How to Prevent Supply Chain Disruption with Dynamics ERP

Visit Website View Our Posts

Recently, terror attacks directed at shipping in the Red Sea have greatly affected businesses in many sectors. The resulting supply chain disruptions demand quick strategic responses. The repercussions of rerouted ships and other regional concerns are being felt globally. The challenge of meeting demand efficiently and effectively is real; businesses must be prepared. Taking proactive measures, being flexible, and learning from past interruptions, such as the Suez Canal blockage in 2021, will be crucial. Businesses may have to revise inventory strategies to avert disruption. What can your company do to guard against supply chain disruption?

Netstock’s critical tips for guarding against supply chain disruption using Dynamics 365


1. Prepare for the unexpected.

The six-day blockade in the Suez Canal in 2021 significantly disrupted global supply chains. Even after the canal reopened, European ports experienced heavy congestion, and Asian ports had to deal with disruptions and revised schedules. If they are to learn from the past, companies must acknowledge the profound impact that unexpected disruptions can have on inventories and logistical processes. A proactive approach is crucial. Supply chain optimization can help foster resilience and inform contingency plans. Companies can navigate future challenges adeptly by cultivating a well-prepared, highly adaptable supply chain.

2. Consider the ramifications of global disruptions.

Knowing that disruptions will likely occur, give attention to possible B plans. Critical ports in Southern Africa may face congestion due to refueling needs. Watch European ports for timing issues. U.S. West Coast Ports might encounter increased volume from Asia, posing challenges despite Panama Canal restrictions. East Coast Ports could experience added pressure due to volume diversions from Panama Canal restrictions and timing issues caused by the Red Sea disruptions.

Additionally, disruptions in energy and commodity markets may affect the movement of resources, affecting global markets. As supply chain interruptions increase, insurance and shipping costs may also increase. Those costs will significantly impact companies that rely on international operations.

In response to these challenges, businesses must reassess their inventory management strategies. Supply chain optimization may emphasize maintaining strategic inventory stockpiles to mitigate the effects of interruptions. Given the interconnected nature of global trade, disruption will have a ripple effect impacting economies worldwide.

3. Build resilience through collaboration.

You might consider the wisdom of fostering collaboration within supply chain networks. Establish open communication channels with strategic partners, suppliers, and logistics providers. The ability to share real-time information about potential slowdowns will allow you to coordinate strategies and mitigate risks. Developing and nurturing alternative sources or suppliers for materials enables your company to formulate backup plans for obtaining necessary materials. Companies can create a united front against supply chain disruptions by forming collaborative alliances. Sharing best practices, forecasts, insights, and resources will enhance the overall resiliency of the supply chain network. All things considered, a collaborative approach will enable a faster response to unforeseen events, minimizing the impact on your inventory and ensuring more agile, adaptable supply chain optimization.

3. Communicate with stakeholders.

Maintaining transparent communication and proactively sharing information about potential challenges, revised timelines, and contingency plans keeps stakeholders in the loop. Open communication builds trust, fosters collaboration, and contributes to a coordinated response to disruptions. Understanding customers’ and suppliers’ evolving needs and concerns enables companies to make strategic decisions, adjust inventory planning, and collectively navigate the impact of supply chain disruptions. Open lines of communication foster a sense of shared responsibility, reinforcing the responsiveness of the entire supply chain network.

4. Optimize inventory planning.

Predicting demand and forecasting the right amount of inventory can be challenging. Organizations must have visibility and a flexible contingency plan for inventory replenishment in the face of potential disruptions. Adapting inventory planning while safeguarding profits boils down to the visibility of inventory and measuring and monitoring supplier performance. A comprehensive view of inventory holdings will identify the products to focus on. For instance, identify items about to stock out due to extended lead times, then adjust the safety stock to accommodate the shortfall to meet demand. Visibility into supplier performance is crucial because it empowers demand planners to be proactive rather than reactive in the face of disruptions.

For example, when Netstock clients are alerted that their lead times will increase by two weeks, Netstock will strategically recommend all they should order in the next two weeks to minimize the ongoing impact of supply chain disruption.

5. Embrace an inventory management solution for future-ready supply chain optimization in Netstock and Dynamics 365.

An inventory management solution with AI capability is crucial for building a resilient and adaptive supply chain. Netstock delivers real-time visibility into inventory movement, enabling companies to optimize stock levels, forecast demand accurately, and proactively mitigate the effects of disruptions. Furthermore, the ability to forecast future inventory requirements will inform financial planning, including budgeting for 3PL and shipping costs. Adopting inventory management solutions empowers companies to make informed, data-driven decisions, ensuring a streamlined, optimized, future-ready supply chain that can effectively navigate challenges like disruptions in the Red Sea.

Enhance your Microsoft Dynamics ERP for Distribution

Unlock your inventory data with Netstock and Microsoft Dynamics. Netstock extracts and analyzes the data in your Microsoft Dynamics ERP, enabling you to place orders quicker, reduce excess, and minimize stock-outs.

By partnering with Netstock, you can be confident that your business is prepared to weather any storm. Take the first step towards supply chain resilience, and contact Netstock today!


See Netstock in action

Watch Demo

By Netstock,

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Show Buttons
Hide Buttons