Optimizing production processes with Microsoft Dynamics 365 for Supply Chain Management

Posted on: November 30, 2021 | By: Guy Logan | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

Priority-based planning

A challenge that manufacturers face is when multiple orders for the same items land simultaneously, and there is not enough stock to fulfill demand. Which distribution center or store orders should be filled and in what order? Which is most important, and how should manufacturers set priority? Although it’s easy for a person to manually decide priorities in situations like this, manufacturers lack the automation to make these decisions.

Master planning with Planning Optimization is changing the game for manufacturers. The Priority-based planning feature can be used to configure optimal replenishment based on priority, instead of by date only. This allows businesses to increase service levels, reduce on-hand inventory, and optimize their supply chains by prioritizing replenishment orders to ensure that demand is fulfilled by level of urgency.

The planning priority is automatically calculated based on a flexible setup that considers inventory levels for minimum, reorder point, maximum, and projected on-hand that includes planned receipts and distributions. This data can be used to compare the importance of any orders across products and locations.

With priority-based planning, organizations gain the capability to:

• Calculate, manually edit, or default on planning priorities.
• Control replenishment by setting reorder point parameters.
• Split and optimize distribution orders using planning ranges.
• Group planned orders at firming.
• Utilize customizable planning priority ranges.
• Apply planning priority capabilities to intercompany orders.

MES integration

Manufacturers invest heavily in two automation layers: production lines and equipment and enterprise resource planning (ERP) systems. One challenge that manufacturers have faced when it comes to these two separate automation layers is how to keep data synchronized as transactions occur across both. Luckily, Manufacturing Execution System (MES) resides between these two layers and manages manufacturing’s unique operational requirements.

Dynamics 365 Supply Chain Management’s MES integration provides the means to keep data and transactions synchronized between both systems. Plus, it makes it faster and easier to integrate Dynamics 365 Supply Chain Management with common manufacturing execution systems.

By integrating a third-party MES solution with Dynamics 365 Supply Chain Management, data exchange is fully automated in near real-time. This is important because it keeps data current in both systems and also it eliminates the need for manual data entry (which is often prone to errors).

With the introduction of MES integration, Dynamics 365 Supply Chain Management is reducing overall implementation and operating costs and helping manufacturers to establish end-to-end visibility and control over the production floor.

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