Microsoft Dynamics 365 supply chain module: 15% faster manufacturing process and 0% stockouts risk

Innowise configured an end-to-end ERP platform to govern supply chain process from resource planning and procurement to warehousing and risk management.

Customer

Industry

Manufacturing, Enterprise

Region

Client since

2022

Our client manufactures engines for vehicles and has a large network of logistics centres. Detailed information about the client cannot be disclosed under the provisions of the NDA.

Challenge

As a manufacturer with more than 10 years of experience, our client often encountered supply disruptions and delays in delivering goods to customers. Though they had software to monitor supply chains, it lacked accuracy and flexibility to ensure timely deliveries. Consequently, our customer sought a complete SCM solution that could consolidate all operational processes related to supply chain management in one ecosystem.

Thus, our main objective was to deploy an SCM system and configure settings that would bring accurate delivery timelines, prevent delays in component availability, and ensure a predictable assembly process.

Solution

With ample experience in supply chain software development for businesses across different technological verticals, we selected Microsoft Dynamics 365 to establish an uninterrupted management workflow. As our client assembles parts and components, they needed specialized software to assist in the manufacturing process. Essentially, our customer wanted a unified digital environment that would coordinate production and stocks.
Innowise evaluated the customer's current production state, including pain points and inefficiencies, before selecting the appropriate supply chain management enterprise platform.
So, we deployed the Microsoft Dynamics 365 supply chain management module with default features that assist in
planning (predicting the need for materials to satisfy market demand);
sourcing (supplying raw materials needed for the manufacturing process);
manufacturing (monitoring the process of turning raw materials into finished goods through machinery and labor);
delivery (goods distribution through different sales channels).
With Dynamics 365 SCM, monitoring and measuring operational performance is based on insights that help highlight areas for enhancement and make adjustments where needed. Additionally, by leveraging AI and machine learning, we enhanced clients’ supply chain management by configuring automated demand forecasting and inventory replenishment. These measures resulted in enhanced forecasting accuracy, reduced inventory costs, and increased operational efficiency. Along with Dynamics 365 SCM, we also rolled out two additional modules:

Dynamics 365 Product Visualize

With this tool, customers can interact with 3D product models using AI-based image recognition, providing a more engaging and interactive experience. This feature allows customers to view engines and study product information before making a purchase.

Dynamics 365 Field Service

With Dynamics 365 Field Service, AI-powered solutions are used to optimize scheduling and dispatch, predict equipment failures, and make data-driven decisions to improve overall field service operations.

Furthermore, our team decided to go further and suggested Release Wave 2 – a fresh update from Microsoft Dynamics 365 available since October 2022 – which includes advanced features to mitigate financial risks, prevent stock shortages/surpluses, and ensure convenient warehouse management.

Demand-driven materials requirements planning

Planning is the cornerstone of every manufacturing process. In this module, the need for raw materials is matched with the capacity to meet customer orders. There, managers can estimate how many resources are required to be manufactured, purchased, or transferred to complete the production and deliver goods.

Thanks to Release Wave 2, planning has become more precise and manageable. Beforehand, client’s managers had to manually aggregate much information from different internal and third-party systems and hold on the phone most of the day negotiating supply terms and conditions. With Dynamics 365 SCM planning, the problem has been resolved. Besides traditional short- and long-term planning, inventory visibility allows allocating and reserving items from the warehouse and booking on-hand stock for the most strategic and profitable distribution channels.

Additionally, with the demand-driven materials planning feature, our customer can protect and promote the flow through the supply chain and deal with unexpected issues with stock buffers at strategically located decoupling points. These points determine how much inventory to hold in the buffers and adjust them dynamically based on the production load.

Supply risk assessment dashboard

Besides conventional dashboards that give managers an overview of their supply chain status, inventory levels, stock movements, and other performance metrics, we deployed an advanced supply risk assessment dashboard.

Occasionally, our customer encountered supply chain disruptions that made it difficult to maintain an optimal level of inventory. Therefore, we implemented this tool to ensure business continuity and mitigate financial risks cost-effectively. Whenever the level of risk is high, the system sends alerts, displaying transparent dashboards that notify, for example, when key suppliers fail to meet their obligations.

Using real-time dashboards, decision-makers can view the balance of goods before stockouts occur and take proactive measures. Furthermore, managers can add another vendor through the multi-sourcing panel to prevent production line halts.

Enhanced warehouse management

Also, our vetted team configured an advanced warehouse management feature to increase agility and productivity. Thus, Innowise deployed a warehouse initiation wizard to accommodate bursts in demands that serves as a platform where all processes are consolidated. There, managers can track roles, statuses, and responsibilities, assign tasks, set up deadlines, monitor progress, and much more.

Generally, Dynamics 365 WMS allows our client to manage inventory levels, track stock movements, set up reorder points, perform physical inventory counts, manage picking and packing workflows, and track inbound and outbound shipments. Furthermore, we added the option of recording voice orders, thereby facilitating communication between employees.

Currently, our project team is working on software for barcode and RFID scanning to improve productivity and mobility. These devices will enable warehouse workers to pack, label, and ship goods quickly through the proprietary mobile app without being tied to fixed packing stations.

Technologies & tools

CRM platform

Microsoft Dynamics 365

Front-end

Angular, Angular Materials, NG-Dynamics, NGX-Dynamics-CRM, Angular Flex-Layout, NGX-Charts

Back-end

.NET6, Python

Databases

Microsoft SQL Server

Cloud

Azure Function, Azure App Service, Azure Logic Apps

xUnit, Postman, JMeter, Nessus, Metasploit

Process

Innowise started the project in October 2022. Our team first identified the requirements for implementing the Dynamics 365 supply chain module to ensure it addressed the customer’s needs and aligned with the overall supply chain strategy.

We opted for Microsoft Dynamics 365 Release Wave 2 as it provides advanced capabilities for accurate resource planning together with up-to-date supply-risk analytics and enhanced warehouse management.

Our team used Jira to monitor the project’s progress and Confluence as a knowledge base while communicating with the client via Microsoft Teams.

Currently, Innowise is working on developing barcode device software and integrating them with the mobile application.

Team

Project Manager

System Analyst

Solution Architect

Dynamics 365 Developers

Back-End Developer

Front-End Developer

Data Analyst

QA Engineer

Results

Innowise configured a Microsoft Dynamics 365 Release Wave 2 module that increases customer service level, optimizes inventory costs and prevents stockouts. We ensured custom ERP software development that enhances supply chain visibility, eliminates asset downtime, and ensures timely delivery.

In summary, our solution offers the benefits as follows:

enhanced operational resilience;
agile production planning;
risk assessment;
optimized inventory and service level;
increased fulfillment capability.

Project duration

October 2022 - Ongoing

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