Business Central SCM (Supply Chain Management)

What is Supply Chain Management (SCM)?

Supply chain management, abbreviated SCM, is a term used in commerce. SCM covers the handling and management of goods, which includes movement and storage from point of origin to point of consumption (POC) and involves both raw materials, products in preparation and finished products.

The purpose of supply chain management is to contribute to creating net worth for the company by building a competitive infrastructure that utilizes worldwide logistics and which synchronizes supply with demand.

SCM management in Business Central

Not least because of the rising internet commerce and the fact that cunsumers today have increasingly greater demands to the service provided by businesses, it is important that the business is on the technological front and able to live up to the customers expectations. Today, many companies have multiple sales channels and warehouse locations which add complexity and in order to have an efficient business, online as well as offline, inventory management and logistics are essential, not least to create a cohesive experience for the customers.

SCM is therefore gaining in importance and is for the product-oriented business today an integral part of its success. An efficient supply chain allows companies to quickly deliver products to the end user at a lower price, which increases competitiveness and customer satisfaction. With the many movements and commodities needed to form a supply chain, it is important that you use IT that is on the technological front and can handle the large amounts of data that make up a supply chain.

In Dynamics 365 Business Central, the SCM functionality is designed to optimize inventory, reduce the shortage of goods and maximize profitability.

Built-in inventory intelligence
Get real-time knowledge of what you have in your inventory, when it's time to order new products, and when to prepare for increased demand. The built-in intelligence in Business Central predicts the best time to replenish your inventory so your customers won't be disappointed and dissatisfied with missing items. In addition, you do not risk your stock being overcrowded and create an unnecessarily high capital binding. Business Central also provides forecasts of sales and expected inventory that you can use to automatically create purchase orders and thus streamline workflows and keep track of your ordered goods and services.

A total view of your warehouse
In Business Central, your warehouse is presented as a single whole, ie a holistic view, which helps you to obtain a timely and correct reception, processing and delivery of your orders to the end customers. By setting up locations based on the layout of the warehouse and the dimensions of the storage unit, the solution also allows you to track all the goods transactions and movements.

Increase the profitability
Order new items at the right time and pay for them at the right time. Business Central notifies you when it is most favorable to pay your suppliers so you can get the biggest discount possible, creating the best possible supplier relationship and avoid costs in the form of unnecessary interest or penalties.

Order at the right time, pay at the right time
Business Central Supply Chain Management can notify you of the best time to pay suppliers, so you can increase your discount catch, improve supplier relationships and avoid unnecessary penalties or interest rates. Furthermore, with advanced analytics built into the supply chain and workflows, you can take steps to prevent unnecessary or fraudulent payments to suppliers.

Streamline your company's sales orders
Business Central delivers advanced integrations and Business Intelligence, which provides insight into the SCM processes and thus strengthens your sales and inventory through the abbreviated Order-to-Cash (OtC) process. Business Central provides further integration for Dynamics 365 Sales, Microsoft's CRM system.