If you are interested in learning more about the supply risk assessment workspace in Microsoft Dynamics 365 for Supply Chain Management, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.
Understanding the Supply Risk Assessment Workspace in Microsoft Dynamics 365 Supply Chain Management
Posted on: May 16, 2023 | By: Guy Logan | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing
Supply chain disruptions can bring significant consequences for companies in terms of financial losses and damage to their reputation. To prevent these disruptions, it’s crucial for businesses to identify and address supply risks in a timely manner. Supply risk assessment for Microsoft Dynamics 365 Supply Chain Management lets you identify supply risks, so that you can act to help prevent supply chain disruptions. This helps supply chain managers understand the risk of encountering sourcing shortages and delays and empowers them to make informed decisions to optimize their supply chains.
The screenshot above shows an example of the Supply risk assessment workspace.
The following illustration shows an example of the Risk assessment report for planned purchases. This report is one of the supplier performance and risk analysis reports.
The first release of this set of capabilities is available in release version 10.0.31. This release is focused on delivery performance by suppliers. It enables ranking and risk assessment based on planned orders.
The capabilities let you perform the following tasks:
- Measure the supply delivery performance of suppliers and products along several dimensions.
- Derive a risk assessment for future planned supply.
This release doesn’t include the following capabilities:
- Holistic assessment of vendors along other aspects, such as financial ratings, compliance, security, and other risks
- Risks from other types of supply, such as production
The Supply risk assessment workspace as your point of entry
The Supply risk assessment workspace consists of lists of actionable items and embedded Power BI reports. It shows metrics such as on-time in-full (OTIF) ratings for vendors and product rankings. It also represents the past performance as a risk for future supply. Planned purchase orders can be used to quantify risk in terms of the quantity and amount that are at risk if the same performance and trend continue into the future.
To help mitigate the risks that are discovered, you can take different approaches. For example, you can diversify vendors, or you can use different shipping methods or sourcing locations for planning. After you’ve updated the plan, you can reassess the supply risks and validate the improvements.