Improve Inventory Management with Dynamics AX

Introduction

Manual inventory management just doesn't work for B2B companies with multichannel sales platforms, custom fulfillment processes and demanding buyers. Automation capabilities and cloud-based access are essential when dealing with real-time demands for information and accurate inventory counts across platforms and systems.

You can improve inventory management with a Dynamics AX integration in many ways, such as using cloud-based inventory solutions that provide a centralized clearinghouse for all inventory-related data.

The Benefits of Dynamics AX eCommerce Integration for Managing Inventory

An integrated system gives companies the inventory tools they need to reduce delivery times. Multichannel inventory management means that there's a centralized order management system, or OMS, that collates a comprehensive inventory count across multiple storage locations.

When an order is placed, the system identifies the warehouse or facility that is closest to the buyer. The whole process is streamlined to expedite deliveries, reduce shipping costs for customers, and make tracking simpler and automatic. Inventory figures are updated instantly across sales channels.

Reducing Overselling that Leads to Out-of-stock Items

Inventory management is one of the most overlooked areas of digital technology. Many decision-makers simply don't recognize the opportunities that better inventory management generates. For example, companies lose business every day because of out-of-stock items, inaccurate shipping information, and picking errors. On the other side of the equation, overstocking can tie up investment capital in dead or slow-moving inventory. Storing and managing stock also generates direct storage costs and the indirect costs of obsolescence, theft, and product damage.

Automate Real-time Inventory Management

Overstocked inventory and out-of-stock items cost retailers around the world about $1.73 trillion each year, according to IHL Group research cited by Shopify. [1] Integrated product management with eCommerce inventory management software makes it easier to optimize just-in-time restocking, manage all sales and purchases, and track inventory, materials, and shipments. Pen and paper aren't required, and companies can save lots of money on labor and supplies by going paperless with integration.

Dynamics AX eCommerce Tools for Inventory Management

Microsoft Dynamics AX software provides a suite of tools for seamless inventory management, carried forward in its successor, Dynamics 365 Supply Chain Management. When these tools are integrated into the system, B2B companies receive the following benefits:

Optimized Inventory

• The Microsoft AX inventory Control Module matches customer demand with a versatile system for estimating the necessary products, components, and materials needed for just-in-time inventory restocking or production runs.

Simplified Logistics

• Integration collects all the essential data about inventory such as stock dimensions, available storage space, and any special storage requirements such as refrigeration. Any authorized user can view these details from any system access point.

Greater Warehouse Control

• It's easy to control the layout of products in brick-and-mortar locations and storage aisles, shelves, racks, and bins. Fixed-item replenishment locations can be directly managed for greater fulfillment efficiency.

Transfer Journal

• The Microsoft AX Transfer Journal can track the movement of inventory between different storage and display locations.

Inventory Counting

• There are many options to automate real-time inventory management. Administrators can easily set or revise the rules on how often inventory is counted physically to verify software records. Connected RFID scanners and barcode readers can manage counts automatically to reduce labor costs.

Information Exchanges

• The primary benefit of integration is an information exchange between business applications. Data from a Microsoft Dynamics AX eCommerce integration can automate reordering, manage Bills of Materials for manufacturing, connect with CRM for better product-demand information, and provide similar benefits from other connected modules. [2]

Predictive Insights

• Integration collates data from all company systems to predict product demand, establish minimum and maximum stocking thresholds, transfer stock between warehouses, and transfer items between batches and variants.

Inventory Management Journal

• The Microsoft AX Inventory Management Journal maintains critical information about opening balances and the need to reduce or increase stock levels. B2B organizations can add cost to an item so that the information transfers automatically when the item is moved. Getting an up-to-date picture of product costs is valuable information when planning inventory strategies.

Automation Module

• The Microsoft Automation Module makes it easy to manage third-party technology such as conveyance systems and picking cranes. Staff members can receive real-time information about inventory changes and material movement. It's also easier to track lots for quality control, regulatory compliance, and product recalls.

Integrated Dashboards

• Staff can view and manage all business processes through integrated dashboards. Operations managers can track warehouse and manufacturing productivity, the flow of materials and products, and other key benchmarks.

Integrating Your Business for Inventory Efficiency

You can improve B2B inventory management with Dynamics AX integration. Custom integration is essential if you want to take full advantage of all the available Dynamics AX modules and siloed information from existing company software and business applications.

Clarity provides all the help you need to integrate your site fully, optimize site architecture, and provide an extra layer of digital security. Clarity will also collaborate with your IT team members, incorporate their suggestions, test all applications, and train your staff to use Microsoft AX ERP software to realize its full potential.

References:

[1] Shopify.com: Multi-Channel Inventory Management: Problems & Solutions

[2] Top10erp.org: Microsoft Dynamics AX ERP