The Growing Complexity of Supplier Relationship Management (SRM)
Why Businesses Need a Modern SRM Solution
In today’s increasingly borderless business world, supplier engagement has emerged as a critical competitive differentiator. As global supply chains grow more complex, managing vendors efficiently has become more challenging—and more vital.
On top of that, these broad, geographically separated networks are susceptible to destabilization from geopolitical and weather events. Events over the last 5 years have shown that these disruptions are not going away any time soon. Yet, many companies continue to rely on processes that are ill-equipped to meet modern demands.
If your business is struggling with fragmented supplier data, inefficient communications channels, and lagging supply chain visibility, you’re not alone. That’s why we've merged our Dynamics 365 and supply chain knowledge to best implement Microsoft's new D365 Supplier Engagement feature, designed to help your business realize the full potential of your supplier networks.
Companies that have next-generation supply chain management capabilities are on average 23% more profitable. (Source)
Why your Business Needs a Next-Generation SRM Solution and Supplier Engagement Strategy
The rise of decentralized supply chains has fundamentally reshaped global business operations. As companies source materials and services from geographically dispersed suppliers to reduce costs, mitigate risks, and tap into specialized expertise, the complexity of managing these networks has grown exponentially.
While decentralization offers flexibility and resilience, it also introduces challenges, such as fragmented data and cumbersome supplier communication. The need for a more adaptable and integrated supply chain has reached a tipping point. Maximizing flexibility unlocks the true value of a global web of suppliers that can fulfill your customers’ needs on a whim.
This is where modern SRM and supplier engagement solutions come into play. Designed to address the complexities of today’s supply chain, these tools empower businesses to manage their global supplier networks seamlessly. By centralizing data, automating workflows, and offering real-time visibility into supplier performance, next-generation SRM solutions simplify supplier relationship management and enhance decision-making.
Another indispensable feature is a central supplier portal. This shifts the burden of updating product specs and maintaining certifications, incentivizing vendors to keep data up to date so they can secure sales. Best of all, this means you reap the benefits of acquiring new vendors without increasing your supplier management workload.
On top of that, integration with robust data management platforms is key. Your SRM solution should become an extension of ERPs like Microsoft Dynamics 365, allowing you to leverage existing data and giving you control to deeply embed vendors into your processes.
Legacy versus Modern SRM
Businesses without modern supplier engagement solutions face:
Companies with advanced supplier engagement platforms enjoy a strategic advantage from transparent, unified systems. They can:
It’s about fundamentally reinventing supply chain networks with... next-generation capabilities needed to continuously reach new levels of business performance. It’s what every company must do to simply stay in the game. (Source)
Why HSO Leads in Supplier Engagement
With our experience as industry leaders in supply chain solutions, HSO is a pioneer in supplier engagement and SRM. We've helped several customers establish and cultivate new and existing supplier relationships and generate opportunities through real-time data management and reporting.
Now, with the new Microsoft Supplier Engagement module of D365 Supply Chain Management, it's easier than ever to streamline the supplier lifecycle from onboarding through management and maintain critical supplier data such as product quality and relevant metrics.
Frequently Asked Questions on D365 Supplier Engagement
What is D365 Supplier Engagement?
D365 Supplier Engagement is a Microsoft Dynamics 365 application designed to help procurement professionals manage supplier relationships across all legal entities from a unified workspace. It supports strategic and tactical supplier management, including performance tracking, onboarding, and collaboration.
What are the key features of D365 Supplier Engagement?
Key features include supplier performance tracking, appointment scheduling, supplier reviews, and management of prospective suppliers. It also includes a supplier-facing portal for collaboration on RFQs, purchase orders, and invoicing.
When will D365 Supplier Engagement be available?
D365 Supplier Engagement is expected to enter public preview in October 2025. General availability timelines may vary based on Microsoft's release schedule.
How does D365 Supplier Engagement improve Supplier collaboration?
The solution enhances supplier collaboration through a dedicated portal built on Microsoft Power Pages. Suppliers can onboard, respond to RFQs, participate in managed bidding, and manage transactions like purchase orders and invoices.
How does D365 Supplier Engagement integrate with Dynamics 365?
D365 Supplier Engagement integrates seamlessly with Dynamics 365 Supply Chain Management and Dynamics 365 Finance, providing a unified experience for managing supplier relationships and leveraging existing ERP data.
Is D365 Supplier Engagement suitable for global organizations?
Yes, the application is designed for businesses with a global footprint, allowing procurement professionals to manage supplier relationships across multiple legal entities from a single workspace.
Discover how you can optimize your supply chain from top to bottom
Want to know more about how our HSO can help you reduce your data maintenance burden and allow you to grow your business effortlessly?
Global Supplier Relationship Management at your Fingertips with Dynamics 365 Supplier Engagement
Streamline your supplier lifecycle from onboarding to management with Microsoft's new D365 Supplier Engagement—a cutting-edge SRM solution tailored to meet today’s challenges and tomorrow’s demands.
Get in touch with us today for a 1:1 consultation with one of our Supplier Engagement experts.
