Digitally integrated supply chain as a competitive advantage

In order to survive in global competition, speed and transparency in the supply chain is a key factor for a company. To achieve this, it is necessary to optimally integrate the logistic partners into the processes.

Dynamics 365 Supply Chain Management offers you the possibility of integrating and managing logistics partners. To do this, you can create (shipping) carriers and set up their associated specifics (e.g. services).

Establishment of shipping carriers

The following options are available to you:

  • Fees and surcharges:
    In addition to the normal freight rate, carriers may charge different fees / surcharges. Since these have an impact on the entire freight, it is important to keep an overview here.
  • Constraints on items or delivery:
    Due to the service portfolio of the logistics partner, it may be necessary to define certain restrictions for articles or deliveries.
  • Transportation tender type:
    For the execution of transport tenders, it can be defined whether these should be done manually or via EDI.
  • Tracking URL:
    This can create the basis for a direct connection of the logistic partner.
  • Vendor account:
    You can also link your logistic partner directly to their corresponding vendor account in order to fully integrate them.
  • In addition to various settings for managing and integrating the shipping carrier, it is also possible to store the respective services from the logistics partner’s portfolio. These can be different for each industry and logistics service provider (e.g. express and standard service in mail order, 2-person handling in the furniture sector, …) and individually designed in Dynamics 365 Supply Chain Management.

    With the rating profiles, the basis can be created for the later determination of the optimal service provider for a freight shipment:

    – Fees for transport relations depending on the weight can be set with the rate master.

    – In addition, the delivery times of the individual routes can be managed in the transit time module depending on the logistical services. This allows more precise planning of shipments.

    Usage in the operational process

    The corresponding logistical partners and the associated services can then be assigned to a corresponding load in the operational process in load planning.

    These options are not only available for outbound processes, but also for inbound processes or in-house relocations between different locations.

    In addition, it is possible to store further details about the individual transport and the means of transport used for it.

    After the selection of a suitable shipping carriers, the logistic loads can be sent to the transport tenders. How this is done (manual / EDI) has already been defined in the standard settings of the carrier.

    After the transports have been carried out successfully, the logistic partner can report the transport status to the individual deliveries. This enables you to create transparency in-house in a timely manner and form a basis for further sales process steps.

    After the transports have been carried out, the shipping carrier’s freight invoice can be coordinated with the bill of lading. Deviations between the freight rate determined by the tariff module and the actual freight invoice can be posted to defined general ledger accounts.

    Freight documents

    In addition to the option of integrating forwarders and their services, Dynamics 365 Supply Chain Management already offers various reports for your logistical processes, such as the bill of lading or the load list report.

    The bill of lading is the accompanying document for a consignment.

    The load list report, however, is more a detailed listing of individual items.

    Microsoft is expanding its cooperation with logistics service providers in parallel to further integrate logistics partners. You can find out more here.

    With their many years of experience, the specialists at Dynamicon support retail and production companies in various industries in optimizing and systematically mapping their processes for various supply chains in Dynamics 365 Supply Chain Management.

    Please arrange an initial meeting or workshop with our experts on your requirements in the area of supply chain optimization.

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