Microsoft Dynamics 365 ERP Systems are uniquely designed to meet Supply Chain challenges in 2023
The supply chain keeps the global economy turning. And we have all learned how problematic supply chain disruptions can be. Strategic planning and integrated processes are vital for adapting rapidly to changes in supply and demand, reducing costs, outsmarting the competition, and retaining customers.
What can you do now to ensure the resilience of your supply chain in the year ahead? Being aware of upcoming trends is an excellent place to start. Proactive supply chain strategies will ensure your organization remains agile, responsive, and profitable. Our experts at Netstock have identified six trends that will impact your supply chain in 2023, and we offer tips for meeting the challenges.
1. The prospect of a recession
Economists predict a global recession sometime this year that will impact business health. With higher interest rates and rising prices, consumers may decide to spend less and switch to more economical brands. Successful inventory management will require attention to detail and the strategic use of technology.
Increasing inventory to protect against future cost increases could backfire if the expected demand does not materialize. Careful and frequent monitoring of changing supply and demand will be critical. A property install ERP system will allow supply chain managers to property match inventory to demand.
2. Environmental concerns
The world is becoming more aware and invested in environmental issues. Companies must prioritize sustainable products in the manufacturing, retail, and supply chain industries. One aspect of going green is seeking a lower carbon footprint. Fewer shipments protect resources. Again, strategic planning with Microsoft Dynamics 365 for Supply Chain Management is crucial.
Proper inventory planning is about getting it right the first time. Fewer emergency shipments will help reduce your carbon footprint. Optimize your incoming shipments by prioritizing high-performing, profitable items. This will cut down on emergency shipments of back-ordered items as well as an excess inventory of items that are not moving.
3. Shorter buying cycles
Forecasting and extended lead times remain a challenge. Strategic planning and shorter buying cycles will be more important than ever in 2023. Inventory lead time is the length of time from when you place an order with a supplier to when the order is available for sale to the customer. Your lead time will affect your overall inventory. So it's important to set lead times appropriately for what's happening in the market.
Review your lead times, forecast variance reports, and supplier purchase orders regularly. All of these tasks can be automated with a well designed Dynamics 365 system from Microsoft.
4. Security and data protection
Increasing threats to supply chains are causing headaches for manufacturers, and the dangers show no signs of slowing. Phishing and other forms of social engineering will be more elaborate and increasingly difficult to prevent. Ransomware attacks, compromised devices, stolen credentials, and malware could provide attackers access to your valuable data. Basic security training for employees is no longer sufficient. You must continually monitor and measure how your controls perform.
Performing due diligence on your suppliers is an essential first step. You'll have to demonstrate to your customers that you have implemented effective security controls that are adequately monitored, updated, and evaluated by an independent third party with industry expertise.
5. integrated business planning
Once prized for making economic sense, the age of outsourcing is transitioning to vertical integration and local sourcing where possible. Companies are beginning to value the agility to reduce supply chain disruptions rather than making business decisions based purely on cost.
Businesses that can identify changes and adjust plans rapidly will continue to outperform others.
6. Effective collaboration
Marketing, sales, operations, and finance teams must work together for the company's success. We have the technology now to ensure that everyone has real-time access to data and streamlined workflows to manage inventory all along the supply chain.
Sales and marketing teams must synchronize with procurement and demand planning teams to develop strategies to capture market share, especially during supply chain instability.
Future-proof your business with the tools for making faster supply chain planning decisions.
Netstock's supply chain planning software unlocks operating cash and increases visibility across your business. Quickly respond to change and access powerful intelligence by leveraging data directly from your Microsoft Dynamics or other ERP solutions.
Visibility into demand buying habits, supplier constraints, and labor volatility is critical to ensure a competitive advantage. Netstock's supply chain planning solutions will help your company remain agile, responsive, and profitable.
Contact our experts at Netstock for a personalized demo. Let's talk about your unique supply chain challenges and identify how Netstock can help you unlock operating cash and accelerate business growth.
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