Why should Enterprises choose Supply Chain Management in Dynamics 365?

"Dynamics 365 Supply Chain Management, often known as D365 SCM, is the one-stop shop for managing your operations with convenience and precision. If Optimus Prime had a supply chain management application, it would be this."

Formerly known as Dynamics 365 Finance and Operations, D365 SCM is designed to streamline and optimize supply chain and manufacturing processes.

Dynamics 365 Supply Chain Management (or Dynamics AX) is an advanced cloud-based enterprise resource planning (ERP) solution from Microsoft just like Optimus Prime from CyberTron.

This supply chain solution is specifically designed for operations leaders and offers a comprehensive suite of advanced business tools and capabilities to transform their supply chain and manufacturing operations.

With its end-to-end features and functionalities, Dynamics 365 SCM empowers manufacturing organizations with data-driven insights that help them make informed decisions and stay ahead of the curve, for now and tomorrow.

Let's explore more about this game-changing solution for your strategic supply chain strategy.

What is Dynamics 365 Supply Chain Management?

Dynamics 365 Supply Chain Management is a cloud-based enterprise resource planning (ERP) system that provides businesses with a comprehensive suite of tools to optimize their supply chain and manufacturing operations.

A company implements Dynamics 365 Supply Chain Management for:

  • Better planning optimization
  • Performance improvements
  • Priority-based planning
  • Better master plans and demand forecasts
  • Generating, analyzing, and approving planned production orders
  • Enhanced integration and fit analysis, and more

Also, D365 SCM can be the best fit for enterprises that encounter 10,000+ transactions per day or have highly complex set of operations to manage.

Note: This supply chain ERP system is part of the Dynamics 365 - A Suite of Business Applications,offered by Microsoft. It includes Finance, Sales, Customer Service, Field Service, and other business management applications.

What are the Three Modules in Dynamics 365 Supply Chain Management?

There are three main Microsoft Dynamics 365 Supply Chain Management modules:

  • Asset Management
  • Inventory Management
  • Production Control

These modules help businesses manage their fixed assets more effectively, track inventory levels and demand across various channels, and plan, control, and execute their production workflows more efficiently.

In addition to that, Dynamics 365 Supply Chain Management includes other functionalities such as:

  • Quality management
  • Procurement
  • Warehouse management

These additional capabilities provide manufacturers with end-to-end visibility and control over every aspect of the supply chain.

What is the difference between Dynamics 365 Finance and D365 SCM?

While Dynamics 365 Finance focuses on financial management and accounting, D365 SCM focuses on supply chain and manufacturing management.

Businesses use planning optimization in Dynamics 365 Supply Chain Management to perform faster calculations on large volumes of data. This feature at its full scale isn’t available with Dynamics 365 Finance and D365 Business Central.

Organizations can choose between these two solutions or combine them for a comprehensive ERP system.

Further, for businesses with more basic financial management needs that do not require complex supply chain capabilities (that is, for up to 500 transactions per day), Dynamics 365 Business Central may be a more cost-effective and streamlined solution.

Dynamics 365 Business Central (formerly, Dynamics NAV) is a cloud-based, all-in-one ERP solution that combines basic financial management, sales, service, and project management capabilities within a single application.

Also Read: What Is Microsoft Dynamics 365 Business Central? An Overview

Which is better, Dynamics 365 Finance & SCM, or Business Central?

Dynamics 365 Finance & SCM and Dynamics 365 Business Central are both cloud-based enterprise resource planning (ERP) solutions.

These modern ERP solutions are better than legacy ERP systems. They cater to different business needs with Dynamics 365 Finance and Supply Chain Management focusing on supply chain and manufacturing management.

Whereas Dynamics 365 Business Central focuses on basic financial management combined with other operational functionalities for small and mid-market sized businesses.

D365 F&SCM provides a 360-degree view of supply chain operations, with features such as production control, inventory management, and asset management.

In contrast, Business Central offers integrated features for basic financial management, sales, purchase, stock management, and supply chain operations.

So, if a business needs advanced supply chain features, such as production planning, asset management, and advanced warehousing, then Dynamics 365 F&SCM would be the better fit.

On the other hand, if a business has more basic financial management needs, and does not require complex supply chain capabilities, then Microsoft Business Central can be a more cost-effective and streamlined solution.

Finally, if you’re searching for the better solution between Dynamics 365 Finance and Supply Chain Management and Dynamics 365 Business Central, there’s no specific answer. It depends on your business-specific needs, goals, and the most important factor – the budget!

Thus, it's important for the organization to assess their business requirements and determine which of these solutions matches their needs best.

If you’re facing issues in making an informed decision about which ERP solutions you should choose, you can contact us.

Dynamics Square is Canada’s leading Microsoft Dynamics 365 Partner.

Our team comprises talented Microsoft ERP consultants who can help you every step of your journey to turn your idea into reality and make an impact.    

Mukesh Jha

“With over 10 years of experience in the tech domain, Mukesh Jha is a skilled content expert at Dynamics Square. He leads the content creation process with a focus on making complex topics easy to understand and ensuring the content is up to date. Every piece of content created under his supervision offers deep and valuable insights related to technology.”


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