Supply Chain Disruption Causes and How to Respond to Them

supply chain disruptions

COVID-19 has brought supply chain problems ranging from shipping to truck driver shortage. Two years into the pandemic, the global supply chain remains broken with delays and disruption.

The unprecedented supply chain disruption has had severe operational and financial consequences, including:

  • high demand
  • supply shortages
  • inventory placement challenges and
  • worker shortage

Organizations need to step back and look at the bigger picture to understand the demand and supply forecasting. They need to get the right product to the right place at the right time and at the right price point.

Many companies across industries are putting more focus on ERP and digital transformation to improve their supply chains and improve operations.

Clorox is one of many companies taking action. It is investing $500 million in upgrading its 20-year-old ERP system for real-time visibility and better demand planning.

Ulta plans to spend up to $180 million on a three-year goal to update its ERP.

McCormick stated it doubled in size since upgrading its ERP and are planning to continue spending as much as $350 million in its system.

So, how can you stay ahead of the competition?

The COVID-19 pandemic is not just a short-term crisis. The pandemic has proven to test the risk management strategies and supply chain planning for businesses and their corporate values. Companies must build flexibility to protect themselves against future challenges and build a long-term resilience in their value chains.

To stay ahead of the competition, you’ll need a tool like Microsoft Dynamics 365 Finance & Supply Chain Management. It offers enterprise and mid-sized businesses the visibility, flexibility, and accessibility to data that’s needed to manage supply chain disruptions. So, what can be done to minimize the risks to global supply chains?

Implement Visibility

Companies can struggle with the lack of automation and continued dependency on manual processes that can lead to incomplete or inaccurate data entry. Visibility is essential as it allows businesses to make timely decisions in getting the right product into the right hands.

Better inventory management

Having a clear overview of your inventory and having access to the data at any time can transform inventory management. Microsoft Dynamics 365 F&SCM shifts inventory visibility via priority-based planning.

Discovery of production issues

With visibility across supply chain, it’s easier to detect production and quality issues in the early stages. As disruptions become visible, organizations can address them proactively and save valuable time and reputational damage.  

Accurate production and warehouse forecasting

With inventory control, patterns begin to form that could be used for strategic planning. Projections come closer in line with actual supply and demand. Scaling up or down to adjust for the next economic shift becomes far more manageable, and organizations gain the perspective and time they need to focus on innovation.

Reduced delays

By utilize mobile apps, communication with shipping partners becomes easier, sales can be processed immediately, logistics can be coordinated and truckloads can be optimized.

Dynamics 365 Finance and Supply Chain Management

ERP solutions like Microsoft Dynamics Finance and Supply Chain Management can help companies re-evaluate their entire supply chain by providing a clearer picture and better management.

It provides an automated and comprehensive map view of global disruptions using applied analytics and artificial intelligence on how these can affect one’s supply chains.

Implementing the right ERP for supply chain processes enables businesses to track status and discover issues early. It also allows companies to quickly adapt to changing situations by shifting resources in real-time, preparing, and having enough lead time for decision-making.

The seamless upgrades delivered by Microsoft Dynamics 365 Finance & SCM mean your technology is always up-to-date and secure with no heavy lifting.

Microsoft Dynamics 365 Finance & SCM offers a complete solution with robust security, functionality and scalability.

The benefits of a resilient supply chain

Companies that utilize the right ERP and tools have an advantage in the competitive market.

  • Operations are more efficient. A resilient business will spend less on addressing risks and have the greater ability to invest in growth and innovation.
  • Productivity is improved. By investing in and using resilient supply chain technologies, productivity can be maintained or operated at a higher capacity, leading to an overall productivity rise.
  • Risks are reduced. Supply chain operations are often seen as the most vulnerable point for risk and loss in many businesses. By employing resilient supply chain technologies like Microsoft Dynamics 365 Finance and SCM, companies are given a clear and comprehensive view of all operations across the supply chain network.

Discover how Calsoft can help your company manage supply chain disruptions