Microsoft Dynamics 365: The Total Economic Impact Of This On Supply Chain Management
Microsoft Dynamics 365 is known to be a cloud-based business applications platform. It effectively combines components of ERP and CRM along with AI tools and productivity apps. With its launch in 2016, Microsoft became the first major vendor to effectively combine the capabilities of CRM and ERP.
Now, in this detailed blog post, we will focus on talking about the total economic impact of this on supply chain management. Reading this guide will help to effectively clear all of your doubts related to this. Also, we will talk about the potential ROI or return on investment that the enterprises may realize by implementing Microsoft Dynamics 365 SCM.
Purpose And Methodology
Total economic impact or TEI is a methodology that is developed by Forrester Research. This methodology was mainly designed to help companies with technology-related purchase decisions.
The technology vendors can make use of this particular methodology to effectively communicate the value proposition of their solutions. The main purpose behind this study is to offer a framework to the business decision-makers so that they can easily do the proper assessment of the potential financial effect of employing Dynamics 365 SCM.
In this regard, about 5 companies were interviewed by Forrester Consulting. All of these companies were involved in utilizing this Dynamics 365 Supply Chain Management for carrying out the Total Economic Impact study.
After that, the results of the interviews along with the characteristics of these particular businesses were combined for the development of a composite organization. The main finding of this study is majorly dependent on the composite organization. We have summarized this in detail in the following section:
Main Findings Of The Study
Microsoft Dynamics 365 Supply Chain Management is considered to be an exceptional solution that is greatly helping product-centric companies. These particular companies can easily revamp their current ERP or Enterprise Resource Planning platform with the help of this.
It allows the customers to substantially boost the visibility of the supply chain. Not only that, but it also enables users to make a much better plan. Also, it maximizes asset uptime, enhances organizational agility, and thereby facilitates the companies to operate profitably and smoothly.
About five quantifiable impact areas were found in the study carried out by Forrester Research. It includes increased productivity of developers, lowered infrastructure cost, enhanced quality, reduced downtime, and increased volume of production.
Now, let’s talk about each of these areas in more detail to analyze how this Dynamics 365 Supply Chain Management provides value across enterprise supply chains.
- Increased Volume Of Production
Dynamics 365 Supply Chain Management enables users to enhance demand planning by elevating demand forecasting with the help of Artificial Intelligence or AI. Not only that, but it also allows the organizations to provide production schedule visibility, especially on the shop floor. With the help of this, companies can again dynamically rebalance production schedules based on the availability of equipment, labor, and real-time material.
All of these advancements again convert into more responsive scheduling as well as planning. It also ensures a better synchronization of the supply and demand and the minimization and identification of the production bottlenecks. As a result, the customers ultimately get a boosted production output. Over a 3-year time horizon, it was worth around $24.3 million.
2. Reduced Downtime
With the help of this solution, the users were able to build a connected factory. It also helped them to indulge in proactive management of the short floor by making use of a real-time view of inventory and production.
It is one of the big reasons, why the customers who were surveyed by Forrester reported a significant boost in the data collection, especially in their supply chain. This data aids in boosting visibility into the resource availability and asset utilization and offers a systematic means of finding out the main reasons behind the machine downtime.
With the help of this Dynamics 365 Supply Chain Management, it is possible to rapidly respond to quality issues, whenever it is required. The companies who were interviewed in the study conducted by Forrester Research utilized these capabilities to lower the costly downtime of the business-critical production equipment.
It ultimately boosted the OEE or overall equipment effectiveness. It also makes sure that the lines of production can effectively run as per the schedule 24x7x365. For a company possessing 500 manufacturing machines, this reduction in downtime was valued at more than $1.5 million over 3 years.
3. Enhanced Quality
Interviewees said that with the help of this Dynamics 365 Supply Chain Management, their companies can boost the quality of products and reveal new pathways. Particularly, the real-time production data aids in offering the means for understanding whenever variations in the raw material quality or machine operating characteristics were significantly affecting quality.
As they were able to make quick decisions, and so, they could make sure that the quality was retained. By taking certain measures to improve the adverse situations in real-time, the main causes were properly found and scrap rates were declined. It helps these companies to prevent any unnecessary losses while also boosting the quality of production. Over the 3 years, the enhancements that were done to the quality of the product lowered costs by more than $6.8 million.
4. Lowered Infrastructure Cost
Companies who were interviewed by Forrester Consulting said that users were able to pay less amount for system administration and server maintenance by migrating processes and systems to a modern cloud-based solution. It helps to avoid the higher cost which would have been incurred for scaling their preceding solutions. In the 3 years, the total infrastructure cost reductions were $11 million.
5. Increased Productivity Of Developer
This Dynamics 365 Supply Chain Management reaps the advantages of Microsoft Power applications to lower the costs of customizations. They have done this by making use of no-code or low-code extensions.
Additionally, it tends to provide services concerning operational applications by running on the Microsoft Azure Cloud. It hugely reduces the need for technical staff and developers to concentrate on system administration. Over 3 years, the financial impact of productivity advancements is expected to be around $0.7 million. This is made possible by freeing up these resources to provide other, higher-value work, etc.
Unquantified Benefits
The participants of this particular study also reported many other unquantifiable benefits. It includes a boost in customer satisfaction, enhanced ability to deliver on time, improved flexibility to adapt, and a lot more.
In A Nutshell
Thus, it was found from Forrester’s study that over the 3 years, the Dynamics 365 Supply Chain Management offered a total economic impact of $44.33 million in terms of financial savings.
Is your business looking forward to leveraging the power of Microsoft Dynamics 365? If your answer is yes, then you would be able to reap exceptional benefits by choosing DynaTech Systems as your agile and reliable digital transformation partner. Not only Microsoft Dynamics 365, we, at DynaTech also assist businesses to leverage the true potential of the Azure Cloud Platform. Power Platform, etc. Being a Microsoft Gold Certified Partner with CMMI Level 3 Certification, we are known for providing valuable services to customers. Hurry, allow us to formulate the best digital transformation strategy for your business today.
