Never just use the term ‘logistics’ interchangeably with ‘supply chain management.’ Logistics is getting your product from A to B; supply chain management is knowing when B needs which product and ensuring that you can deliver it on time. Your ERP software must be equipped to handle this. Microsoft Dynamics 365 Business Central is designed for this purpose. a big help.
SMC: More Than Just Logistics
Optimizing your supply chain takes a lot of work. You have to find reliable suppliers, arrange transportation, and, of course, track everything. And if something goes wrong, you’re the one who has to explain it to your customers.
The process becomes more complicated when your company doesn't sell the same product in the same units year-round. In that case, you need to make sure you have the right products on hand at the right time. And, of course, you'd prefer the entire process to be as automated as possible.
How Your ERP Program Can Help
Dates: One of the most commonly used and controversial words of the 21stste century. But an indispensable tool for any business. An ERP system helps you to automate many of your business processes. To do this, the software relies on data. Enter SCM data into your ERP system as well, and you'll know when a particular item is out of stock.
Discounts: Your ERP system tracks when and how much of each item you need to order so you can get discounts from suppliers. This can help you save a significant amount of money: Suppose you’re a liquor store ordering a few bottles of wine. Your ERP system will tell you how many more you need to order to qualify for a discount. What’s more, because your ERP software knows which of your products come from which suppliers, the system even tells you which other products from those suppliers are running low in stock.
Automation: The major advantage of ERP systems. Productivity increases when you can automate parts of your ordering and delivery process. This frees up staff to focus on other tasks.
Sharing is caring: Integrating your supply chain data into your ERP software also allows you to share data with both suppliers and customers.
This can be useful for suppliers who deliver end-of-line products, or for rush orders.
Business Central: Predict the Future
Do you use Microsoft Dynamics 365 Business Central, the latest version of Microsoft Dynamics NAV, you can take it a step further. This ERP software can, once again based on data, predict which products you’ll need and when.
Let's expand on our example of the beverage industry. You have a wide and varied selection of beverages And you don't sell the same amount of each product every month. In the summer, you sell crisp white wines and light beers; in the winter, you tend to sell spirits and heavy beers.
Based on past sales data, the Business Central ERP system identifies when a peak sales period for a particular product is approaching and places additional orders with the appropriate supplier. Or, at the very least, it sends you a notification so you can place the order yourself.
Smooth supply chain management, therefore, starts with integrated and predictive ERP software.
Your ERP system is full of potential. Or at least it should be! Fortunately, our consultants know the secrets.
