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How AI is Redefining Your Supply Chain with Dynamics 365 SCM?

01 May 2023
How AI is Redefining Your Supply Chain with Dynamics 365 SCM?

Due to the enormous amounts of crucial business information and procedures involved, supply chains have been an ideal field for the application of AI. Over time, supply chains have changed as a result of new innovations and technologies that help businesses run more efficiently, spend less money, and satisfy customers.

However, even though data modelling and statistics have been used in procedures like inventory control, projections, production, and planning. The industry hasn't undergone any significant changes beyond the development of algorithms. There is a need to optimise the supply chain process to make it more agile to adapt faster as per emerging trends and take proactive actions to mitigate upcoming disruptions impacted by external factors like weather, finance, and location.

With Microsoft at the heart of innovation, the next-generation AI technology enhances Microsoft’s Supply Chain Management Capabilities to make a business more flexible, effective, and adaptable.

Next-Gen AI with the Microsoft Supply Chain Platform

Companies are utilising contemporary AI to gain an edge over others and maintain profitability as the complexity of the supply chain increases. Whether a firm has already started its digital transformation journey or is just considering it, AI is proven to be a game-changer. Let us explore how AI is redefining supply chain management:

Here is How Artificial Intelligence is Going to Propel Supply Chain Management:

Automating Processes Intelligently & Efficiently

As next-generation AI innovation matures, it will increasingly live up to its promise of streamlining supply chains, freeing up priceless human resources to concentrate on more productive, higher-level tasks that call for creativity, judgement, and complex problem-solving abilities. AI bots can do a variety of functions, including scanning emails for new purchase requests, logging into different systems to enter data, resolving supply chain alarms, and initiating processes. Using generative AI to generate the artefacts (plans, efficiency, presumptions, risks, and mitigations) necessary to operate crucial business processes like sales and operations planning (S&OP) is another example of enhancing planners' productivity.

AI-Driven Proactive Risk Prevention

Businesses may more accurately foresee and respond to disruptions spanning pathways, vendors, and regions by integrating sources of data and business applications with next-generation AI. The AI-oriented Microsoft Supply Chain Centre news module, for instance, proactively alerts users to external concerns like weather, financial, and geopolitical events that might affect important supply chain procedures. Additionally, affected orders are revealed by predictive insights across supplies, stock, transporters, networks of distribution, and other areas.

Co-Pilot’s Capabilities Come as an Added Plus

Users of Microsoft Dynamics 365 Co-pilot may easily utilise contextual email outreach to put these findings into practice. Supply chain users may save time and work with impacted suppliers to swiftly determine new ETAs, reroute a purchase order (PO), or fulfil a top-priority customer order via a different distribution centre due to geopolitical tension by using a custom and contextual reply. Interestingly, this capability happens to be one of the striking features of the Microsoft Supply Chain Platform.

Enhanced Order Fulfilment

Using real-time multichannel inventory information, AI, and machine learning, Microsoft Dynamics 365 Intelligent Order Administration (IOM) enables businesses to intelligently orchestrate fulfilment and automate it. By automating the selection and identification of optimal fulfilment options, IOM can enhance order fulfilment models. You can gain maximum from the capacity to update AI models utilising the train, suggestions, and improve approach when suggestions are subpar.

Self-Regulatory & Autonomous Supply Chains

The unpredictable nature of operating a complex supply chain, with its various cross-functional divisions, heterogeneous data sources, and procedures spanning from planning to execution, presents one of the toughest problems. Companies struggle to integrate these diverse data and procedures, which forces planners to make decisions based on their gut feelings rather than evidence. The challenges of assembling a multi-tier network model from many unconnected systems along the value chains, including external business partners, can be handled by AI.

Shorten the Cycle Times for Warehouse Inventory

AI may also be used in warehouse fulfilment to reduce cycle time, which is another aspect of supply chain management. Today, it is challenging to predict which items should occupy forward-picking locations within the confines of the warehouse as demand for various items ebbs and flows. Warehouses normally have two options for handling the situation: either pay for more space than they require given the volume they are currently dealing with (unlikely) or have employees re-slot bins to move goods from an expansive area to a pick spot. The latter is a continuous, demanding, and lengthy process that is by nature reactive. Fortunately enough, the Microsoft Supply Chain Platform is equipped with this capability.

AI Transforming the Supply Chain Sector

The aforementioned are just a few instances of how we think this upcoming tide of AI innovation might enhance supply chain operations and the entire working environment. And it's unquestionably only the beginning. Supply chains might undergo a transformation thanks to artificial intelligence (AI), which opens up new avenues for increased effectiveness, cost reductions, and customer pleasure.

Learn more - Who should implement Dynamics 365 Supply Chain Management?


Businesses must invest in the appropriate infrastructure and technology to integrate their supply chain operations and data if they are to fully benefit from AI, while also taking crucial factors like safety, accessibility, and corporate values into account. By combining inherent features throughout our solutions and providing a safe, composable, expandable, and interoperable platform, Microsoft is ideally positioned to provide AI across the supply chain. Check out Microsoft’s Supply Chain Management Solution if you are looking to take your business up by several notches.

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