Calculating Cost Economic budget saving and investment

Unlock 30% Cost Savings with Microsoft Dynamics 365 Finance

In today’s fiercely competitive manufacturing landscape, organisations are constantly seeking innovative strategies to optimise operational efficiency, curtail expenses, and bolster profitability. Amidst the intricate web of modern supply chains, having a robust system that furnishes accurate, real-time information and facilitates data-driven decision-making has become an imperative. Enter Microsoft’s Dynamics 365 F & O solutions (D365), a comprehensive suite designed to empower manufacturers in achieving substantial cost savings and a remarkable return on investment (ROI).

Streamlined Supply Chain Management

Enhancing supply chain management is a pivotal pursuit for manufacturers aiming to curb costs and augment profitability. Microsoft’s D365 equips organisations with the tools to attain this objective by providing real-time visibility into every facet of their supply chain operations. Armed with precise and up-to-the-minute information, manufacturers can meticulously track inventory levels, monitor production schedules, and effectively manage supplier relationships.

One of the standout features of D365 is its ability to mitigate the risks of overstocking or stockouts, thereby reducing inventory costs through real-time visibility into stock levels. Additionally, the platform empowers manufacturers to optimise production schedules by identifying bottlenecks and implementing necessary adjustments, ultimately boosting production efficiency, minimising downtime, and enhancing delivery punctuality. These concerted efforts culminate in substantial cost savings and an improved return on investment.

According to a comprehensive report by Panorama Consulting Solutions, organisations that implemented Microsoft Dynamics 365 for F & O (D365) experienced an average reduction of 20% in inventory costs, a 22% decrease in manufacturing lead times, and a remarkable 23% increase in on-time delivery rates. Furthermore, the report revealed that D365 facilitated an average 18% reduction in production costs for these organisations. These enhancements in operational efficiency translated into significant cost savings and an elevated return on investment.

Metric Improvement
Inventory Costs 20% Reduction
Manufacturing Lead Times 22% Reduction
On-Time Delivery 23% Increase
Production Costs 18% Reduction

Figure 1: Cost Savings and ROI with Dynamics 365 Finance in Manufacturing

Moreover, D365 empowers manufacturers to manage supplier relationships more effectively. Real-time insights into supplier performance enable organisations to identify potential issues promptly and take corrective measures, such as renegotiating contracts or transitioning to alternative suppliers, ensuring a seamless and cost-effective supply chain operation.

Robust Financial Management

Robust financial management is another critical aspect of business operations for any manufacturer, exerting a direct impact on profitability. With D365, manufacturers gain access to a comprehensive suite of tools designed to streamline financial processes, minimise errors, and enhance financial reporting capabilities.

One of the standout features of D365 is its robust accounts payable (AP) and accounts receivable (AR) functionality. These capabilities empower manufacturers to manage their cash flow more efficiently by tracking payments and receipts, automating invoicing processes, and accessing real-time financial information. This granular visibility enables organisations to identify potential issues early on, take proactive measures to ensure timely payments, and mitigate the risks associated with past-due payments or missed invoices, ultimately leading to improved cash flow and enhanced financial performance.

The powerful general ledger functionality within D365 is another invaluable asset, enabling manufacturers to consolidate all financial transactions into a centralised repository. This streamlined approach simplifies financial data management, facilitates account reconciliation, and enhances the accuracy of financial reporting processes. By reducing errors and promoting transparency, manufacturers can leverage D365 to optimise their financial operations and realise a superior return on investment.

Furthermore, D365 offers robust financial analysis tools for budgeting and forecasting, equipping manufacturers with the insights necessary to make informed financial decisions that align with their long-term strategic objectives.

Optimised Production Planning

Training, meeting and employees planning a corporate strategy with internet on a laptop in an offic

Microsoft’s D365 furnishes manufacturers with robust production planning capabilities, empowering them to optimise production schedules, minimise downtime, and curtail waste, thereby enhancing operational efficiency and profitability.

The platform provides real-time visibility into production processes, enabling manufacturers to track production status, identify bottlenecks, and implement timely adjustments to production schedules. This proactive approach helps organisations minimise downtime, increase production efficiency, and reduce associated costs, ultimately contributing to a favourable bottom line.

An often-overlooked yet invaluable feature of D365 is its ability to mitigate waste throughout the production cycle. By furnishing real-time data on production processes, the system equips manufacturers with the insights necessary to pinpoint areas where waste occurs and take corrective action. This could involve adjusting production processes, reducing overproduction, or enhancing quality control measures. By minimising waste, manufacturers can realise substantial cost savings and bolster their overall profitability, thereby improving their return on investment.

D365 also offers users access to powerful analytics tools that can help identify areas for improvement within their production processes. The system can generate custom reports on production efficiency, quality control, and other key performance indicators, enabling manufacturers to make data-driven decisions that optimise their production processes and unlock new efficiencies.

Elevated Quality Control

Quality control is another critical aspect of manufacturing that directly impacts product quality and customer satisfaction. Microsoft Dynamics 365 for F & O is a powerful business management solution that offers advanced quality control features, empowering manufacturers to enhance their quality control processes and deliver superior products consistently.

D365 enables manufacturers to track quality data in real-time, capturing granular insights into product quality and providing real-time feedback. This proactive approach allows organisations to identify and resolve quality issues promptly, reducing the risk of defects and minimising the need for rework. By enhancing product quality and mitigating the costs associated with rework, manufacturers can realise substantial cost savings and improve customer satisfaction.

In addition to real-time quality data tracking, Microsoft’s D365 incorporates advanced quality control features that empower manufacturers to define quality control processes, establish quality standards, and monitor compliance with these standards. This comprehensive approach helps organisations streamline their quality control processes and ensure that products consistently meet the highest quality standards, fostering customer loyalty and driving long-term business growth.

D365 also offers robust analytics tools that aid manufacturers in identifying quality issues and implementing corrective actions. Users can generate reports on product quality, defect rates, and other key performance indicators, enabling manufacturers to make data-driven decisions that enhance their quality control processes and deliver superior products consistently.

Seamless Collaboration

Collaboration is a critical success factor in any business endeavour, and manufacturing is no exception. In an industry where different departments and teams must collaborate seamlessly, D365 directly integrates with Microsoft’s Office365 suite, offering advanced collaboration features that facilitate effective communication and collaboration across departments and with external stakeholders, such as suppliers.

D365 provides a centralised platform for communication and collaboration, offering document management, email integration, and task assignment capabilities. This streamlined approach enables manufacturers to optimise workflows, reduce errors, and foster a culture of seamless collaboration across their organisation.

According to a study by Forrester Consulting, organisations that implemented Microsoft Dynamics 365 for F & O (D365 F&O) experienced a 35% reduction in time spent on collaboration and document sharing, resulting in increased productivity and reduced errors. The study also found that D365 F&O helped organisations improve their quality control processes, with a 30% reduction in defects and a 20% reduction in rework. Additionally, the platform enabled organisations to enhance their production planning capabilities, with a 25% reduction in planning cycle time and a 20% increase in schedule adherence. These improvements in collaboration, quality control, and production planning ultimately helped organisations achieve better business outcomes and realise a superior return on investment.

Metric Improvement
Time Spent on Collaboration and Document Sharing 35% Reduction
Defects 30% Reduction
Rework 20% Reduction
Planning Cycle Time 25% Reduction
Schedule Adherence 20% Increase

Figure 2: Improvement in Quality Control Processes with Dynamics 365 Finance in Manufacturing

Microsoft’s D365 also empowers manufacturers to manage supplier relationships more effectively, providing real-time visibility into supplier performance and enabling seamless collaboration with suppliers to optimise supply chain processes and reduce costs.

In addition to collaboration tools, Microsoft’s D365 offers advanced analytics and customisable reporting features. The system can generate reports on collaboration metrics, such as task completion rates and communication efficiency, enabling manufacturers to identify areas for improvement and implement corrective actions. This data-driven approach to collaboration has become a common practice for manufacturers seeking to further optimise their operations and unlock new efficiencies.

Conclusion

Microsoft’s Dynamics 365 F & O solutions are part of a robust system that addresses the unique challenges faced by manufacturers striving to achieve higher cost savings and a remarkable return on investment. By leveraging the benefits of this comprehensive platform, manufacturers can enhance their financial performance, increase profitability, and gain a competitive edge in the market.

Manufacturers seeking to stay ahead of the competition in today’s fast-paced industries require powerful features, including improved supply chain management, enhanced financial management, optimised production planning, elevated quality control, and seamless collaboration. These capabilities empower organisations to optimise their operations, reduce costs, and unlock new efficiencies, ultimately driving business growth and profitability.

While it is challenging to provide specific figures for cost savings and return on investment, as these metrics can vary depending on the unique circumstances of each organisation, studies have consistently demonstrated the significant value that Dynamics 365 can deliver. According to a Forrester Total Economic Impact study commissioned by Microsoft, organisations can realise a remarkable 466% return on investment over three years with D365. However, it is crucial to recognise that this figure may vary based on the specific requirements and operational complexities of each organisation.

One key factor that can significantly influence the success of any technology implementation is the expertise and guidance of a trusted partner. At Carbon and Finch, we are an established Microsoft Partner with decades of experience in implementing validated solutions tailored to the unique needs of our clients. Our team of experts will work closely with you to ensure that you achieve your goals and unlock the full potential of Microsoft Dynamics 365, empowering your organisation to thrive in the digital age.

WHERE MICROSOFT TECHNOLOGIES MEET EXPERTISE, delivering high quality Microsoft solutions for enterprises around the world Carbon and Finch are an established Microsoft Partner with first class implementation and support capabilities for your Microsoft Dynamics solutions

Request a Call Back

A member of our team will call you as soon as possible.