Blog Series III: Supply Chain Management (Part A)
Supply chain management (SCM) is defined as the design, planning, execution, control, and monitoring of supply chain activities to create net value, build a competitive infrastructure, leverage worldwide logistics, synchronize supply with demand, and measure performance globally. Supply chain management is the lifeline of a significant company. It involves managing the flow of goods and services, money, and information between businesses and locations. It includes the transit and storage of raw materials, work-in-process inventory, finished goods, and end-to-end order fulfillment from the point of origin to consumption. Interconnected, interrelated, or interlinked networks, channels and node businesses combine to provide products and services required by end customers in a supply chain. Supply chain management (SCM) is the broad range of activities necessary to plan, control and execute a product’s flow from materials to production to distribution in the most economical way possible. SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information, and capital in functions that broadly include demand planning, sourcing, production, inventory management, logistics, storage, and transportation.
Supply Management through Microsoft Dynamics Business Central Sales integration
Enabling integration between Microsoft Business Central into supply management will lead to efficient use of resources to integrate raw material sources into a company’s distribution channels. The Microsoft Business Central shall improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement of a business enterprise.
Following are the factors a Supply Chain Management System shall address with the Microsoft Dynamics Business Central.
- Purchase and Payable
- Purchase Invoicing
Create, post, and print purchase invoices and purchase credit memos.
- Purchase Order Management
View purchase quotes, blanket orders, and purchase order processes. Creating a purchase order differs from making a purchase invoice directly. The quantity available is adjusted after an amount is entered on a PO line. Purchase Invoice is only affected after the invoice is posted. Use this functionality to manage partial receipts, receive and invoice separately, create prepay invoices for the PO, use quotes and blanket orders in the purchase phase. Quotes and blanket orders are not included in inventory.
- Purchase Return Order Management.
Create a purchase return order to adjust for returns. Items can be picked from the purchase return order. Partial return shipments or combined return shipments can be added in a credit memo and link purchase return orders with replacement purchase orders
- Alternative Order Addresses
Create multiple addresses to manage orders from vendors that, in addition to the primary address, have more than one warehouse from which they ship orders. The purchasing agent can select these additional locations when creating a purchase order or invoice.
- Purchase Invoice Discounts
Invoice discounts can be setup to be calculated automatically. This discount can be changed from vendor to vendor with different minimum amounts (also in foreign currencies) and rates. The discount is applied on each line item and becomes part of the net sum of the invoice.
- Purchase Line Discounting
Multiple item purchase price discounts that are provided by vendors based on parameters as minimum quantity, the unit of measure, currency, item variant, and periods can be managed in Business central. Unit cost is calculated for the purchase line and the highest discounts are applied based on the order and the rules specified in the purchase line discounts table.
- Alternative Vendors
Set up alternative vendors for items, specify typical lead times, and record price and discount agreements with each vendor.
- Vendor Catalog Items
Offer items to customers that are not part of the regular inventory, but you can order from vendors or manufacturers on a one-off basis. Register these items as non-stock items but treat them like regular items.