Create a resilient manufacturing supply chain

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Microsoft Cloud for Manufacturing helps customers create a resilient and sustainable manufacturing supply chain by holistically analyzing the following organizational data:

  • Production and operations

  • Multitier supplier data

  • Market signals

Microsoft Cloud for Manufacturing uses advanced analytics and AI capabilities that are embedded in the Microsoft Dynamics 365 Supply Chain Management platform. Manufacturers can gain real-time visibility into the supply chain to better predict and manage potential risks. They can optimize planning processes end-to-end, use data and AI to improve demand forecasting models, and optimize inventory levels. Manufacturers can increase customer service and satisfaction levels with warehouse automation and intelligent fulfillment systems by tracking and reducing the carbon footprint.

Microsoft supports manufacturing customers by focusing on these core scenarios.

Visibility and risk management

In today's complex and interconnected global supply chain, the need for end-to-end supply chain visibility and risk management is greater. Organizations must quickly predict, identify, and mitigate supply chain disruptions, such as natural disasters, geopolitical events, and pandemics. These actions ensure continuity of operations and maintain customer satisfaction. Supply chain visibility and risk management solutions provide real-time monitoring and analysis of supply chain data that enables organizations to:

  • Identify potential risks.

  • Generate actionable insights through machine learning and AI to manage risks and compliance.

  • Take proactive measures to mitigate risks.

With these solutions, organizations can optimize their supply chain operations, reduce costs, and improve overall business performance.

The top visibility and risk management use cases that Microsoft supports include:

  • Supply chain orchestration is the coordination and management of end-to-end processes within a supply chain, aimed at optimizing efficiency, enhancing visibility, and driving better decision making.

  • Track and trace supports end-to-end tracking of goods and materials across the supply chain, enabling real-time visibility and risk mitigation and an increased speed to market.

  • Risk management provides a systematic approach to digital supplier performance management, enhancing resilience and ensuring business continuity.

The key Microsoft technology that supports visibility and risk management is Dynamics 365 Supply Chain Management.

Microsoft AppSource also hosts a rich ecosystem of independent software vendors (ISVs) that specialize in supply chain visibility and risk management.

Forecasting and planning

Without accurate forecasts and effective planning strategies, manufacturers risk overproduction, excess inventory, and costly supply chain disruptions. In today's fast-paced, global business environment, manufacturers need real-time access to data and analytics to make informed decisions and optimize their operations. Manufacturers can use the power of machine learning, predictive analytics, and real-time data to accurately forecast demand, plan production, and optimize their inventory. As a result, they can reduce costs, improve delivery performance, and enhance customer satisfaction.

With effective forecasting and planning solutions, manufacturers can use their supply chain, customer, and market data to create advanced demand forecasting models and optimize supply chain planning. Manufacturers can generate optimized plans for the following components from a consensus demand plan, shaped through sales, finance, and product supply teams:

  • Demand

  • Supply

  • Procurement

  • Inventory

  • Production

Manufacturers can also continuously optimize inventory levels to service customer orders and forecast stock to provide the correct inventory at the correct place and at the correct time.

The top forecasting and planning use cases that Microsoft supports include:

  • Demand planning uses historical data and predictive analytics to estimate demand for a product or service in a future period, enabling manufacturers to optimize inventory levels and reduce lead times.

  • Inventory optimization uses advanced analytics to analyze historical production data, demand, and supply chain dynamics to optimize production planning, reduce waste and downtime, and increase operational efficiency.

  • Integrated business planning aligns supply and demand at the operational and strategic levels, facilitating cross-functional collaboration, more accurate forecasting, and more optimal inventory levels.

The key Microsoft technology that supports forecasting and planning is Dynamics 365 Supply Chain Management.

Partner solutions that are certified for Microsoft Cloud for Manufacturing support the forecasting and planning use cases previously described, and they're available on Microsoft AppSource. These solutions are certified with the Microsoft AI Cloud Partner Program and meet the Microsoft standards of data accessibility that are specific to the manufacturing industry. For more information, see Appendix: Certified partner solutions for Microsoft Cloud for Manufacturing.

Warehousing and fulfillment

As manufacturers face increasing demand for faster delivery times, they need efficient warehousing and fulfillment solutions to keep up with customer expectations. Digital warehousing solutions provide a safe, more secure storage environment for raw materials, work in progress, and finished goods, while fulfillment solutions allow for efficient and timely delivery of products to customers. To achieve operational excellence, manufacturers need real-time visibility into their inventory levels, order status, and delivery performance, including the ability to track and manage their supply chain partners.

The top warehousing and fulfillment use cases that Microsoft supports include:

  • Warehousing, fulfillment, and automation uses automation, robotics, and control systems to drive efficiency and accuracy and to optimize order fulfillment through smart logistics to manage costs and customer service.

  • Supply chain sustainability uses digital twins for sustainability to optimize the carbon footprint.

The key Microsoft technology that supports warehousing and fulfillment is Dynamics 365 Supply Chain Management.

Microsoft AppSource also hosts a rich ecosystem of independent software vendors (ISVs) that specialize in supply chain warehousing and fulfillment.