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Dynamics AX High Tech for Outsourced Virtual Supply Chain
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Why are more companies shifting to an outsourcing strategy?
In most instances, companies that outsource achieve a greater return on invested capital; greater return on equity, and greater return on assets than companies that do not outsource. Organizations that use outsourcing services also reach break even (BE) sooner, where profits begin, against less revenues and lower volume.
The trend toward using outsourcing as a strategy has restructured the way companies compete on the global playing field. Whether a company chooses to outsource some of its non-core manufacturing, or it out sources its entire supply chain, outsourcing allows companies to greatly reduce their fixed costs (FC) over those who choose not to, resulting in an overall lower total cost (TC) of doing business.
With outsourcing, however comes the challenge of reduced visibility and control of the operations of the supply chain. Further, proponents complain about having to deal with unreliable data from subcontractors, and inflated order data from customers.
Traditional tools have left silos of data between Sales, Finance, and Operations, forcing decision makers to pull information from multiple data sources into an excel model, making the tasks of Forecasting, Planning, and Budgeting, challenging and inefficient.
Microsoft Dynamics AX High Tech specifically addresses the needs of companies that outsource business processes as well as those operating in a virtual manufacturing environment. The most valuable portion of this solution is the electronic subcontractor integration, and a subcontractor workbench that provides process visibility and control across the entire outsourced manufacturing supply chain. - Optimizes planning and demand forecasting
- Improves financial control
- Significantly reduces shortages or excess inventories
- Removes delays and reduces expedition fees
- Enhances employee productivity and effectiveness
- Improves supplier accountability and quality
- Reduces cycle times
- Mitigate risks and deal effectively with change
- Meet ever-growing customer and regulatory demands
- Extremely configurable and web-based
- Analyze production information and get to the root cause of issues in real-time
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