In the ever-changing landscape of contemporary business, effective supply chain management is paramount. Central to this complex system is the critical process of demand planning and forecasting, which profoundly impacts a company's capacity to fulfill customer requirements, optimize inventory, and maintain a competitive edge. This article explores the significance of demand forecasting and how Microsoft seamlessly incorporates it into its new demand planning in Dynamics 365 Supply Chain Management.
Supply Chain Management lets you manage, track, and verify compliance with export control restrictions prior to confirming, picking, packing, shipping, and invoicing sales orders. The new advanced export control functionality allows you to manage your export control policies using a native Microsoft Dataverse solution that interfaces directly with your Supply Chain Management instance. Supply Chain Management then enforces compliance with international trade regulations by consulting your export-control policies in real time.
For many years, companies have based their supply chain strategy on lowering costs and increasing efficiency. Often this resulted in relying on one supplier for important subcomponents, sometimes based offshore where labor is cheaper. During the pandemic, the world discovered that “lower costs and increase efficiency” is not a resilient strategy.
For better or worse, customers have come to expect short lead times. Responding to those expectations has become more complex from a supply chain perspective: product availability has become less predictable, which lowers forecast accuracy; parts have long lead times; and there’s pressure to maintain leaner inventories to reduce holding costs.