Streamline Your Make to Order Supply Chain Automation in Dynamics 365

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Are you looking for a way to streamline your make-to-order supply chain? If so, Microsoft Dynamics 365 may be the solution you are looking for. In this blog post, we will discuss how Microsoft Dynamics 365 can help you automate your make-to-order supply chain. We will also provide tips on how to get started with Microsoft Dynamics 365 supply chain management.

Impact of Make to Order

Make-to-order (MTO) supply chain management is the practice of manufacturing goods to a customer’s specifications. This model differs from make-to-stock, where inventory is manufactured based on anticipated demand and then stocked in warehouses until it can be sold. MTO helps reduce lead time and inventory costs because products are not created until they have been ordered.

Up until this point, supply chain planners had to adjust and monitor inventory levels as well as current demand manually. With the new automation capabilities in Supply Chain Management though, planners can now automate these tasks. System decisions are made based on set parameters by personnel.

Benefits of make-to-order automation

Let's investigate the benefits of six upgrades made to dynamics 365 for make-to-order circumstances.

Delay tolerance control

Delay tolerance is the number of days you're willing to wait for new replenishment when the existing supply is already planned. It helps you avoid creating new orders if the existing supply will be able to cover demand after a short delay.

The Negative days option for delay tolerance control helps you figure out when it would be beneficial to create a new supply order in regard to demand. The master plan level ability to control delay tolerance provides more flexibility between the static and dynamic plans used for CTP calculations. Automating the process confirms that delays won't be allowed during CTP calculations. You can optimize refill orders on the static plan, utilizing existing orders even if there is a slight delay caused by doing so.

Delay Tolerance Control in MTO

Use the latest possible supply

The Use latest possible supply option lets you make products available for last-minute orders. It optimizes the use of existing stock by pegging the latest possible supply to demand instead of using the first available supply.

Using Latest possible supply in MTO

Single-level Marking

Links that mark supply to demand are known as "marking." Marking is important for cost allocation, and it resembles how master planning predicts meeting demand. However, marking is more permanent than regular predicting because future planning takes marked links into account. Now you can choose to only limit inventory markings to one level when creating firm-planned orders. This allows component assignments for production orders to be flexible after the planned order has been firmed up.

Order-specific fulfillment policy

Now, you can not only set a general fulfillment policy that applies to all customers but also overrides it for specific ones. You can now see which default policy is applied to order directly on the order page and alter it if necessary. Prior to this development, someone taking orders would have needed to manually change the policy on each sales order- something that could often be forgotten or cause errors. This new automation takes care of that process automatically, giving more control and Order processing ability back into the hands of those who need it most.

Order Specific Fullfillment Policy in MTO

Line-controlled delivery

Since customer sales orders include delivery terms, mode of delivery, and external item numbers, it's crucial that companies track this information when one company handles the purchase order and other ships the goods. With this improvement, purchase order lines are updated automatically to include this information from the intercompany sales order. Essentially, this enhances intercompany information exchange guaranteeing that detailed demand information flows to supplying companies so they can meet their customers' expectations.

LIne Controlled Delivery

User-defined period on Capacity load page

The new Number of days field on the Capacity load page enables you to select a specific period to view the capacity load for that resource, which is ideal for long-term evaluation.

Capacity Load Page

 

These six new enhancements to Dynamics 365 offer make-to-order planners a wide range of improvements in automation, flexibility, and control when it comes to the MTO process. They ensure that your orders are fulfilled quickly and accurately while ensuring all necessary information is accurate so you can meet customer expectations every time.

At Intelegain, we helped businesses in wholesale, distribution, hospitality, travel, fintech, retail, and healthcare who feel the need to scale. If you would like to hear more about our experiences and case studies, please reach out to us at contactus@intelegain.com

 

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