Microsoft Dynamics 365 is designed to support virtually any type of industry, and the construction sector is no exception. Microsoft Dynamics 365 Supply Chain Management, which can be integrated with Microsoft’s software for finances to form a comprehensive enterprise resource planning system, is one of the most frequently chosen products to optimize supply chain operations in the construction industry. How can this software be integrated into the supply chain operations of a construction company? This article will provide you with essential details about the steps involved.
1. Assess existing supply chain operations and capabilities of Microsoft Dynamics 365
The very first step in successful integration is a thorough evaluation of the current supply chain operation in the construction company, as well as its construction management processes. At the same time, it is crucial to learn about the capabilities and limitations of the supply chain management software. With this knowledge, you will be able to identify the areas where integrating new software can enhance communication, and operations, and reduce expenses associated with resource utilization.
Some of the areas for potential adoption of Microsoft Dynamics 365 Supply Chain Management features are:
- Demand planning and forecasting;
- Procurement and sourcing;
- Warehouse and inventory management;
- Production planning and control;
- Quality management;
- Transportation management;
- Collaboration with suppliers and vendors;
- Analytics and reporting.
Keep in mind the sophisticated technologies built into Microsoft Dynamics 365. Alongside artificial intelligence that empowers robust analytics and forecasting, allowing companies to make more informed decisions based on their historical data, you can also leverage the Internet of Things (IoT). With IoT sensors designed for real-time data collection, you can leverage remote monitoring and control of equipment, assets, environmental conditions, worker safety, and energy management.
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2. Develop the integration project and scope
Once you study your company’s requirements and compare them to the capacities of Microsoft Dynamics 365 Supply Chain Management, you can outline the goals, scope, and approach for the system’s integration into your operations. The integration project plan also needs a specified timeframe, budget, and resource allocation. Furthermore, it is crucial to assemble a multi-discipline integration team that will combine specialists from different areas including IT and business.
While it is possible to go through the integration process without the assistance of a professional integration provider, it may be sensible to consider such cooperation. For instance, XPLUS, an experienced integration consultant with hundreds of projects completed across different industries, supports companies during each step of integration including system configuration and customization, data migration, user training, software evaluation, and post-integration support.
3. Configuration and customization
In the context of Microsoft Dynamics 365, configuration refers to setting up the default functionality of the system to adjust it to the company’s needs, whereas customization is a more extensive process of developing modifications to further tailor the software.
It is highly recommended to prioritize configurations over customizations whenever possible, as the latter process is much more resource-consuming and therefore expensive. Moreover, it requires more maintenance effort as your organization will have to ensure its customizations, which were not originally designed by Microsoft’s team, are working smoothly and do not disrupt the general performance of the entire system after each system update.
4. Data evaluation and preparation
To ensure accurate integration of Microsoft Dynamics 365 into your supply chain operations, it is necessary to assess the quality of your business data and map out its flows between the new software and the applications your company has already been using. Data consistency is critical for seamless integration. To achieve it, you need to understand data sources and formats used in your company as well as dependencies that exist in the flows. Furthermore, before your data is supplied to Microsoft Dynamics 365, it has to be thoroughly cleaned to remove any redundant and outdated records. To facilitate interoperability of Microsoft Dynamics 365 with other systems used in your organization, use integration tools provided by Microsoft Dynamics 365.
5. Leverage analytics and reporting
As mentioned earlier, Microsoft Dynamics 365 can empower your supply chain with machine learning algorithms and IoT.
With these tools, you can enhance the real-time visibility of your supply chain and improve the analysis of historical data for identifying crucial trends. For instance, the knowledge gained through analysis powered by Microsoft Dynamics 365 can help you estimate the demand for construction materials, workforce, or time for a new project more accurately, which in turn will reduce business disruptions caused by insufficient supply and help you avoid costs associated with oversupply.
During the integration process, leverage the reporting capabilities of your new system as well.
6. Training
The integration of Microsoft Dynamics 365 into already existing supply chain processes will require changes in the workflows of your employees. It is crucial to provide them with the necessary assistance during the adoption period to ensure they understand the functionality of the new software and how it impacts their tasks and responsibilities. Comprehensive training, ongoing support, and smooth communication are essential to promote adoption and ensure your company benefits from the integration.
Conclusions
By following a strategic approach, construction companies can make the most of the capabilities of Dynamics 365 and unlock new opportunities for optimization and innovation in their supply chain processes.
Key considerations for successful integration include, among others, proper planning, assembling a multidisciplinary team, ensuring smooth data migration, leveraging monitoring and analytics functionality of Microsoft Dynamics 365, and supporting system users with assistance and training.
Caroline is doing her graduation in IT from the University of South California but keens to work as a freelance blogger. She loves to write on the latest information about IoT, technology, and business. She has innovative ideas and shares her experience with her readers.
