectations, demands, and new and innovative
insights timelines capabilities
A focused approach to modern supply chain management

Operational
innovation
Automate and streamline supply
chain management with predictive
insights that proactively respond to
your business’ demands.
Technology
modernization
Stay ahead of the competition with
modern, unified, intelligent, and
adaptable tools and technologies
that match your business’ needs.
Microsoft ecosystem supporting intelligent supply chain management
CUSTOMERS SUPPLIERS PRODUCTION
CHANNELS &
STAKEHOLDERS
DEVICES INTERNET PHONE CHAT IN PERSON IOT
AZURE IOT HUB
DYNAMICS 365 SUPPLY CHAIN MANAGEMENT
CUSTOMER ORDER QUOTE TO ORDER

RETURNS MANAGEMENT
FULFILLMENT TRADE AGREEMENTS PICKING & PACKING INVOICING
MANAGEMENT

INVENTORY

INTERCOMPANY ORDERS & FULFILLMENT

PRODUCT
MANAGEMENT PRODUCT PRODUCT COST INVENTORY BOM ITEM
INNOVATION
OPERATIONAL

(PRODUCT CONFIGURATIO
RELEASE ANALYSIS VALUATION MANAGEMENT MOVEMENTS
MANAGER) N

IOT INTELLIGENCE
ANALYTICS & REPORTING

EXPENSE MANAGEMENT

ASSET MANAGEMENT

HUMAN RESOURCES
PROCUREMENT PURCHASE ORDER VENDOR PORTAL CATALOG
(PURCHASER) RFQs
AGREEMENTS MANAGEMENT MANAGEMENT MANAGEMENT

BUDGETING
WAREHOUSE SITES & INBOUND & PACKING & REPLENISHMENT
CYCLIC COUNTING
(MANAGEMENT) WAREHOUSES OUTBOUND CONTAINERIZATION PLANNING

PRODUCTION
(SUPERVISOR/ BASIS (DISCRETE, OPERATIONS & PLANNING TIME & QUALITY
MACHINE MES
PROCESS, LEAN) ROUTING SERVICE ATTENDENCE CONTROL
OPERATOR)

TRANSPORT
LOAD WORKBENCH ROUTING TRANSPORT TENDERS FREIGHT BILLING
(SUPERVISOR)

USER MANAGEMENT APPLICATION MANAGEMENT

Dynamics 365 SCM / Azure AD Lifecycle Services INTEGRATION
MODERNIZATION
TECHNOLOGY

SDK | AppSource | Data Management Suite | Power Platform

CLIENTS
ADMINISTRATION Scalable Mobile AUTOMATION Business Events | Power Automate | LogicApps | ChatBot
Options | Web

DATA Common Data Service | Azure Data Lake | Azure SQL | Key Vault | AI VISUALIZATION Power BI | Financial Reporting | Excel
Dynamics 365 provides the foundation to optimize supply
chain management

Operational innovation Technology modernization

Optimize fulfillment by synchronizing information Automate business processes across Dynamics 365
across logistics, sales, and purchase management. solutions to create a unified user experience.

Streamline the procurement process and get deep Build and deploy scalable web and mobile client
visibility into product inventory. apps.

Accelerate product delivery with advanced Move toward a modern approach by infusing IoT
transportation and warehouse management. and mixed reality.

Implement a unified and intelligent production lifecycle. Enable effective business processes with unified
apps and data.
 Optimize fulfilment by
synchronizing information across
logistics, sales, and purchase
management.

Streamline the procurement process

and get deep visibility into product
inventory.

Accelerate product delivery using

advanced transportation and
warehouse management.

Operational Implement a unified and intelligent

production lifecycle that covers

innovation
planning, scheduling, operations,
and management.
Traditional manufacturing – doesn’t have a digital feedback loop

Inbound/Outbound Logistics Warehousing Manufacturing Execution System

DIGITAL Manage Distributed Orders Manage Distributed Inventory Manage MRO and WIP inventories
HOTSPOTS Optimize transportation and routing Manage capacity and consumption Manage production and maintenance
Monitor supply chain performance Monitor inventory lifecycle Remotely monitor and control
 OPERATIONAL
INNOVATION

Optimize fulfillment by synchronizing

information across logistics, sales, and purchase
management.

Fulfillment Vendor management Enhanced transportation

optimization and collaboration for inbound and
outbound orders
 OPERATIONAL
INNOVATION

Optimize fulfillment by synchronizing

information across logistics, sales,
and purchase management.

Fulfillment optimization
• Reduce the risk of items going out of stock with backup
inventory.
• Optimize minimum stock levels to adapt seasonal or
periodic demand shifts
• Synchronize intercompany sales and purchase orders as
well as fulfilment of sales and purchase agreements.
• Improve efficiency with Increased visibility and insight into
supply chain
 OPERATIONAL
INNOVATION

Optimize fulfillment by synchronizing

information across logistics, sales,
and purchase management.

Vendor management
and collaboration
• Collaborate with external vendors using a vendor
collaboration interface that displays information about
purchase orders, invoices, and consignment stock.
• Set up a workflow to provision new interface users and
manage their security roles.
• Use the vendor collaboration mobile workspace to help
vendors stay informed on purchase order statuses and
respond easily to orders that are awaiting approval.
• Retain records of all collaboration actions for vendor
performance evaluations and auditing purposes.
 OPERATIONAL
INNOVATION

Optimize fulfillment by synchronizing

information across logistics, sales,
and purchase management.

Enhanced transportation for

inbound and outbound
orders
• Identify vendor and routing solutions for inbound and
outbound orders, such as the fastest route or the least
expensive shipment rate.
• Use the transportation management engine to calculate
tasks, such as the carrier transportation rate or mileage
engine.
• Use analyzed data to make informed decisions that directly
and indirectly impact delivery time and shipment accuracy.
• Get role-based access and real-time visibility from
procurement, warehousing, and production scheduling
managers as well as supply chain and transportation staff.
 OPERATIONAL
INNOVATION

Streamline the procurement process and get

deep visibility into product inventory.

Inventory Product Procurement Advanced inventory

management configuration management management
capabilities capabilities
 OPERATIONAL
INNOVATION

Streamline the procurement process

and get deep visibility into product
inventory.

Inventory management
• Get comprehensive inventory management with inbound
and outbound inventory operations, quality assurance, and
better inventory control.
• View the arrival overview page for updates on expected
incoming items.
• Use output orders to link sales order and transfer order
lines with outbound picking processes.
• Stay updated on physical inventory transactions.
• Guarantee high quality products with quality assurance
measures that involve product testing and nonconforming
material management.
 OPERATIONAL
INNOVATION

Streamline the procurement process

and get deep visibility into product
inventory.

Product configuration
capabilities
• Get a visual overview of the product configuration model
structure.
• Choose the best way to enter your product reference data
with flexibility that meets your business’ needs.
• Take an alternative approach by first creating the model
and then adding reference data as the need arises.
• Take advantage of product configurations that can be
performed from the sales order line, sales quotation line,
purchase order line, production order line, and item
requirement line.
• Extend a product configuration model through the API.
 OPERATIONAL
INNOVATION

Streamline the procurement process

and get deep visibility into product
inventory.

Procurement management
• Identify product and service needs and procure products, receipts,
invoices, and payments through procurement and sourcing
management.
• Define purchasing policies and workflows to configure
procurement processes that meet your business needs.
• Manage product catalogues and procurement channels based on
demand and vendor pricing and capabilities.
• Use spending limits to constrain requisition spending and the
purchasing workflow.
 OPERATIONAL
INNOVATION

Streamline the procurement process

and get deep visibility into product
inventory.

Advanced inventory
management capabilities
• Address complex inventory challenges faced by distributors and
manufacturers.
• Use industry-leading demand models to make intelligent inventory
replenishment decisions.
• Account for inventory using multiple cycle-counting strategies.
• Support advanced item tracing.
 OPERATIONAL
INNOVATION

Accelerate product delivery with advanced

transportation and warehouse management.

Transportation Warehouse
management management
 OPERATIONAL
INNOVATION

Accelerate product delivery with advanced

transportation and warehouse
management.

Transportation management
• Identify vendor and routing solutions for
inbound and outbound orders.
• Define the logic that’s used to generate and
process transportation rates.
• Manage transportation activities of external
logistics providers.
 OPERATIONAL
INNOVATION

Accelerate product delivery with advanced

transportation and warehouse
management.

Warehouse management
• Manage warehouse processes for manufacturing,
distribution, and retail companies.
• Get out-of-the-box and next generation support
for barcode scanners.
• Integrate warehouse management with other business
processes in finance and operations such as transportation,
manufacturing, quality control, purchasing, sales, and
returns.
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

Mixed mode Production IoT Asset Manufacturing Master

manufacturing lifecycle intelligence management execution planning
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

Mixed mode manufacturing

• Create best-fit manufacturing processes that address all
needs with a single solution.
• Production order: A classic order type used to
produce a predetermined quantity of a product on a
specific date.
• Batch order: A formula-based order used for
process industries and discrete processes.
• Kanban: Used to signal repetitive and lean
manufacturing processes.
• Project: Used to assign a schedule and budget to
specific products and services.
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

Production lifecycle
• Manage the steps required to manufacture products—
from creation to when a product is ready for shipment.
• Integrate with production control modules to improve
accuracy and efficiency of production, planning, and
reporting.
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

IoT intelligence
• Get real-time visibility of production and inventory with an
end-to-end solution that uses machine learning and mixed
reality.
• Connect mission-critical assets with business transaction data
and make it possible to proactively manage production
and stock in real time.
• Avoid downtime by using predictive analytics that determine
maintenance needs for business-critical equipment.
• Take advantage of IoT machines and devices that create a
digital feedback loop and provide real-time information, using
business data from the shop floor to generate business events
and actionable insights.
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

Asset management
• Enable customers to track the total cost of ownership for
operations assets and to manage ongoing maintenance for
those assets.
• Manage the full lifecycle for an asset while keeping track of
asset locations and hierarchies.
• Use preventive maintenance to track, manage, and monitor
assets based on the manufacturer’s recommendations.
• Plan—automatically or manually—using key parameters such
as worker capacity, availability, or work order criticality.
• Track spare parts to effectively manage inventory.
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

Manufacturing execution
• Get immediate insight and make it easier to instruct and guide
workers with the information they need to perform their jobs.
• Use the job registration page and allow workers to register
time and item consumption for production jobs.
• Allow managers to easily track production order costs with
continuous registration approvals and transfers.
• Register and track project activities and nonproductive tasks.
 OPERATIONAL
INNOVATION

Implement a unified and intelligent

production lifecycle.

Master planning / Planning

optimization
• Determine the material and resource needs that meet current
demand.
• Forecast delivery dates using operations or bottleneck
scheduling.
• Develop master plan policies to better manage day-to-day
operations.
• Manage resource planning across multiple functions.
• Leverage the power of Azure to rapidly complete re-planning
on a near real-time basis
A focused approach to modern supply chain management

Operational
innovation
Automate and streamline supply
chain management with predictive
insights that proactively respond to
your business’ demands.
Technology
modernization
Stay ahead of the competition with
modern, unified, intelligent, and
adaptable tools and technologies
that match your business’ needs.
 Automate business processes across
Dynamics 365 solutions to create
a unified user experience.

Build and deploy scalable web and

mobile client apps.

Move toward a modern approach

by infusing IoT and mixed reality.

Enable effective business processes

with unified apps and data.

Technology
modernization
 TECHNOLOGY
MODERNIZATION

Automate business processes across Dynamics

365 solutions to create a unified user
experience.

Procurement and Integration with

sourcing workflows third-party systems
 TECHNOLOGY
MODERNIZATION

Automate business processes across

Dynamics 365 solutions to create
a unified user experience.

Procurement and
sourcing workflows
• Cover all steps—from identifying a need for product or service
through procuring the product, invoicing, and processing payments
with vendors.
• Configure procurement processes toward specific business needs by
defining purchasing policies and workflows.
• Define an approval process for specific documents, such as purchase
requisitions and expense reports.
• Get deep process visibility by tracking the status, history, and
performance metrics of a specific workflow instance.
 TECHNOLOGY
MODERNIZATION

Automate business processes across

Dynamics 365 solutions to create
a unified user experience.

Integration with third-party

systems
• Use Microsoft Power Automate and Microsoft Logic
Apps to create workflows that can integrate with various
third-party systems and enterprise applications.
• Integrate the supply chain process directly with
workflow-based cloud development tools using the new
business
event functionality.
• Generate business events that external systems can use
for integration and notification scenarios.
• Create action triggers based on business events within
Flow.
 TECHNOLOGY
MODERNIZATION

Effectively manage and operate your

Dynamics 365 Finance
implementation and governance

Dual writes & Virtual entities

Dual Writes
• Provides deeper master data relationships, utilizing the
Common Data Service (CDS) that provides enhanced data
scenarios, on-demand functionality along with streamlining
end-to-end business processes

Virtual Entities
• Exposes to the CDS Entities from Finance, with Create, Update
and Delete capabilities – empowering deeper functional
interaction with the Power Platform such as model driven
applications.
 TECHNOLOGY
MODERNIZATION

Build and deploy scalable web

and mobile client apps.

Native mobile Microsoft Custom apps

apps PowerApps with Xamarin
 TECHNOLOGY
MODERNIZATION

Personalize your finance management

requirements

Scalable native mobile apps

• Empower employees to work from virtually anywhere, anytime with
the seamless access and unified experience of mobile apps

• Enable your organization to make its business processes—like sales

orders, project timesheets, and vendor collaborations—available on
mobile devices

• Use the point-and-click workspace designer included with the web

client to easily create mobile workspaces

• Enable access to important reports, wherever and whenever you

need them.
• Build no-code or low-code apps within PowerApps or using Azure
SDK.
• Ensure data consistency across apps, regardless of how users choose
to access data.
 TECHNOLOGY
MODERNIZATION

Build and deploy scalable web

and mobile client apps.

Microsoft PowerApps
• Utilize both canvas and model PowerApps approaches that can be
embedded with Supply Chain Management.
• PowerApps can utilize the CDS and the virtual entities exposed from
Supply chain management to launch experiences that are embedded
from most Microsoft applications – providing a rich and focused
experience
• Build no-code or low-code apps within PowerApps or using Azure
SDK.
• Ensure data consistency across apps, regardless of how users choose
to access data.
 TECHNOLOGY
MODERNIZATION

Move toward a modern approach by infusing

IoT and mixed reality.

Advanced analytics Mixed reality

with real-time applications and
insights Dynamics 365 Guides
 TECHNOLOGY
MODERNIZATION

Move toward a modern approach

by infusing IoT and mixed reality.

Advanced analytics with

real-time insights
• Get a unified view of inventory, manufacturing, and
logistics with predictive analytics that turn data into
insights, helping your organization make more strategic
decisions.
• Drive productivity, align employees with strategic goals,
and enable real-time responses to organizational and
customer demands.
• Improve product quality by identifying and resolving
issues using real-time insights and predictive intelligence.
 TECHNOLOGY
MODERNIZATION

Move toward a modern approach

by infusing IoT and mixed reality.

Mixed reality applications

and Dynamics 365 Guides
• Assist and engage from anywhere—with either Microsoft
HoloLens or an Android mobile device—using Dynamics 365
Remote Assist and Microsoft Teams.
• Provide hands on training with Dynamics 365 Guides, an
augmented reality tool that helps employees understand how
to apply learnings in common scenarios.
• Create interactive content using Dynamics 365 Guides and give
employees a deeper understanding of core subjects with 3D
models and hands-on learning.
• Save time and money with Dynamics 365 Layout by visualizing
room layouts at scale and making changes with stakeholders in
real time.
 TECHNOLOGY
MODERNIZATION

Enable effective business processes with unified

apps and data.

Data and process unification Application lifecycle Microsoft 365

with Microsoft Power management with Microsoft integration
Platform Dynamics Lifecycle Services
 TECHNOLOGY
MODERNIZATION

Enable effective business processes

with unified apps and data.

Data and process unification

with Microsoft Power Platform
• Connect and unify your data with ease and use prebuilt
connectors to bring in transactional, observational, and
behavioral data from popular data sources.
• Create custom entities, populate them with business data using
Microsoft Power Query for Excel, and build rich applications
with PowerApps.
• Use business events to trigger workflows within Dynamics 365
Supply Chain Management or create action activities in Flow or
Azure Messaging Service.
 TECHNOLOGY
MODERNIZATION

Enable effective business processes

with unified apps and data.

Application lifecycle
management with Dynamics
Lifecycle Services
• Take advantage of a unifying, collaborative environment and
regularly updated services that help you manage Dynamics 365
Supply Chain Management applications from presales through
implementation.
• Provide support for provisioning, deployment, updates,
diagnostics, telemetry, monitoring, configuration,
implementation, and upgrades.
• Create, view, and modify repeatable implementations that are
based on business process libraries and flowcharts.
• Copy and modify business process libraries or export them to
Microsoft Word.
 TECHNOLOGY
MODERNIZATION

Enable effective business processes

with unified apps and data.

Microsoft 365 integration

• Use the Excel Data Connector add-in to import or export
spreadsheet data to Dynamics 365 Supply Chain Management.
• Generate Microsoft Excel reports with the help of macros,
lookups, and formulas supported in Excel.
• Design a custom workbook with editable fields.
• Allow developers to add template exports to any page.
• Save attachments in Microsoft Azure Blob Storage and
SharePoint Online.
A focused approach to modern supply chain management

Core Advanced Extended

Foundational supply chain Enhanced planning Optimized supply chain

Inventory management, payments, Warehouse, production, IoT intelligence and

pricing, terms, and vendor organization, and transportation proactive maintenance
management
 ADAPTABLE IMPLEMENTATION
Core
Out-of-the-box
capabilities
Dynamics 365 Supply Chain Management
• Warehouse management
• Customer order fulfillment
• Inventory management
• Master planning
• Cost accounting and management
• Procurement and sourcing
• Production control
• Sales and marketing
• Vendor collaboration
• Service management
• Transportation management
Benefits
• Flexible ways to define your
warehouse layout to meet changing
needs
• Optimized customer order fulfilment
• Streamlined inventory operations for
inbound items and outbound orders
• Ability to determine future capacity
and raw material needs
• Realistic valuation and accounting
• Vendor and routing solutions for
inbound and outbound orders
• Streamlined purchase policies
and workflows based on identified
product demand
• Comprehensive management
capabilities for production lifecycle
• Seamless sales activities and
marketing campaigns
• Vendor collaboration for sharing
orders, invoices, and consignment
information
• Management and analysis of delivery
services
 ADAPTABLE IMPLEMENTATION

Extended

Intelligence and insights Benefits

Dynamics 365 Supply Chain Management • Ability to predict independent demand

and Power BI
• Employee and manufacturing productivity with IoT-enabled machine integrations
• Machine learning and advanced analytics
• Demand forecasting
• Efficient delivery performance to support business needs
• IoT intelligence
• Improved supplier delivery performance
• Minimized supplier risk with risk profile and assessments
• Minimized supplier risk
• Advanced resource scheduling systems
• Visual scheduling for production and batch orders
• Intelligent transportation and routing

• Ability to define the logic used to generate and process transportation rates
 ADAPTABLE IMPLEMENTATION

Advanced

Expanded and connected Benefits

processes

Dynamics 365 Finance • Ability to identify opportunities to reuse existing assets

• Lifecycle services
• Integration with other Dynamics 365 solutions • Seamless integration with other Dynamics 365 modules

• Integration with common data services

• IoT integration • Data flow between Dynamics 365 Finance and Dynamics 365 Sales

• HoloLens
• Integration with IoT devices provides real-time data

• Empowered employees and optimized operations using mixed reality capabilities

ADAPTABLE IMPLEMENTATION

Core Extended Advanced

Foundational supply chain Enhanced planning Optimized supply chain

• Machine learning and advanced • Lifecycle services
• Warehouse management
analytics • Integration with other Dynamics 365
• Customer order fulfillment
• Demand forecasting solutions
• Inventory management
• IoT intelligence • Integration with common data services
• Master planning
• Improved supplier delivery performance • IoT integration
• Cost accounting and management
• Minimized supplier risk • HoloLens
• Procurement and sourcing
• Advanced resource scheduling systems
• Production control
• Intelligent transportation and routing
• Sales and marketing
• Vendor collaboration
• Service management
• Transportation management
 Factory of the future

Drive better decisions by arming workers with real- Augment employee skills and empower first-line workers Generate performance insights and drive operational
time insights in the office and on the factory floor. using AI and mixed reality interaction models. excellence by connecting assets.

Detect defects and solve production problems in Connect people with data and insights by harnessing Optimize factory design and production flow by using
real-time by using AI to create systems of intelligence. the power of intelligent operational technology and IT. digital twins to identify bottlenecks and train assets.
58
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Dynamics 365 Supply Chain Management