How Microsoft Copilot Helps with Supply Chain Traceability

In recent years, many organizations have made great strides in automating manual processes and high-touch data processes through digital transformation using ERP and CRM systems. However, this has largely reached a plateau. Microsoft’s 2023 survey on business trends found that 9 out of 10 workers hope to use AI to reduce these kinds of repetitive tasks from their jobs.

Supply chains have been a prime area for the application of AI, due to the vast amounts of critical business data and processes involved. Supply chains have evolved over the years, with emerging technologies and innovations that enable businesses to optimize their operations, reduce costs, and improve customer satisfaction. Yet, while statistical models have been used in processes such as inventory management, forecasting, production planning, and scheduling, there hasn’t been a significant shift in the industry beyond improving algorithms. Learning hasn’t been applied to make supply chain processes intelligent and self-regulating. The next generation of AI will transform the industry by making it more agile, efficient, and responsive to changes.

In March, 2023, Microsoft announced Microsoft Dynamics 365 Copilot, introducing the world’s first AI copilot for ERP and CRM applications. With the next generation of AI capabilities in Dynamics 365 Copilot, those high-touch, laborious processes can be transformed with interactive AI-powered assistance. This is especially important when it comes to supply chain traceability.

The Importance of Traceability

For years, manufacturers have leveraged track and trace capabilities to manage risk, improve operations and redefine how they connect with their consumers. Initiatives like “Farm to Fork,” “Grape to Glass” and “Bean to Brew” have traceability as an underpinning foundation. One of the significant reasons for traceability is consumer demand for more information about the products they purchase, including where they come from, how they were produced, and their environmental impact.

Another motivation for implementing traceability and transparency systems in compliance with regulatory requirements—for example, in many industries, such as food safety, pharmaceuticals, and automotive manufacturing, regulatory agencies require companies to have a system that can accurately track every step the production process.

Furthermore, traceability and transparency systems provide numerous benefits like risk management by identifying potential problems early in the supply chain, which could help avoid costly recalls or lawsuits. It also enables better quality control by allowing companies to pinpoint areas where product quality or efficiency improvements are needed.

Moreover, these systems can foster trust between trading partners by creating transparency. By providing stakeholders with accurate and up-to-date information, companies can build trust and credibility with their customers, increasing sales and market share—a shared understanding of operations across the supply chain. In addition, transparency helps build a brand reputation as customers view brands that prioritize ethical practices favorably.

Most organizations already have access to some level of traceability, through the various partners in the sourcing and distribution chain, for example freight vendors. However, this information is often obtained through multiple siloed systems which do not communicate with each other, meaning that data is inconsistent and difficult to use.

Today, the most up-to-date traceability solutions enable manufacturers to identify and capture data for key supply chain metrics that help build, measure, and improve performance from manufacturing to marketplace. This proven technology exists for full end-to-end supply chain traceability in the form of Microsoft Dynamics 365 Supply Chain Management. Microsoft Dynamics 365 Supply Chain Management provides in-depth tracing options that provide information about customers impacted by a particular item and related sales orders. Companies can easily identify which items have been shipped and which haven’t, making it invaluable for recall scenarios.

How Copilot Can Help with Supply Chain Traceability

When paired with Copilot, Microsoft Dynamics 365 Supply Chain Management becomes even more powerful. Copilot makes it possible for users to efficiently handle large amounts of changes to purchase orders, assess the impact and risk of those changes, and optimize sourcing decisions. Using a conversational chat experience, supply chain managers can ask Copilot to trace products, discover resolutions, and summarize draft responses to suppliers with the right tone—across all communication channels. With a custom and contextual reply, supply chain managers can save time and collaborate with impacted suppliers to quickly identify new product ETAs and re-route purchase orders based on an identified disruption or product recall.

Imagine you are a food or drug manufacturer, and you need to recall a product quickly. Without a second to spare, you can ask Copilot to track their products’ journey from the point of origin to the destination, and the system will pull up a list and even draft an email for you to send to suppliers, so they are informed of the risk. Products in route can be cancelled and returned to you. And Copilot continues to evolve over time based on your prompts and changes to the emails, and more.

Let Velosio Be Your Copilot

Velosio is here to help you navigate Copilot, explore its capabilities, and maximize its value to your organization. We’re leveraging our elite status with Microsoft and deep AI and supply chain expertise to stay out in front of the technology and help you better understand its capabilities and how to incorporate them into your business. Our experienced consultants can answer your questions, provide in-depth demonstrations, and help you discover how this powerful tool can transform your business.

Don’t miss this opportunity to take your organization to the next level. Contact Velosio today to learn more about Microsoft Copilot and our other services.