Using Dynamics 365 in Distribution and the Logistics Industry

Skyrocketing demand and supply chain uncertainty, amongst other things, have caused shortages and delayed deliveries throughout global supply chains in recent years.

To compete and survive, distributors must adapt their operations. Microsoft Dynamics 365 (D365) is one of the best ERP software solutions for distributors, offering complete control and visibility of your entire organisation to ensure an agile response to challenges.

Discover how Dynamics 365 can help distributors and the logistics industry overcome some of the challenges they face, including supply chain uncertainty, transportation management, overseas shipping, the importance of e-commerce and warehouse efficiency.

Digitally Transform Your Wholesale Distribution Business

operate from a single platform

With Inventory management, supply chain management, order fulfilment, finances, and CRM, Dynamics 365 offers a comprehensive system to streamline operations, reduce costs and improve customer satisfaction.

Take advantage of AI

Use the in-built AI and machine learning capabilities to enhance your business - benefit from smarter demand forecasting and inventory management, optimise sustainability and improve your customer experience.

Get total visibility of logistics operations

Using Dynamics 365 for logistics gives you total visibility of your operations, which in turn helps you to make profitable decisions, cut costs and run a more efficient business.

Manage Supply Chain Uncertainty

Supply chain uncertainty can cause serious disruptions, including delays and inventory issues.

Dynamics 365 Supply Chain Management allows you to connect your entire supply chain to your organisation to ensure you can limit the amount of uncertainty within your network.

You can connect your system to provide real-time visibility of ‘in-transit’ goods, which may be coming from other countries or regions based on your location. It allows you to see the current inventory levels and stock held in transit, giving accurate and up-to-date information.
D365 supply chain management allows you to score suppliers based on several factors to inform your employees of the most reliable and consistent suppliers, which helps to improve lead times and supplier relationships.
You can onboard new suppliers quickly and improve your supply resilience with multisourcing functionality.

Predict any disruptions and be fast to respond with Dynamics 365 for distribution.

How AI is used in Supply Chain Management

Enhance Stock and Logistics

Poor visibility of inventory is a key reason many distribution and logistics businesses struggle. With Dynamics 365 Supply Chain Management, you can:

Achieve comprehensive visibility into inventory to monitor the movement of finished products in real time and manage raw material usage.
Use machine learning to guide supply and goods management, aiding decision-making and minimising errors.
Use data on current inventory levels and future availability to identify optimal fulfillment locations for sustainable deliveries.
Streamline your pick, pack, and ship operations with integrated Power BI dashboards to maximize your On-Time In-Full (OTIF) rates.

Improve Internal Warehouse Efficiency

Inventory and warehouse management is perhaps one of the largest causes of distribution-related issues across almost every industry. Dynamics 365 gives you total visibility of your warehouse, tracking the movement of goods in real time.

Take action on warehouse processes that need optimising with warehousing analytics in one place including receiving, picking and shipping operations.
For inventory-related issues, D365 uses barcoding functionality to allocate items and goods to physical storage locations throughout your warehouse.
D365 automates key warehouse processes and limits the amount of human interaction that is needed. This ensures the accuracy of your data increases over time and helps to reduce costly mistakes. Use in-built AI guidance to help with decision-making and limit errors.
Using the Dynamics 365 mobile app helps to keep your warehouse up to date. As your workforce completes tasks throughout the warehouse, they can update the system in real time using their mobile device, so everyone has the latest data.

Transportation Management

The Transportation Management module in Dynamics 365 Supply Chain Management enables you to manage inbound and outbound transportation activities efficiently. It helps you determine optimal routing solutions and select appropriate vendors to ensure timely and cost-effective deliveries.

Third Party Logistics (3PL) - manage external transportation providers.
Calculate and pass delivery charges to customers or include them in pricing.
Plan customer shipments and select carriers efficiently.
Schedule transport and dock appointments for vendor deliveries.
Use volume-based or custom load building strategies based on weight and height.

Landed Cost

Overseas shipments are becoming increasingly costly for distributors, and keeping track of relevant inbound shipments and the associated costs can be difficult. The D365 landed cost module can help distributors with this.

The landed cost module in Dynamics 365 allows you to streamline inbound shipping by supplying a complete financial and logistical overview of imported freight.
This module helps you to estimate landed costs more accurately so you can intelligently predict your cash flow status and profit for each item/order. You can also allocate landed costs to multiple items and purchase orders to transfer orders in a single voyage.

Handling eCommerce

E-commerce has fast become the norm for many distributors, with over 80% of the UK population making purchases online*.

Dynamics 365 allows you to connect your system to a wide variety of third-party e-commerce platforms, such as Shopify, Sana Commerce, Big Commerce, Magento, and WooCommerce. This makes it an ideal solution that requires minimal disruptions to your operations.
These integrations mean you can automatically update stock availability and delivery information for your customers, making it a great ERP solution for distribution.
Automatically push order information from your website or online store into Dynamics to save double-keying or manual imports.
Integrating e-commerce into Dynamics 365 allows you to scale your operations and automate processes, and you'll have a single source of truth for your team.

Procurement & Sourcing

Dynamics 365 offers robust tools for procurement and sourcing, enhancing efficiency and accuracy throughout the process.

Streamline your procurement process from identifying product and service needs to procurement, receipt, invoicing, and payment. This includes managing purchase requisitions, orders, and vendor catalogues.
Dynamics 365 facilitates effective vendor management by allowing the creation and updating of vendor catalogues, sending requests for quotations, and handling vendor bids. This helps in selecting the best suppliers based on various criteria like price, lead time, and quality.
The platform supports automated workflows for procurement and sourcing, including approval hierarchies for purchase orders and requisitions, ensuring adherence to purchasing policies and minimising manual errors.
Real-time analytics and insights into procurement activities help you make informed decisions and optimise sourcing strategies.
Dynamics 365 modules, such as Finance and Supply Chain Management, integrate smoothly, offering a comprehensive view of procurement activities and their impact on overall business operations.

These features help you streamline your procurement processes, reduce costs, and improve supplier relationships.

What else does Microsoft Dynamics 365 Offer?

Dynamics 365 Overview

Microsoft ERP solution Dynamics 365 offers intelligent business applications to improve productivity, visibility and performance throughout your business.

D365 overview D365 overview

Dynamics 365 Finance

Make strategic financial decisions with intelligent data-driven insights and AI capabilities to propel overall profits and cash flow.

D365 Finance D365 Finance

Dynamics 365 CRM

Get an overview of the key features, benefits and history of Dynamics 365 as a CRM solution.

D365 as a CRM D365 as a CRM

Dynamics 365 Copilot

Microsoft Copilot is an ‘AI companion’ that helps employees work smarter across all Microsoft platforms, including Dynamics 365.

D365 Copilot D365 Copilot

Efficiently manage your distribution business with Dynamics 365

We have helped a range of companies from a variety of different industries overcome their distribution challenges and achieve more with D365.

If you would like to learn more about how your distribution network could be enhanced with Dynamics 365, get in touch today to speak with one of our specialist advisors.

Call 01384 400 600, email info@syscom.plc.uk, or submit a contact form below.

Further Information

Dynamics Support

We offer a range of professional Dynmaics 365 support options, tailored to the needs of your business.

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Struggling with an implementation of Dynamics? Discover our unique support service.

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Latest Dynamics News & Blogs

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Customise Dynamics 365

Dynamics 365 has several modules that connect seamlessly to create a software solution that fits your business needs and goals. In addition, ISV solutions from AppSource can customise the system.

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Using Dynamics 365 in the Distribution and Logistics Industry