A supply chain management solution that optimizes inventory levels and visibility
What is excess hidden inventory and why is it a problem?
Excess hidden inventory is the inventory that is not accounted for in the official records of a business, but still exists in the supply chain. It can be caused by various factors, such as inaccurate demand forecasting, poor inventory tracking, human errors, supplier issues, or theft. Excess hidden inventory can have negative impacts on a business, such as:
- Increased inventory carrying costs, such as storage, insurance, taxes, and obsolescence.
- Reduced cash flow and profitability, as excess inventory ties up capital that could be used for other purposes.
- Lower customer satisfaction and loyalty, as excess inventory can lead to stockouts, delays, or quality issues.
- Higher environmental footprint, as excess inventory consumes more resources and generates more waste.
According to a study by the Aberdeen Group, the average manufacturer has 11.4% more inventory than it needs, and this excess inventory costs the company 25% of its total inventory value each year. The same study also found that the top performers in inventory management had 15% less inventory, 17% stronger fulfilment rates, and 35% shorter cash-to-cash cycles than their peers.
How can Dynamics 365 help you reduce excess hidden inventory?
Dynamics 365 is a cloud-based business application platform that offers a suite of solutions for various business functions, including supply chain management. Dynamics 365 Supply Chain Management is a comprehensive solution that helps businesses optimize their inventory levels and visibility across the supply chain, by leveraging the following capabilities:
- Demand forecasting and planning: Dynamics 365 uses advanced analytics and machine learning to generate accurate and timely demand forecasts, based on historical data, market trends, and customer behavior. It also allows businesses to create and adjust inventory plans, based on the demand forecasts, inventory policies, and business objectives.
- Inventory management and optimization: Dynamics 365 provides real-time visibility and control over inventory across the supply chain, by integrating with various data sources, such as ERP, CRM, IoT, and RFID. It also uses intelligent algorithms to optimize inventory levels, by balancing supply and demand, reducing safety stock, and minimizing inventory costs.
- Warehouse management and automation: Dynamics 365 enables efficient and agile warehouse operations, by automating and streamlining the processes of receiving, put-away, picking, packing, and shipping. It also supports advanced warehouse features, such as wave planning, cross-docking, and mobile scanning.
- Transportation management and tracking: Dynamics 365 helps businesses plan and execute transportation activities, by selecting the best carriers, routes, and modes, based on cost, service, and performance. It also provides real-time tracking and visibility of shipments, by integrating with GPS, EDI, and IoT devices.
How to get started with Dynamics 365 to reduce excess hidden inventory?
If you are interested in using Dynamics 365 to reduce excess hidden inventory, you can start by taking the following steps:
- Request a free trial or a demo of Dynamics 365 Supply Chain Management, and explore its features and functionalities.
- Contact a Sunbridge Software Services and get a personalized assessment and recommendation for your business needs and goals.
- Implement and deploy Dynamics 365 Supply Chain Management, and integrate it with your existing systems and data sources.
- Train and empower your staff to use Dynamics 365 Supply Chain Management, and leverage its insights and intelligence to optimize your inventory levels and visibility.
Conclusion
Excess hidden inventory is a common and costly problem for many businesses, especially in today’s volatile and uncertain market. However, with Dynamics 365 Supply Chain Management, businesses can overcome this challenge, and achieve optimal inventory levels and visibility across the supply chain. Dynamics 365 Supply Chain Management is a cloud-based solution that uses advanced analytics, machine learning, and automation to help businesses forecast and plan demand, manage and optimize inventory, and execute and track transportation activities. By using Dynamics 365 Supply Chain Management, businesses can improve their inventory accuracy, efficiency, profitability, and sustainability, and gain a competitive edge in the market.
