Microsoft has introduced two key investments in the Dynamics 365 supply chain portfolio that are now in preview: 1. **FedEx–Microsoft cross-platform logistics-as-a-service** Announced in January 2022 and now in preview, this joint solution combines: - **FedEx data insights** (for transportation and logistics) with - **Dynamics 365 Intelligent Order Management order insights**. Together, they help brands: - Optimize transportation choices and routes. - Proactively manage delays and disruptions in transit. - Deliver customer orders on time in a more cost-effective way. A major focus is on **returns management**, including: - Hassle-free returns at **60,000+ FedEx drop-off locations**. - Convenient at-home pickups. - Printer-less QR return labels and no-box returns. These capabilities give brands **end-to-end visibility of customer returns** and allow them to keep customers updated in real time on return status and refund progress. 2. **Embedded Microsoft Teams in Dynamics 365 Intelligent Order Management** Starting May 15, 2022 (in preview), Teams collaboration is embedded directly into Dynamics 365 Intelligent Order Management. Hybrid supply chain teams can: - Chat, share screens, and post updates on issues in Teams without leaving Dynamics 365. - Collaborate around specific **sales orders, return orders, and fulfillment tracking data**. This integration supports a more **hyperconnected business**, where people can work together across functions and locations while staying in their core supply chain workflows.

Dynamics 365 focuses on three main initiatives to help organizations digitally transform their supply chains: enhancing visibility, improving collaboration for better decisions, and designing more sustainable, circular operations. **1. Enhancing supply chain visibility** A key capability is the **Inventory Visibility Add-in** for Dynamics 365 Supply Chain Management: - It is a **highly scalable microservice** that can pull inventory data from multiple third-party systems. - It creates a **single, global view of all inventory**, so all orders draw from one consolidated pool. - This improves inventory accuracy and helps maximize sales opportunities. - With **soft reservation**, organizations can avoid overselling and reduce missed sales due to stock inaccuracies. **Customer example – Coca-Cola Beverages Africa (CCBA)** CCBA, the largest Coca-Cola bottler in Africa and eighth largest globally by revenue, is implementing: - Dynamics 365 Supply Chain Management with Inventory Visibility, - Dynamics 365 Field Service, and - Dynamics 365 Customer Engagement. They plan to use Inventory Visibility to: - Provide near real-time parts availability for field service technicians. - Validate sales demand from Customer Engagement in near real time. - Serve as a core component of an advanced warehouse management solution. Ultimately, all orders and inventory journals will sync or be created directly in Dynamics 365 Supply Chain Management for financial and logistics processing. **2. Improving decision making with collaboration and data** A Forrester Consulting study (commissioned by Microsoft, March 2022) found: - Over **one-third of supply chain and operations leaders** are improving productivity through system and process changes. - Nearly **one-third of businesses** want to streamline processes across the customer journey. Dynamics 365 supports this by: - Unifying data across supply chain, finance, and operations. - Embedding collaboration (for example, Microsoft Teams) directly into supply chain workflows. - Enabling global teams, suppliers, and logistics partners to act quickly on real-time insights. **Customer example – Peet’s Coffee** Peet’s Coffee, a multi-channel coffee and tea brand, moved from a highly customized on-premises system and spreadsheets to: - Dynamics 365 Finance, - Dynamics 365 Supply Chain Management, - Power Platform, and - Azure cloud services. This gave them a **cloud-based architecture** that could scale with the business. When the pandemic hit: - Traditional channels (wholesale and coffee shops) dropped sharply. - Direct-to-consumer and grocery sales **doubled (2x)**. Peet’s rapidly adjusted its Dynamics 365 implementation to: - Support a new direct-to-consumer model. - Pivot capacity to meet surging grocery demand. This shows how a data-first, cloud-based supply chain platform can support fast decision making and business model shifts when demand patterns change suddenly.

Dynamics 365 helps organizations rethink sustainability by enabling circular economy flows and more efficient use of assets and materials. **1. Enabling circular economy and reverse supply chains** Circular economy (or circularity) focuses on what happens after a product’s useful life—repair, reuse, refurbishment, and recycling. Setting up these reverse flows can be complex without flexible supply chain tools. Dynamics 365 Supply Chain Management provides: - Configurable warehouse and logistics processes to model reverse flows. - Integration with other systems to track assets across their lifecycle. - Data to understand reuse, recycling, and waste patterns. **Microsoft Circular Center program example** Microsoft uses Dynamics 365 Supply Chain Management and Power Platform in its own **Circular Center** program, which manages reuse and recycling of servers and hardware in datacenters as part of the company’s 2030 goals to be **zero-waste and carbon negative**. Results so far include: - **83%** of critical parts are **reused**. - **17%** are **recycled**. - The model has contributed to a reduction of **145,000 metric tons CO₂ equivalent** in emissions. According to the General Manager of Cloud Supply Chain Sustainability, Dynamics 365 provided the warehouse management capabilities needed to: - Model all required product flows. - Connect to datacenters and other systems managing cloud assets. **2. Building a hyperconnected, sustainable supply chain** Beyond circularity, Dynamics 365 Supply Chain solutions: - Connect global teams, suppliers, and logistics partners for end-to-end visibility. - Unify siloed data sources in real time to detect risks and opportunities. - Help organizations predict and respond to disruptions while keeping sustainability goals in view. Organizations can start by **surrounding existing ERP and supply chain systems** with these capabilities rather than replacing everything at once. This approach lets them gradually reimagine operations for resilience and sustainability while leveraging current investments.