How Manufacturers Can Overcome 7 Common Production Pains with Microsoft Dynamics 365 Finance and Supply Chain Management

Meeting production targets while reducing costs and adapting to market disruptions has become increasingly challenging for manufacturers. However, with the right technology, you can mitigate these obstacles. Microsoft’s Dynamics 365 Finance and Supply Chain Management (D365 FSC) offers robust solutions to address the key production pain points manufacturers face today.

Here’s a look at key pain points, and how D365 mitigates them.

1. Difficulty Meeting Production Targets within Established Budgets

Adverse weather, global conflicts, and other unforeseen challenges frequently disrupt supply chains. Labor shortages exacerbate these issues, slowing down manual processes and making it difficult to plan production cycles accurately using legacy data.

D365 Finance and Supply Chain Management provides manufacturers with real-time visibility into operations, enabling them to optimize resource allocation, improve scheduling, and minimize costly downtime. This modern suite of tools allows manufacturers to control costs better while still meeting production targets.

2. Inability to Adapt Quickly to Market Disruptions

Agility is essential today, yet many manufacturers still embrace manual workflows, siloed legacy technology, and outdated processes. Without the ability to adapt quickly, production slowdowns or temporary halts can severely impact profitability. The numbers reveal a significant increase in global supply chain disruptions—from 3,700 in 2019 to 11,642 in 2021—highlighting the importance of flexibility. Unfortunately, these challenges have not gone away.

D365 Finance and Supply Chain Management integrates seamlessly with other platforms, providing manufacturers real-time data and analytics. This interoperability allows for faster decision-making and the ability to proactively respond to market disruptions, ensuring business continuity.

3. Underutilization of Data in Siloed Systems

Supply Chain Dive reports more than 65% of supply chain managers still rely on Excel spreadsheets as a primary operational tool, a clear indication of how data remains siloed in many manufacturing environments. Many companies hesitate to upgrade their ERP systems due to fears of disrupting their customized features and workflows, leaving them vulnerable to inefficiencies and cybersecurity risks.

D365 Finance and Supply Chain Management helps overcome these challenges by integrating legacy and siloed systems into a single source of truth in the cloud. With advanced AI capabilities, manufacturers can gain actionable insights into operations, driving efficiency, reducing costs, and fostering innovation.

4. Acute Skilled Labor and Talent Shortage

The global shortage of skilled labor in manufacturing is plaguing the industry. A National Association of Manufacturers (NAM) survey found that three-quarters of executives view attracting and retaining talent as a primary challenge. The situation is so dire that Manufacturing Dive predicts a shortfall of 1.9 million workers if the gap isn’t addressed.

D365 Finance and Supply Chain Management offers automation solutions that streamline repetitive tasks, reducing the reliance on manual labor and mitigating the impact of talent shortages. This technology increases worker productivity and allows manufacturers to achieve more with less.

5. Need for Better Asset and Worker Productivity

Maximizing asset and worker productivity is critical for manufacturers to remain competitive.

D365 Finance and Supply Chain Management provides predictive maintenance and operational standardization tools, enabling manufacturers to capture and leverage data effectively. D365 optimizes asset management, minimizes unplanned downtime, and boosts worker productivity.

6. Reducing Quality-Related Costs

Improving quality while reducing costs is a significant challenge for manufacturers. The American Society for Quality (ASQ) estimates that poor quality can cost up to 15% of sales.

D365 Finance and Supply Chain Management offers comprehensive quality control and assurance solutions, non-conformance management, and corrective action tracking. Manufacturers can lower quality-related costs by reducing defects and minimizing rework while enhancing customer satisfaction.

7. Consistent Execution and Alignment with Business Goals

To translate vision into action, manufacturers need a structured approach to planning, execution, and monitoring.

D365 Finance and Supply Chain Management provides a framework for standardizing processes across multiple locations, ensuring consistent execution and alignment with overall business goals. Real-time tracking of performance metrics supports continuous improvement initiatives, allowing manufacturers to stay on course.

It’s time for manufacturers to transition from reactive to proactive operations management by investing in D365 Finance and Supply Chain Management. This powerful platform helps manufacturers tackle key production challenges and pains head-on, paving the way for sustained growth and success.

Sikich can help design, deploy, and maintain D365 Finance and Supply Chain Management. Talk with our team today about how these tools can solve these and other operational challenges.

This article was also published in Manufacturing.net.