Chapter 1

Copilot in Supply Chain Management for wholesale distribution and retail sector

Introduction

Although statistical AI models have long been used in areas such as inventory Management, they have not yet led to significant changes in retail operations. They were limited to improving algorithms and automating routine tasks. However, the new generation of AI finally promises fundamental change.

As part of Dynamics 365 Supply Chain Management, Copilot can optimize highly complex and labour-intensive processes.

You can:

  • Combining data and AI to identify and mitigate risks in the supply chain,
  • improve the accuracy of demand forecasting,
  • Support autonomous and self-regulated supply chains
    and automate processes intelligently.

There are also functions to optimize inventory management and shorten warehouse cycle times. In practical application, this results in innovative use cases that fundamentally change supply chain management.

Use case 1: Automated retail and wholesale supply chain analysis.

Challenges in trading

Managing autonomous, self-regulated supply chains is one of the biggest challenges. The multitude of data sources, cross-functional units and complex processes often make it difficult for companies to harmonize them and make informed decisions.

Solutions through Microsoft Copilot

The complexity of supply chains in the retail industry spans various activities, actors and global influencing factors - from purchasing to delivery. AI-based solutions like Microsoft Copilot can help overcome these challenges. You create multi-level network models representing different, independent systems along the value chain.

Business benefit

Implementing AI-powered assistants like Microsoft Copilot enables early identification of patterns and anomalies in the supply chain. This allows companies to identify risks promptly and take preventive measures such as adjusting order quantities or initiating quality controls to ensure optimal supply chain efficiency and increase customer satisfaction.

The advantages at a glance:

  • Increasing sales through optimized inventory levels
  • Optimization of storage costs through improved ordering processes
  • Improving customer satisfaction through reliable deliveries
  • Continuous improvement of forecasts and processes through machine learning
  • Increasing company resilience through proactive risk management
  • Strengthening your competitive position by reacting quickly to market changes

Read more here

Practical example

The company "MyTrade" specializes in the production of high-tech components. The supply chain is complex, global and dynamic. One morning, through Copilot for Dynamics 365 Supply Chain Management, MyTrade's supply chain manager discovers a potential delay at a critical supplier in Asia caused by unexpected political unrest. Instead of rushing, the manager uses Microsoft Copilot to quickly analyze alternative suppliers and assess their impact on costs and delivery times.

Within a short period of time, Copilot simulated several scenarios and recommended placing an order with a shorter delivery time with a reliable partner in Europe to avoid interruptions. The delivery date will be changed for orders already placed with suppliers in Asia.

Thanks to Copilot, "MyTrade" can prevent potential production downtimes and continue to operate smoothly without compromising customer satisfaction.

Copilot in Microsoft Supply Chain Center

Would you like to learn more about the benefits of Microsoft Copilot in Wholesale Distribution and Retail industry?

Our experts will support you on your path to AI-infused retail. We are looking forward to connecting!

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