According to Gartner, embracing digital transformation in the supply chain can improve revenue by 20% while lowering expenses by 50%. Now, digital transformation isn’t just about the software implementation; IoT plays a vital role in it, too.
Previously, we discussed how AI in Dynamics 365 is revolutionising Supply Chain Management and explored what’s new in D365 Supply Chain Management: 2024 release waves. Today, we will talk about supply chain integration with IoT and how it transforms inventory tracking.
But is IoT changing the supply chain? Well, there are many ways.
IoT devices have completely changed supply chain management. Be it operational efficiency or ROI generation, everything has become more transparent now.
Modern supply chains not only allow you to track your products but also give you a competitive advantage.
IoT in supply chain, logistics, and warehouse management makes tracking items from the warehouse to the storage and delivery point much easier.
But is that all? Not really. It can be a comprehensive system integrated with Dynamics 365 Supply Chain, making your inventory tracking as seamless as possible.
Let’s dive deep into it.
How IoT and Dynamics 365 Work Together for Real-Time Inventory Tracking
Microsoft Dynamics 365 can work with Internet of Things (IoT) devices and sensors to give real-time supply chain visibility and boost operational efficiency. IoT data can be utilised for a variety of purposes, including inventory tracking, equipment performance monitoring, and logistical operations optimisation.
This connectivity enables businesses to make educated decisions and react rapidly to changes in demand, inventory levels, and other factors affecting supply chain operations. So, how exactly can inventory be tracked in real time with D365?
Let’s find out.
1. Data Collection
RFID and GPS trackers are quite well-known examples of IoT devices. They can ensure easy real-time inventory tracking with IoT and D365. How? Here is what they can do:
- Stock Levels: Sensors keep track of the number of objects in storage and automatically update inventory records when they are added or deleted.
- Location: GPS and RFID technology enable real-time visibility of product locations across warehouses and in transit.
- Environmental Circumstances: Sensors monitor temperature, humidity, and other environmental parameters to ensure that delicate products (such as medications or food) are stored and transported in the best possible circumstances.
By continuously obtaining this data, IoT ensures that organisations always have an accurate and up-to-date picture of their inventory status.
2. Data Processing
Once the IoT device gathers data, Dynamics 365 Supply Chain IoT integration allows the processing of it in real-time. So, the system automatically picks and processes some information and provides functions like:
- Updates inventory quantities and locations in the central database.
- Tracks inventory movement in several locations.
- Analyse trends and patterns to detect possible concerns, such as stockouts or overstocking.
- Synchronises data across all business units to ensure consistency and correctness.
This real-time data processing enables businesses to make fast, informed decisions and respond quickly to supply chain changes.
3. Automation
Dynamics 365 uses IoT data to automate any significant inventory information collected from inventory management activities. It can include:
- Automatic Updates: Stock levels and order status are updated without the need for manual input.
- Order Processing: D365 supply chain with IoT ensures the automatic generation of production requests and purchase orders for the stock on low.
- Notifications & Alerts: The system also alerts when anything is on low stock or shipment is delayed. Be it environmental deviations or any other things, businesses get to handle them better and beforehand.
This level of automation lowers human error, increases efficiency, and guarantees that inventory is balanced and manageable.
4. Insights and Reporting
Dynamics 365 supply chain management services can also empower you and your team with powerful insights through real-time dashboard accessibility, helping you keep your reports updated:
- Inventory Dashboards: Businesses can keep a record of stock levels by tracking them through order status, delivery and movement status as well.
- Predictive Analytics: AI-powered insights ensure that the team has the estimated demand of a certain product through the predictive analysis of trends.
- Performance Tracking: Businesses can use customisable reports to monitor key performance indicators (KPIs). It can help you track inventory accuracy, turnover rates, and order fulfillment.
Dynamics 365 enables organisations to optimise inventory levels, cut expenses, and enhance customer satisfaction by providing real-time visibility and actionable information.
Applications of IoT-based Inventory Management in Dynamics 365
- Asset Tracking: It uses RFID tags and GPS sensors to monitor products' location and condition, reducing theft and damage.
- Returnable Asset Monitoring: Tracks reusable containers in real time, allowing for quicker recovery and reducing loss.
- Real-time Inventory Tracking: It ensures accurate stock levels, automates refilling, and avoids shortages.
- Demand Forecasting: Analyzes usage patterns to alter production and prevent overstocking.
- Supply Chain Visibility: Monitors product movement and enables quick response to disturbances.
- Global Supply Chain Finance: Through blockchain integration, payments are automated, and delays are reduced.
- Connected Fleets: Connected fleets increase delivery efficiency and save transportation expenses.
- Predictive Maintenance: It detects equipment flaws early on, reducing downtime.
- Regulatory Compliance: Ensures that storage and transit conditions meet industry standards.
- Regulatory Compliance: Ensures that storage and transit conditions meet industry standards.
- Vendor Performance: Measures vendor efficiency and develops connections.
Conclusion
Incorporating IoT with Dynamics 365 Supply Chain Management enhances operational efficiency, providing real-time visibility into inventory and logistics. With advanced supply chain management implementation, businesses can automate stock updates, track shipments, and predict demand using AI-driven insights.
The Dynamics 365 Supply Chain Management features allow seamless integration with IoT devices, ensuring accurate stock levels and proactive decision-making. If you’re wondering how to track inventory in real time with D365, DHRP can help.
Our experts specialise in implementing Dynamics 365 solutions tailored to your business needs, optimising your supply chain for better efficiency, reduced costs, and improved customer satisfaction. Contact us today!
